Roku Inc (NASDAQ:ROKU) unveiled its latest quarterly earnings results after hours today, yielding better-than-expected results, but shares still fell sharply.
The video streaming service device maker announced a profitable quarter as the company’s licensing and advertising revenue increased, with total revenue reaching $188.26 million for its fourth quarter, topping the year-ago total of $147.3 million.
Analysts were calling for revenue of $182.5 million, according to data compiled by FactSet. Roku’s platform business — which includes the licensing fees the company generates from device partners and advertising revenue — increased to $85.44 million during its fourth quarter, amounting to 45% of the company’s total revenue.
On the earnings front, the company brought in $9.49 million, topping the $3.38 million it earned during the fourth quarter of fiscal 2016. However, adjusted earnings came in at $6.9 million as the company cleared itself of some debt by shelling out $2.3 million.
Roku’s earnings in the year-ago quarter were $3.2 million. On a per-share basis, the company earned six cents, which was considerably higher than the Wall Street consensus estimate of a loss of 10 cents per share, according to data compiled by FactSet.
For its first quarter of fiscal 20018, analysts predict that Roku will post a loss of 20 cents per share, while revenue is slated to arrive at $130.8 million.
ROKU stock declined more than 20.6% after the bell Wednesday. The stock only fell 0.2% during regular trading hours.