Roku Q3 earnings 2021

Roku stocks fell in after-hours buying and selling on Wednesday after the corporate reported third-quarter income that ignored expectancies.

The corporate’s income got here in at $680 million, slightly below Refinitiv’s forecast of $683.four million. That is nonetheless 51% upper than the former yr. On the other hand, Roku’s income according to proportion of 48 cents beat expectancies for income of 6 cents.

Lively accounts at the platform greater 23% year-over-year to 56.four million. This could also be an build up of one.three million energetic accounts from the second one quarter.

In its shareholder letter, Roku stated the slowdown was once led to through “world provide chain disruptions that experience affected the United States TV marketplace.” The corporate expects those disruptions to proceed into 2022 and have an effect on product pricing, availability and promoting all over the vacation season.

The corporate added that TV gross sales within the quarter additionally fell under pre-pandemic ranges in 2019, whilst OEMs struggled with stock constraints.

“The pandemic continues to disrupt world provide chains,” Leader Monetary Officer Steve Lowden informed Long run Information in an interview after the record. “For the TV trade, you face prime part costs, stock availability problems, and delays in provide chain logistics.”

Gamers income, which incorporates the corporate’s streaming , fell 26% year-over-year within the 1/3 quarter to $97.four million, whilst prices rose because of provide chain problems. The corporate stated it “selected to isolate customers from those greater prices to prioritize account expansion.”

Earnings from the platform jumped 82% to $582.five million. Roku makes cash from its good TV streaming platform in large part via commercials and content material distribution.

Streaming hours within the quarter greater 21% from a yr in the past to 18 billion, averaging three.five hours performed according to day.

— CNBC’s Alex Sherman contributed to this record.

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