Roku (ROKU) Reports Q1: Everything You Need To Know Ahead Of Earnings

Radek Strnad /
2022/04/27 8:19 am EDT
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Streaming TV platform Roku (NASDAQ: ROKU) will be reporting results tomorrow after market hours. Here's what you need to know.

Last quarter Roku reported revenues of $865.3 million, up 33.1% year on year, missing analyst expectations by 3.18%. It was a weak quarter for the company, with an underwhelming revenue guidance for the next quarter and a miss of the top line analyst estimates. The company reported 60.1 million monthly active users, up 17.3% year on year.

Is Roku buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Roku's revenue to grow 25.2% year on year to $718.9 million, slowing down from the 79% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.21 per share.

Roku Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing two upward and five downward revisions over the last thirty days. The company missed Wall St's revenue estimates twice over the last two years.

Looking at Roku's peers in the consumer internet segment, only Snap has so far reported results, delivering top-line growth of 38% year on year, missing analyst estimates by 0.58%. The stock traded up 8.2% on the results. Read our full analysis of Snap's earnings results here.

The whole tech sector has been facing a sell-off since late last year and consumer internet stocks have not been spared, with share price down on average 16.3% over the last month. Roku is down 24.6% during the same time, and is heading into the earnings with analyst price target of $177.6, compared to share price of $92.26.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.