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Streaming TV platform Roku (NASDAQ: ROKU) will be reporting earnings tomorrow after market hours. Here’s what to expect.
Roku beat analysts’ revenue expectations by 4.4% last quarter, reporting revenues of $1.20 billion, up 22% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates. It reported 89.8 million monthly active users, up 12.3% 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 14.1% year on year to $1.01 billion, slowing from the 19% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.25 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 only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 3.1% on average.
Looking at Roku’s peers in the consumer internet segment, some have already reported their Q1 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 2.3%, and Netflix reported revenues up 12.5%, in line with consensus estimates. Coursera traded up 14.1% following the results while Netflix was also up 1.4%.
Read our full analysis of Coursera’s results here and Netflix’s results here.
Investors in the consumer internet segment have had steady hands going into earnings, with share prices up 1.7% on average over the last month. Roku is down 2.4% during the same time and is heading into earnings with an average analyst price target of $90.79 (compared to the current share price of $68.90).
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