Roku (NASDAQ: ROKU), the nline media player company, has reported eyebrow-raising first-quarter earnings results, beating analysts expectations.
The company credits it earnings success to user engagement, which has extended streaming hours necessary to drive the company’s growth strategy through advertising.
Roku’s total streaming hours climbed 74% year over year to 8.9 billion in Q1. That marks the fifth straight quarter of accelerating growth in total streaming hours on the platform. Roku users now spend an average of 3.5 hours per day streaming content on their devices.
As a result of the rapid growth in streaming hours, platform revenue increased 79% year over year. That’s also an acceleration over the third and fourth quarters.
“Although streaming hour growth does not correlate directly to ARPU [average revenue per user] on a period-by-period basis, increased user engagement reflects our popularity and brand affinity and should drive higher monetization over the long run,” Roku said in its earnings release.
Source: Yahoo Finance