Roku is expecting the coronavirus pandemic to boost its results for the first quarter, the company announced on Monday.
In a press release, Roku previewed its first quarter revenue, viewing and account metrics, and withdrew its 2020 guidance "due to economic uncertainties arising from the COVID-19 pandemic." Shares of Roku (ROKU) - Get Report were up 9% in after-hours trading on Monday after the announcement.
For the first quarter, Roku is expecting total net revenue of between $307 million and $317 million, compared to an analyst consensus of $300 million. It also reported 39.8 million active accounts and total streaming hours of 13.2 billion, representing a 49% year-over-year increase.
The company attributed the growth in new accounts and increased viewing to shelter in place orders.
“Consumers are turning to Roku now more than ever. As the leading TV streaming platform in the U.S., Roku is proud to provide easy access to live news, free movies and TV, great paid content, and helpful programming for individuals and families who are sheltering at home,” said Roku CEO Steve Louden in a statement.
Louden also said that while the company expects some marketers to "pause or reduce investments in the near term," the company is working with advertisers to update planning to reflect new viewing patterns affected by social distancing.
Roku is one of several media streaming services that have seen a spike in viewership or downloads throughout the coronavirus pandemic.
The company plans to report its full first quarter results on May 7, 2020 after the close of trading