Roku Shares Plunge 25% on Disappointing Q2 Results 
<p><a href='https://financialmodelingprep.com/financial-summary/ROKU'>Roku, Inc. (NASDAQ:ROKU)</a> shares dropped more than 25% Friday afternoon following the company’s reported Q2 results, with EPS coming in at ($0.82), missing the Street estimate of ($0.68).</p>
<p>Revenue increased 18% year-over-year to $764.4 million, compared to the Street estimate of $804.13 million. Platform revenue grew 26% year-over-year to $673 million, with the lower-than-expected growth reflecting marketers abruptly curtailing or pausing advertising spend in the ad scatter market during the latter half of Q2.</p>
<p>According to Oppenheimer analysts, the company competes for TV ad dollars, but it doesn’t benefit from material Upfront deals, which discourage intra-quarter cancellations. As such, the company is disproportionally exposed when advertising slows, similar to Q2/20. On the flip side, the analysts noted that the company benefit disproportionately in recovery and is gradually building an Upfront book.</p>
<p>The company anticipates Q3 revenue to be $700 million, compared to the Street estimate of $901.7 million. It withdrew the full-year revenue growth rate guidance due to the uncertainties and volatility in the macro environment.</p>

NASDAQ:ROKU