FILE PHOTO A video sign displays the logo for Roku Inc, a Fox-backed video streaming firm, in Times Square after the company’s IPO at the Nasdaq Market in New York, U.S., September 28, 2017. REUTERS/Brendan McDermid/File Photo
(Reuters) – Roku Inc missed third-quarter estimates for its high margin video streaming platform and forecast a net loss for the holiday quarter, sending its shares down 10 percent in extended trading on Wednesday.
The miss and forecast overshadowed better-than-expected third-quarter revenue and a loss that was not as big as expected.
The company reported revenue of $100.1 million for its ad-supported video streaming platform business. Analysts on average had expected $103.2 million, according to FactSet data.
“The sales performance of its higher margin platform efforts was strong but slightly lower than expected,” DA Davidson analyst Tom Forte said.
He added that the pullback in shares was also a reflection of expectations being too high for the company’s third-quarter results.
Roku’s shares had closed up nearly 6 percent at $58.86 on Wednesday ahead of the results.
The company’s net loss attributable to shareholders narrowed to $9.5 million, or 9 cents per share, in the third quarter ended Sept. 30, from $46.2 million, or $8.79 per share, a year earlier. (bit.ly/2qz97eX)
Excluding items, the company reported a loss of 9 cents per share on revenue of $173.4 million.
Analysts on average had expected a loss of 12 cents per share and revenue of $169.1 million, according to IBES data from Refinitiv.
Reporting by Munsif Vengattil in Bengaluru and Ken Li in New York; Editing by Maju Samuel