Roku posted another strong quarter of results, but its shares fell 9% in after-hours trading due to factors like a dip in streaming hours and flattening growth trajectory of its active accounts.<\/p>\n
The streaming provider said net revenue grew 81% year-over-year to $645 million, ahead of Wall Street forecasts. Operating income reached $69.1 million, compared with a loss of $42.2 million in the year-earlier quarter.<\/p>\n
Platform revenue, a comprehensive category that includes advertising, jumped 117% to $532 million, reflecting momentum in the burgeoning streaming ad arena. The arrival of new ad-supported players, among them Peacock, Discovery+ and HBO Max with Ads, has boosted results from the ad realm.<\/p>\n
Progress in overall streaming and active accounts proved less than inspiring to many investors. Active accounts increased by 55.1 million, an increase of 1.5 million from the first quarter but a more modest gain than in recent quarters.<\/p>\n
Streaming hours totaled 17.4 billion hours, a decrease of 1 billion hours from the first quarter.<\/p>\n
In a letter to shareholders, Roku blamed the drop in streaming hours was due to loosening Covid-19 restrictions and the reopening of the economy. The company pointed to a rosier year-over-year story, in which streaming hours gained 19%.<\/p>\n
“Consumers sought increased out-of-home entertainment activities (such as dining and travel) in Q2 as a result of pent-up demand and the loosening of COVID-19 restrictions, which led to a broader secular decline in overall TV viewing hours,” the letter said. “On a year-over-year basis, Roku significantly outperformed the industry, with Roku’s streaming hours increasing nearly 19% globally, compared to a nearly 19% decline in traditional TV consumption and a nearly 2% decline in TV streaming across all platforms, for persons 2+ years of age in the U.S., according to Nielsen.”<\/p>\n