Roku, Inc. (NASDAQ: ROKU) on Wednesday announced first quarter financial results that beat analysts’ estimate, sending the company’s stock up 3 percent.
Roku said revenue jumped 36 percent to $136.6 million in the first quarter. Platform revenue increased 106 percent to $75.1 million.
The company also reported smaller-than-expected loss for the first quarter. Net loss per share attributable to common stockholders was 7 cents.
The company saw strong momentum with their operating metrics. Active accounts rose 47 percent to 20.8 million year-over-year.
According to press release to shareholders: “Roku delivered another strong quarter of operational and financial performance in Q1 2018. The secular shift from legacy TV distribution to streaming continues unabated. Our purpose-built TV operating system and advertising platform continue to lead the market. Moreover, our advertising and content partners are benefiting from our increasing scale. Nearly half of our roughly 21 million active users have cut the cord or have never had a traditional pay TV subscription, which means that they simply cannot be reached through linear TV. This makes our strategic position in the living room extremely valuable. In the first quarter, our platform segment revenue more than doubled, as active accounts grew 47% year-over-year and ARPU increased 50%.”
Roku shares rose 2.5 percent to $37.03 in the early trading on Thursday.
Thanks to the strong first quarter revenue growth, the company raised its outlook for full year 2018. Roku now expected Q4 revenue could once again be roughly 37% of total annual revenue.