Roku Q3 Revenue, Streaming Hours Spike Amid Ongoing Pandemic
Amid the ongoing pandemic, Roku’s third-quarter financial results topped Wall Street’s estimates Thursday afternoon as streaming hours spiked for another consecutive quarter, sending the stock up over 4% in after-hours trading, on top of a 4.4% gain during the regular trading session.
Active accounts popped by 43% to 46 million, according to the company, while streaming hours rose 54% to 14.8 billion.
Roku reported $451.7 million in Q3 revenue, marking an 73% year-over-year increase during the quarter, better than the $367.8 million in revenue that analysts had expected for the September-ended quarter. Diluted earnings of 9 cents a share beat forecasts for a loss of 40 cents a share.
“Monetized video ad impressions were up almost 90% year-over-year in Q3, up sharply vs roughly 50% year-over-year in Q2,” said Scott Rosenberg, senior vice president of Roku’s platform business. “Not only are existing brands growing spend but many new advertisers are shifting into streaming as more and more cord-cutting consumers become unreachable to brands on traditional linear television. First-time advertisers more than doubled year-over-year in Q3 and once brands become accustomed to the superior performance of streaming they tend to stay with Roku. Ninety-seven percent of brands that spent $1 million or more with Roku in Q3 2019 continued to invest in Q3 2020.”
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