Roku reports strong user growth, but sour ad business outlook

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Roku reports earnings as the advertising industry has taken a hit from the pandemic

after the bell on Thursday that met estimates for its loss per share and beat on revenue. The report provided a glimpse into the impact of the coronavirus pandemic on its business as advertisers have pulled back spending amidst economic uncertainty.

As more people have been staying inside during the pandemic, Roku said it gained 2.9 million incremental active accounts in the quarter, reaching 39.8 million total, a 37% increase year-over-year. It also saw streaming hours surge by 1.6 billion, bringing it to a record 13.2 billion hours, a 49% increase year-over-year.

 

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