Roku reported a first quarter net loss of 45 cents per share on revenue of $320.76 million. Analysts were expecting Roku to report a net loss of 45 cents per share on revenue of $306.72 million.
The company reported a 28% increase in its key average revenue per user metric to $24.35 from $19.06 per user a year ago. Streaming hours came in lower than expectations, however, at 13.2 billion hours versus expectations for 13.6 billion hours.
Roku dropped 5.4% after hours to $130.12 after ending the regular day's trading session up 7.8%.
"Overall advertising expenditure in the U.S. is likely to fall in 2020, but we expect our ad revenues to still grow substantially year-over-year; Roku is well positioned to be an increasingly valuable partner as brands decide how to invest marketing resources most effectively," said CEO Anthony Wood.
Roku also noted in its shareholder letter that “while our advertising business has seen higher than normal cancellations as overall advertising budgets have declined, this has been partially offset by ad-spend that has moved to Roku from traditional TV budgets."
The company did report having supply chain and retail disruptions earlier in the year due to factory closures tied to the Chinese New Year, but since then the company says it has ramped up production and is currently operating "at close to normal capacity."
The television dongle allows users to aggregate both their free and subscription streaming services in one place. It is TiVo's first piece of hardware that does not have anything to do with its DVR service.
The TiVo Stream 4K uses Google's Android TV system to access thousands of apps like Netflix, Amazon Prime Video and YouTube with 4K resolution and Dolby Atmos sound.