Roku's platform revenues soar, which increases the number of shares – The Motley Fool

Actions of Roku (NASDAQ: ROKU) are up after trading hours on Wednesday after the release of the company's first quarter results. The stock is up nearly 9% at 16:45. EDT. The stock's rise comes after Roku released its first-quarter results that exceeded expectations, reflecting a growth in revenue that accelerated during the quarter.

The growth of the company continues to be driven by higher revenue generated by the platforms, which benefits from increased engagement, new accounts and a number of video ad impressions. more than doubled compared to the same quarter of the previous year.

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Roku's revenue rose 51 percent year-over-year to $ 206.7 million in the first quarter of 2019, well ahead of consensus by analysts for a business figure of $ 192 million. This represents a clear acceleration compared to the 46% growth in Roku's business turnover in the fourth quarter of 2018. The main factor in this growth was the increase in the revenue of the flat. 79% (an acceleration compared to 77% growth in Q4), which accounted for 65% of the total. recipes during the period.

Thanks to a 76% increase in the platform's gross profit in dollars from the previous year, the company's loss per share of $ 0.09 was better than the average forecast of analysts, which predicted a loss per share of $ 0.24. Roku's loss per share was $ 0.02 lower in the same quarter last year, as the company is investing heavily in its future by increasing research and development, sales and marketing, 39, in general and administrative expenses of exploitation.

The number of active accounts increased by 40% over the previous year to reach 29.1 million, while the number of hours of streaming increased by 74% over the same period to reach 8.9 billion .

Several drivers

The quarter highlighted the diversified revenue drivers of the Roku platform. The Company's widespread strength in third-party subscription video and on-demand transactional video revenues, as well as revenue growth from audience development and video advertising sales, was all key factors for the income of the platforms, explained the management in its first quarterly letter of shareholder. The company also said that "the number of monetized video ad impressions on the platform had more than doubled, and we expect this trend to continue throughout 2019."

Roku's management is optimistic about the way in which it has positioned itself in the face of the growing shift from linear television to Internet-based consumer direct mail models.

"As the market for streaming TV continues to evolve, we are seeing subscription-based and advertising-supported business models coexist and attract a significant consumer audience, with Roku's revenue share in both models," said the company in its quarterly letter to shareholders. "We believe that the growing list of consumer direct-to-consumer services makes the Roku platform even more appealing to consumers looking for more content and control."

Whether the content is offered with advertisements, via subscriptions or on a transactional basis, the Roku platform benefits from an evolving television landscape.