Roku Inc. (ROKU) announced strong financial results for the third quarter, sending its shares up more than 13 percent in the mid-day trading Friday. The results were mainly driven by healthy demand for its media players.
The Los Gatos, California-based streaming-media company posted earnings of $13 million, or 9 cents per share for the quarter ended September 30, as compared to a loss of $25 million or 22 cents per share in the same period last year. On the other hand, analysts polled by FactSet were looking for a loss of 42 cents per share.
Revenue for the quarter soared to $452 million, well above $261 million in the year-ago quarter, and significantly higher than consensus forecast of $369 million.
If we analyze the segment-wise sales performance of the company, its player business generated revenue of $132 million in the quarter, while its platform business produced revenue of $319 million. Analysts on average had forecasted revenue of $99 million for player segment and $270 million for platform segment.
The company’s average revenue per user jumped to $27 in the third quarter, up from $24.92 in the second quarter.
Overall, Roku’s incremental active accounts in the quarter increased by 2.9 million, while streaming hours rose to 14.8 billion.
Roku shares hit a new 52-week high of $255.65 in the mid-day trading Friday following the results. ROKU stock has performed well in the recent months. Its share price has jumped about 80 percent during the last 12 months, rose nearly 90 percent on year-to-date basis, and climbed approx. 106 percent during the last 6 months, making it an eye-catching stock among investors. At the current trading price, the company has a market value of about $31.705 billion.