Roku Q3 Earnings Rundown: Revenue Grows 20%, Active Accounts Jump, Shares Surge

Roku Inc ROKU reported third-quarter financial results Wednesday after the close. Here's a look at the key metrics from the quarter.

Q3 Earnings: Roku said third-quarter revenue increased 20% year-over-year to $912.02 million, which beat the consensus estimate of $855.16 million, according to Benzinga Pro. 

The company reported a quarterly loss of $2.33 per share versus a loss of 88 cents in the prior year's quarter. Adjusted EBITDA was $43 million.

Platform revenue was up 18% year-over-year to $787 million. Gross profit was up 3% year-over-year. 

Roku said it had 75.8 million active accounts at the end of the quarter, up 2.3 million from the end of the second quarter. Streaming hours in the third quarter totaled 26.7 billion. Average revenue per user came in at $41.03, down 7% year-over-year. 

"Strong top-line growth, in addition to cost reductions and measures we announced in September to further reduce our YoY OpEx growth rate, enabled us to deliver positive Adjusted EBITDA. We remain committed to achieving positive adjusted EBITDA for full year 2024 with continued improvements after that," the company said in a letter to shareholders. 

Outlook: Roku said it expects fourth-quarter net revenue of approximately $955 million. Total gross profit is expected to come in at $405 million and adjusted EBITDA is expected to total $10 million.

"We had a solid rebound in video ads in Q3 and we expect the YoY growth rate of video ads in Q4 to be similar. However, we remain cautious amid an uncertain macro environment and an uneven ad market recovery. Additionally, we will face difficult YoY growth rate comparisons in content distribution and M&E which will challenge the YoY growth rate of platform revenue in Q4," the company noted.

Management will hold a conference call to discuss these results at 5 p.m. ET.

Check This Out: Trading Strategies for Roku Stock Before And After Q3 Earnings

ROKU Price Action: Roku shares were up 8.54% after hours at $64.80 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Roku.