Roku Inc. (NASDAQ: ROKU), one of the hottest performing stocks currently, jumped over 13 percent on Monday morning after its announcement that Funai Electric has joined Roku TV’s licensing program.
Roku’s streaming services will be delivered with Funai’s Philips brand subsidiary. It is expected to be available in the U.S. within this year.
“The Philips brand is a well-known and trusted brand in the U.S. that delivers best-in-class performance TVs. By using the Roku operating system to power Philips branded TVs, our customers will enjoy a simple-to-use interface that offers excellent streaming entertainment and discovery features for smart TVs today.” said Peter Swinkels, GM, Product Planning at Funai Electric.
Roku’s strong week continues now as shares yet again. Shares rose by 54 percent last week after the company had crushed analysts’ estimates for its third quarter financial results. Now, in the past week, Roku shares have surged 91 percent.
In its third quarter financial results, Roku reported that its platform revenue growth is the primary driver, as it it increased 137 percent year over year. Now that Roku will integrates its platform into Philips brand TV, this will further expand active users as well as the average revenue drawn in by per user.
Anthony Wood, CEO of Roku, says regardless of Roku’s platform growth, the main driver for the company will be its advertising business.
“Combined with Roku’s operating system, we can deliver a smart TV that offers value, simplicity, and entertainment.” said Chas Smith, general manager of Roku OEM.
Since Roku’s IPO launch to date, shares are now up 57.1 percent.