Roku beamed its investors some engaging first quarter financials.
The streaming giant's (ROKU) shares climbed more than 4% pre-market Thursday following the company's better than expected first quarter earnings. Roku Chief Financial Officer Steve Louden tells TheStreet the phenomenon known as cord-cutting plus more unique content continues to power the company's business.
One dizzying stat: the company saw 2.8 hours of streaming hours per active account during the quarter. That's a whole lot of former traditional TV watching time.
"This is a secular transformation from legacy TV to streaming, and it's still early days -- but it just goes to show the overall scope of the trend," Louden says. "Not only do we believe that all TV will be streamed, [the trends are such] that all TV advertising will be streamed."
Memo sent to the shorts who have bet against (stock down 30% year to date) Roku this year on excessive valuation fears.
The Numbers You Need to Know
Roku Beats Bottom-Line Estimates
Roku lost $0.07 a share in the quarter, better than analysts estimates for a loss of $0.16 a share.
Revenue Also Tops Expectations
Roku reported first-quarter revenue of $136.6 million, a 36% year over year increase, versus Wall Street estimates of $128 million.
Roku Raises Full Year Guidance
The company raised its full-year earnings before interest, taxes, depreciation and amortization (EBITDA) guidance to at, or near, break-even.
Average Revenue Per User Jumped
Roku reported that the average revenue per user (ARPU) was up 50% year over year to $15.07.
Streaming Hours Surge
Roku streamed a mind-boggling 5.1 billion hours of content in the quarter, up 50% from the prior year.