Roku sees first-quarter revenue above estimates as lockdown boosts engagement

FILE PHOTO: A video sign displays the logo for Roku Inc, a Fox-backed video streaming firm, in Times Square after the company's IPO at the Nasdaq Market in New York, U.S., September 28, 2017. REUTERS/Brendan McDermid

(Reuters) - Roku Inc ROKU.O reported preliminary first-quarter revenue above analysts' estimates on Monday as more people used its video streaming devices and content platform to keep themselves entertained during the coronavirus-led lockdowns.

Shares of the company jumped 10% in extended trading, after the company also expected viewers to stream about 13 billion hours of content on its platform in the first quarter, a 49% jump from a year earlier.

Roku, however, said it was withdrawing its full-year financial outlook due to the economic uncertainty arising from the coronavirus pandemic.

The company, which charges a commission from media companies that stream programming on the free, ad-supported Roku channel, said it expects some marketers to pause or reduce ad spending in the near term. It also drew down $70 million from its revolving credit facility.

Roku said it expects 39.8 million active accounts as of March 31, a net increase of nearly 3 million since Dec. 31.

The company said it expects total net revenue of $307 million to $317 million for the first quarter ended March 31. Analysts on average were expecting revenue of $299.8 million, according to I/B/E/S data from Refinitiv.

Reporting by Ayanti Bera in Bengaluru; Editing by Devika Syamnath and Anil D’Silva