Roku is now being used by 30.5 million households every month, and those users are a big reason the company grew revenues in its most recent quarter faster than Wall Street anticipated.
In the quarter ending June 30, Roku generated $250.1 million in revenue, compared to $156.8 million during the same quarter a year ago, Roku revealed in its letter to investors Wednesday. The company incurred net losses of $10.4 million during the quarter, or $0.08 per share, compared to losses of $0.1 million in Q2 of 2018.
Analysts had expected losses of $0.23 per share on earnings of $224 million.
A major share of Roku’s revenue — 67%, to be precise — was once again driven by the company’s fast-growing advertising and services business. That’s a direct result of those 30.5 million active accounts, which collectively streamed some 9.4 billion hours of entertainment during the quarter.
And Roku is getting better at monetizing these accounts as well: Average revenue per user (ARPU) came in at 21.06, surpassing the $20 mark for the first time in the company’s history. Roku’s monetized video ad impressions more than doubled year-over-year, the company revealed in its letter to investors.
Based on these trends, Roku revised its outlook for 2019 Wednesday. The company is now predicting to grow its revenue by 46% year-over-year, resulting in a mid-point guidance of $1.085 billion for the full year. Previously, Roku predicted to grow its revenue 40% year-over-year.
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Investors loved the sound of that, and sent up the company’s share price close to 10% in after-hours trading.
Roku’s leadership did face some questions about the threat of new tariffs during the company’s earnings call Wednesday afternoon. “Tariffs might impact our future results,” admitted CEO Anthony Wood. He added that the company was looking to take some steps to mitigate the tariff threat, saying: We are looking at relocating manufacturing over time.”
CFO Steve Louden told Variety in an interview Wednesday afternoon that the company had nothing to announce with regards to moving its manufacturing at this point. He described the threat of tariffs as fluid, saying: “The story keeps changing.” Louden did acknowledge that Roku and its smart TV partners were exploring ways to minimize the impact of possible tariffs. “We are trying to be as prepared as we can be,” he said.
Roku’s leadership also faced a few questions about its plans for further international expansion Wednesday, with one analyst referencing Variety’s recent report that the company was looking at Brazil as one of its next major opportunities.
Executives declined to share any details about their plans, but struck an optimistic tone about the overall opportunity, with Louden telling Variety: “There is a lot of potential internationally.” He added that a further international expansion would have a more material impact on Roku’s business in 2020.