More people are streaming — and streaming for longer periods of time — and that’s good news for Roku, with the device maker posting rapid revenue and user growth when it reported its Q2 financials on Wednesday afternoon.
For the three months ended June 30, Roku reported 0 cents earnings per share and $156.8 million in revenue — easily trumping the loss of 15 cents per share and sales of $141.5 million Wall Street analysts had anticipated, according to estimates from Yahoo Finance. Revenue increased 57 percent year-over-year.
Roku’s user base continues to climb as well, with 22 million active accounts at the end of Q2. That’s up 46 percent from the same time last year. Roku’s users are also streaming more than in years past, too, with hours spent streaming increasing 57 percent year-over-year. A total of 5.5 billion hours were spent watching content on Roku devices during Q2.
Wall Street was impressed, at least at first blush, with Roku breaking even and posting healthy account growth. Roku’s shares moved up 3.5 percent to about $49 per share in after-hours trading.
Roku has pointed to its “strategic position” as a device maker in the past, allowing the company to benefit from the continued growth of Netflix and other streaming heavyweights. The Los Gatos, California-based company went public last year, competing with industry stalwarts like Apple and Amazon for a share of the expanding streaming market. Despite the stiff competition, Roku has established itself as the market leader, with 37 percent of all devices falling under its banner.
The company will hold a call at 5:00 p.m. to discuss its earnings.