Roku Inc. (ROKU) shares hit a record high Thursday after the device maker said second quarter sales topped analysts' forecasts even as it challenges giants such as Apple (APPL) , Amazon (AMZN) and Google (GOOGL) in the television streaming market.
Roku added 22 million active users over the three months ending in June, the company said, with revenues for each of its total members rising 48% from the same period last year to $16.60 each, taking platform sales to just over $90 million. The Los Gatos, Calif.-based group reported profits of $526 million, break-even on a per share basis but well ahead of the consensus forecast of a 15 cent loss. Roku, which makes a device that connects users to content providers such as Netflix Inc. (NFLX) and Hulu, said streaming time rose 57% over the period to 5.5 billion hours.
"Our goal is to keep expanding," Roku CEO Anthony Wood told investors on a conference call late Wednesday. "So one way we're going to do that is expanding our platform, so we announced for example, our Web launch today."
"We plan to expand to more geographical regions. So for example, we recently announced we're entering Canada," he added. "And then we plan to keep adding more content categories, particularly longform content. So for example, we added news recently. So we're making good progress on that strategy."
Roku Chief Financial Officer Steve Louden told TheStreet's Brian Sozzi Wednesday that the phenomenon known as cord-cutting plus more unique content continues to power the company's business.