Roku CEO Unfazed By Stock Drop, Says Future Looks Bright
*By Christian Smith*
Despite losing a significant amount in market cap after reporting platform revenue earnings that fell short of Wall Street estimates, Roku CEO Anthony Wood said he isn't worried about the company's long-term prospects.
"Our business is just fundamentally strong," Wood said Thursday in an interview on Cheddar.
"We beat analysts' consensus estimates, we beat our outlook ー in fact, it's the fifth quarter in a row since we went public that we have beaten those numbers."
Shares of Roku ($ROKU) tumbled Thursday morning, opening with losses of more than 20 percent and continued to drop in value throughout the day.
Roku released its quarterly earnings Wednesday after the closing bell. The company posted $73.3 million in revenue for its hardware division, beating Wall Street estimates of $67 million. However, it fell short of revenue expectations for its platform segment; the company posted $100.1 million for the quarter compared with a $103.2 million forecast.
Roku raised its full-year revenue guidance to a range of $722 million to $732 million, up from a range of $710 million to $730 million. Wall Street's estimate for Roku's full-year revenue is $722.8 million.
One of the bright spots in Roku's earnings was its growth in active users. The platforms gained 1.8 million active users in the quarter, bringing Roku's total to 23.8 million, up 43 percent year-over-year.
By comparison, traditional TV providers lost over 1 million users during that same time period, which Wood believes is additional proof that Roku's future is bright.
"When new platforms emerge, the viewers move first, and then the advertisers follow their viewers," Wood said. "There's a huge opportunity ahead of us."
For full interview [click here](https://cheddar.com/videos/roku-ceo-reacts-to-stock-slide-after-companys-earnings-report).
After the 2021 boom, IPO activity slowed down significantly, in part due to monetary policy – but things are getting moving again with tech-friendly companies like Iboutta and Rubrik making a public debut.
With an increasing demand for mental health services, one person wanted to change the therapy game. In 2017, CEO Alex Katz founded Two Chairs, a company that uses technology to match patients with the right therapist.
Not only is April Financial Literacy Month, it’s also the kickoff of the spring homebuying season. So now is the time to make sure you have a financial plan in place – and why it might not be wise for that to include buying your first home.
While the U.S. may slowly be on the path to lowering inflation (and therefore interest rates), Europe has thoroughly trounced America, putting it on the path to lower rates by this summer.
April's release of the monthly Housing Starts and Building Permits reports by the Census Bureau provides crucial insights into the construction activity in the housing market. These reports are an economic indicator, shedding light on the current state of the housing market and its broader economic impact.
Caitlin Clark is heading to the Indiana Fever, the number one draft pick and the highest-scoring college basketball player of all time. And while she may not be getting millions from the WNBA, there's a few ways she'll net compensation for her generational talents.
Author of 'Clean Meat,' Paul Shapiro joins Cheddar to discuss how the cellular agricultural revolution helps lower rates of foodborne illness and greatly improves environmental sustainability. Plus, how his company The Better Meat Co. is bringing healthier food options to the table.
Recent headlines might make it sound like World War III is imminent, but when it comes to your finances, it's not the time to panic. The market is coming off its longest winning streak since 2011.
You may have noticed fewer new venture capital-backed startups (like Airbnb or Uber) lately. The market slowed to a crawl after 2021, but things are expected to take off again in 2025.
Corporate earnings season is underway, that time when companies share their billions in sales or double-digit profits. But the data shows even companies are struggling with high inflation and interest rates.
