- Roku’s 2Q earnings per share (EPS) surpassed expectations, reporting a profit of 7.0 cents against an estimated loss of 16 cents.
- Compared to the same period last year, where there was a loss of 24 cents per share, Roku shows significant improvement.
- Net revenue increased by 15% year-over-year to $1.11 billion, exceeding estimates of $1.07 billion.
- Player revenue saw a decline of 5.8% year-over-year to $135.6 million, still surpassing the estimate of $132.1 million.
- Platform revenue grew by 18% year-over-year to $975 million, beating the forecast of $939.1 million.
- Streaming hours rose by 18% year-over-year, totaling 35.4 billion hours, slightly above the expected 35.29 billion hours.
- Research and development expenses increased by 1.4% year-over-year to $178.0 million, which was below the anticipated $186.3 million.
- Roku’s shares saw a 4.4% increase in post-market trading, reaching $98.31 with 4,534 shares traded.
- Analyst recommendations include 20 buy ratings, 11 hold ratings, and 2 sell ratings.
Roku on Smartkarma
Analyst coverage of Roku on Smartkarma by Baptista Research highlights both the positive strategic positioning and challenges faced by Roku Inc. in the current macroeconomic environment. The recent earnings report for the first quarter of 2025 presents a mixed bag of results, with management expressing confidence in full-year platform revenue and adjusted EBITDA guidance. This confidence is supported by the ongoing shift from linear to streaming television, a significant trend benefiting Roku.
Furthermore, Baptista Research‘s analysis delves into Roku’s potential as an advertising goldmine that could propel the streaming giant to new heights. The recent earnings showcase strong growth in the fourth quarter of 2024, attributed to strategic initiatives and favorable market conditions. Roku’s three-part strategy focusing on increasing platform revenue by optimizing home screen utilization, expanding partnerships for advertising demand, and enhancing subscription-based revenue has been instrumental in driving the company’s success.
A look at Roku Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 2 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Roku is positioned for a positive long-term outlook. With a high Momentum score of 5, the company is showing strong potential for future growth and performance. Additionally, Roku’s Resilience score of 4 indicates the company’s ability to withstand economic uncertainties and market fluctuations, providing stability for investors. While the Value and Growth scores are moderate at 2, Roku’s focus on innovation and expanding its product offerings align with its long-term growth prospects.
Roku, Inc. is a global consumer electronics company known for designing and manufacturing wireless streaming devices. These devices enable users to access and stream audio and video content from the internet to their home entertainment systems. With its growing presence in the market and strong scores in Momentum and Resilience, Roku demonstrates promise for sustained success in the long run within the rapidly evolving digital entertainment industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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