Roku beats quarterly revenue estimates thanks to increase in streaming

(Reuters) – Roku Inc reported better-than-expected quarterly revenue on Thursday as the video streaming device maker benefited from an influx of cord-cutting subscribers ditching their cable plans in favor of streaming services .

The company was also helped by a 55% increase in streaming hours on its platform, as people took refuge in their homes during the holiday season amid new pandemics, turning to video services to the application like Netflix, Disney + and The Roku Channel for entertainment.

Its total net income rose 58% to $ 649.9 million in the fourth quarter ended Dec.31, beating analysts’ estimates of $ 617.25 million, according to IBES data from Refinitiv.

The company reported net income of $ 67.31 million, or 49 cents per share, compared to a net loss of $ 15.72 million, or 13 cents per share, a year earlier.