Roku grew revenue in the fourth quarter 58%, to a record $649.9 million — and posted a $65.2 million net profit for the quarter, whereas Wall Street had been expecting a loss.
The company already said last month that it ended 2020 with 51.2 million active accounts, up 39% year over year, and that the ad-supported Roku Channel more than doubled its audience to reach U.S. households with an estimated 61.8 million people in Q4.
Wall Street expected Roku to post revenue of $617.7 million and a loss of 5 cents per share, according to research firm Refinitiv.
Roku’s stock, which has increased more than 42% year to date, was up about 1% in after-hours trading Thursday.
“It was all aspects of the company hitting at once,” Scott Rosenberg, SVP and GM of Roku’s platform business, said about the better-than-expects Q4 results in an interview with reporters.
For the full year, streaming hours on Roku hit a record 58.7 billion, increased by 55%. In Q4, streaming hours by Roku users hit an all-time high of 17 billion hours.
Also last month, Roku inked a deal to acquire global rights to more than 75 of Quibi’s original shows, after the startup led by Jeffrey Katzenberg and Meg Whitman folded six months after launch. Roku said it plans to stream the Quibi shows, representing several hundred hours of content, for free in 2021 on the Roku Channel. The company paid “significantly” less than $100 million under the deal with Quibi, a source familiar with the deal said.
Roku execs didn’t provide an update on when the Quibi content would be released.
“We think the Quibi content will perform well, but we’ve added a significant amount of content” to the Roku Channel from other partners in the past several months, Rosenberg said, including Disney, NBCUniversal, A+E Networks and Discovery.