Why Aren't Investors Impressed by Roku's 50% Revenue Growth?
Roku's (NASDAQ: ROKU) stock recently plunged after the streaming device and platform company posted its third-quarter numbers. Its revenue rose 50% annually to $260.9 million, beating expectations by about $3 million.
However, it posted an adjusted EBITDA loss of $0.4 million, compared to a profit of $2 million a year earlier. Its GAAP net loss widened from $9.5 million to $25.2 million, or $0.22 per share, but it still beat expectations by six cents. Roku's headline numbers looked decent, so why did investors head for the exits?