(Bloomberg) -- Roku Inc. shares rose in extended trading after it reported third-quarter revenue that beat the highest analyst estimate.
The video-streaming platform company reported revenue of $451.7 million, well above the highest analyst estimate of $385 million, according to Bloomberg data. Roku also reported earnings per share of 9 cents. Wall Street had been looking for a loss of about 42 cents per share, according to data compiled by Bloomberg.
It added 2.9 million active accounts in the quarter for a total of 46 million and it reported 14.8 billion streaming hours. Bloomberg Consensus data had pointed to about 45.5 million active accounts and 15.23 billion streaming hours.
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“We've seen some good resilience and a good trajectory,” Chief Financial Officer Steve Louden said in a phone interview. “There has been strong demand for streaming products on the consumer side, and positive ad-market impacts from the shift away from linear TV.”
Roku declined to give a formal forecast. Louden said the company was well positioned, but that “there is a lot of uncertainty and variability as we think about the fourth quarter.” He added, in a reference to rising Covid-19 cases, that “the prior lockdown period did lead to an increase in active accounts and viewing.”
In a report published after the results, Citi analyst Jason Bazinet wrote that “all told, we view this as a solid quarter.”
Roku shares rose as much as 12% before paring much of that gain and briefly turning negative. The stock is up about 250% off a March low.
Louden said discussions for Roku to offer the HBO Max streaming service were ongoing. “We have a great capability to build an audience for a service, but getting a win-win economic deal is important,” he said.
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