LearnBonds.com

Roku Set to Reverse Losses After Fourth-Quarter Sales Jump

Roku stock

Roku (NASDAQ: ROKU) stock price bounced almost 7 per cent after reporting revenue and earnings beat analysts estimates for the fourth quarter of 2019. The online streaming and entertainment company generated massive year over year growth in financial numbers for the fourth quarter and a full year. The market analysts believe a solid outlook for fiscal 2020 is likely to help in reversing the losses that it had incurred during the past couple of months.

Roku stock price is currently trading around $140, down from the highest level of $176 a share. ROKU share price traded in the narrow range of $130 over the past few months after plunging from the all-time high that it had hit at the beginning of the second half of 2019.

ROKU Roku, Inc. daily Stock Chart

Strong Financial Growth Boosted Roku Stock

Roku stock price bounced on the back of robust financial and market share growth in fiscal 2019. Its fourth-quarter revenue of $411ml increased by 49 per cent from the year-ago period. The full-year revenue came in at $1.12bn, up 52 per cent from the past year. It added close to 4.6ml incremental active accounts in the last quarter alone, ending the full year with 36.9 million active accounts.

In Q4 2019, we exceeded our outlook for revenue, gross profit, and adjusted EBITDA. For the full year, we achieved strong growth, exceeded $1.1 billion in revenue, and reinforced our position as America’s No. 1 TV streaming platform by hours streamed. We connect consumers, content publishers, advertisers, and TV brands and are rapidly increasing our scale,” the Chief Executive Officer said.

Roku Expects Similar Growth in 2020

The company expects to accelerate the revenue growth trend in 2020. They plan to invest aggressively in advertisement campaigns along with product innovation and international expansion. It expects 2020 revenue to stand in the range of $1.56bn, representing a 42 per cent growth from last year. The streaming company also forecast substantial gross profit growth compared to the past year.

If you’re looking to purchase your own stocks, start here.

All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Avatar

Based in Saudi Arabia, Siraj has a strong understanding of and passion for accounting and finance. He has worked for international clients for many years on several projects related to the stock market, equity research and other business, accounting and finance related projects. Siraj is a published financial analyst on the world's leading websites including SeekingAlpha, TheStreet, MSN, and others.

HTML Snippets Powered By : XYZScripts.com