BROWSE

UPDATE 2-Roku’s dour ad industry outlook clouds upbeat earnings

Roku Inc said on Wednesday uncertainty in the ad industry will persist through the third and fourth quarters, overshadowing the video-streaming device maker’s upbeat results and sending its shares sharply lower. The company puts advertisements on its free Roku Channel and also charges a commission from media companies that stream programming on the free, ad-supported channel. That model has come under pressure as the COVID-19 pandemic forced companies, particularly in the hard-hit sectors such as casual dining, travel and tourism, to pull back advertising spending. “The outlook for the (ad) industry remains highly uncertain. We believe that it will be well into 2021 before TV ad investment recovers,” Chief Executive Officer Anthony Wood said on an earnings call. The company expects overall revenue to grow substantially on a year-over-year basis in the second half and for the full-year 2020, though not as strongly as it had anticipated prior to the outbreak. Still, the pandemic-induced lockdowns helped Roku beat quarterly revenue estimates as sales of its video-streaming devices soared and more users logged on to its content platform for entertainment. Sales of Roku devices, which connects televisions to streaming services, jumped 35% to $111.3 million in the second quarter. With audience stuck at home without access to theater, live music, shopping excursions or live or televised sporting events, streaming device makers and services including Netflix Inc , Walt Disney’s Disney+ and Amazon.com Inc’s Prime Video have attracted record number of users. Platform revenue, which includes ad sales, surged 46% to $244.8 million, beating estimates of $239.9 million. Total net revenue rose to $356.1 million, topping analysts’ estimates of $315.4 million, according to IBES data from Refinitiv. Shares reversed course to be down nearly 5% in extended trading. (Reporting by Munsif Vengattil in Bengaluru; Editing by Sriraj Kalluvila) Our Standards:The Thomson Reuters Trust Principles.0 : 0narrow-browser-and-phonemedium-browser-and-portrait-tabletlandscape-tabletmedium-wide-browserwide-browser-and-largermedium-browser-and-landscape-tabletmedium-wide-browser-and-largerabove-phoneportrait-tablet-and-aboveabove-portrait-tabletlandscape-tablet-and-abovelandscape-tablet-and-medium-wide-browserportrait-tablet-and-belowlandscape-tablet-and-belowAppsNewslettersAdvertise with UsAdvertising GuidelinesCookiesTerms of UsePrivacyDo Not Sell My Personal InformationAll quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays. © 2020 Reuters. All Rights Reserved. window.RCOM_Data = {"header_cxzd5qikdb":{"template":"header","evergreens":[{"url":"https://www.reuters.com/news/world","name":"World","sponsored":false},{"url":"https://www.reuters.com/finance","name":"Business","sponsored":false},{"url":"https://www.reuters.com/finance/markets","name":"Markets","sponsored":false},{"url":"https://www.reuters.com/politics","name":"Politics","sponsored":false},{"url":"https://www.reuters.tv/","name":"TV","sponsored":false}],"topics":[{"url":"https://www.reuters.com/brexit","name":"Brexit","sponsored":false},{"url":"https://www.reuters.com/subjects/sustainable-business","name":"Sustainability","sponsored":false},{"url":"https://www.reuters.com/subjects/myanmar-reporters","name":"Imprisoned In Myanmar","sponsored":false},{"url":"https://www.reuters.com/subjects/charged","name":"Future of Cars","sponsored":false},{"url":"https://www.reuters.com/places/venezuela","name":"Venezuela","sponsored":false},{"url":"https://www.reuters.com/the-world-at-work","name":"World At Work","sponsored":false},{"url":"https://www.reuters.com/breakingviews","name":"Breakingviews","sponsored":false},{"url":"","name":"","sponsored":false},{"url":"","name":"","sponsored":false},{"url":"","name":"","sponsored":false},{"url":"","name":"","sponsored":false},{"url":"","name":"","sponsored":false}],"featured_stories":[{"displayName":"U.S. Election 2020","url":"//www.reuters.com/article/us-usa-election-trump-debates/trump-campaign-wants-presidential-debate-in-early-september-idUSKCN25131D","image":"//pictures.reuters.com/Doc/RTR/Media/TR3_UNWATERMARKED/a/5/e/c/RTX7MHC5.jpg","headline":"Trump campaign wants presidential debate in early September"},{"displayName":"Pictures","url":"//www.reuters.com/news/picture/the-atomic-bombings-of-hiroshima-and-nag-idUSRTX7NI7P","image":"//static.reuters.com/resources/media/global/assets/images/20200805/20200805_2384367920200805235546.jpg","headline":"The atomic bombings of Hiroshima and Nagasaki, 75 years ago"},{"displayName":"THE WORLD AT WORK","url":"//www.reuters.com/article/us-autonomous-uber-levandowski-law-expla/the-trade-secret-minefield-what-workers-risk-when-changing-jobs-idUSKCN250347","image":"//static.reuters.com/resources/media/global/assets/images/20200805/20200805_2756628320200805053804.jpg","headline":"The trade secret minefield: What workers risk when changing jobs"},{"displayName":"Technology ","url":"//www.reuters.com/article/us-facebook-instagram-tiktok/facebook-launches-tiktok-like-product-inside-instagram-idUSKCN2511VD","image":"//s2.reutersmedia.net/resources/r/?mu003d02u0026du003d20200805u0026tu003d2u0026iu003d1528451958u0026ru003dLYNXNPEG7412H","headline":"Instagram launches TikTok u0027copycatu0027 product, escalating fight "},{"url":"/article/us-health-coronavirus-fauci-exclusive/fauci-says-regulators-promise-politics-will-not-guide-vaccine-timing-idUSKCN25133S","image":"//pictures.reuters.com/Doc/RTR/Media/TR3_UNWATERMARKED/0/0/4/4/RTS3JIZ0.jpg","headline":"Fauci says regulators promise politics will not guide vaccine timing","label":"exclusivereport"}],"render_key":"header_cxzd5qikdb","menu":[{"url":"/home","name":"Home"},{"url":"/finance","name":"Business","children":[{"url":"/finance","name":"Business Home"},{"url":"/legal","name":"Legal"},{"url":"/finance/deals","name":"Deals"},{"url":"/subjects/aerospace-and-defense","name":"Aerospace u0026 Defense"},{"url":"/subjects/banks","name":"Finance"},{"url":"/subjects/autos","name":"Autos"},{"url":"/finance/summits","name":"Reuters Summits"},{"url":"/subjects/sustainable-business","name":"Sustainable Business"},{"url":"/the-world-at-work","name":"The World at Work"}]},{"url":"/finance/markets","name":"Markets","children":[{"url":"/finance/markets","name":"Markets Home"},{"url":"/finance/markets/us","name":"U.S. Markets"},{"url":"/finance/markets/europe","name":"European Markets"},{"url":"/finance/markets/asia","name":"Asian Markets"},{"url":"/finance/global-market-data","name":"Global Market Data"},{"url":"/markets/stocks","name":"Stocks"},{"url":"/markets/bonds","name":"Bonds"},{"url":"/markets/currencies","name":"Currencies"},{"url":"/markets/commodities","name":"Commodities"},{"url":"/finance/funds","name":"Funds"},{"url":"/finance/EarningsUS","name":"Earnings"},{"url":"/finance/markets/dividends","name":"Dividends"},{"url":"/finance/exchange-traded-funds","name":"Exchange-Traded Funds"},{"url":"/subjects/us-lipper-awards","name":"Lipper Awards"},{"url":"https://stockscreener.us.reuters.com/Stock/US/Index?quickscreenu003dgaarp","name":"Stock Screener"},{"url":"https://funds.us.reuters.com/US/screener/screener.asp","name":"Fund Screener"}]},{"url":"/news/world","name":"World","children":[{"url":"/news/world","name":"World Home"},{"url":"/news/us","name":"U.S."},{"url":"/subjects/specialReports","name":"Special Reports"},{"url":"//www.reuters.com/investigates/","name":"Reuters Investigates"},{"url":"/subjects/euro-zone","name":"Euro Zone"},{"url":"/subjects/middle-east","name":"Middle East"},{"url":"/places/china","name":"China"},{"url":"/places/japan","name":"Japan"},{"url":"/places/mexico","name":"Mexico"},{"url":"/places/brazil","name":"Brazil"},{"url":"/places/africa","name":"Africa"},{"url":"/places/russia","name":"Russia"},{"url":"/places/india","name":"India"}]},{"url":"/politics","name":"Politics","children":[{"url":"/politics","name":"Politics Home"},{"url":"/politics/us-election2020","name":"Election 2020"},{"url":"/subjects/supreme-court","name":"Supreme Court"},{"url":"https://graphics.reuters.com/USA-POLLING-TRUMP/0100422Q4HZ/index.html","name":"Polling on the President"}]},{"url":"/news/technology","name":"Tech","children":[{"url":"/news/technology","name":"Technology Home"},{"url":"/news/science","name":"Science"},{"url":"/news/media","name":"Media"},{"url":"/energy-environment","name":"Energy and Environment"}]},{"url":"/breakingviews","name":"Breakingviews","children":[{"url":"/breakingviews","name":"Breakingviews Home"},{"url":"/video/breakingviews","name":"Breakingviews Video"}]},{"url":"/finance/wealth","name":"Wealth","children":[{"url":"/finance/wealth","name":"Wealth Home"},{"url":"/finance/personal-finance/retirement","name":"Retirement"}]},{"url":"/news/lifestyle","name":"Life","children":[{"url":"/news/health","name":"Health"},{"url":"/news/sports/soccer","name":"Soccer"},{"url":"/news/sports","name":"Sports"},{"url":"/news/entertainment/arts","name":"Arts"},{"url":"/news/entertainment","name":"Entertainment"},{"url":"/news/oddlyEnough","name":"Oddly Enough"}]},{"url":"/news/pictures","name":"Pictures","children":[{"url":"/news/pictures","name":"Pictures Home"},{"url":"http://widerimage.reuters.com","name":"The Wider Image"},{"url":"http://widerimage.reuters.com/photographer","name":"Photographers"}]},{"url":"/video","name":"TV"}],"config":{"edition":"BETAUS","lang":"en","ad_slots":{"mobile_first_canvas_hb":"no","inline_flex_mobile_sizes":[[2.0,2.0],[1.0,1.0],[1100.0,375.0],[300.0,250.0],"fluid"],"mobile_canvas_sizes":[[1100.0,200.0],[1100.0,300.0],[300.0,250.0],[1.0,1.0]],"mobile_mpu2_type":"bizdevmobwebfooter_1","feed_ad_sizes":[[1100.0,375.0],[300.0,212.0],[300.0,250.0],[1.0,1.0],"fluid"],"mobile_canvas_hb":"no","mobile_mpu_type":"mpu","rr_mpu2_type":"bizdev_article_rr2","rr_big2_type":"bizdev_article_rr3","mobile_canvas_type":"leaderboard","rr_big2_sizes":[[300.0,440.0]],"bottom_article_slot1_sizes":[[1100.0,420.0],"fluid"],"rr_big_sizes":[[300.0,462.0],[300.0,372.0],[1.0,1.0]],"mobile_big_sizes":[[300.0,472.0],[1.0,1.0]],"rr_mpu_hb":"yes","bottom_article_slot1_type":"connatix","mobile_first_canvas_type":"leaderboard","inline_flex_sizes":[[2.0,2.0],[1.0,1.0],[1100.0,375.0],"fluid"],"inline_native_type":"native","mobile_big_type":"bizdevmobwebfooter","first_canvas_sizes":[[728.0,90.0],[970.0,250.0],[970.0,90.0],[1100.0,100.0],[1.0,1.0]],"inline_canvas_sizes":[[2.0,2.0],[1.0,1.0],[1100.0,375.0],"fluid"],"inline_native_sizes":[[2.0,2.0],[1.0,1.0],[1100.0,375.0],[3020.0,375.0],"fluid"],"canvas_hb":"yes","mobile_first_canvas_sizes":[[1100.0,200.0],[1100.0,100.0],[1.0,1.0]],"canvas_type":"leaderboard","rr_mpu_type":"mpu","bottom_article_slot2_type":"bizdev_article_center","feed_ad_type":"landing","leaderboard_low_type":"leaderboardlow","mobile_mpu2_sizes":[[300.0,250.0],[1.0,1.0]],"bottom_article_slot1_mobile_sizes":[[300.0,450.0],"fluid"],"mobile_feed_ad_sizes":[[1100.0,375.0],[300.0,212.0],[300.0,250.0],[1.0,1.0],"fluid"],"rr_mpu_sizes":[[300.0,250.0],[1.0,1.0]],"bottom_article_slot2_sizes":[[300.0,300.0],[1100.0,420.0],[1.0,1.0],"fluid"],"first_canvas_type":"leaderboard","leaderboard_low_sizes":[[728.0,90.0],[970.0,250.0],[1100.0,100.0],[1100.0,200.0],[1100.0,300.0],[1.0,1.0]],"inline_native_mobile_sizes":[[2.0,2.0],[1.0,1.0],[1100.0,375.0],[300.0,250.0],"fluid"],"first_canvas_hb":"yes","mobile_mpu_sizes":[[2.0,2.0],[1.0,1.0],[1100.0,375.0],[300.0,250.0],[3020.0,375.0],"fluid"],"canvas_sizes":[[728.0,90.0],[970.0,250.0],[970.0,90.0],[1100.0,100.0],[1100.0,200.0],[1100.0,300.0],[1.0,1.0],[2.0,2.0]],"rr_mpu2_sizes":[[300.0,280.0]],"rr_big_type":"bizdev_article_rr1"}}},"article_list_u0ciissnw1":{"template":"article_list","fisco_kyodo_disclaimer":"","render_key":"article_list_u0ciissnw1","quote_path":"/finance/stocks/overview","tracking_data":{"channel":"Article - Markets","content_type":"Article","content_type_channel":"Article - Markets","content_channel":"Markets - Global Markets","topic_channel":"Markets","topic_subchannel":"Global Markets","backend_channel":"marketsNews"},"dart_domain":"us.reuters","fisco_kyodo_key":"","sharetools":["twitter","facebook"],"video_url":"https://queso-cdn.prod.reuters.tv/new/index.html","trustBadge_excludedChannels":"false","first_article":{"id":"USL4N2F75DF","source":"Reuters","layout_type":"default","channel":{"text":"Market News","path":"/news/archive/marketsNews"},"headline":"UPDATE 2-Rokuu0027s dour ad industry outlook clouds upbeat earnings","shareUrl":"https://reut.rs/3ifgTmG","published":1596668940,"updated":0,"path":"/article/roku-results/update-2-rokus-dour-ad-industry-outlook-clouds-upbeat-earnings-idUSL4N2F75DF","body":"u003cpu003e(Recasts first paragraph, adds details from conference call)u003c/pu003enu003cpu003eAug 5

Comments are closed.