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 $867.1 million, increasing 0.2% year on year, beating analyst revenue expectations by 8.01%. It was a decent quarter for the company, with an impressive beat of analyst estimates but slow revenue growth. The company reported 70 million monthly active users, up 16.5% 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 decline 3.56% year on year to $707.5 million, a deceleration on the 27.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$1.49 per share.
The analysts covering the company have had mixed opinions about the business heading into the earnings, with revenue estimates seeing four upward and four downward revisions over the last thirty days.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 Q1 earnings results, giving us a hint of what we can expect. Netflix delivered top-line growth of 3.73% year on year, missing analyst estimates by 0.2% and Skillz reported revenue decline of 56.9% year on year, missing analyst estimates by 3.79%. Netflix traded down 5.95% on the results, Skillz was down 4.06%. Read our full analysis of Netflix's results here and Skillz's results here.
Investors in the consumer internet segment have had steady hands going into the earnings, with the stocks up on average 0.66% over the last month. Roku is down 6% during the same time, and is heading into the earnings with analyst price target of $70.6, compared to share price of $59.05.
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The author has no position in any of the stocks mentioned.