Roku set $1 billion mark for revenue in 2019

Roku set $1 billion mark for revenue in 2019


Roku is intending to expand internationally with more investments and is aiming to be a billion-dollar company in 2019.

The streaming-device maker on Thursday announced its earning details for fourth quarter which surpassed analyst’ expectation for the holiday quarter and part of its strategy for 2019 has showed its expectation of generating revenue of between $1 billion and $1.025 billion as well as told investors about its international growth that it will be focal point of its investments in the year.

During holiday quarter, Roku’s revenue jumped to $275.7 million from a year ago revenue of $188.3 million, for which analysts’ were expecting $262.11 million mark.

Against the earnings of $9.5 million in the same quarter last year, company succeeded to earn $5.5 million in fourth quarter of 2018, which place its earnings of 6 cents per share above from analysts’ expectations of 3 cents per share.

The company came on adding about 8 million active accounts in 2018 and presence of its devices has now been reached to 27 million households.

Company is estimating that Roku’s platform is now being used by 1 out of every 5 users in the United States for at least a part of their streaming requirements while watching TV, said CEO Anthony Wood in the company’s letter to investors.

Revenue of Roku’s hardware as well as ads and services business, which it calls platform, grew in the reported quarter.

Harware revenue, which remained point of concern of many investors in the past as users shifting from streaming devices to smart TVs, came up generating revenue of $124.3 million in the holiday quarter up 21 percent from revenue of $102.8 million for that segment a year ago.

In fourth quarter 2018, Roku’s platform revenue also grew by 77 percent year over year to $151.4 million.

Roku also told investors that it will be focusing more on its international expansions in 2019 and expects its international growth to be accelerating in 2020.

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Zac Berry is presently a full time editor at Market Morning. He covers the M&As and follows live market commentary. Before joining Markets Morning, Zac Berry worked with a start-up, where he worked in the capacity of a Team Leader tracking company events and results. Born in the U.A.E, he spent most of his growing up years in Dubai. Currently, he resides in U.S. and is pursuing his charter in Accountancy.