Core Insights - Roku's stock has significantly declined, starting 2024 at an 81% discount from its all-time highs in 2021 and dropping another 45% year to date [1][2] - Despite the stock decline, Roku's business shows strong growth potential, with an increase in active customers and revenue [1][2] Financial Performance - Roku added 2 million streaming households in Q2, reaching a total of 83.6 million active customers [1] - Platform revenue grew 11% year over year to $824 million, while device sales surged 39% to $144 million [1] - The company reported a $71 million operating loss, an improvement from a $126 million loss in the same period last year [1] - Cash from operations was $332 million, representing 34% of revenue, compared to just $15 million in Q2 2023 [1] Market Position and Competition - The narrative that Roku's ad business is struggling or that it faces overwhelming competition is being challenged, as the company shows solid growth in both services and hardware [3][4] - Competitors like Amazon and Alphabet are present, but Roku continues to gain traction in the market [3][4] Investment Outlook - The current market valuation of Roku does not reflect its business growth and product popularity, suggesting it remains an attractive investment opportunity [5][6] - The company is expanding internationally and experiencing increased sales of its devices, indicating a positive trajectory [7] - There is optimism that Roku's stock will eventually recover as the market recognizes its underlying business health [8]

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Core Insights - Roku reported a narrower loss of 24 cents per share for Q2 2024, compared to a loss of 76 cents per share in the same quarter last year, and better than the Zacks Consensus Estimate of a loss of 45 cents [1] - Revenues increased by 14.3% year-over-year to $968.2 million, surpassing the consensus estimate by 3.52%, driven by growth in streaming households and hours [2] Revenue and User Growth - Streaming households reached 83.6 million, with a net increase of 2 million from Q1 2024, and the Roku Home Screen engages over 120 million U.S. households daily [3] - The Roku operating system maintained its position as the 1 selling TV OS in the U.S., Mexico, and Canada, with users streaming a record 30.1 billion hours in Q2, up 5 billion hours from the previous quarter [4] Platform and Device Revenue - Platform revenues, accounting for 85.1% of total revenues, rose 10.8% year-over-year to $824.3 million, while device revenues increased by 39.2% to $143.8 million [6] Operating Performance - Gross margin contracted by 80 basis points year-over-year to 43.9%, while operating expenses decreased by 1.6% to $495.9 million, representing 51.2% of total revenues [7] - Adjusted EBITDA improved to $43.6 million from a negative $17.8 million in the prior year, marking the fourth consecutive quarter of positive adjusted EBITDA [8] Financial Position - Operating loss was reduced to $71.2 million from $126 million in the year-ago quarter, with cash and cash equivalents at $2.05 billion as of June 30, 2024, and no long-term debt [9] Future Guidance - For Q3 2024, Roku anticipates total net revenues of $1.01 billion, gross profit of approximately $440 million, and adjusted EBITDA of $45 million [10]

The smart-TV pioneer is doing a lot of things right for a stock that is trading sharply lower in 2024. With Roku (ROKU -4.95%) shares trading sharply lower this year, it wasn't going to take a lot to get the stock moving after the company announced its second-quarter results following the market close on Thursday. Thankfully for investors, most of the newsy nuggets coming out of the financial update were upbeat. There was more to like than not like in the critical quarterly performance. Let's dig into the r ...

Roku (ROKU) came out with a quarterly loss of $0.24 per share versus the Zacks Consensus Estimate of a loss of $0.45. This compares to loss of $0.76 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 46.67%. A quarter ago, it was expected that this video streaming company would post a loss of $0.64 per share when it actually produced a loss of $0.35, delivering a surprise of 45.31%. Over the last four quarters, the company has s ...

In this article TSLA ROKU WASHINGTON — The White House announced a massive, multinational prisoner swap Thursday between the United States, Russia and other nations. As part of the historic deal, the Russian government released highprofile Americans held in captivity there, including Wall Street Journal reporter Evan Gershkovich, who had been in a Russian prison for more than a year. Also included in the trade were a number of Russians who had been arrested for various crimes and held in prisons in the U.S. ...

Core Viewpoint - Roku was a significant beneficiary during the early COVID-19 pandemic, with its stock reaching nearly $500 at its peak, but it has since declined by approximately 88% from those highs, raising questions among investors about its future performance [1]. Company Summary - Roku's stock performance peaked during the pandemic, indicating strong demand for streaming services during that period [1]. - The current stock price reflects a substantial decline, leading to investor uncertainty regarding the company's ability to recover to previous highs [1].

Group 1 - Analysts expect 'Net Revenue- Platform' to be $807.84 million, indicating an increase of +8.6% year over year [1] - Roku is projected to report a quarterly loss of $0.45 per share, which represents a 40.8% increase year over year [2] - Revenue projections for Roku are set at $935.29 million, reflecting a 10.4% increase from the same quarter last year [2] Group 2 - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' assessments [3] - Revisions to earnings estimates are crucial for predicting investor actions regarding the stock, as there is a strong correlation between earnings estimate trends and short-term price performance [4] Group 3 - Analysts estimate 'Net Revenue- Devices' at $127.44 million, suggesting a year-over-year change of +23.3% [6] - The estimated 'Active Accounts' are projected to reach 82.99 million, up from 73.5 million in the same quarter last year [6] - The estimated 'ARPU' is $40.62, slightly down from $40.67 a year ago [6] Group 4 - 'Streaming Hours' are projected to reach 30.11 billion, compared to 25.1 billion in the same quarter last year [7] - Analysts predict 'Gross Profit- Platform' will be $428.08 million, up from $395.83 million in the same quarter last year [7] Group 5 - Roku shares have decreased by -1.5% in the past month, while the Zacks S&P 500 composite has moved -0.2% [8] - Roku holds a Zacks Rank 3 (Hold), indicating it is expected to closely follow overall market performance in the near term [8]

Whatever happens next week in the earnings report, the stock is likely to swing big one way or the other. Roku can't catch a break Weakness in the streaming sector weighed on Roku. Roku stock has been eating dirt since the pandemic's height. It ramped up spending at the wrong time and is still trying to rebalance its cost structure and show investors it can be sustainably profitable. At the same time, a report from Comcast showed that its Peacock streaming service is losing subscribers, with total subs down ...

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [1][2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [2][5] - Proactive has a presence in key finance and investing hubs with bureaus and studios located in major cities such as London, New York, Toronto, Vancouver, Sydney, and Perth [4] Group 2 - The company employs human content creators with decades of expertise and utilizes technology to enhance workflows [3][6] - Proactive adopts automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [7]