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."
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OpenAI has announced that ChatGPT will soon engage in "erotica for verified adults." CEO Sam Altman says the company aims to allow more user freedom for adults while setting limits for teens. OpenAI isn't the first to explore sexualized AI, but previous attempts have faced legal and societal challenges. Altman believes OpenAI isn't the "moral police" and wants to differentiate content similar to how Hollywood differentiates R-rated movies. This move could help OpenAI, which is losing money, turn a profit. However, experts express concerns about the impact on real-world relationships and the potential for misuse.
CNN is launching a new “All Access” streaming subscription in the U.S. on October 28th, priced at $6.99 a month, or just $69.99 if you sign up for a full year.
