Roku Inc's (NASDAQ:ROKU) stock surged 13.06% in after-hours trading on Thursday, following the release of its better-than-expected fourth quarter 2024 financial results.

The key factors driving the stock's rally were robust subscriber growth and stronger-than-anticipated advertising sales performance during the quarter:

• Roku reported a net increase of 9.8 million streaming households in Q4, bringing its total to 89.8 million households, surpassing analyst expectations.
• The company's streaming hours grew 21.1 billion year-over-year to 127.1 billion, indicating increased engagement on its platform.
• Roku's platform revenue, which includes advertising sales, grew 18% year-over-year to $3.5 billion, outperforming estimates and representing solid growth in its ad business.

The strong results demonstrate Roku's ability to continue expanding its user base and monetizing its platform through advertising, even as it expands into international markets. Investors cheered the company's growth trajectory, driving the stock higher in extended trading.