The Roku 3 television streaming player menu is shown on a television in Los Angeles, California, U.S., on Thursday, Sept. 12, 2013.
Patrick T. Fallon | Bloomberg via Getty Images
Roku shares plummeted more than 25% in extended trading on Thursday after the company missed expectations on the top and bottom lines for its second quarter and warned of “an economic environment defined by recessionary fears.”
Here’s how the company did:
- Earnings: Loss of 82 cents per share vs a loss of 69 cents expected, cording to Refinitv..
- Revenue: $764 million vs $805 million expected, according to Refinitv.
The company attributed its poor financial performance due to macroeconomic conditions including inflation as well as supply chain issues.
Roku added that the advertising market will continue to suffer in the current quarter, and that consumer spend will moderate, which could hurt the company’s business of selling Roku TV and related hardware devices. The company said it trimmed operating expenses and slowed headcount growth in the second quarter.
“We believe this pullback mirrors the start of the pandemic in 2020, when marketers prepared for macro uncertainties by quickly reducing ad spend across all platforms,” Roku said in a letter to shareholders.
Because of market volatility, Roku said it is withdrawing its full-year growth estimate.
This story is developing.
