Roku stock sinks after reporting tight hardware margins, dramatic fall in streaming viewership

Technology

CEO of Roku, Anthony Wood speaks onstage at The Future of TV Streaming & Entertainment during Tribeca X – 2021 Tribeca Festival at Spring Studios on June 18, 2021 in New York City.
Arturo Holmes | Getty Images

Roku shares fell more than 8% in after-hours trading Wednesday after reporting second-quarter earnings that beat expectations but showed a slowdown in streaming TV viewing and tight hardware margins.

The company said streaming hours decreased by 1 billion hours from the first quarter of 2021. In its shareholder letter, it also said “tight component supply conditions and shipping constraints” continued increasing costs faster than expected.

“In Q2, we insulated consumers from increased costs for Roku players, which resulted in Player gross margin turning negative in the quarter,” the letter says.

The company’s total net revenue grew 81% year-over-year in the quarter to $645 million.

This is developing.

Articles You May Like

WorldRemit becomes latest fintech to slash jobs as outlook darkens
Two Space Startups Authorised by IN-SPACe, Marks Beginning of Private Space Sector Launches in India
Tesla delivered 254,695 electric vehicles in the second quarter of 2022
Blow to Biden’s climate agenda as US Supreme Court limits federal power to curb emissions
Travis Barker has been rushed to hospital in Los Angeles, according to reports