Roku soars 26% after smashing first earnings report

Roku, the digital streaming business, had a huge first earnings report, greatly surpassing analyst expectations.

The company quickly surged over 26% in initial after-hours trading.

Roku reported $124.8 million in net revenue for its third quarter, compared to $110 million in analyst estimates. Losses were $7.9 million, lower than the $12.7 million analysts expected.

“Our higher margin platform segment is the key driver of our growth and gross margin expansion, and our advertising business has more than doubled in size year-to-date,” said CEO Anthony Wood in the company press release.

Roku is aimed at cord cutters. Its digital streaming devices compete with Apple TV, Google Chromecast and more.

Here’s how the company has traded since its September IPO. Roku had priced its IPO at $14 and finished its first day at $23.50. The stock closed Wednesday at $18.84, with a market cap of $1.83 billion.

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