By Yasin Ebrahim
Investing.com -- Roku reported Wednesday fourth-quarter results and guidance that was better than feared as a rebound in streaming demand boosted user growth just as advertising spend continued to stutter.
Roku (NASDAQ:ROKU) was up about 11% in aftermarket hours.
The streaming device reported a Q4 loss of $1.70 cents per share on revenue of $867.1 million, better than estimates for a loss of $1.72 a share on revenue of $802.1M.
Active accounts rose 16% to 70M in the quarter as streaming hours increased 23% to 23.9B hours.
Platform revenue grew 20% year over year, though this was held back by a slowdown in advertising spend.
"While Roku continues to benefit from the shift of advertisers from traditional TV to TV streaming, that was largely offset in Q4 by the pullback in overall ad spend," the company said.
Average revenue per user (ARPU) was up 2% to $41.68 year-on-year.
Looking ahead, the company guided Q1 revenue of roughly $700M, total gross profit of roughly $310M, and adjusted EBITDA of negative $110M. Analysts were expecting about $696.1M in revenue for Q4.