Roku Stock Plunges on Disappointing Outlook and Plans to Withhold Streaming Numbers

Shares of Roku (ROKU) fell 14% in premarket trading on Thursday, a day after the company issued a disappointing fourth-quarter outlook and said it would stop reporting quarterly residential streaming numbers starting next year.

For the fourth quarter, Roku expects a net loss of $65 million, larger than the consensus loss of $57.6 million among analysts surveyed by Visible Alpha. It also forecast total net sales of $1.14 billion, which was in line with estimates.

The plan to withhold streaming numbers follows a similar move by Netflix

Roku also said it will no longer provide quarterly updates on streaming households starting with its first quarter fiscal 2025 earnings results. Its decision to withhold user data follows a similar decision by Netflix (NFLX), which announced in April that it would stop reporting subscriber data starting in 2025 and instead focus on financial metrics.

In the third quarter, Roku reported 85.5 million streaming households, up from 75.8 million a year ago and 83.6 million last quarter.

With $1.06 billion, Roku surpassed $1 billion in revenue for the first time, up 16% year-over-year and beating estimates. The net loss was reduced to $9.03 million or $0.06 per share, which is also better than forecast.

Roku shares had lost 15% of their value this year through Wednesday's close.