By Sabela Ojea

Roku logged a narrower-than-expected loss and revenue growth that exceeded expectations which was fueled by an increase in accounts and spending per household.

The San Jose, Calif.-based video-streaming company on Thursday posted fourth quarter net loss of $35.5 million, or 24 cents a share, compared with a loss of $78.3 million, or 55 cents a share, for the same period a year earlier. Analysts polled by FactSet had forecast a loss of $59.7 million, or 41 cents a share.

Revenue rose to $1.2 billion from $984.4 million a year ago, beating the $1.15 billion expected by Wall Street. Roku had most recently guided for a quarterly loss of $65 million and revenue of $1.14 billion.

Shares rose 14% to $99.25 in post-market trading following the results. Through the close of market trading the stock is up 17% this year.

Roku said that the number of its paying households rose to 89.8 million from 85.5 million in the third quarter, with average revenue per user rising to $41.49 from $41.10 in the prior quarter. The company surpassed 90 million households in the first week of January.

"We expect to continue to grow streaming households in all our locations, including the U.S. where our penetration has already surpassed half of broadband households," Roku said.

For the first quarter and year as a whole, Roku expects a net loss of $40 million. The company also forecasts revenue of $1.01 billion and $4.61 billion for the first quarter and 2025, respectively.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

(END) Dow Jones Newswires

February 13, 2025 16:52 ET (21:52 GMT)

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