After Roku (ROKU) - Get Report beat earnings and revenue expectations and issued questionable guidance the company's chief financial officer Steve Louden spoke to TheStreet and issued some encouraging commentary.
After an impressive run for 2019, the stock fell as much as 16% Thursday. It's now down 13.01% to $122.70 a share on the day.
The company reported a net loss of 22 cents per share compared with 9 cents in the year-earlier quarter. analysts were looking for a loss of 28 cents a share.
Revenue was $260.9 million rising 50% year-over-year and beating analysts estimates of $256.4 million.
After the earnings, Louden told TheStreet's Tech Columnist Tiernan Ray that efforts from large tech players like Apple (AAPL) - Get Report , Disney (DIS) - Get Report and Netflix (NFLX) - Get Report to boost their streaming services can only be positive for Roku. But there's a counter-argument.
First, Nelson Wang, TheStreet's tech editor breaks down the quarter:
"It was a decent beat, but the real concern seemed to be with guidance, which was in line but incorporated some assumptions about what they were going to get from Apple Plus and Disney Plus and I think people were expecting a higher number based on that," Wang said. "Instead they just got in line estimates."
Here's what Ray said about the optimistic comments he heard from Louden:
"I asked him if it could be the case that some Apple consumers might take their free offer of a year of Apple TV plus on their new Apple device and not go to Roku at all. In other words, people might bypass Roku and just have an Apple device with an Apple subscription. And he responded by saying there are a lot of ways that we make money off of all of these streaming players either directly or indirectly. Indirectly, when they bring content to our platform, people go and watch other things. The response was 'we'll be okay because on average we'll get more viewership and expanded engagement from all of these platforms.'"
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