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Roku shares drop as Q4 revenue misses expectations, forecast below

Active accounts in the quarter rose 17%, year over year, to 60.1 million, above consensus for 59.49 million. The number of hours streamed by subscribers rose 15%, year over year, to 19.5 billion. That was below consensus for 19.7 billion.
tiernan-ray
Written by Tiernan Ray on

Streaming video pioneers Roku this afternoon reported Q4 revenue that missed Wall Street's expectations, and an outlook for this quarter's revenue that was lower as well. 

The report sent Roku shares down 8% in late trading.

The report follows a mixed Q3 report in which Roku said supply-chain disruption was affecting the TV market through the holidays, and that advertisers were trimming their ad spend, leading to a lower-than-expected forecast at the time.

During a conference call with media following the report, CFO Steve Louden said TV supply-chain issues such as short supply of chips to build TVs, and the breakdown of advertising "verticals," continues to affect the outlook for the current quarter. 

Louden said that the company experienced "strong monetization," with average revenue per user rising 43%, year over year, to $41.03 on a trailing twelve-month basis.

In prepared remarks, CEO and founder Anthony Wood said that, "2021 was another strong year for Roku, as we achieved record revenue, gross profit, adjusted EBITDA, and ARPU."

Added Wood, 

Roku's founding vision remains true: All TV and all TV advertising will be streamed. Almost every major media company is reorienting its business around streaming and has launched a flagship service, spending billions on content and marketing to attract and retain subscribers. At the same time, with the significant gap that exists between viewership and ad budgets, we are still in the early days of the secular shift to streaming. Our competitive advantages — the Roku® operating system, The Roku Channel, and our ad platform — position us strongly to continue leading this shift in the years ahead.

Revenue in the three months ended in December rose 33%, year over year, to $865.3 million, yielding a net profit of 17 cents a share.

Analysts had been modeling $894 million and 5 cents per share.

Active accounts in the quarter rose 17%, year over year, to 60.1 million, above consensus for 59.49 million. The number of hours streamed by subscribers rose 15%, year over year, to 19.5 billion. That was below consensus for 19.7 billion.

Also: Roku CFO: Supply chain disruption will affect TV market through the holiday season

For the current quarter, the company sees revenue of $720 million, below consensus for $751 million.

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