Technology

Roku stock sinks after company reports tight hardware margins, dramatic fall in streaming viewership

CEO of Roku, Anthony Wood speaks onstage at The Future of TV Streaming & Entertainment during Tribeca X – 2021 Tribeca Festival at Spring Studios on June 18, 2021 in New York City.
Arturo Holmes | Getty Images

Roku shares fell more than 8% in after-hours trading Wednesday after reporting second-quarter earnings that beat expectations but showed a slowdown in streaming TV viewing and tight hardware margins.

The company said streaming hours decreased by 1 billion hours from the first quarter of 2021. In its shareholder letter, it also said “tight component supply conditions and shipping constraints” continued increasing costs faster than expected.

“In Q2, we insulated consumers from increased costs for Roku players, which resulted in Player gross margin turning negative in the quarter,” the letter says.

The company’s total net revenue grew 81% year-over-year in the quarter to $645 million.

This is developing.

Articles You May Like

Ask the Union Leaders: Business owners set to suffer as Royal Mail ‘will destroy the service’
Neil deGrasse Tyson explains what NASA’s discovery means for life beyond Earth
Biden’s Inflation Reduction Act makes green hydrogen profitable at scale, Goldman Sachs says
Labour wins Chester by-election with increased 11,000 margin over Tories
iPhone maker Foxconn entices angry workers in China to return as Apple faces supply crunch