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Roku Q4 Gross Profit Rises; Aims To Grow Revenues Roughly 42% In 2020

Roku, Inc. (ROKU) reported a fourth-quarter loss per share of $0.13 compared to profit of $0.05, prior year. On average, 17 analysts polled by Thomson Reuters expected the company to report a loss per share of $0.14, for the quarter. Analysts' estimates typically exclude special items. Total gross profit increased year-on-year to $161.65 million from $112.29 million. Adjusted EBITDA declined to $15.14 million from $24.49 million.

Fourth-quarter total net revenue increased to $411.23 million from $275.74 million, a year ago. Analysts expected revenue of $391.61 million for the quarter. Platform revenue was $259.62 million compared to $151.40 million. During the fourth-quarter, Roku added 4.6 million incremental active accounts and ended 2019 with 36.9 million active accounts.

For 2019, gross profit was up 49% to $495.2 million. Total net revenue grew 52% to $1.13 billion. Platform revenue increased 78% to $740.8 million. The company noted that, for the full year, nearly one in three smart TVs sold in the U.S. were Roku TVs.

For 2020, Roku targets $1.6 billion in revenues, or roughly 42% year-over-year growth, with Platform segment revenue representing roughly three-quarters of total revenue. The company estimates total gross profit to grow slightly faster than revenues to approximately $730 million, 47% year-over-year growth at the midpoint. The company aims to achieve roughly break-even on a full year adjusted EBITDA basis.

For the first-quarter, Roku projects midpoint of total revenues at $305 million, up 48% year-over-year. The anticipated gross profit at the midpoint is roughly $145 million. The projected adjusted EBITDA loss, at the midpoint, is roughly $20 million.

Shares of Roku, Inc. were up 5% after hours.

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