Television streaming platform Roku (ROKU, Financial) saw its stock drop over 15% in pre-market trading, trading at $65.52. This movement comes despite the company reporting a third-quarter revenue of $1.062 billion, marking a 16.5% year-over-year increase and surpassing market expectations of $1.016 billion.
Roku reported a net loss of $9.03 million, translating to a loss of $0.06 per share. This is a significant improvement from the previous year’s per-share loss of $2.33 and better than the anticipated loss of $0.32 per share.
The platform’s streaming user base grew by 13%, reaching a total of 85.5 million accounts. The average revenue per user remained stable at $41.10 compared to the same period last year.
Roku announced it will stop providing quarterly data on streaming user numbers and average revenue per user starting from the first quarter of 2025, which could impact how investors evaluate the company's growth going forward.
