There’s a lot for ETFs holding Roku Inc. (ROKU) to be thrilled about as the company’s revenue projection for the current quarter exceeded estimates and sales accelerated. Stocks rose as much as 12% in extended trading, hitting $113, surpassing a previous high of $111.94 from back in July, as noted by Bloomberg.
These results must be excellent news for the company, who hosted a conference call today to discuss the results of the newly-released and better-than-expected second-quarter financial earnings. Their total net revenue is at $250 million, up 59% YoY, with platform revenue at $167, up 86% YoY.
As reported in Roku’s shareholder letter, “Our business momentum and ongoing investment in areas of competitive differentiation continue to drive growth and attract users, advertisers, and content publishers. This resulted in a robust increase in Active Accounts, healthy growth of Streaming Hours, and continued progress in monetization.” That’s an elegant way of addressing the milestones reached for the TV streaming platform.
For those curious, Roku Inc.’s platform allows users to access and discover a wide range of movies and TV, in addition to sports, news, music, podcasts and more. The ease of use for these streaming players and television models is a notable quality of the company’s products, as they currently hold 30.5 million active accounts, another increase of 1.4 million from the previous quarter.
These reports are good news for several industrials, consumer discretionary, and technology-based ETFs that contain ROKU, including SPDR FactSet Innovative Technology ETF (XITK), Invesco DWA Industrials Momentum ETF (PRN), First Trust Consumer Discretionary AlphaDEX Fund (FXD), and iShares Morningstar Small-Cap Growth ETF (JKK). However large a value individually, it’s more than just a relief to see soaring revenue and growth at this time.
For more market news and updates, visit ETFtrends.com.