Roku Q2 2021 earnings


Roku shares fell greater than 8% in after-hours buying and selling Wednesday after reporting second-quarter earnings that beat expectations however confirmed a slowdown in streaming TV viewing since final quarter and tight {hardware} margins.

Here is how the corporate did in comparison with Refinitiv consensus estimates:

  • EPS: $0.52 per share vs. estimate of $0.13 per share
  • Income: $645 million vs. estimate of $618 million

The corporate mentioned streaming hours decreased by 1 billion hours from the primary quarter of 2021, totaling 17.4 billion within the second quarter. The corporate cited customers searching for extra out-of-home leisure actions like eating and journey within the second quarter due to pent-up demand and the loosening of Covid-19 restrictions. However Roku’s streaming hours have been nonetheless up 19% globally year-over-year, the corporate mentioned.

In its shareholder letter, it additionally mentioned “tight element provide situations and delivery constraints” continued growing prices quicker than anticipated.

“In Q2, we insulated customers from elevated prices for Roku gamers, which resulted in Participant gross margin turning detrimental within the quarter,” the letter says.

The corporate’s complete internet income grew 81% year-over-year within the quarter to $645 million. In the meantime, it mentioned its platform income exceeded half a billion {dollars} within the quarter for the primary time within the phase’s historical past, reaching $532 million, pushed by content material distribution and promoting.

Roku additionally remarked on the promoting upfronts, the place advertisers commit elements of their annual finances to TV promoting. The corporate mentioned it earned double the greenback dedication in comparison with final yr, and mentioned 42% of all advertisers who dedicated to Roku throughout upfronts didn’t take part final yr.



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