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Investing.com – Roku fell sharply in after-market hours on Wednesday after the streaming device company’s softer outlook for the fourth quarter spooked investors and offset third-quarter results that topped Wall Street estimates.
Roku Inc (NASDAQ:ROKU) was down 19% in after-market trading.
Roku reported a third-quarter loss of $0.88 per share, narrower than the $1.29 loss expected. Revenue rose 12% to $761.4 million to top estimates of $702 million.
Platform revenue, which makes up the bulk of growth, increased 15% year-on-year to $670 million, but that was slower than historical growth rates amid slowing advertising spend.
“Advertising spend on our platform continues to grow more slowly than our beginning-of-year forecast due to current weakness in the overall TV ad market and the ad scatter market in particular,” the company said.
Average revenue per user (ARPU) was up 10% to $42.25, while streaming hours increased by 1.1 billion hours over the last quarter to 21.9 billion.
Looking ahead, the company forecast Q4 revenue of $800 million, well below Wall Street expectations of $894.6 million.
