Roku Forecasts $1 Billion Revenue In 2019
Streaming platform manufacturer, Roku, has revealed it’s eyeing international expansion, after reporting a 46% lift in Q4 revenue to US$275.7 million. The company has also advised it expects US$1 billion in revenues this year.
Shares soared over 20% to [US$63/share] late last week, after revenue and outlook beat analyst projections.
It comes after shares slumped to US$27.17 in December, with many investors concerned about US-China tensions, and the imposing threat of competition from the likes of Apple.
Despite the share spike and better-than-expected Q4 results, some commentators question long-term growth, noting Apple’s deal with Samsung to integrate iTunes within its smart TVs.
During its recent investors earnings call, Roku Chief Executive, Anthony Wood, acknowledged Roku’s “global opportunity.”
“We believe many of the assets we built for the U.S. market will help us expand into other markets”
“And clearly streaming is a global opportunity with one billion households worldwide”
“And that put us more International than domestic subs.”
The news comes after Roku commenced selling advertising on its platform last year.
During 2018, platform revenue increased 85% YoY, notching US$416.9 million – i.e. 56% of total revenue.
The company has continued to report growth in customer numbers, with 7.8 million new active accounts added last year.
By the end of 2018, active users notched 27.1 million.