Roku posted strong first-quarter results paced by a 27% rise in advertising revenue.
Starting in the quarter, the streaming provider began breaking out ad revenue as a category within overall platform revenue. Ad revenue totaled $612.7 million.
Revenue hit $1.25 billion, up 22% and a bit better than Wall Street analysts’ consensus estimate. Earnings per share of 57 cents easily beat the Street outlook for 35 cents.
Revenue from subscriptions, which has also been on the upswing of late thanks to price increases and new distribution agreements, jumped 30% over the prior-year period to come in at $518.5 million. Roku’s premium subscriptions hub, a channels-style offering, had the most signups in its history during the quarter. It integrates several dozen subscription services into its overall streaming offering, aiming to reduce friction with content discovery and payments. While the subscription business is thus far weighted toward the
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