Roku Earnings: Profit and Guidance Bump

Here's our initial take on Roku's financial report.

(NASDAQ: ROKU) reported earnings per share of $0.07 in the second quarter, far above analyst expectations and a positive $0.31 swing from the same period in 2024. Overall revenue grew by 15% to $1.11 billion, driven by 18% growth for the high-margin platform segment. Devices revenue was down, but Roku managed to cut its losses and nearly break even on device sales on a gross profit basis. That, along with keeping operating expense growth in check, helped push the bottom line into positive territory.

Users streamed for 35.4 billion hours on Roku's platform during the second quarter, up 5.2 billion hours compared to the prior-year period. Strong performance from video ads helped Roku boost its platform revenue, as did the acquisition of subscription streaming service Frndly. In June, Roku announced a partnership with Amazon (NASDAQ: AMZN) that brings access to Roku's user base to Amazon DSP.

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Source Fool.com