Roku (NASDAQ:ROKU) downgraded its full-year guidance even as third-quarter results topped analyst's expectations, driven by a surge in active users.
The streaming-device company downgraded its full-year adjusted earnings (EBITDA) outlook to a range of $30 million to $35 million from a previous range of $30 million to $40 million. The downgraded guidance was blamed on continued investment in the business as well as an approximately $5m headwind related to dataxu operations and dataxu-acquisition-related expenses.
Roku reported a loss per share of 22 cents on revenue of $260.9 million, compared with consensus estimates from for a loss of 28 cents on revenue of $256.11 million.
The outperformance was driven by a surge in active accounts, average revenue per user (ARPU) and streaming hours that support the company's efforts to boost ad-revenue growth.
The company said it reached 32.3 million active users during the quarter, up 36% from the same period last year and 1.7 million more than it had in the prior period.
Average revenue per user (ARPU) was up $1.52 to $22.58 from the second quarter of 2019.
Roku was down more than 13% in post-market trading.
