By Christian Smith
Despite losing a significant amount in market cap after reporting platform revenue earnings that fell short of Wall Street estimates, Roku CEO Anthony Wood said he isn't worried about the company's long-term prospects.
"Our business is just fundamentally strong," Wood said Thursday in an interview on Cheddar.
"We beat analysts' consensus estimates, we beat our outlook ー in fact, it's the fifth quarter in a row since we went public that we have beaten those numbers."
Shares of Roku ($ROKU) tumbled Thursday morning, opening with losses of more than 20 percent and continued to drop in value throughout the day.
Roku released its quarterly earnings Wednesday after the closing bell. The company posted $73.3 million in revenue for its hardware division, beating Wall Street estimates of $67 million. However, it fell short of revenue expectations for its platform segment; the company posted $100.1 million for the quarter compared with a $103.2 million forecast.
Roku raised its full-year revenue guidance to a range of $722 million to $732 million, up from a range of $710 million to $730 million. Wall Street's estimate for Roku's full-year revenue is $722.8 million.
One of the bright spots in Roku's earnings was its growth in active users. The platforms gained 1.8 million active users in the quarter, bringing Roku's total to 23.8 million, up 43 percent year-over-year.
By comparison, traditional TV providers lost over 1 million users during that same time period, which Wood believes is additional proof that Roku's future is bright.
"When new platforms emerge, the viewers move first, and then the advertisers follow their viewers," Wood said. "There's a huge opportunity ahead of us."
For full interview click here.