Roku forecast second-quarter revenue below Wall Street estimates on Thursday, as customers pull back spending amid an uncertain market environment, sending shares of the company down 4 per cent in extended trading.
Roku, the company whose streaming service saw major success during the pandemic, is now experiencing a slowdown as clients and brands tighten advertising budgets amid persistent inflation and broader macroeconomic uncertainties.
“While there is more macro uncertainty than normal, we are providing our best outlook based on our current visibility and what we are observing in our business,” the company said in a letter to shareholders.
The company initially gained popularity through its small devices that connected to televisions, giving users access to streaming platforms like Netflix. It later expanded its offerings to include Roku streaming sticks and Roku-branded TVs.
It expects revenue of $1.07 billion for the second quarter, compared with analysts’ average estimate of $1.09 billion, according to data compiled by LSEG.
The company reported revenue of $1.02 billion in the first quarter, compared to analysts’ average estimate of $1.01 billion, according to data compiled by LSEG.
