Roku Inc. (ROKU - Get Report) shares closed higher over 54% on Thursday, Nov. 9, after the home-streaming service blasted analysts' estimates in its first quarterly earnings report with a narrower-than-expected loss for one of the year's most-successful initial public offerings.
Roku, which makes both hardware and software to support steaming services from Netflix (NFLX - Get Report) , Amazon (AMZN - Get Report) and Disney (DIS - Get Report) , said revenue for the three months ended in September rose 40% to $124.8 million, topping Street forecasts of $110 million. And while the company posted a loss of 10 cents per share, the tally was much softer than the 28 cents forecast by analysts.
Founder and CEO Anthony Wood called the quarter a "milestone" in the company's young history.
"We priced an initial public offering, refreshed our entire line of players, released Roku OS 8 with exciting new features for Roku TV, expanded reach significantly and continued to innovate and monetize our platform," he said. "We entered 2017 with great momentum, and with solid execution throughout the year, we are seeing that momentum continue."
Investors were also cheered by a move away from hardware-related revenues to one that is increasingly relying on a portion of subscription fees paid by customers that stream through the equipment it makes. That revenue rose $57.5 million, Roku said, more than double the same period last year.
Shares of the streaming service skyrocketed 68% on its first day of trading after it was priced for its IPO at $14 a share as investors ignored competitive forces such as Alphabet's (GOOGL - Get Report) Chromecast and Amazon's Fire stick.
TheStreet's Brian Sozzi talked with Roku's CFO after its recent IPO.
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