ROKU Q1 loss is lower than expected, active accounts are jumping O / Y



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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Roku ROKU announced a loss of 9 cents per share in the first quarter of 2019, which was lower than Zacks' consensus estimate of a loss of 24 cents. This figure was however higher than the loss of 7 cents recorded in the quarter of the previous year.

Revenues rose 51.3% from the same quarter last year to $ 206.7 million, well above the consensus of $ 189 million.

Active & nbsp; Accounts jumped 40% from one year to the next to reach 29.1 million. Streaming hours jumped 74% year-on-year to 8.9 billion. In addition, Average Revenue Per User (ARPU) increased by 27% to $ 19.06 (over 12 months).

Quarter details

Platform revenue (64.9% of revenue) jumped 78.7% to $ 134.2 million. This increase is due to strong revenues from SVOD and TVOD distribution, audience development and video advertising sales. In the first quarter, the number of video ad impressions monetized on the platform more than doubled. Roku expects this trend to continue in 2019.

Player income (35.1% of revenues) increased 17.9% over the same quarter of the previous year to $ 72.5 million. Player units increased 21% over the previous year. The average selling price decreased by 4% due to the company's strategy of offering players attractive discounts.
& nbsp; "data-reactid =" 11 ">Roku ROKU announced a loss of 9 cents per share in the first quarter of 2019, which was lower than Zacks' consensus estimate of a loss of 24 cents. This figure was however higher than the loss of 7 cents recorded in the quarter of the previous year.

Revenues rose 51.3% from the same quarter last year to $ 206.7 million, well above the consensus of $ 189 million.

Active accounts jumped 40% from one year to the next to reach 29.1 million. Streaming hours jumped 74% year-on-year to 8.9 billion. In addition, Average Revenue Per User (ARPU) increased by 27% to $ 19.06 (over 12 months).

Quarter details

Platform revenue (64.9% of revenue) jumped 78.7% to $ 134.2 million. This increase is due to strong revenues from SVOD and TVOD distribution, audience development and video advertising sales. In the first quarter, the number of video ad impressions monetized on the platform more than doubled. Roku expects this trend to continue in 2019.

Player income (35.1% of revenues) increased 17.9% over the same quarter of the previous year to $ 72.5 million. Player units increased 21% over the previous year. The average selling price decreased by 4% due to the company's strategy of offering players attractive discounts.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Roku, Inc. Price, Consensus and EPS Surprise"data-reactid =" 12 ">Roku, Inc. Price, Consensus and EPS Surprise

Roku, Inc. Price, Consensus and EPS Surprise | Roku, Inc. Quote

<p class = "canvas-atom-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Management estimates that one in three smart TVs sold in the United States was a Roku TV, sold by its OEM partners, in the first quarter.

Notably, the Roku channel now offers access to more than 10,000 episodes of free-to-air television and movies, as well as over two dozen live channels. During the quarter, the company added premium subscriptions to The Roku Channel, which now offers more than 30 premium content services including HBO, SHOWTIME, EPIX and STARZ.

Gross margin increased 260 basis points year-on-year to 48.8%.

Operating expenses, as a percentage of revenues, increased 280 basis points year-over-year to 54%. Research & amp; development (R & D) and sales & amp; marketing expenses (S & M) increased by 200 and 150 basis points respectively. However, General & amp; Administrative expenses (G & A) decreased by 70 basis points on an annual basis.

Adjusted EBITDA was $ 10 million compared to a loss of $ 0.8 million in the same quarter of the previous year.

The operating loss was $ 10.7 million compared to a loss of $ 6.9 million in the prior year quarter.

Balance sheet & amp; Cash flow

As at March 31, 2019, cash and cash equivalents, including short-term investments, amounted to $ 263.9 million compared to $ 197.7 million as at December 31, 2018.

Cash flow from operations was $ 10.7 million for the current quarter, compared to $ 14.6 million for the same period last year.

Orientation

For 2019, Roku expects revenues of between $ 1.03 billion and $ 1.05 billion. The Zacks consensus estimate for revenue is set at $ 1.02 billion, which indicates a growth of 37.2% over the figure published in 2018.

Gross profit is expected to be between $ 465 and $ 475 million. Adjusted EBITDA is expected to be in the range of $ 10 million to $ 20 million.

For the second quarter of 2019, Roku expects revenues of between $ 220 and $ 225 million. The Zacks consensus estimate for revenue is set at $ 219.84 million, which indicates a growth of 40.2% over the figure released the same quarter of the previous year.

Gross profit is expected to be between $ 98 million and $ 103 million. Adjusted EBITDA is expected to be in the range of $ 10 million to $ 5 million.

Zacks Rank & amp; Stocks to consider

Roku currently has a rank of Zacks # 3 (pending).

Some of the best-ranked stocks in the broader consumer discretionary sector include lululemon athletica LULU, V.F. Corporation VFC and SeaWorld Entertainment SEAS. & Nbsp; While lululemon has a # 1 Zacks ranking (strong buy), V.F. Corporation and SeaWorld have a # 2 Zacks ranking (purchase). You can see the full list of current stocks in the # 1 Zacks ranking here.

Long-term growth rate of lululemon, V.F. profits The company and SeaWorld are expected to represent respectively 18.4%, 11.4% and 7%. "Data-reactid =" 22 "> The management estimates that one smart TV sold in three in the United States was a Roku TV, sold by its OEM manufacturer, partners, in the first quarter.

Notably, the Roku channel now offers access to more than 10,000 episodes of free-to-air television and movies, as well as over two dozen live channels. During the quarter, the company added premium subscriptions to The Roku Channel, which now offers more than 30 premium content services including HBO, SHOWTIME, EPIX and STARZ.

Gross margin increased 260 basis points year-on-year to 48.8%.

Operating expenses, as a percentage of revenues, increased 280 basis points year-over-year to 54%. Research and development (R & D) and sales and marketing (S & M) expenses increased by 200 and 150 basis points respectively. However, general and administrative expenses decreased by 70 basis points on an annual basis.

Adjusted EBITDA was $ 10 million compared to a loss of $ 0.8 million in the same quarter of the previous year.

The operating loss was $ 10.7 million compared to a loss of $ 6.9 million in the prior year quarter.

Balance sheet and cash flow

As at March 31, 2019, cash and cash equivalents, including short-term investments, amounted to $ 263.9 million compared to $ 197.7 million as at December 31, 2018.

Cash flow from operations was $ 10.7 million for the current quarter, compared to $ 14.6 million for the same period last year.

Orientation

For 2019, Roku expects revenues of between $ 1.03 billion and $ 1.05 billion. The Zacks consensus estimate for revenue is set at $ 1.02 billion, which indicates a growth of 37.2% over the figure published in 2018.

Gross profit is expected to be between $ 465 and $ 475 million. Adjusted EBITDA is expected to be in the range of $ 10 million to $ 20 million.

For the second quarter of 2019, Roku expects revenues of between $ 220 and $ 225 million. The Zacks consensus estimate for revenue is set at $ 219.84 million, which indicates a growth of 40.2% over the figure released the same quarter of the previous year.

Gross profit is expected to be between $ 98 million and $ 103 million. Adjusted EBITDA is expected to be in the range of $ 10 million to $ 5 million.

Zacks Rank & Stocks to Consider

Roku currently has a rank of Zacks # 3 (pending).

Some of the best-ranked stocks in the broader consumer discretionary sector include lululemon athletica LULU, V.F. Corporation VFC and SeaWorld Entertainment SEAS. While lululemon has a # 1 Zacks ranking (strong buy), V.F. Corporation and SeaWorld have a # 2 Zacks ranking (purchase). You can see the full list of current stocks in the # 1 Zacks ranking here.

Long-term growth rates for lululemon, V.F. Corporation and SeaWorld are expected to be 18.4%, 11.4% and 7% respectively.

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