Roku Q1 results beat low bar, guidance set conservatively, says Loop Capital

Loop Capital keeps a Buy rating and a $75 price target on Roku after its Q1 results and outlook. The company beat consensus and guidance across the board, both on user metrics and financials, and its engagement was up though monetization declined due to the challenging ad market and reduced marketing from the streaming companies, the analyst tells investors in a research note. Even when adjusting for a one-time $10M settlement, results would have topped the low bar investors were expecting, and Roku’s Q2 guide was conservative ahead of consensus on expectations for a weak macro advertising environment for the year, Loop added.