Roku Q3 Earnings Highlights: Revenue Beat, EPS Beat, Streaming Households Hit 85.5 Million

Core Insights - Roku reported third-quarter revenue of $1.06 billion, a 16% increase year-over-year, surpassing the consensus estimate of $1.02 billion, marking the first quarter with revenue exceeding $1 billion [1] - The company experienced a loss of 6 cents per share, which was better than the expected loss of 32 cents per share, and reported its fifth consecutive quarter of positive adjusted EBITDA and free cash flow [2] Revenue Breakdown - Platform revenue reached $908.2 million, up 15% year-over-year, while devices revenue was $154 million, reflecting a 23% increase year-over-year [2] - The company is guiding for fourth-quarter revenue of $1.14 billion, also a 16% year-over-year increase, with platform revenue expected to grow 16% and devices revenue projected to rise 25% [5] User Engagement - Roku reported 85.5 million streaming households, an increase of 2 million from the previous quarter, with total hours streamed at 32 billion, up 5.3 billion hours year-over-year [3] - The average revenue per user remained flat at $41.10 year-over-year, while average streaming hours per household per day increased to 4.1 hours from 3.9 hours [3] Market Position and Future Plans - Roku maintained its position as the No. 1 TV operating system in the U.S., Mexico, and Canada, with its Roku Channel being the No. 3 app on the platform, seeing an 80% increase in streaming hours year-over-year [4] - The company aims to grow its streaming households to 100 million within the next 12 to 18 months [4] Stock Performance - Roku's stock fell 7.4% to $71.75 in after-hours trading, within a 52-week trading range of $48.33 to $108.40 [6]