Roku Absorbs Cost Hikes; Stock Down Post-Q2
Roku Chief Financial Officer Steve Louden set expectations for “tough” year-on-year comparisons in second-half 2021, on the company's quarterly call Wednesday, after COVID-19 pandemic-driven “outperformance” in 2020. Q2 revenue increased 81% year on year to $645 million, it reported, crediting…
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“exceptional performance in platform monetization.” (See Q2 materials). Player unit sales were little changed after the 2020 demand spike. Tight component supplies and shipping constraints increased costs faster than expected across consumer electronics, executives said, saying the company “insulated consumers” from higher player unit costs. Higher costs are an industrywide issue affecting smart TVs, too, Louden said. Management said higher out-of-home entertainment engagement was competition, as consumers "sought increased out-of-home entertainment activities" after being pent up in Q2 2020 during lockdowns. That led to a decline in viewing hours, it said. The stock closed down 4% to $403.48 Thursday.