Roku shares jumped in after-hours trading Wednesday, adding to their already surging value, after the streaming specialist reported another stellar quarter of growth.
In its fiscal second quarter ending June 30, Roku said it lost 8 cents a share on a diluted basis, compared with a break-even quarter in 2018. But the result far outpaced Wall Street analysts’ expectation for a loss of 22 cents.
Total revenue of $250.1 million gained a hefty 59% over the same quarter in 2018. It blew past analysts’ consensus forecast for $224 million.
Roku stock closed the regular trading day Wednesday at $100.97, up 2.5%. In after-hours trading, it was up as much as 9% to around $110 a share, near its all-time high of $113.44. Roku went public in September 2017.
The number of streaming accounts reached 30.5 million, Roku said, up 39% from the same period a year ago. Total streaming hours soared 72% to 9.4 billion, while average revenue per user, a key metric, increased 27% to $21.06.
Once a maker of hardware to enable streaming, Roku has moved more aggressively into licensing its interface and drawing advertising and sponsorship revenue with ventures such as Roku Channels.
In their letter to shareholders, founder-CEO Anthony Wood and CFO Steve Louden said surpassing 30 million accounts and $20 in ARPU were “significant milestones” for the tech firm.
“The industry-wide shift to streaming is accelerating,” the executives wrote. “Our business momentum and ongoing investment in areas of competitive differentiation continue to drive growth and attract users, advertisers and content publishers.”
Conditions are growing more favorable for Roku as it leverages its early lead in streaming and major new services hit the market, the company said.
In its earnings release, Roku cited data from Kantar Milward Brown anointing it the No. 1 TV streaming platform in the U.S. by hours streamed. According to a survey by Strategy Analytics, the Roku operating system powers 41 million OTT devices and smart TVs in the U.S., a 36% lead over Sony PlayStation, the next closest competitor. Parks Associates, another research firm that tracks the streaming sector, said Roku had 39% of the U.S. streaming media player installed base as of the first quarter of 2019, according to consumer survey data.
Subscribe to Deadline Breaking News Alerts and keep your inbox happy.