Roku Jumps on Surprise Earnings, Upside Revenue Guidance

Roku reported its third consecutive quarterly profit in a quarter when analysts were expecting a loss of 13 cents per share.
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Shares of streaming platform Roku  (ROKU) - Get Report were rising Thursday as the company reported first-quarter earnings when analysts expected a loss.

The San Jose-based company reported a first quarter profit of 54 cents per share on revenue that rose 79% year-over-year to $574.2 million. 

Analysts were expecting a loss of 13 cents per share on revenue of $491.6 million. The company reported revenue of $321 million a year ago. 

Roku shares were up 7.1% to $303.68 on Thursday after hours. They closed the regular trading session down 6.6%.

"We are pleased with our start to 2021 and believe the broad secular trends combined with the investments we are making will drive long term growth. Different rates of recovery worldwide from COVID-19, combined with persistent supply chain constraints, make it difficult to predict an economic return to normalcy," said CEO Anthony Wood. 

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The company said it added 2.4 million active accounts in the quarter to reach 53.6 million. Analysts polled by FactSet were expecting the company to report 54.2 million active accounts.

For the second quarter, the company expects total net revenue of $615 million vs. analyst expectations of $550 million, according to FactSet.

Read More: Roku Withdraws YouTube TV From Its Lineup for New Users

"Given the significant long-term opportunity ahead of us, we are investing aggressively. This increase in OPEX will begin to lap the actions we undertook to slow OPEX spending in 2020 to manage against pandemic-related uncertainties," said  Wood. 

The company did say that it expects stronger revenue growth in the first half of 2021 than the second half due to tougher comps in the second half.