Roku (ROKU) reported its Q1 2019 financial results on Wednesday beating analysts’ expectations. The streaming device maker reported $207 million in revenue versus analysts’ estimates of $190 million.
The company saw losses per share of $0.09. Analysts estimated the company would see losses of $0.26 per share.
The stock was up 6% in aftermarket trading.
Roku is known for producing its streaming devices like the Roku Streaming Stick and partnerships with its Roku TV line. Increasingly, however, the company is leaning on advertising to grow its revenue via in channel ads, display ads and its free Roku Channel.
Roku is saw its active user accounts grow 40% year-over-year, while total streaming hours ballooned by 74% to 8.9 million hours in the quarter.
The company’s ad sales business recorded revenue of $134 million, a jump of 79% year-over-year, while device sales rose by 18% year-over-year.
Roku previously announced that it anticipates it will see revenue of $1 billion by the end of 2019.
The streaming video market is going through a period of rapid expansion with Apple (AAPL) and Disney (DIS) both expected to launch their own paid services later this year.
Both companies have confirmed that they will offer their properties on Roku’s devices, but the added viewing options for users means increased competition for Roku’s free Roku Channel, which could cut into the company’s hopes of building advertising revenue.
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