Roku (NASDAQ:ROKU) soared more than 15% intra-day today after posting a smaller-than-expected fourth-quarter loss and strong revenue growth, driven by expanding subscriber numbers and increased advertising demand.
For Q4, the streaming platform company reported a loss of $0.24 per share, significantly narrower than analysts’ expected $0.42 loss. Revenue climbed to $1.2 billion, surpassing the $1.15 billion consensus estimate, reflecting healthy demand across its platform segment.
Roku’s platform revenue, which includes ad sales and subscription revenue, surged 25% year-over-year to $1.04 billion. Growth was particularly strong in political advertising, but even excluding that factor, the segment still expanded by 19%.
Looking ahead, Roku expects Q1 2025 revenue of $1.01 billion, in line with Wall Street projections. The company also issued full-year 2025 revenue guidance of $4.61 billion, aligning with analyst expectations. Platform revenue is projected to grow 15% for the year, reflecting continued strength in advertising and subscriptions.