Roku Stock Reverses Gains After Streamer Warns Adjusted Earnings Will Moderate in 2nd Half of 2024

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Shares fell over 2% despite the company beating Wall Street expectations for the first quarter of 2024 on Thursday

Roku Earnings
Photo illustration by TheWrap

Roku shares jumped 7% in after-hours trading on Thursday after the streamer and hardware marker beat Wall Street expectations for the first quarter of 2024.

But those gains were reversed after management warned that its adjusted EBITDA would moderate in the second half of 2024 as it anticipates “normal seasonal spend” in sales and marketing for its devices segment. The guidance sent shares down more than 2%.

Here are the top-line results:

  • Net loss: $50.85 million, compared to $193.6 million in the year-ago period.
  • Earnings per share: a loss of 35 cents per share compared to an estimated loss of 64 cents per share by analysts surveyed by Zacks Investment Research.

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