Roku, Inc. (NASDAQ: ROKU) shares fell more than 6% Thursday, after the TV streaming platform operator released second quarter 2020 results Wednesday after market closed.
Roku reported total net revenue grew 42% YoY to $356.1 million, platform revenue increased 46% YoY to $244.8 million and added 3.2 million incremental active accounts in Q2 2020 to reach 43 million.
“Demand for our players increased following the start of shelter-at-home orders in mid-March. Despite the pandemic’s adverse impact on global supply chains, we have largely managed to keep our products in stock, albeit with a greater use of air freight than originally planned. Due to strong demand and tight inventory levels of certain products, we ran fewer promotions than we normally would which benefited player margins. During the quarter, high demand for Roku TV models helped some of our new TV OEM partners achieve substantial year-over-year unit share gains in the U.S. market. Strong demand also resulted in tight supply conditions continuing into July for both Roku players and Roku TV models,” said Anthony Wood, Founder and CEO.
The Company also indicates that the pandemic has accelerated the long-term trend towards all TV being streamed. Yet, because the short-term outlook is both variable and uncertain, Roku did not issue a formal outlook at this time.
“Given the size of the streaming opportunity, we remain committed to our strategic investment areas and are continuing to hire, albeit at a slower pace than pre-COVID-19 levels. We plan to continue to monitor the trajectory of the business, and prudently manage expenses and capital expenditures. This approach of investing to enhance our competitive advantages and future growth while managing through external headwinds will likely mean that we run at an adjusted EBITDA loss for the year,” the CEO added.