(Reuters) -Roku topped Wall Street estimates for second-quarter revenue on Thursday, helped by its expanding user base and advertising sales, sending its shares up 8% in trading after the bell.
Analysts expect connected TV to be one of the fastest-growing ad media outlets over the next three to five years as ad budgets shift from linear TV to streaming, with Roku being a key beneficiary given its leading scale and engagement.
In June, Roku announced an advertising partnership with Amazon.com, giving advertisers access to the largest authenticated connected TV footprint in the U.S., with a combined reach of 80 million U.S. households through the Amazon platform.
Roku has a number of growth drivers for the second half of the year, including third-party programmatic partnerships, home screen monetization and subscriptions.
The company reported revenue of $1.11 billion for the quarter, compared to the analysts’ average estimate of $1.07 billion, according to data compiled by LSEG.
Roku’s platform segment — which includes advertising and subscription revenue — grew 18% to $975 million in the quarter, driven by video advertising and its acquisition of Frndly.
It expects third-quarter revenue of $1.2 billion, slightly above estimates of $1.17 billion.
(Reporting by Juby Babu in Mexico City; Editing by Alan Barona)
