Roku Shares Plummet 24% as Q2 Ad Spending Withers

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The video streaming platform missed on second-quarter expectations, sending its stock price into a tailspin

Roku Earnings
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Roku failed to meet its modest revenue expectations as growth and advertisement sales continue to slow to the company’s lowest pace in over four years, according to its second-quarter earnings report Thursday.

The company posted overall revenue of $764 million for Q2, up 18% year over year, which couldn’t quite meet expectations that had its growth at around $805 million due to a depressed ad sales market. Roku also added another 1.8 million active accounts in Q2, bringing the company to a total of 63.1 million. 

“In Q2, there was a significant slowdown in TV advertising spend due to the macro-economic environment, which pressured our platform revenue growth.