-=Roku (ROKU) reported earnings on Wed 8 May 2019 (a/h)

Roku beats by $0.16, beats on revs; guides Q2 revs above consensus; raises FY19 rev and EBITDA above consensus

• Reports Q1 (Mar) loss of $0.09 per share, $0.16 better than the S&P Capital IQ Consensus of ($0.25); revenues rose 51.3% year/year to $206.7 mln vs the $189.8 mln S&P Capital IQ Consensus. Gross profit rose 60% YoY to $100.9 million; Active accounts were up 2.0 million incrementally vs. Q4 2018 to 29.1 million; Streaming hours increased 1.6 billion hours vs. Q4 2018 to 8.9 billion; Average Revenue Per User (ARPU) was $19.06 on a TTM basis, up $1.11 vs. Q4, and up 27% YoY; Roku monetized video ad impressions again more than doubled YoY in the quarter.
• Co issues upside guidance for Q2, sees Q2 revs of $220-225 mln vs. $219.49 mln S&P Capital IQ Consensus. Gross profit of roughly $101 million reflects continued strength of the Platform business. We anticipate sequential increases in operating expenses in Q2 and beyond from our investments in talent, product development, and the impact of a recently signed additional lease. As a result, we expect adjusted EBITDA loss to be roughly $7.5 million in Q2 at the midpoint.
• Co issues upside guidance for FY19, sees FY19 revs of $1.03-1.05 bln vs. $1.02 bln S&P Capital IQ Consensus. Based on the continued strength of our Platform business, we now expect Platform revenue to represent roughly two-thirds of total revenue. We are raising our total gross profit outlook to roughly $470 million, up from roughly $453 million previously. We are still focused on investing in our business by managing the business to roughly EBITDA break-even in 2019, but with Q1 upside, we are raising our full year adjusted EBITDA outlook to a range of $10 million to $20 million.