Shares of Roku (NASDAQ:ROKU) surged in after-hours trading after the company reported earnings for its second quarter of Fiscal Year 2023. Earnings per share came in at -$0.76, which beat analysts’ consensus estimate of -$1.27 per share. Sales increased by 10.8% year-over-year, with revenue hitting $847 million. This beat analysts’ expectations by $72.47 million.
Furthermore, the number of active accounts increased by 1.9 million on a quarter-over-quarter basis, with the current total equating to 73.5 million active accounts. In addition, streaming hours increased by 4.4 billion hours year-over-year.
However, it’s also worth mentioning average revenue per user fell by 7% year-over-year to $40.67 on a trailing 12-month basis. Also, gross profit only increased by 7%, indicating that the company saw operating deleverage as it increased less than revenue.
Overall, Wall Street has a consensus price target of $71.89 on ROKU stock, implying 5.43% upside potential, as indicated by the graphic above.
