Earnings To Watch: Roku (ROKU) Reports Q2 Results Tomorrow

Kayode Omotosho /
2023/07/26 5:19 am EDT

Streaming TV platform Roku (NASDAQ: ROKU) will be announcing earnings results tomorrow afternoon. Here's what investors should know.

Last quarter Roku reported revenues of $741 million, flat 0.99% year on year, beating analyst revenue expectations by 4.72%. It was a decent quarter for the company, with a solid beat of analysts' revenue estimates but slow revenue growth. The company reported 71.6 million monthly active users, up 16.8% 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 1.19% year on year to $773.5 million, slowing down from the 18.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$1.28 per share.

Roku Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates three times over the last two years.

Looking at Roku's peers in the consumer internet segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Netflix delivered top-line growth of 2.72% year on year, missing analyst estimates by 1.24% and Teladoc reported revenues up 10.1% year on year, exceeding estimates by 0.5%. Netflix was down 2.97%, and Teladoc was up 7.59%. Read our full analysis of Netflix's results here and Teladoc's results here.

There has been positive sentiment among investors in the consumer internet segment, with the stocks up on average 9.19% over the last month. Roku is up 10.1% during the same time, and is heading into the earnings with analyst price target of $70.10, compared to share price of $69.90.

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