• by Wayne Friedman , August 10, 2018

Roku, the big set-top-box platform, is expanding its channel and posting stronger overall revenue and advertising TV results. Wall Street traders were pleased and surprised.

Second-quarter revenues rose sharply 57% to $156.8 million, with net income virtually at break even -- $526,000 -- versus a $15.5 million loss a year ago. The company expects 35% revenue growth in the third quarter.

Roku licensing revenue of its platform to TV manufacturers now accounts for 58% of all revenue -- rising 84% over a year ago. In terms of specific hardware sales of its physical set-top boxes, Roku had 24% higher revenues to $90.3 million.

Roku says its active accounts grew 46% to 22 million.

Although advertising continues to grow, the company would not offer any specifics. Historically, advertising revenues have accounted for two-thirds of all Roku’s revenues. The company says it does business with over 50% of the top 200 national advertisers.

In addition to running on its set-top-box network platform, The Roku Channel can now be accessed separately on mobile devices and the Internet through PC -- as a free ad-supported channel.

Quarterly results were surprising to analysts -- sending its stock rocketing 21% higher on Thursday, closing at $57.32 -- it’s highest results ever. On Friday, the stock was up 0.7% to $57.69.

In September 2017, Roku launched as a publicly traded company.