What's Going On With Roku Stock Thursday?

Roku Inc ROKU shares are trading lower on Thursday following the company’s third-quarter financial results.

The Details: Roku reported a loss of 6 cents per share for the third quarter, beating analyst estimates for a loss of 32 cents per share. The company reported sales of $1.06 billion — representing 16% year-over-year growth — beating analyst estimates of $1.01 billion, according to Benzinga Pro.

Roku reported platform revenue of $908.2 million, up 15% year-over-year, and devices revenue of $154 million, up 23% year-over-year. The company reported average revenue per user of $41.10 on a trailing 12-month basis.

Roku also reported other key pieces of financial data, including adjusted EBITDA of $98.2 million with an adjusted EBITDA margin of 9.2%. In addition, the company reported cash flow from operations of $155.1 million and said the quarter marked its fifth consecutive quarter of positive free cash flow.

Roku reported 85.5 million streaming households in the third quarter, up 2 million quarter-over-quarter, and streaming hours of 32 billion. Streaming hours were up by 5.3 billion hours year-over-year.

Roku also provided an outlook for the current quarter. The company said it anticipates fourth-quarter revenue of $1.14 billion and adjusted EBITDA of $30 million.

Analyst Changes: Following the earnings report, multiple analysts adjusted price targets.

• Rosenblatt analyst Barton Crockett maintained a Neutral rating on Roku and raised the price target from $61 to $86.
• Needham analyst Laura Martin reiterated a Buy rating on Roku and maintained a $100 price target.
• Macquarie analyst Tim Nollen maintained an Outperform rating on Roku and maintained a $90 price target.

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ROKU Price Action: At the time of publication, Roku shares were down 21.6% at 60.76, per data from Benzinga Pro.

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