Roku delivered its first quarter outcomes on Wednesday with better-than-expected income and the addition of 1.6 million lively streaming accounts within the interval. Though the corporate’s outcomes got here in above analyst estimates, Roku informed traders that it sees its promoting enterprise remaining challenged.
The corporate’s income for the quarter reached $741 million, up simply 1% from the year-ago quarter, and a web lack of $193.6 million.
Notably, the corporate revealed that it reached 71.6 million lively accounts, a 17% year-over-year enhance. Streaming hours reached 25.1 billion, up 4.2 billion hours or 20 p.c year-over-year. Common income per person fell 5% year-over-year to $40.67.
“Just like our viewpoint throughout our final earnings name, we anticipate macro uncertainties to persist all through 2023,” the corporate wrote in a letter to shareholders. “Customers stay pressured by inflation and recessionary fears, and thus discretionary spend is more likely to stay muted. Accordingly, we anticipate the promoting market in Q2 to look a lot the identical because it did in Q1, with advert spend from sure verticals bettering (journey and well being and wellness), whereas others stay pressured (M&E and monetary providers).”
In its letter, Roku wrote that it was the preferred streaming platform for this yr’s Tremendous Bowl with roughly half of all streams. The corporate notes that of these viewers, 12% began the sport by both its Sports activities expertise or a game-related advert.
Roku expects Q2 whole web income of about $770 million, whole gross revenue of roughly $335 million and Adjusted EBITDA of destructive $75 million.
The corporate’s incomes outcomes come a month after Roku carried out a second spherical of layoffs and let go of 6% of its workforce, or round 200 staff. Roku disclosed the cuts in an SEC submitting, explaining that the choice was half of a bigger plan to decrease its year-over-year working expense development and prioritize initiatives that it believes could have a better return on funding. The corporate had laid off 200 U.S. staff again in November, citing financial circumstances within the trade.