By Juby Babu
Feb 12 (Reuters) – Roku forecast annual revenue above Wall Street estimates on Thursday, betting on a broader shift to ad-based streaming, sending its shares up 12% in extended trading.
Roku is cashing in on changing consumption habits, signaling strong ad sales as more customers switch to streaming platforms.
Streaming viewership has grown substantially, with connected TV devices becoming primary viewing platforms for many households, benefiting Roku.
The company’s platform segment, which includes digital advertising and content distribution revenue, has been the primary engine for growth.
“Roku’s relentless focus on the underlying platform is reaping fruits and turning scale into a repeatable monetisation engine,” PP Foresight analyst Paolo Pescatore said.
Roku sees platform revenue growing 18% to $4.89 billion in 2026, ahead of analysts’ average estimate of $4.66 billion, according to data compiled by LSEG.
For the fourth quarter, Roku posted platform revenue of $1.22 billion, above an estimate of $1.18 billion.
“We expect to continue to grow our scale of streaming households in the U.S. and globally and we’re on track to surpass 100 million streaming households this year,” CEO Anthony Wood said on a call with analysts.
Roku expects annual revenue of $5.50 billion, ahead of an estimate of $5.34 billion, according to data compiled by LSEG.
(Reporting by Juby Babu in Mexico City; Editing by Krishna Chandra Eluri)
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