Roku Inc. topped expectations with its latest results, but shares of the media-streaming company tumbled 15% in Thursday’s extended session.
The company reported a fourth-quarter net loss of $78 million, or 55 cents a share, compared with a loss of $237 million, or $1.70 a share, in the year-earlier period. Roku
ROKU,
matched the consensus view on a per-share basis.
After adjustments, Roku logged earnings before interest, taxes, depreciation and amortization (Ebitda) of $47.7 million, ahead of the FactSet consensus view, which was for $18 million.
Revenue increased to $984 million from $867 million a year ago, while analysts had been looking for $968 million. The company generated about $829 million in revenue from its platform business, which includes advertising and licensing, as well as about $156 million from its player business, which includes its devices.
For the current quarter, Roku models $850 million in revenue and projects it will break even on the basis of adjusted Ebitda. Analysts were looking for $829 million in revenue along with an $11 million adjusted Ebitda loss.
“We plan to increase revenue and free cash flow and achieve profitability over time,” executives said in their shareholder letter. “At the same time, we remain mindful of near-term challenges in the macro environment and an uneven ad-market recovery.”
The company expects to deliver positive adjusted Ebitda for 2024.
