Roku Reveals Strong Q4 Viewership Data

Roku Inc. (NASDAQ: ROKU) shares spiked more than 23% on Monday after releasing preliminary numbers for its active accounts and streaming hours for its fourth quarter of 2018.

The Company beat the FactSet consensus estimate 6.6 billion streaming hours, reporting an estimated 7.3 billion, up 68% year-over-year, according to a press release. The results bring streaming hours for 2018 up to roughly 24 billion, up about 61% from 2017.

Roku also reported 27 million active accounts in the fourth quarter, up about 40% year-over-year, on track with analysts’ predictions of 27.1 million active accounts, according to FactSet estimates.

“Strong active account growth and accelerating streaming hours point to consumers’ growing enthusiasm for streaming, making Roku America’s largest and fastest growing TV streaming distribution platform,” said Roku Chief Executive Officer Anthony Wood. “In 2018, we maintained our leadership in streaming players, licensed smart TVs and TV streaming hours. Roku continues to bring viewers more choice, great value, a compelling user experience – and lots of TV fun.”

The stock was trading above USD 41 per share Monday, with a market cap of about 4.5 Billion.

Roku offers streaming players and TV models that let customers stream content from various services through their devices, offering consumers a simple way to watch video content without a cable or other pay-TV subscription. Roku competes with other streaming devices like Apple (NASDAQ: AAPL) TV, Amazon.com Inc.’s (NASDAQ: AMZN) Fire TV Stick, and Google’s (NASDAQ: GOOGL) Chromecast.

KeyBanc Capital Markets rated the stock as overweight Monday with a USD 59 price target, saying the numbers were well above their estimates for Q4 2018. In a note, the analysts also referenced Roku’s separate announcement Monday that Westinghouse Electronics will join the Roku’s TV licensing program. In a press release, Roku said HD Westinghouse Roku TV models are expected in the first half of 2019, with 4K Westinghouse Roku TV models available later in the year.

“This is notable for a couple reasons. First, it is another proof point that OEMs continue to see value in the Roku operating system and validates the competitive moat,” the KeyBanc analysts wrote. “Second, this is an Amazon Fire TV (smart TV) customer, which highlights Roku’s strong competitive position, in our view.”

2 Comments
  1. Kurt Elia 8 months ago
    Reply

    I always thought of it as another FitBit/GoPro (easily copied gadget) only worse, as Roku’s core features come free in all smart TVs. What am I missing?

  2. Art Halvarson 8 months ago
    Reply

    I went long ROKU, above its opening range, locking in profits on the $0.50 breakout to the upside!

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