Roku Stock Jumps On Surprise First-Quarter Profit

Shares of streaming platform Roku (NASDAQ:ROKU) were up more than 7% in pre-market trading after the company reported a surprise first-quarter profit.

The San Jose, California-based company reported a first-quarter profit of 54 cents U.S. per share on revenue that rose 79% year-over-year to $574.2 million U.S. Analysts were expecting the company to report a loss of 13 cents U.S. per share on revenue of $491.6 million U.S.

Roku shares were up 7.1% to $303.68 U.S. in premarket trading on news of the surprise profit. The stock is down 42% since mid-February and was down 6.6% in the regular trading session on May 6th before the first-quarter earnings were announced.

The company said it added 2.4 million active accounts in the first quarter to reach 53.6 million. Analysts polled by FactSet were expecting the company to report 54.2 million active accounts for the first three months of the year.

For the current second quarter, Roku forecasts total net revenue of $615 million U.S. versus analyst expectations of $550 million U.S., according to FactSet. The company said that it expects stronger revenue growth in the first half of 2021 than the second half of the year.