• by Wayne Friedman , July 27, 2023

Streaming platform and CTV app distributor Roku continues to defy analysts' expectations -- growing revenue, cutting losses, and seeing its stock price closing up a strong 9% in after-market Thursday trading.

Roku stock -- which has almost doubled since the beginning of the year -- closed down 5% to $68.19 on Thursday. Roku's second-quarter earnings were released after the market closed.

Second-quarter revenues grew 11% to $847.2 million, with active accounts up 16% to 73.5 million versus a year ago. The company also added 1.9 million active accounts sequentially from the first-quarter period.

Platform revenue -- which benefits from strong advertising results -- was up 11% to $743.8 million, as the broader TV advertising market has seen flat to lower results.

Device revenue grew 9% to $103.4 million.

Roku's shareholder's letter said: “The macro environment continued to create uncertainty with the total U.S. advertising market flat year-over-year in the second quarter. Ad spend on traditional TV declined 9.4% year over year, and traditional TV ad scatter was down 17.2% year over year (according to SMI [Standard Media Index).”

Roku went on to say that brand marketers continue to be “pressured” -- especially among categories like technology and media/entertainment, but said there was increasing spend from consumer packaged goods, health and wellness advertisers.

Roku says upfront advertising commitments are moving at a “slow pace” across all TV-video platform businesses. 

Losses from operations are at $126 million, with adjusted earnings before interest, taxes and amortization (EBITDA) at a net loss of $17.8 million.

At the same time, Roku's average revenue per user (ARPU) was down 7% to $40.67 versus the year-ago period.