Here is why Roku Inc. (ROKU) stock plummeted in the after-hours on Wednesday?

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ZSAN Stock

ROKU shares declined 8.50% in after-hours on Wednesday, November 03, 2021, and closed the daily trading at $287.00. However, in the regular trading session, the company’s stock gained 0.08%. its shares have risen 54.14% over the last 12 months, and they have moved down 0.92% in the past week. Over the past three months, the stock has lost 22.26%, while over the past six months, it has surged 10.37%.

Let’s see what are the latest news about the company?


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Latest announcement

On November 03, 2021, the company announced third quarter 2021 results, which ended on September 30, 2021.

Q3 2021 financial highlights

  • The company reported total revenue of $680 million in Q3 2021 compared to $451.7 million in Q3 2020.
  • In Q3 2021, Gross profit was $364 million compared to $214.8 million in Q3 2020.
  • Total operating expenses were $295.1 million in Q3 2021 compared to $202.9 million in Q3 2020.
  • Net loss was $68.9 million in Q3 2021 compared to a net loss of $12.95 million in Q3 2020.
  • Adjusted EBITDA was $130.1 million in Q3 2021 compared to $56.2 million in Q3 2020.

Q4 2021 financial outlook

For Q4 2021, the company is expecting,

  • Total net revenue in the range of $885 million to $900 million.
  • Total gross profit in the range of $380 million to $390 million.
  • Net income of $5 million.
  • Adjusted EBITDA in the range of $65 million to $75 million.

Return of ROKU Recommends

On October 20, 2021, the company announced that “Roku Recommends” will return for a brand-new slate of episodes starting this fall. “Roku Recommends” is a fifteen-minute weekly entertainment program that uses exclusive Roku data to help streamers discover brand-new shows and hidden gems on America’s No. 1 TV streaming platform.

ROKU partnership with SEMP TCL

On September 30, 2021, SEMP TCL, announced a partnership with Roku, Inc. According to the agreement, TCL will extend its global partnership with the company to bring TCL Roku TV™ models to Brazil later this year, while also introducing a brand-new lineup of SEMP Roku TV models in the country recently.

ROKU new TV Streaming Campaign

On September 29, 2021, The company unveiled its “Ok, Roku does that.” TV streaming leadership campaign building on the momentum of new products launch in the holiday season. The “Ok, Roku does that” campaign highlights America’s number 1 TV streaming platform for the innovation, ease of use, and simplicity it offers.

Conclusion

Though recent financial results beat the earning estimates, it was still unable to impress the investors due to which it faced headwinds in the after-hours on Wednesday. Let’s see how it commence the next trading session on Thursday?

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