Roku (ROKU) Q4 Earnings: What To Expect

StockStory
12 Feb
Roku (ROKU) Q4 Earnings: What To Expect

Streaming TV platform Roku (NASDAQ: ROKU) will be reporting results tomorrow afternoon. Here’s what to look for.

Roku beat analysts’ revenue expectations by 4.7% last quarter, reporting revenues of $1.06 billion, up 16.5% year on year. It was an ok quarter for the company, with an impressive beat of analysts’ EBITDA estimates. It reported 85.5 million monthly active users, up 12.8% year on year.

Is Roku a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Roku’s revenue to grow 16.8% year on year to $1.15 billion, improving from the 13.5% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.43 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Roku has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Roku’s peers in the consumer subscription segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Coursera delivered year-on-year revenue growth of 6.1%, beating analysts’ expectations by 1.6%, and Match Group reported flat revenue, in line with consensus estimates. Coursera traded down 19.5% following the results while Match Group was also down 7.8%.

Read our full analysis of Coursera’s results here and Match Group’s results here.

There has been positive sentiment among investors in the consumer subscription segment, with share prices up 9.8% on average over the last month. Roku is up 10.9% during the same time and is heading into earnings with an average analyst price target of $80.80 (compared to the current share price of $82.94).

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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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