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Roku Stock Drops After Missing Active-User Mark

Roku topped earnings and revenue estimates but missed on active users.
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Shares of Roku (ROKU) - Get Free Report dropped after the media-streaming company topped second-quarter earnings and revenue estimates but fell short on active accounts and streaming hours.  

The San Jose, Calif., company swung to profit of 52 cents a share from a loss of 35 cents in the year-earlier period. Shares outstanding rose 16% to 142.1 million.

Revenue rose 81% to $645.1 million. 

Analysts surveyed by FactSet were expecting the company to report earnings of 13 cents a share on revenue of $618.8 million. 

Roku reported 55.1 million active accounts, a 28% year over year increase. But Wall Street's analysts were looking for 55.7 million active users.

"Player unit sales in second-quarter 2021 were relatively flat year-over-year, following the demand spike in second-quarter 2020," Chief Executive Anthony Wood said in a statement.

Roku shares at last check were off 8.1% at $386.19. They'd finished regular Wednesday trading up 0.6% at $420.32.

For the third quarter, the company expects total revenue between $675 million and $685 million, the midpoint of which would be a 51% increase from a year earlier. 

Analysts are expecting the company to report revenue of $648.6 million. 

In May, Roku made a bid to increase user participation on its streaming service with the debut of "Roku Originals" on the Roku Channel. 

The company launched 30 exclusive titles, including scripted series, documentaries and reality television programming. 

Streaming hours declined to 17.4 billion, down from 18.4 billion in the previous quarter. Analysts had been expecting 19.4 billion hours streamed. 

Platform revenue doubled (up 117%) year over year to $532 million while average revenue per user jumped to $36.46, a 46% increase from a year earlier.