Roku tumbles 17% as investors sell revenue beat, strong guidance (NASDAQ:ROKU)

Roku stock (NASDAQ:ROKU) slipped 17% in early postmarket trading despite a fourth-quarter earnings report where revenues came in better than expected and the company logged double-digit gains in accounts and hours streamed.

Total revenues rose 14% to $984.4M, vs. expectations for 11.5% growth, and gross profit rose 20% year-over-year to $437.9M. Gross margin got a 2.5-point boost to 44.5% thanks to narrower losses in the Devices segment.

Net loss per share narrowed to $0.55, in line with expectations, from a year-ago loss of $1.70 per share.

Meanwhile, the company hit positive numbers in adjusted EBITDA and free cash flow for the full year, ahead of its schedule.

In operating metrics, active accounts grew 14% to 80M, and streaming hours rose 21% to 29.1B. For the full year, the company crossed 100B streaming hours for the first time.

Average revenue per user dipped 4%, though, to $39.92.

“We plan to increase revenue and free cash flow and achieve profitability over time. At the same time, we remain mindful of near-term challenges in the macro environment and an uneven ad market recovery,” CEO Anthony Wood and Chief Financial Officer Dan Jedda said in their look ahead.

Comparisons will be tough in distribution, but the company expects to maintain platform growth rates into the new quarter, leading to net revenue of $850M (vs. $835M consensus) as well as gross profit of about $370M and break-even adjusted EBITDA.

Conference call to come at 5 p.m. ET.