- In its shareholder letters, the company claimed that the slowdown is the consequence from “global disturbances in supply chains which have affected the U.S. television market.”
- “The virus continues disrupting chain of supply,” CFO Steve Louden said to CNBC.
- “For the television industry you’re experiencing increased prices for components, inventory availability problems, and delays in supply chain logistics,” he said.
- The company’s earnings totaled $680 million, which is just a bit lower than the Refinitiv estimate for $683.4 million. It’s up 51% from the year before. ROKU’s earnings-per-share was 48 cents exceeded expectations for earnings at 6 cents.
The number of active users on this platform grew 23% from year to year, to 56.4 million. It also saw the increase in 1.3 million accounts active since the second quarter.
In its shareholder letterto shareholders, Roku claimed that the decrease is due to “global disturbances in supply chains which have had an impact on the U.S. television market.” Roku expects these disruptions to persist into 2022 and affect pricing, availability and advertising in the holiday season.
The sales of TVs during the period also dropped below levels prior to the outbreak in the year 2019, and original equipment makers were impacted by shortages of inventory the company said.
“The disease continues to disrupt chain of supply,” CFO Steve Louden said to CNBC in an interview following the report. “For the industry of television there’s a rise in prices for components, availability of inventory issues, as well as logistical delays to supply chain logistics.”
Revenue from players, which include streaming devices from the company decreased 26% from year to year in the third quarter of the year to $97.4 million. Meanwhile, the costs increased due to supply chain problems. The company claimed that it “chose to protect our consumers from the increased costs and prioritize growth in accounts.
Revenue from the platform grew by 82 percent in the last quarter to $582.5 million. Roku earns revenue from their smart TV-based streaming service mainly through the sale of ads and content.
The amount of time streaming up 21% from the previous year up to 18.4 billion. accounts averaged at 3.5 hours of streaming a day.
Roku misses with Q3 revenue of $680M vs. $683.4 est., up 51% YoY, 56.4M active accounts, up 23% YoY and 1.3M QoQ, 18B streaming hours, up 21%; stock down 8%+
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