ROKU Stock Surges 10% on Promising Q1 Growth Numbers

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Roku (NASDAQ:ROKU) stock is on the rise Tuesday after providing a promising business update to its investors.

ROKU Stock Surges 10% on Promising Q1 Growth Numbers

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The business update from Roku includes estimated results for its fiscal first quarter of 2020. The company is providing this information ahead of its earnings call on May 7.

Roku says that it is expecting revenue for the quarter to range from $307 million to $317 million. That will have it beating out Wall Street’s revenue estimate of $300.44 million for the quarter.

The update also mentions gross profit ranging from $139 million to $144 million, as well as a net loss of -$60 million to -$55 million. Investors can also expect an adjusted EBITDA of -$23 million to -$18 million for the period.

The business update moving ROKU stock also notes that these numbers have revenue coming in above its own estimates. The rest of those numbers are in-line with the company’s own outlook for the quarter.

Another quick bit of information in the update includes the company having 39.8 million active accounts as of March 31, 2020. That’s a 3 million account increase since its previous quarter ending on Dec. 31, 2019.

Roku says the reason for this update is the novel coronavirus. It also makes sure to point out that it is withdrawing its outlook for the full year of 2020. That makes sense as coronavirus has been disrupting the economy. Many other companies have also pulled their outlooks due to this.

ROKU stock was up 10% as of Tuesday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2020/04/roku-stock-surges-on-promising-q1-estimates/.

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