Roku Stock Is Surging Today: What's Going On?

Roku Inc ROKU shares are trading higher Thursday after the company reported strong quarterly results. The stock is also seeing favorable analyst coverage following the print.

What Happened: Roku reported third-quarter revenue of $912.02 million, which was up 20% year-over-year and beat the consensus estimate of $855.16 million, according to Benzinga Pro. Platform revenue was up 18% year-over-year to $787 million.

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 came in at $43 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. 

Roku said it sees 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.

Following the print, Pivotal Research analyst Jeffrey Wlodarczak upgraded Roku from Sell to Hold and raised the price target from $58 to $75.

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ROKU Price Action: Roku shares were up 19.1% at $71.10 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Roku.