Roku, the technology company specializing in video-streaming hardware and operating systems, has seen a significant boost in its stock after reporting impressive second-quarter revenue for June. The company’s revenue reached $847 million, surpassing the consensus estimate of $775 million among analysts.
While Roku experienced a loss of 76 cents per share, it outperformed analysts’ expectations of a loss of $1.27. The company also provided strong guidance for the current quarter, predicting revenue of $815 million compared to the consensus estimate of $809 million.
Roku’s CEO, Anthony Wood, expressed optimism about the future, stating, “We have begun to see some ad verticals improve. We are well positioned to reaccelerate growth as the ad market recovers.”
As a result of the positive earnings report, Roku shares surged by 20% to $82 in early trading on Friday. Industry analyst Jason Helfstein from Oppenheimer expressed his confidence in Roku, reiterating an Outperform rating for the stock. He also raised his price target for Roku’s shares from $75 to $90, citing the improving trends in advertising.
Roku’s success can be attributed to its video-streaming hardware and the licensing of its operating system to TV manufacturers. It enables consumers to access and enjoy internet-streamed content through their Roku devices.
This recent financial achievement showcases Roku’s resilience and potential for future growth in the ever-evolving digital media landscape.