Digital streaming services provider Roku (NASDAQ:ROKU) has announced a slew of measures aimed at lowering its year-over-year operating expense growth.
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The company is consolidating its office space, undertaking a strategic review of its content portfolio, lowering service expenses, and curbing its headcount expense growth by slowing down new hiring and slashing 10% of its headcount.
The headcount reduction is expected to result in a restructuring charge in the range of $45 million to $65 million. Roku expects to incur a major part of these restructuring charges in the third quarter.
In addition to the restructuring charges, Roku also expects to record impairment charges in the range of $160 million to $200 million for its office facilities consolidation and $55 million to $65 million associated with the removal of certain content from its TV streaming platform.
The company now expects total net revenue for the third quarter to land in the range of $835 million to $875 million. Adjusted EBITDA loss for the quarter is anticipated to be in the range of $40 million to $20 million. In comparison, the company had previously projected revenue for the quarter at $815 million.
Overall, the Street has a consensus price target of $81.50 on Roku, alongside a Moderate Buy consensus rating. Shares of the company have gained nearly 106% for the year so far.
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