Roku Inc. (NASDAQ: ROKU) shares gained 13% in pre-market trading on Friday after the company reported an increase in the number of new active user accounts in its Q4 results. The streaming platform benefitted from account addition following the debut of new services in the platform such as Disney+.
The video streaming company indicated that it added around 4.6 million new active accounts in the fourth quarter. As a result, the company ended 2019 with approximately 46.9 million active accounts which is a 36% YoY increment. Similarly, the company reported that streaming hours increased by around 16.3 hours over the past year up 68% YoY to around 40.3 billion.
Roku adds 4.6 million new accounts
The company recorded top-line sales of around $411.2 million in Q4 topping Wall Street estimates of $391.7 million. This was mainly attributed to the 71% increase in advertising and services revenue. However, Roku reported a net loss of $17.7 million or $0.13 per share which was better than analysts’ projections of a net loss of $0.14 per share.
Roku CFO Steve Louden indicated that the addition of Disney+ to the platform has had a positive response in the market. He added that Roku has been a good source of viewership for Disney+ and they equally have been a worthy partner.
Roku gives bullish Q1 and FY2020 guidance
The company issued a bullish Q1 2020 and full-year guidance. In the first quarter, the company expects sales of between $300 million and $310 million and a loss range fo between $198 million and 23 million before EBITDA. Analysts are looking at sales of around $296.8 million and EBITDA of around $4.2 million. For the full year, Roku is projecting midpoint revenue of $1.6 billion which will be around 42% YoY growth. The company expects a full-year net loss of between $160 million and $180 million.
In the fourth quarter, the company indicated that its platform will be neutral in the streaming ecosystem. This meant it would work with various streaming service providers such as Netflix, Hulu, and Apple+ TV to distribute their services.