Roku Vs. Q4 2021 Estimates: Misses Revenue, Beats EPS

Roku Inc (Nasdaq: ROKU) reported its Q4 and full-year 2021 financial results on Thursday post-closing bell. The firm earned a quarterly revenue of US$865.3 million, up from Q3 2021’s US$680.0 million and Q4 2020’s US$649.9 million.

However, this missed the consensus estimate of US$892.3 million for the quarter. In contrast, the firm beat the estimate for active accounts, holding 60.1 million accounts at the end of the quarter versus the estimated 59.5 million. This is also an increase from last quarter’s 56.4 million and last year’s 51.2 million.

Gross margin for the quarter declined to 43.9% from last quarter’s 53.5% and last year’s 47.0%. With increased operating expenses amounting to US$358.3 million, the firm’s operating income also declined to US$21.4 million for the quarter. This compares to the operating incomes of last quarter’s US$68.8 million and last year’s US$65.2 million.

This led the company to record a lower net income for the quarter at US$23.7 million compared to last year’s US$67.3 million. The quarterly net income, however, translates to US$0.17 earnings per diluted share–beating the estimate of US$0.06 earnings per share.

The company also released its guidance for Q1 2022, toplined by a quarterly revenue estimate of US$720 million. It also expects to record a net loss of US$30 million and an adjusted EBITDA of US$55 million.

Following the firm’s release of its financials, Roku shares have gone down as much as 26.8% pre-market. Its website has also been temporarily down but is now accessible.

The financial results have been met with mixed reactions, particularly on the contrast of missing revenue and guidance estimates but beating EPS and active accounts estimates.

The streaming platform is also reportedly planning to manufacture its own television sets. According to a Business Insider source, the company has hosted a focus group showing “different models, feature sets and names, sizes, price points” of TVs. Currently, the firm provides its operating system to television manufacturers and sells these under the Roku brand.

Roku last traded at US$144.71 on the Nasdaq, but was down as much as 26.8% and trading the US$106-level pre-market.

Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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