Roku is likely to publish Q2 2023 results on July 27, reporting on another quarter that is likely to see the company’s bread-and-butter platform business continue to face headwinds as consumer and advertiser spending remains challenging. We expect revenue to come in at $774 million, slightly ahead of consensus estimates and up by about 1% versus last year. We project that net losses will stand at about $1.25 per share, slightly lower than the consensus estimates. So what are some of the trends that are likely to drive Roku’s performance for the second quarter? See our analysis of Roku Earnings Preview for a closer look at what to expect when the company publishes earnings.
Roku’s lucrative platform business – which sells advertising and content – has seen growth slow meaningfully in recent quarters as rising inflation and slowing consumer spending hurt spending by marketers on TV advertising. Over Q1, the division’s sales contracted by 1% year-over-year. However, we think that things could improve a bit on the hardware front, as the supply chain issues, that the company’s players’ business faced over the last year, continue to ease. Over Q1, hardware sales were up by about 18% year-over-year.
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