Roku shares rocketed 25 percent on Monday after the popular over-the-top device maker revealed streaming hours and active users had spiked during the fourth quarter.
Roku, in its press release, said its viewers streamed 7.3 billion hours worth of content during Q4 — a 68 percent year-over-year increase. The company also reported it had topped 27 million active users, a 40 percent year-over-year increase that puts it in line with analyst estimates. Those figures indicate Roku users are streaming about 270 hours of content per quarter — or nearly 3 hours each day.
“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,” Roku Chief Anthony Wood said in a statement.
Wall Street responded enthusiastically, with Roku shares closing the day at $42.18 a share. It was a welcome sight for Roku shareholders, who have been battered in recent months with the company’s stock dropping from a high of $76 per share last fall following its Q3 earnings report in November.
Monday’s announcement dovetailed nicely with Netflix leading all studios in taking home five Golden Globes victories the night before, supporting analysts and investors that believe the streaming revolution is still well underway. Roku, which competes in a crowded device market with Apple TV and Google’s Chromecast, among others, has looked to entice more viewers by offering its own curated channels.