Roku Inc. (ROKU) on Wednesday reported a loss of $237.2 million in its fourth quarter.

<div class="block">Roku Inc. (ROKU) on Wednesday reported a loss of $237.2 million in its fourth quarter.</div><div class="block">On a per-share basis, the San Jose, California-based company said it had a loss of $1.70.</div><div class="block">The results topped Wall Street expectations. The average estimate of 12 analysts surveyed by Zacks Investment Research was for a loss of $1.73 per share.</div><div class="block">The video streaming company posted revenue of $867.1 million in the period, also surpassing Street forecasts. Eleven analysts surveyed by Zacks expected $805.7 million.</div><div class="block">For the current quarter ending in March, Roku said it expects revenue in the range of $700 million.</div><div class="block">_____</div><div class="block"><i>This story was generated by&nbsp;<a href="http://www.automatedinsights.com/ap">Automated Insights</a>&nbsp;(http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a&nbsp;<a href="https://www.zacks.com/ap/ROKU">Zacks stock report on ROKU</a>&nbsp;at https://www.zacks.com/ap/ROKU</i></div>

Closing Bell

Roku Stock Surges After Hours on Earnings Beat

Welcome back to closing bell and tender news. Everyone, we do have an earnings alert. Roco results crossing the tape, the stock popping in the after hours after a double digit gain during today's normal session as well. And let's get straight to Michele Castelli Oh, with the breakdown Michelle. Yeah, it was a beat on the top and bottom lines. Let's go to those numbers right now. So you actually earning a loss of a dollar 70 cents. But the street was expecting a loss of a dollar, 73 cents. So good There. But I think what we're seeing the pop on is take a look at that revenue $867.1 million 801.69 million. That's a huge beat on revenue for the company. There's a couple of things that they mentioned in their report that actually might have led to this one. While they were facing the same macroeconomic conditions that lead to advertisers pulling back spend in marketing. They also noted that a lot of people are shifting budgets for advertising from traditional tv towards streaming. So they were able to mitigate a lot of those losses that maybe their competitors or even their peers in the technology sector that rely on digital advertising and looking at you meta or alphabet. They had to face more of those issues. Rocca was able to benefit from that shift towards streaming advertising. The second thing they also pointed out is that they actually gained market share as the number one streaming down in the north american market. I think they're around 36 38% of the market right now. Um Other updates we dated announced earlier in january that they hit 70 million monthly active accounts that is continuing um otherwise good news. They're also giving some pretty decent guidance for Q one of 2023 which I think is also leading to that pop in the stock at this time. At one point it was up about 17.5%. One of the things that they noted was the fact that they are seeing some boosts in certain advertising categories in Q1, including restaurants, travel, consumer packaged goods, health and wellness. So they do see that people are starting to spend a little bit more than them. They also had mentioned that they are scaling back in some categories uh in there, they had mentioned layoffs earlier just to weather out the Macaron economic climates. But overall pretty good news for Roku, a little bit more optimistic. They do think that they are going to decline to single digit revenue growth by the end of Q 4 2023 because of the macroeconomic climate. Let's remember companies like meta, they're actually losing down year over year when it comes to revenue. So, you know, that's good news for the streaming company at least. And they do expect even a positivity by 2024. They said they're on track for that Michelle just any takeaways, I guess as to what we might be able to glean here from the overall health of the advertising market. Right. I mean, some of these results have surprised to the upside, especially when it does come to advertising driven businesses. You know, I think the big take away from Roku is the shift to to streaming from traditional cable is real. And advertisers are taking note at a faster pace. So even though we are seeing marketing budgets pull back, a lot of these streamers are going to benefit from that. I'd be curious to look at netflix, which recently boosted their advertising business. You have companies like Disney Plus that are also probably gonna benefit all right, Michelle Castillo leo with the live breakdown, Michelle, thank you again. That stocks in nice gains after hours adding to decent gains today as well.