Roku's performance is mediocre, expected to turn losses into profits by 2024.

Roku announced better-than-expected first-quarter results, with shares falling 2% on Wednesday and rising 2.17% after hours.

Roku Q1 Earnings

Roku reported a net loss of $193 million in the first quarter, or $1.38 per share, on revenue of $741 million. Analysts surveyed by FactSet had expected a loss of $1.47 per share on revenue of $708 million.

Roku said its active account base grew 17% year over year to 71.6 million, while streaming hours increased 20% to 25.1 billion. Average revenue per user declined 5% to $40.67.

Most of Roku's revenue comes from its streaming platform, not the sale of streaming devices. Platform revenue fell 1% to $635 million, while device revenue grew 18% to $106.4 million.

Roku executives said, "We expect macro uncertainty to persist through 2023." "Consumers remain under pressure from inflation and economic recession concerns, so discretionary spending may remain subdued."

Executives said they expect second-quarter revenue of $770 million, above analysts' average estimate of $766 million.

Other Developments

Roku executives said, "We are executing our plan, focusing investment on high-priority projects while slowing the year-over-year growth of operating expenses."

The company also announced a partnership with Instacart, which will make it easier for companies selling consumer goods to track the success of ads placed on the Roku platform.

"Our goal is to help marketers get more of what they love on TV," said Alison Levin, vice president of advertising revenue and marketing solutions at Roku. "Our partnership with Instacart makes it easier for us to measure the actual return on investment for e-commerce advertising and meet consumer needs."

The company is still expected to achieve adjusted earnings before interest, taxes, depreciation, and amortization in 2024.