Roku Exceeds Expectations: Advertising Revenue Drives Sales Growth

Roku exceeded Wall Street expectations in the third quarter due to rising advertising revenues on its platform. Cost-conscious customers are increasingly turning to the provider, which not only produces streaming devices but also has a free, ad-supported channel. The company benefits from the trend of advertising dollars shifting from linear television to digital, connected TV systems. Additionally, Roku is experiencing strong advertising demand ahead of the U.S. presidential election in November. Roku reported revenues of $1.06 billion, while analysts had projected only $1.02 billion on average, based on data from LSEG. The platform business in particular, the largest revenue contributor, rose by about 15% in the third quarter to $908 million.