October 31, 2024 - $Roku Inc (ROKU.US)$ shares slumped 14.20% to $66.50 in pre-market trading on Thursday. The company announced its third quarter 2024 financial results.

Q3 Highlights

• Revenue for the third quarter was $1.062 billion, a year-over-year increase of 16%, exceeding market expectations of $1.016 billion.

• Net loss was $9.03 million, resulting in a loss of $0.06 per share, compared to a loss of $2.33 per share in the same period last year; the market had expected a loss of $0.32.

• The number of streaming users grew by 13% to 85.5 million, while average revenue per user remained flat at $41.10 year-over-year.

• Roku will stop reporting quarterly data on streaming user numbers and average revenue per user starting from the first quarter of 2025.

Outlook

• Q4 Total Net Revenue: $1.140 billion (up 16% year-over-year).

• Platform Revenue Growth: 14% year-over-year.

• Devices Revenue Growth: 25% year-over-year.

• Q4 Total Gross Profit: $465 million.

• Adjusted EBITDA for Q4: $30 million.

• Expected Q4 Operating Expenses (OpEx) Growth: Up 9% year-over-year.

• Sales and Marketing Expenses: Expected to be more seasonal than the prior year.

• Overall Sales and Marketing Expenses and Total OpEx for Full Year 2024: Expected to be slightly down, reflecting ongoing operational discipline.

• Exclusions: Expectations for Q4 and 2024 OpEx year-over-year growth rates exclude one-time restructuring charges from 2023.