Roku Tops Q2 Financial Expectations, but Total Streaming Hours Decline by 1 Billion from Prior Quarter

Roku Tops Q2 Financial Expectations, but Total Streaming Hours Decline by 1 Billion from Prior Quarter
Roku easily beat Wall Street forecasts for second-quarter 2021 earnings — posting record 81% revenue growth — but the net number of new active user accounts fell shy of analyst expectations. What’s more, the total number of hours streamed fell by 1 billion hours from the prior quarter.

Total net revenue grew 81% year-over-year to $645 million, and Roku reported net income of $73.5 million, or 52 cents per diluted share. On average, Wall Street analysts expected Roku to post Q2 revenue of $618.5 million and Eps of 12 cents.

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Besides the slowing account growth and drop in streaming hours from Q1, Roku reported a negative gross margin for its hardware business of -5.9%. The company blamed higher component and shipping costs and Roku’s decision to eat those escalating expenses by “insulat[ing] consumers from increased costs for Roku players.”

Roku shares were down 8.5% in after-hours trading.

For Q3, Roku
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