Roku Falls as Supply Disruptions Weigh on Holiday Outlook
Roku Falls as Forecast and Key Metrics Miss Expectations
(Bloomberg) -- Roku Inc. shares fell as much as 11% in extended trading on Wednesday after it reported third-quarter results that missed expectations on key metrics. It also gave a fourth-quarter revenue view that was below the consensus view as supply-chain issues weigh.
The video-streaming platform company reported third-quarter revenue of $680 million, compared with the consensus of $681.1 million. It also posted 56.4 million active customer accounts for the quarter and 18 billion streaming hours. The Bloomberg Consensus estimate had been for 56.7 million active customer accounts and 18.53 billion streaming hours.
For the fourth quarter, Roku forecast net revenue between $885 million and $900 million. The analyst consensus is for sales of $946 million.
“Supply chain disruptions are creating a lot of uncertainty for the holiday season,” Chief Financial Officer Steve Louden said in an interview. “We think these disruptions will be temporary, but they will persist through the holidays and into 2022, and it is hard to tell the exact path to normalcy.” He added that a broad-based shift toward streaming video remains intact.
The stock is down about 35% off a July peak after ending slightly higher in Wednesday’s regular session.
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