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Stocks of Roku Inc. (ROKU:US, NASDAQ:ROKU) climbed 9 per cent after the market close on Thursday, May 6, after it the US-based content streaming firm announced robust results for its first quarter and forecasted a better outlook for the remaining of 2021.
Earlier on Thursday, the stock plunged as much as 6.6 per cent before the closing bell with Wall Street analysts estimating revenue loss in the first quarter of 2021.
However, the company registered a profit of US$ 76.3 million or 54 cents per share in Q1 2021, compared to a loss of US$ 54.6 million a year ago.
The company posted a top line of US$ 574.2 million for the quarter against US$ 320.8 million in Q1 2020. Its streaming platform generated revenue of $466.5 million, and digital media player revenue was US$ 107.7 million. Analysts had anticipated Roku to post a loss of 13 cents a share.
The company expects to continue strong earnings for 2021 and 2022, amid the gradual reopening of cinema halls due to the prolonged pandemic crisis. As people increasingly tune in to its streaming services.
Let us check out its price movements and outlook in details:
Roku Inc. (ROKU:US, NASDAQ:ROKU)
The entertainment and production firm had an amazing 2020 and witnessed a 123 per cent rise in its share price in one year. However, the stock fell 14.4 per cent year-to-date after analysts downgraded its ratings. The stock was on the verge of entering long-term bearish trend.
Investors might bet big on its recent dip as the company expects promising earnings and outlook for the year. At the previous close price of 284.18 apiece, the stock was down 41.6 per cent from its 52-week high of 486.72 apiece (noted on February 16, 2021).
Source: Pixabay
Roku Doubles Ad Impression Monetization
The company stated through its earnings release that its advertisers continue to be bullish on TV streaming audiences. Consequently, Roku’s earnings from ad impressions spiked more than double year-over-year (YoY).
Roku added 2.4 million active subscribers in Q1 2021, taking its total paid accounts to 53.6 million. The company saw a surge in streaming hours on its platform to 18.3 billion in Q1 2021, compared to 17 billion streaming hours in the last quarter of 2020.
Roku’s Outlook For 2021
For the current quarter, Roku projects a top line of US$ 610 million to US$ 620 million, compared to analysts’ forecast of US$ 550 million.
The company is planning to add a new streaming product in line with HBO Max and ViacomCBS. Streaming platforms have witnessed a rise amid the ongoing COVID-19 pandemic.
The company anticipates “robust” but gradual growth rates in the second half of 2021 compared to the first half.
