Roku (NASDAQ:ROKU) is a California-based company that operates a television streaming platform in the United States and around the world. Shares of Roku have increased 3.82% month-over-month as of close on Wednesday, October 30, 2024. Meanwhile, the stock is still down 12.9% in the year-to-date period. The company aimed to build some momentum ahead of its next earnings release.
The company unveiled its third quarter (Q3) fiscal 2024 results on October 30, 2024. Roku managed to beat analyst expectations in the third quarter. It posted 16% revenue growth to $1.06 billion. Moreover, Roku managed to narrow its loss per share to $0.06. This marked the first quarter wherein Roku exceed $1 billion in total revenues. Roku’s Platform revenue, which is the dominant category that contains advertising, climbed 16% year-over-year to $908 million.
Roku also made an announcement about its reporting going forward:
“Since our IPO in 2017, the streaming industry has evolved meaningfully, with Americans now spending significantly more TV time streaming than watching cable. Our business has also grown and evolved, and we are now primarily focused on growing Platform revenue and profitability,” the company said in its Q3 letter to shareholders. “We will no longer report quarterly updates on Streaming Households and, by extension, ARPU (average revenue per user).”
This statement signals a shift for Roku and the industry at large, which like its predecessor, is now focused on showing value to shareholders in profit generation through avenues like advertising.