Roku To Report Earnings Tomorrow: Here Is What To Expect

Adam Hejl /
2022/02/16 6:03 am EST

Streaming TV platform Roku (NASDAQ: ROKU) will be reporting earnings tomorrow after market hours. Here's what you need to know.

Last quarter Roku reported revenues of $679.9 million, up 50.5% year on year, missing analyst expectations by 0.12%. It was a mixed quarter for the company, with an exceptional revenue growth but an underwhelming revenue guidance for the next quarter. The company reported 56.4 million monthly active users, up 22.6% year on year.

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This quarter analysts are expecting Roku's revenue to grow 37.5% year on year to $894 million, slowing down from the 58% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.04 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 only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 8.77%.

Looking at Roku's peers in the consumer internet segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. Netflix (NASDAQ:NFLX) delivered top-line growth of 16.03% year on year, in line with analyst estimates and Snap (NYSE:SNAP) reported revenues up 42.4% year on year, exceeding estimates by 8.05%. Netflix traded down 11% on results, Snap was up 58.7%. Read our full analysis of Snap's results here.

Investors in the consumer internet segment have had steady hands going into the earnings, with the stocks up on average 1.06% over the last month. Roku is up 0.7% during the same time, and is heading into the earnings with analyst price target of $346.2, compared to share price of $168.

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