On February 17, Roku Inc. (ROKU) declared its financial results for the fourth quarter and full-year 2021. Consequently, the missed revenue and short outlook caused the stock to fall down to its new 52-week low in the after-hours on Thursday.
It seems investors were already preparing for not-so-good earnings as the stock declined by 10.37% during the regular session. The anticipation of the earnings had caused the stock trade heavily at 18.6 million shares, 312% of its average. ROKU closed the session in the red at a value of $144.71 per share. Following the results, the stock tumbled down to $112.35, well below its 52-week low of $139.47. Hence, ROKU subtracted a further 22.36% in the after-hours. The after-hours session also saw a heavy volume of 9.83 million shares, well above its regular trading average of 5.96 million.
The TV streaming platform provider, Roku Inc. has a market capitalization of 421.69 billion. Currently, the company has 117.71 million shares outstanding in the market.
ROKU’s 2021 Financials
The company reported total net revenue of $2.765 billion for fiscal 2021, against $1.778 billion for the previous year. This marks an increase of 55% YOY.
Moreover, in fiscal 2021 ROKU had a gross profit of $1.409 billion against the previous year’s $808 million. Thus, marking a huge increase of 74% YOY.
The platform revenue grew by 80% YOY to $2.285 billion in fiscal 2021.
ARPU marked an increase of 43% YOY to $41.03 in fiscal 2021.
Future Outlook
The company also provided guidance for the ongoing Q1 2022. For Q1 2022, ROKU expects total net revenue of $720 million approx. with a net loss of $30 million.
Furthermore, the expected gross profit and adjusted EBITDA are $360 million and $55 million for the quarter.
Additionally, the company expects to release its Q1 2022 earnings report on May 11, 2022.
ROKU Company News
On February 02, the company announced a partnership with Entravision for the expansion of its advertising business in Mexico.
On February 01, the company announced the launch of Nielsen’s Digital Ad Ratings (DAR) audience guarantees on OneView. This makes OneView the first ad-buying platform to enable Neilsen guarantees across TV streaming. As a result, users would now be able to choose a specific age and gender demographic and pay only for the ad impressions reaching their target audience.
On February 01, ROKU also announced the debut of Lionsgate’s Swimming with Sharks on The Roku Channel this April. The drama will air exclusively and for free on the channel in the U.S, Canada, and the U.K.
