Roku Inc ROKU shares are plunging in Thursday's after-hours session after the company reported worse-than-expected financial results and withdrew its full-year revenue growth guidance.
Roku said second-quarter revenue increased 18% year-over-year to $764.4 million, which missed the estimate of $805.64 million, according to data from Benzinga Pro. The company reported a quarterly earnings loss of 82 cents per share, which missed the estimate for a loss of 68 cents per share.
"In Q2, there was a significant slowdown in TV advertising spend due to the macro-economic environment, which pressured our platform revenue growth. Consumers began to moderate discretionary spend, and advertisers significantly curtailed spend in the ad scatter market," the company said.
"We expect these challenges to continue in the near term as economic concerns pressure markets worldwide."
Roku added 1.8 million accounts in the second quarter, bringing its total active accounts up to 63.1 million. Users streamed 20.7 billion hours globally in the quarter, representing an increase of 19% year-over-year.
Roku said it expects third-quarter revenue to increase about 3% year-over-year to $700 million. Total gross profit is expected to be around $325 million. The company anticipates a third-quarter adjusted EBITDA loss of $75 million.
Roku also said it's withdrawing its full-year revenue growth guidance, citing uncertainties and volatility in the macro environment.
ROKU Price Action: Roku is making new 52-week lows on Thursday.
The stock was down 28.60% in after-hours at $60.80 at press time.
Photo: courtesy of Roku.
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