Roku stock tumbles after Q4 guidance disappoints, company says it will stop reporting key user figure

Published On Oct 30, 2024, 5:53 PM

Roku's stock fell more than 10% in after-hours trading due to Q4 guidance that disappointed investors. The company projected gross profit of $465 million and adjusted EBITDA of $30 million, both lower than Wall Street's expectations. Additionally, Roku announced it would stop reporting the number of streaming households, similar to a recent move by Netflix, and will instead focus on metrics like streaming hours and platform revenue. Despite reporting a record $1 billion in revenue for the quarter, the company's shift away from key performance indicators may raise concerns among investors about its growth and remaining competitive in a crowded market.