Shares of Roku (NASDAQ:ROKU) surged in after-hours trading after the company reported earnings for its fourth quarter of Fiscal Year 2022. Earnings per share came in at -$1.70, which beat analysts’ consensus estimate of -$1.72 per share. Sales increased by 0.2% year-over-year, with revenue hitting $867.06 million. This beat analysts’ expectations of $802.86 million.
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Roku saw platform revenue increase 20% against this time last year, reaching $2.7 billion. Gross profit, meanwhile, jumped a further 2% in year-over-year comparisons to reach $1.4 billion. Active accounts hit 70 million, up 9.9 million from 2021, and streaming hours were up 14.3 billion to reach 87.4 billion hours total. The average revenue per user was also up, growing 2% in year-over-year comparisons to reach $41.68 per viewer.
Looking forward, management now expects revenue for Q1 2023 to be around $700 million.
Overall, Wall Street has a consensus price target of $56.90 on Roku, implying 10.38% downside risk, as indicated by the graphic above.
