Roku Inc (NASDAQ: ROKU) shares surged 5.26% in pre-market trading on Wednesday, following a recent report highlighting the company's strong fourth-quarter performance. The streaming platform provider demonstrated resilience in a challenging market for consumer subscription stocks.
According to the latest earnings review, Roku reported revenues of $1.20 billion in Q4, marking a robust 22% year-over-year growth. This figure impressively surpassed analysts' expectations by 4.4%. The company not only delivered on the top line but also recorded a solid beat on analysts' EBITDA estimates, showcasing its improved profitability.
Roku's user base also showed healthy growth, with the company reporting 89.8 million monthly active users, up 12.3% compared to the same period last year. This increase in user engagement further strengthens Roku's position in the competitive streaming market. Despite the positive quarterly results, it's worth noting that Roku's stock had previously experienced a 22.2% decline following the earnings report, suggesting that today's pre-market rally might be a delayed positive reaction to the company's strong fundamentals.
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