Roku beat Wall Street estimations for holiday-quarter sales and forecast full-year income above expectations Thursday, as the video streaming gadget manufacturer benefited from the launch of new streaming companies from Walt Disney and Apple.
Roku expects a full-year income between $1.58 billion and $1.62 billion, whereas analysts have been anticipating $1.58 billion, based on IBES data from Refinitiv.
Walt Disney’s streaming platform Disney+ revealed last November and reached 10 million subscriptions in its first day. At the same time, while Apple launched its streaming service Apple TV+.
Streaming device manufacturers have benefited alongside platforms like Netflix and Amazon’s Prime Video as customers cut the cord to cable or satellite TV and switch to subscription-based streaming services.
New services and elevated content on the platform are a positive thing for Roku, Chief Financial Officer (CFO), Steve Louden said.
Roku has turned its focus from device sales to advertising, which is now the corporate’s fastest-rising income stream, to tap the soar in several streaming services providers.
Advertising is among the biggest alternatives for Roku as the viewership strikes from traditional TV to streaming.
The company charges a fee from media firms that stream programming on the free, ad-based Roku channel.
Roku contributed 4.6 million active accounts in Q4, bringing the total to 36.9 million at the end of the year.