Roku Inc. shares were down 15% in afternoon trading Wednesday after reporting a third-quarter loss nearly tripled that of a year ago.
ROKU, + 1.06% ,
video streaming hardware maker reported an adjusted loss of $ 26.5 million, or 22 cents per share, compared to a loss of $ 9.5 million, or 9 cents per share, in the prior year.
Revenue jumped 50% to $ 260.9 million, from $ 173.4 million a year ago. And the company reported 32.3 million active accounts, a net addition of 1.7 million from the previous quarter. Roku also reported a 30% increase in average revenue per user of 30% from the previous year, to $ 22.58. Both figures beat the estimates of Wall Street analysts.
Analysts polled by FactSet had expected Roku to report a GAAP loss of 28 cents per share on sales of $ 257 million.
Also see: Roku remains a promising stock even after this year's wave
Separately, Roku announced Wednesday its intention to acquire an ad-tech company Dataxu for $ 1
Roku creates streaming dongles and owns a streaming platform and channel. It was published in 2017, and the stock has been one of the hottest in the year, up 360% in 2019. This compares with gains of around 23% and 18% for the S&P 500 index
SPX, + 0.07%
and Dow Jones Industrial
DJIA, + 0.00%
respectively during the same period.
However, the company was under strain from increased competition, including Apple Inc.'s
AAPL, + 0.04%
recently launched Apple TV +. Roku is also facing fierce competition from Amazon.com Inc.s
Fire TV and Alphabet Inc.