Shares of Roku Inc. (ROKU - Get Report) were falling 18.6% to $47.98 in trading on Thursday, Nov. 8, despite stronger-than-expected top- and bottom-line results for the third quarter from the streaming video platform.
Roku reported losing 9 cents per share in the quarter on revenue of $173.4 million. Analysts expected the company to report a quarterly loss of 12 cents per share on revenue of $169.08 million.
Roku said it expects to generate between $255 million and $265 million in revenue in the current quarter, vs. analysts' estimates of $258.3 million expectations. But for fourth-quarter earnings, Roku said it expects to earn in a range from a loss of $4 million to a profit of $3 million, versus analyst estimates of a profit of $7 million, according to FactSet.
Roku reported 23.8 million active accounts in the quarter, a 43% year-over-year increase, as it faces increased competition from tech rivals such as Alphabet Inc.'s (GOOGL - Get Report) Chromecast, Apple Inc.'s (AAPL - Get Report) Apple TV and Amazon.com Inc.'s (AMZN - Get Report) Fire TV.
Roku made it a point to significantly upgrade the attractiveness of its advertising platform by launching Audience Marketplace earlier this year. The company believes it offers advertisers a unique set of data powered by cable cord cutters.
For the quarter, platform revenue rose 74% year over year to $100.1 million while the average revenue generated per user rose 37% to $17.34.