Roku Reports Strong Q3 Earnings but Faces Stock Decline After Forecast

Roku surpasses $1 billion in quarterly revenue but plans to stop reporting streaming household metrics, causing investor concern.

Roku's Q3 2024 earnings exceeded Wall Street expectations with $1.06 billion in revenue, marking its first quarter over the billion-dollar mark.
Despite narrowing its net loss to $9 million, Roku's stock fell due to a disappointing Q4 outlook and plans to cease reporting streaming household numbers.
The company will shift focus to platform revenue and profitability, aligning with Netflix's similar move to stop reporting subscriber figures.
Roku projects reaching 100 million streaming households within the next 12 to 18 months but will no longer provide quarterly updates on this metric starting in 2025.
Key performance indicators will now include streaming hours, platform revenue, adjusted EBITDA, and free cash flow as Roku aims to enhance monetization and international growth.