Roku Q3 Earnings Highlights: Revenue Miss, ARPU Passes $40, The Roku Channel Growth

Streaming company Roku Inc ROKU reported third-quarter financial results after market close Wednesday.

Here are the highlights and why shares are trading down.

What Happened: Roku reported third-quarter revenue of $680 million. The total was up 51% year-over-year but came in shy of a street consensus target of $683.7 million.

Roku ended the third quarter with 56.4 million active accounts, up 23% year-over-year.

The average revenue per user for Roku came in at $40.10, up 49% year-over-year and up from the $36.46 and $32.14 reported in the second and first quarters, respectively.

Related Link: Is Roku Pushing Into Original Content? 

“We are making significant progress with traditional TV advertisers, while also expanding our total addressable market to digital-first advertisers,” the company said.

The company reported its owned The Roku Channel was a top five channel on the platform and saw streaming hours more than double year-over-year.

What’s Next: Roku is guiding for fourth-quarter revenue to come in a range of $885 million to $900 million. The total is lower than a street target of $944.4 million.

ROKU Price Action: Shares are down 8% to $287.37 at the time of writing.