Out of the blue, Roku’s results on the stock price are not likely to happen as expected. Soon, on 25th April, Roku’s first-quarter earnings will be reported and that is presumed to be the decisor of the advertising company’s growth.
Over to the fourth-quarter FY24 earnings of Roku 2023, the evolution of Platform revenue comprising ads and content bestowed a 10 percent increase. Meanwhile, the streaming hours increased by more than 61 percent than the previous year. Roku Channel has played a bigger part in the rising Engagement rates in Q4 reports. 10 million active accounts is a huge add-on in the mob of existing 80 million users. Not all the factors contributed to successive peaks. Roku’s ARPU (Average Revenue Per User) was subjected to a slight decline of about 4% due to the mixing of international accounts.
On a glance over the Q4 reports, it is speculated that the stock revenue of Q1 might reach about $950 million ahead of the consensus earnings. It is quite on the rise moment for the Roku advertising company. But still, the recent security violation that happened on April 12 affected more than 5,00,000 user accounts. It is possible that this outbreak can pull down the Q1 stock price target.
Roku’s improvements in the LCD panel prices can increase the estimated sales and can alter the Q1’s targets. So, it is still a conjecture whether the first quarter reports will become the talk of the town or not.
