Stock price dropped 18.7% to $41.57. One Morgan Stanley analyst says that daily hours streamed per average active account declined to mid-single-digit growth the fourth quarter.
Roku has seen declining growth when it comes to hardware consumer sales -- due to lower prices. Revenue from players was down 7% to $102.8 million in the fourth quarter, which was down from $110.0 million the year before.
But revenue from sales of its "platform" grew to $85.4 million from $37.3 million
Roku has 19 million “active” accounts in the fourth quarter -- a growth of 44% in the fourth quarter, said Anthony Wood, CEO of Roku, on CNBC.
“We are focused on selling more players, not generating hardware revenue,” says Wood. He adds that average revenue per user was up 48% in the fourth quarter to $13.78.
Wood notes that one in five TV set manufacturers is incorporating the Roku software on their TV sets.
In the fourth quarter, total revenue grew 28% to $188.3 million, with "platform" growth up 130% to $85.4 million.