The Roku 3 TV streaming player menu is shown on TVs in Los Angeles, California, United States, on Thursday, September 12, 2013.
Patrick T. Fallon | Bloomberg via Getty Images
Roku stock plummeted more than 25% in extended trading on Thursday after the company missed profit expectations and the final profit for the company. second quarter and warned of “an economic environment defined by recession fears.”
Here’s how the company did it:
- Income: According to Refinitv, a loss of 82 cents per share versus an expected 69 cents.
- Turnover: $764 million versus $805 million expected, according to Refinitv.
The company attributed poor financial performance to macroeconomic conditions including inflation as well as supply chain issues.
Roku added that the ad market will continue to suffer in the current quarter and consumer spending will be moderate, which could affect the business that sells Roku TVs and hardware devices. related hardware of the company. The company said it cut operating costs and slowed employee growth in the second quarter.
“We believe this rollback reflects the start of the pandemic in 2020, as marketers prepare for macro uncertainties by rapidly reducing ad spend across all platforms.” Roku said in a letter to shareholders.
Due to market volatility, Roku said it is withdrawing its full-year growth estimate.
The company says that advertisers have cut their spending on television ads this quarter, underscoring how fears of a recession are causing businesses to pull back on marketing.
Example: Meta, report Poor second-quarter financial results this week, which executives blamed on “macro-economic uncertainty” and “weak advertising demand environment” will persist into the quarter.
Snap and Twitterboth rely on online advertising, also report weak financials and cite a tough advertising market that is unlikely to recover anytime soon.
This story is evolving.
