Streaming TV platform Roku (NASDAQ: ROKU) will be reporting results tomorrow after the bell. Here's what you need to know.
Last quarter Roku reported revenues of $764.4 million, up 18.4% year on year, missing analyst expectations by 5%. 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 63.1 million monthly active users, up 14.5% 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 grow 2.1% year on year to $694.2 million, slowing down from the 50.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$1.23 per share.
The analysts covering the company have had mixed opinions about the business heading into the earnings, with revenue estimates seeing two upward and three 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 Q3 earnings results, giving us a hint of what we can expect. Snap delivered top-line growth of 5.71% year on year, missing analyst estimates by 0.91% and Pinterest reported revenues up 8.15% year on year, exceeding estimates by 2.68%. Snap traded down 21.5% on the results, Pinterest was up 15.3%. Read our full analysis of Snap's results here and Pinterest's results here.
Investors in the consumer internet segment have had steady hands going into the earnings, with the stocks up on average 1.43% over the last month. Roku is down 6.81% during the same time, and is heading into the earnings with analyst price target of $79.40, compared to share price of $55.50.
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.