Roku Earnings: An Uncertain Outlook

Here's our initial take on 's (NASDAQ: ROKU) first-quarter financial report.

Roku beat analyst estimates in the first quarter on the strength of its Platform revenue, which includes advertising revenue, streaming services distribution revenue, and licensing fees. Platform revenue rose by 17% to $880.8 million, with a gross margin of 52.7%. Devices revenue jumped by 11% to $139.9 million and generated a negative gross margin.

Revenue from streaming services distribution was driven by premium subscription sign-ups as well as price increases across available streaming services initiated last year. The company now handles tens of millions of streaming subscriptions. Advertising revenue grew faster than the overall U.S. over-the-top ad market in the first quarter, driven by Roku's growing reach among consumers and improvements to its ad platform.

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Source Fool.com