Share prices for streaming giant Roku continued to surge in after-hours trading Wednesday following the company's release of its quarterly earnings report. That's a positive sign for the company as competition heats up in the streaming space, with new services expected from both Disney and Apple in the coming months.
Roku announced that it is raising its full-year outlook to a midpoint of $1.085 billion, up from the range of $1.03 to $1.05 billion that the company set following the last quarter.
On earnings-per-share, Roku also beat expectations. Analysts had anticipated a 22 cent loss in earnings-per-share, but the company only lost 8 cents per share, a sign that it's edging closer to profitability.
The company stands to benefit as American households increasingly look to cut the cord, and transfer from cable bundles to online content subscriptions. Roku earns revenue from advertising on its platform, subscriptions to its content, and selling its operating system boxes, which connect to televisions.
The company reported that its total net revenues have risen to $250 million, up 59 percent year-over-year. Streaming hours are also up by half a billion from the first quarter, and a 72 percent rise from the second quarter last year. Average revenue per user is also up $2 from the first quarter.
"We're an essential partner, especially for new services, because we're the best place to grow audience. Not only do we have the biggest platform in the U.S., but we also have the most robust tool services to help them build viewership for their new services," Roku CFO Steve Louden told Cheddar in May. "They need to find a home on a place like Roku, and we have the most content out there right now."
Tesla reported a surprise increase in sales in the third quarter as the electric car maker likely benefited from a rush by consumers to take advantage of a $7,500 credit before it expired on Sept. 30. The company reported Thursday that sales in the three months through September rose 7% compared to the same period a year ago. The gain follows two quarters of steep declines as people turned off by CEO Elon Musk’s foray into right-wing politics avoided buying his company’s cars and even protested at some dealerships. Sales rose to 497,099 vehicles, compared with 462,890 in the same period last year.
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