Roku Q1 2021 Earnings: Revenue Hits $574.2M, Active Accounts Reach 53.6M

Roku delivered a strong Q1 2021 performance, surpassing earnings and revenue expectations while experiencing a slightly slower growth in active accounts.

Highlights

• Active accounts increased by 34.7% year-over-year to 53.6 million, slightly below analyst estimates.
• Streaming hours surged 48.8%, underscoring the ongoing shift toward digital streaming platforms.
• Robust advertising growth and expanded content partnerships fueled record revenue.

In-Depth Financial Review: Roku’s Q1 2021 Results

As a leading streaming device manufacturer, Roku, Inc. (ROKU) reported outstanding results for Q1 FY 2021. The company posted earnings per share (EPS) of $0.59, a significant improvement from the anticipated loss of $0.13. Revenue soared to a record $574.2 million, exceeding consensus forecasts and reinforcing Roku's position in the competitive streaming industry.

Active Accounts and User Engagement

Roku's active accounts totaled 53.6 million during the quarter, falling just short of the 54 million predicted by analysts. Despite this, the 34.7% year-over-year growth marks solid expansion, although it represents the slowest pace in over four years. Active accounts remain a critical metric, reflecting Roku's capacity to attract advertising revenue and subscription income, while also driving potential sales of new devices.

Outlook and Market Response

Looking ahead, Roku anticipates strong momentum in Q2 FY 2021, projecting net revenue around $615 million, a 73% increase year-over-year. The company cautions that while early comparisons are favorable, growth may moderate in the latter half of the year due to supply chain challenges and evolving digital advertising trends influenced by the COVID-19 pandemic.

Following the earnings announcement, Roku's stock rose approximately 1.8%. Over the past year, Roku has outperformed the broader market, delivering a remarkable 122.9% total return compared to 47.5% for the S&P 500.

Upcoming Earnings Release

Roku is scheduled to release its next earnings report on August 11, 2021.

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