MW Roku wants to leave 'conservatism' behind. Its outlook bears this out.

By Claudia Assis

Roku's stock up more than 15% after company's earnings

Shares of Roku Inc. jumped more than 15% in the extended session Thursday after the streaming company gave Wall Street an upbeat outlook for its current quarter, saying it wants to leave behind "conservatism" about its future performance.

Roku (ROKU) called for first-quarter revenue of $1.005 billion, which would be up 14% year on year and right in line with Wall Street expectations that had been going higher in recent weeks. The first quarter is a seasonally weaker period for the company.

For the full 2025, Roku called for revenue of $4.61 billion, also in line with the FactSet consensus.

"We are maintaining our focus on operational discipline, while continuing to invest" in the growth of Roku's platform business, the company said in a letter to shareholders. "We are aiming to provide a clear and accurate outlook grounded in the latest information rather than conservatism."

Roku's earnings came after ad-tech company Trade Desk Inc. (TTD) on Wednesday reported lower-than-expected sales for its most recent quarter and compounded the problem by calling for lower current-quarter sales.

Trade Desk has emerged as a new driver of volume to Roku, analysts at Rosenblatt Securities said in a note earlier Thursday. Trade Desk is also pushing a rival to Roku, and its Ventura product is expected to be part ofa new premium streaming TV box from Sonos Inc. $(SONO)$ later this year.

Roku shares have been on a tear recently, up about 16% this year as investor sentiment toward its ad business has improved.

-Claudia Assis

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February 13, 2025 16:30 ET (21:30 GMT)

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