Welcome back to closing bell and cheddar news. Everyone
, we do have an earnings alert. Roco results
crossing the tape, the stock popping in the after
hours after a double digit gain during today's normal session
as well. And let's get straight to Michele Castelli
Oh, with the breakdown, Michelle. Yeah,
it was a beat on the top and bottom lines
. Let's go to those numbers right now. So
you actually earning a loss of a dollar 70 cents
. But the street was expecting a loss of a
dollar, 73 cents. So good There. But
I think what we're seeing the pop on is take
a look at that revenue$867.1 million 801.69 million.
That's a huge beat on revenue for the company.
There's a couple of things that they mentioned in their
report that actually might have led to this one.
While they were facing the same macroeconomic conditions that lead
to advertisers pulling back spend in marketing. They also
noted that a lot of people are shifting budgets for
advertising from traditional tv towards streaming. So they were
able to mitigate a lot of those losses that maybe
their competitors or even their peers in the technology sector
that rely on digital advertising and looking at you meta
or alphabet. They had to face more of those
issues. Rocca was able to benefit from that shift
towards streaming advertising. The second thing they also pointed
out is that they actually gained market share as the
number one streaming down in the north american market.
I think they're around 36 38% of the market right
now. Um other updates we dated announced earlier in
january that they hit 70 million monthly active accounts that
is continuing um otherwise good news. They're also giving
some pretty decent guidance for Q one of 2023 which
I think is also leading to that pop in the
stock at this time. At one point it was
up about 17.5%. One of the things that they
noted was the fact that they are seeing some boosts
in certain advertising categories in Q1 including restaurants, travel
, consumer packaged goods, health and wellness. So
they do see that people are starting to spend a
little bit more than them. They also had mentioned
that they are scaling back in some categories uh in
there, they had mentioned layoffs earlier just to weather
out the macro economic climates. But overall pretty good
news for Roku. A little bit more optimistic.
They do think that they are going to decline to
single digit revenue growth by the end of Q 4
2023 because of the macroeconomic climate. Let's remember,
companies like meta, they're actually losing down year over
year when it comes to revenue. So, you
know, that's good news for this streaming company at
least. And they do expect even a positivity by
2024. They said they're on track for that Michelle
just any takeaways, I guess as to what we
might be able to glean here from the overall health
of the advertising market. Right. I mean,
some of these results have surprised to the upside,
especially when it does come to advertising driven businesses.
You know, I think the big take away from
Roku is the shift to from two streaming from traditional
cable is real and advertisers are taking note at a
faster pace. So even though we are seeing marketing
budgets pull back, a lot of these streamers are
going to benefit from that. I'd be curious to
look at netflix, which recently boosted their advertising business
. You have companies like Disney Plus that are also
probably gonna benefit. All right, Michelle Castillo leo
with the live breakdown, Michelle, thank you again
, that stocks in nice gains after hours adding to
decent gains today as well.