Roku grappled with intense competition and weakened customer spending on video streaming, resulting in a fourth-quarter loss larger than expected, leading to a 15% decline in shares during extended trading. The reported loss of 55 cents per share exceeded analysts' estimates of 52 cents, as per LSEG data.

The streaming giant faces formidable rivals like Netflix and Amazon's Prime Video, compounded by Americans cutting expenses amid persistent inflation. According to Reuters, Roku's shares further dipped by 4% following reports of Walmart's potential acquisition of Vizio for over $2 billion.

Despite these challenges, Roku anticipates first-quarter revenue to surpass Wall Street estimates, projecting $850 million in net revenue compared to analysts' expected $834.1 million, according to LSEG. In Q4, total revenue rose by 14% to $984.4 million. Despite challenges, Roku increased active accounts by 14% to 80 million and streaming hours by 21% to 29.1 billion. However, ARPU fell 4% to $39.92.

Roku's User Base Still Strong

As customers embrace TV streaming, Roku currently has over 80 million active accounts, indicating significant growth. Over 100 billion hours were streamed on the platform in 2023, averaging 4.1 hours per day per account in Q4. Roku has more active users than the six main U.S. pay-TV providers.

Roku wants to improve TV worldwide. In 2023, the company introduced its line of TVs and expanded the Roku TV licensing program to over 30 partners, per the firm's media release. The platform underwent significant enhancements, introducing user experience updates and content discovery tools like the Sports Experience, What to Watch, All Things Food, and All Things Home.

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Sustaining Momentum

Despite ongoing challenges, Roku's commitment to consumer needs and continuous innovation position it for sustained growth, delivering a top-tier TV streaming experience. The primary goal of the popular TV streaming provider is to function as a worldwide TV streaming platform that links the entire TV ecosystem. This dedication includes connecting content partners with a loyal audience and offering advertisers distinctive capabilities to effectively engage with viewers.

TechTimes previously reported that a Sharp-Roku partnership made a splash in the television market with the unveiling of the first-ever Roku TV featuring an OLED display. Departing from its conventional LCD panels, the Sharp Aquos OLEDs, available in 55-inch and 65-inch sizes, offer cutting-edge features and a seamless user experience, marking a significant stride in the television industry.

Sharp incorporated the Roku TV software, providing users with a seamless integration of the familiar Roku streaming device experience directly into the TV. Users enjoy benefits such as universal search, regular OS updates, and a dynamic home screen that showcases free-to-stream content.

In September 2023, Roku downsized its workforce by 10% or 360 employees and limit new hires. The decision was made to cease quarterly losses.The TV streaming company also disclosed that it would spend $45 million to $65 million in restructuring fees, mostly for severance and benefits.

The San Jose, California-based company employs 3,000 individuals.

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