Roku (ROKU) Misses Q2 EPS by 14c, Guidance Misses

Roku (NASDAQ: ROKU) reported Q2 EPS of ($0.82), $0.14 worse than the analyst estimate of ($0.68). Revenue for the quarter came in at $764.4 million versus the consensus estimate of $804.13 million.

GUIDANCE:

Roku sees Q3 2022 revenue of $700 million, versus the consensus of $901.7 million.

• We are in an economic environment defined by recessionary fears, inflationary pressures, rising interest rates, and ongoing supply chain disruptions. For the second half of the year, we are forecasting that advertising spend, particularly in the scatter market, will continue to be negatively impacted. We also believe that consumer discretionary spend will continue to moderate, pressuring both Roku TV and Roku player sales.
• Taking these factors into consideration, our Q3 outlook is for total net revenue to increase approximately 3% year over year to $700 million. We anticipate total gross profit of roughly $325 million, and adjusted EBITDA of negative $75 million. Finally, given the uncertainties and volatility in the macro environment, we are withdrawing our full-year revenue growth rate estimate. We will remain focused on growing our market leadership by further advancing our technology and brand, and continuing to execute our strategy.

For earnings history and earnings-related data on Roku (ROKU) click here.

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