Roku's third-quarter revenue surpasses expectations, driving a 30% stock increase and positive outlook.

• In the third quarter, Roku's revenue increased by 20% compared to the previous year and surpassed analyst predictions.
• Active accounts also beat, coming in at 75.8 million for the quarter.
• Roku said it experienced a rebound in video ads during the period.

On Thursday, the shares of a company rose, following the news of better-than-expected revenue for the third quarter.

In contrast to analysts' predictions from LSEG, formerly known as Refinitiv, Roku's quarterly performance for the period ending September 30 was not as expected.

• Loss per share: $2.33 vs. $2.12 expected
• Revenue: $912 million vs. $855.2 million expected

In the third quarter, Roku reported a net loss of $330.1 million, or $2.33 per share, which is nearly triple the loss of $122.2 million, or 88 cents per share, reported in the year-ago quarter.

The company reported a 20% increase in revenue year over year, mainly due to strong content distribution and video advertising, as well as the sales of Roku-branded TVs, which were launched in March 2023, according to Roku.

Roku-branded smart TVs have the same interface as external plug-in Roku Streaming Players, and were first introduced at Best Buy this year. These smart TVs generated a 33% increase in device segment revenue from the previous quarter, as stated during Roku's earnings call on Wednesday.

During Wednesday's earnings call, Roku Devices President Mustafa Ozgen stated that branded TVs contributed to a greater proportion of net adds in active accounts compared to streaming players in international markets.

Despite an industry-wide slowdown in advertising, the company performed well during the quarter.

Roku Media President Charlie Collier stated during the earnings call that the company experienced a strong rebound in video ads in the third quarter. He anticipates year-over-year growth in the fourth quarter to be comparable, but remains cautious about the future recovery of the ad market.

In the previous quarter, there was a net increase of 2.3 million active accounts from the Street's estimates of 75.33 million, with actual accounts coming in at 75.8 million.

Roku anticipates revenue of approximately $955 million in the fourth quarter, surpassing the $952 million forecast by Wall Street, as per LSEG.