ROKU Gears Up To Report Q1 Earnings: What's In The Cards?

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Roku (ROKU - Free Report) is set to report first-quarter 2021 results on May 6.

Roku stated that the first quarter is the seasonally softest quarter from the revenue perspective with roughly 25% lower revenues sequentially.

The company expects similar seasonality in the first quarter of 2021 with the midpoint of total net revenues of $485 million indicating an increase of 51% year over year.

The Zacks Consensus Estimate for first-quarter revenues is pegged at $493.32 million, indicating 53.7% growth from the year-ago quarter reported figure.

Moreover, the consensus mark for loss has remained steady at 18 cents per share in the past 30 days. The estimated figure indicates improvement from loss of 45 cents reported in the year-ago quarter.

The company’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 310.93%.

Let’s see how things have shaped up prior to this announcement.

Roku, Inc. Price and EPS Surprise

Roku, Inc. Price and EPS Surprise

Roku, Inc. price-eps-surprise | Roku, Inc. Quote

Factors to Consider

Investor focus will be on active accounts growth, which is an important metric for Roku. The popularity of its free, ad-supported platform, The Roku Channel is expected to have aided active accounts growth in the first quarter of 2021. The ability to access free and premium content on the same platform has been a huge attraction for subscribers.

In the to-be-reported quarter, Roku obtained exclusive global content distribution rights for Quibi’s content, which is expected to have boosted active viewership.

The company’s active accounts jumped 39% year over year to 51.2 million in fourth-quarter 2020. Moreover, ARPU increased 24% to $28.76 (on a trailing 12-month basis).

Notably, the Zacks Consensus Estimate for first-quarter active accounts and ARPU is pegged at $55 million and $30.04, respectively, indicating an increase of 38.2% and 23.4% from the year-ago reported figures.

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