Streaming TV platform Roku (NASDAQ: ROKU) will be reporting earnings this Thursday after market close. Here’s what to look for.
Roku met analysts’ revenue expectations last quarter, reporting revenues of $1.21 billion, up 14% year on year. It was a strong quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations and full-year EBITDA guidance exceeding analysts’ expectations. It reported 36.5 billion monthly active users, up 14.1% year on year.
Is Roku a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Roku’s revenue to grow 12.8% year on year to $1.35 billion, slowing from the 22% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.29 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Roku has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3% on average.
Looking at Roku’s peers in the consumer subscription segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Coursera delivered year-on-year revenue growth of 9.9%, beating analysts’ expectations by 2.7%, and Udemy reported a revenue decline of 3%, in line with consensus estimates. Coursera traded down 1.2% following the results while Udemy’s stock price was unchanged.
Read our full analysis of Coursera’s results here and Udemy’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. Investors in consumer subscription stocks have been spared in this environment as share prices are down 17.3% on average over the last month. Roku is down 17.4% during the same time and is heading into earnings with an average analyst price target of $123.08 (compared to the current share price of $91.20).
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