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Roku users spent 14.6 billion hours on streaming last quarter

Roku users streamed 14.6 billion hours of content in the second quarter, making the streaming media company perform better than expected, despite the weakness in the television advertising market.

Shares fell 0.4% during trading outside of opening hours Wednesday.

The company reported a net loss of $ 43.1 million, or 35 cents per share, compared to a loss of $ 9 million, or 8 cents per share, in the year-ago quarter. Analysts surveyed by FactSet expected a loss of 52 cents per share.

Roku ROKU,
saw sales rise for the quarter from $ 250 million to $ 356.1 million, while analysts modeled $ 316 million. The company’s revenues comprised $ 111.3 million from its player business and $ 244.8 million from its platform business, including advertising and licenses for its smart TV operating system.

Average revenue per user increased from $ 21.06 in the previous period to $ 24.92 in the previous period.

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Roku’s 14.6 billion streaming hours in the quarter were up from 9.4 billion hours a year earlier, and the company saw active accounts rise to 43 million. That was an increase of 39.8 million in the March quarter and 30.5 million in the previous quarter of June.

Analysts had expected approximately 42 million active accounts.

The company said the streaming levels per active account have been “ moderate ” since they peaked in the beginning of the second quarter, but remain above the pre-pandemic properties.

Roku declined to provide financial prospects, citing challenges in the advertising market. “The outlook for the advertising industry remains uncertain for Q3 and Q4, and we believe that total TV ad spending will not recover until pre-COVID-19 levels until 2021,” the company said in its investor letter, as some industries such as travel and tourism have significantly reduced their marketing expenditure.

The company said in its investor letter that it sees “potential reasons for variability”, but still expects its “total annual revenues to grow significantly in the second half and for the full year 2020, albeit not as strongly as we had before the expected a pandemic. ”

Roku had announced in December that Chief Financial Officer Steve Louden would step down as soon as a replacement for his position was found, but the company said on Wednesday that Louden plans to remain in the role and has called off the search for his successor.

Roku shares have risen 33% over the past three months as the S&P 500 SPX,
+ 0.64%
has won 16%.