Advertising-based video-on-demand pioneer Roku this afternoon reported Q3 revenue that missed Wall Street’s expectations, but a net profit that was substantially higher than expected, and an outlook for this quarter’s revenue that was lower than expected.
The report sent Roku shares down 10% in late trading.
CEO and founder Anthony Wood and CFO Steve Louden remarked in a prepared remarks that “As the global shift to TV streaming continues, our performance demonstrates the strength of our business fundamentals and the momentum of our platform monetization.”
The two added, “We are making significant progress with traditional TV advertisers, while also expanding our total addressable market to digital-first advertisers.
Despite the ongoing headwinds created by the global supply chain disruptions, Roku remains well positioned as a result of our scale, brand, technology, and relentless focus on the TV streaming experience.”
Revenue in the three months ended in December rose to $680 million, yielding a net profit of 48 cents a share.
Analysts had been modeling $684 million and 6 cents in profit per share.
Active accounts in the quarter rose 23%, year over year, to 56.4 million, slightly below consensus for 56.7 million. The number of hours streamed by subscribers rose 21%, year over year, to 18 billion. That was slightly below consensus for 18.3 billion.
The average revenue per user, however, came in at $40.10, on a trailing-twelve-month basis, which was higher than the average estimate for $39.20.
For the current quarter, the company sees revenue of $885 million to $900 million, below consensus for $946 million.
