Roku Inc (ROKU) shares soared 5.26% in pre-market trading on Wednesday, following the release of its impressive fourth-quarter results. The streaming platform provider demonstrated robust growth and outperformed its peers in the consumer subscription sector.
Roku reported a significant 22% year-over-year increase in revenue, reaching $1.20 billion for the quarter. This figure surpassed analysts' expectations by a substantial 4.4%, marking the largest analyst estimates beat among its competitors in the consumer subscription space. The company also delivered a solid beat on EBITDA estimates, further solidifying its strong financial performance.
User growth remained strong, with Roku reporting 89.8 million monthly active users, representing a 12.3% increase compared to the same period last year. This growth in user base, combined with the company's ability to monetize its platform effectively, seems to have resonated well with investors, driving the stock's pre-market rally.
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