Roku shares slip after a strong Q1 as the streaming TV company reins in its full-year outlook
The streaming platform also scooped up subcription service Frndly TV in a $148 million deal.
Roku shares sank 10% in Thursday morning trading, after the company beat first-quarter estimates but took a more cautious tone on the year ahead.
Revenue jumped 16% to $1.02 billion, marking the first time Roku has cracked the billion-dollar mark in a single quarter. The company also trimmed its losses to $0.19 per share — narrower than Wall Street’s expected $0.26 drop.
Platform revenue, which includes ad sales and subscriptions, rose 17% to $881 million. Roku said its video ad business and streaming distribution arm are growing even faster than the platform segment overall. The company continues to deepen its reach, now planted in over half of US broadband homes and making inroads in Mexico, where it’s in more than 40% of households.
But execs have dialed back their full-year forecast, citing a still shaky ad market and broader macroeconomic uncertainty. Roku now expects full-year net revenue of $4.55 billion, down from its previous forecast of $4.61 billion.
Roku shares are down 21% year to date.