Roku delivered its first quarter results on Wednesday with better-than-expected revenue and the addition of 1.6 million active streaming accounts in the period. Although the company’s results beat analyst estimates, Roku told investors that he sees its advertising business as continuing to be a challenge.
The company’s revenue for the quarter reached $741 million, just 1% more than in the same quarter of the previous year, and a net loss of $193.6 million.
In particular, the company revealed that it reached 71.6 million active accounts, a year-on-year increase of 17%. Broadcast hours reached 25.1 billion, an increase of 4.2 billion hours or 20% year-over-year. Average revenue per user fell 5% year-over-year to $40.67.
“Similar to our view during our last earnings call, we expect macroeconomic uncertainties to persist through 2023,” the company wrote in a letter to shareholders. “Consumers remain pressured by inflation and recession fears and therefore discretionary spending is likely to remain muted. Consequently, we expect the ad market in Q2 to look very similar to Q1, with certain verticals (travel and health and wellness) ad spend improving, while others remain under pressure (M&E and financial services). )”.
In its letter, Roku wrote that it was the most popular streaming platform for this year’s Super Bowl with roughly half of all streams. The company notes that of those viewers, 12% started the game through their sports experience or a game-related ad.
Roku expects total second-quarter net income of about $770 million, total gross profit of about $335 million, and adjusted EBITDA of negative $75 million.
Company earnings results come a month later Roku made a second round of layoffs and lay off 6% of its workforce, or about 200 employees. Roku revealed the outages in a filing with the SEC, explaining that the decision was part of a larger plan to reduce year-over-year operating expense growth and prioritize projects that it believes will have a higher return on investment. the company had laid off 200 US employees in Novemberciting the economic conditions of the industry.
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