Shares of Roku (ROKU) - Get Roku, Inc. Class A Report gained Wednesday after hours after the content streaming platform saw revenue grow 42% year over year and top analyst estimates for the second quarter.
The Los Gatos, California-based company reported second quarter revenue of $356.1 million with an adjusted net loss of 35 cents per share. Analysts were expecting the company to report revenue of $312 million with an adjusted net loss of 50 cents per share.
Roku initially rose as much as 5% after hours, but at last check, shares were up 0.8% to $166.85.
Average revenue per user rose 18% year over year to $24.92 with the number of active accounts rising 41% to 43 million.
Roku said that demand for its streaming devices increased following the start of shelter-at-home orders in mid-March as the coronavirus pandemic spread.
For the third quarter, the company declined to provide guidance due to uncertainty surrounding the virus, but analysts are expecting revenue of $341.76 million with a net loss of 49 cents per share.
The company also announced that Steve Louden will be staying on as CFO after the company initially announced in December that he would be relocating and leaving the company.
Roku also said that while it does not expect television ad spend to return until "well into 2021," it remains confident in its ability to grow its ad business, though at a slower pace than was expected prior to the pandemic.
This growth will be a result of television ad spend and viewers migrating to streaming.
Roku finished Wednesday's session down 0.61% to $165.42. The stock is trading near its all-time closing high of $169.86.