Roku’s stock soared over 10% on Friday after the company reported earnings that exceeded Wall Street expectations. CEO Anthony Wood highlighted significant growth in streaming households and revenue, reinforcing Roku’s dominance in the streaming industry.
Strong Earnings Drive Stock Surge
Roku reported a 24-cent loss per share, significantly better than the 40-cent loss analysts expected. The company’s revenue jumped 22% year-over-year, reaching $1.2 billion, surpassing the expected $1.14 billion. Additionally, net losses shrank to $35.5 million, a notable improvement from $78.3 million in the same period last year.
This performance pushed Roku’s stock price to a new 52-week high, reflecting investor confidence in the company’s financial recovery and growth trajectory.
Expanding User Base Fuels Growth
Roku added over four million new streaming households in the last quarter, bringing its total to 89.8 million, a 12% year-over-year increase. CEO Anthony Wood emphasized the company’s dominance in the streaming industry, stating, “We’re the No. 1 streaming operating system in the country and in most of the Americas by a wide margin.”
Wood also noted that over half of U.S. broadband households now use Roku, and the company is on track to surpass 100 million streaming households in the next year.
Advertising and Platform Strategy Boost Revenue
Roku’s growth strategy centers on enhancing ad demand through strategic third-party integrations. Wood reinforced this focus, stating, “Advertising is a big part of our business, and so a big focus for us in our strategy is to continue to grow demand by working with third-party partners.”
Streaming hours increased 18% year-over-year, and Roku’s home screen promotions have further strengthened its user engagement. However, the company announced it will stop reporting total streaming households starting next quarter to concentrate on revenue and profitability metrics.
Strong Outlook for 2025
Looking ahead, Roku forecasts $1 billion in net revenue and $450 million in gross profit for the first quarter of 2025. These projections signal continued financial improvement and strategic growth in the highly competitive streaming industry.
Roku’s impressive performance has reaffirmed its leadership in streaming and advertising, setting a strong foundation for future success.