Roku stock slid 8% in premarket trading

Roku stock slid 8% in premarket trading Thursday after its revenue and outlook came up short of expectations.

Roku reported third-quarter net income of $68.9 million, or 48 cents a share. Total revenue jumped 51% year over year to $680 million. Wall Street’s consensus estimates called for earnings of 9 cents a share and revenue of $684 million, according to FactSet.

Roku, which sells devices and offers a platform that allows customers to access streaming services, reported revenue from its platform segment jumped 82% to $583 million. Sales from its devices, called Player revenue, fell 26% year over year to $97.4 million.

Average revenue per user, on a trailing 12-months basis, jumped 49% year-over-year to $40.10. Active accounts hit 56.4 million, up about 1.3 million from the second quarter. That figure was just short of analyst estimates for 56.7 million. Adjusted earnings before interest, taxes, depreciation, and amortization hit $130.1 million, up 132% from a year ago.

“Looking ahead, our business fundamentals remain strong but we are mindful that the challenges created by the global supply chain disruptions will likely continue into 2022,” CEO Anthony Wood and Chief Financial Officer Steve Louden wrote in a shareholder letter. “These headwinds may have a broad impact on the holiday season in terms of consumer confidence, product pricing and availability, and advertising spend levels.”

For the fourth quarter, Roku expects total revenue between $885 million and $900 million. Its outlook for the bottom line ranges from a net loss of $5 million to net income of $5 million. Wall Street analysts polled by FactSet had forecasted fourth-quarter revenue of $946 million and net income of $33 million.