Roku
ROKU
is expected to have benefited from strong growth in active accounts in its third-quarter 2021, the earnings result for which is scheduled to be reported on Nov 3.
In second-quarter 2021, Roku’s active accounts jumped 28% year over year to 55.1 million in second-quarter 2021.
The Zacks Consensus Estimate for third-quarter active accounts is pegged at 57 million, indicating an increase of 32.6% from the year-ago reported figures.
Click here
to know how Roku’s overall third-quarter results are likely to be.
Roku, Inc. Revenue (Quarterly YoY Growth)
Roku Channel’s Popularity to Negate Weak Player Revenues
Roku is expected to have benefited from Roku Channel’s growing popularity. During the to-be-reported quarter, Roku added 17 new channels, including CBC, El Rey, AccuWeather Now, FilmRise True Crime, Haunt TV, Real Madrid TV and IGN. With the addition of the new channels, The Roku Channel is now home to more than 200 free streaming channels.
Moreover, Roku Channel debuted four all-new Roku Originals series –
Eye Candy
,
Squeaky Clean
, season 2 of
Thanks a Million
, and
What Happens in Hollywood
, besides multi-Emmy nominated
Mapleworth Murders
.
Availability of third-party streaming channels on the Roku platform, including
Discovery
’s
DISCA
Discovery+,
The Walt Disney
’s
DIS
Disney+, HBO Max, Paramount+, NBCUniversal, as well as Peacock, Amazon Prime Video, AppleTV+, Hulu, and
Netflix
NFLX
, besides continued investments in The Roku Channel, is expected to have contributed to engagement growth in the third quarter of 2021.
The Zacks Consensus Estimate for Platform revenues is pegged at $547 million, indicating growth of 71.4% from the figure reported in the year-ago quarter.
However, Player revenues are expected to have declined in the to-be-reported quarter. The Zacks Consensus Estimate for Player revenues are pegged at $124 million, which suggests 6.1% decline from the figure reported in the year-ago quarter.
Moreover, Roku’s advertising initiatives are likely to boost top-line growth in the to-be-reported quarter.
This Zacks Rank #3 (Hold) company expanded its advertising base in Canada with the launch of the OneView advertisement platform in the region. You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
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