Anthony Wood, Founder and CEO of Roku since 2002. Diya Deepasupil/Getty Images for Diabeck Festival
Although Roca’s fourth quarter income results may have raised an alarm for investors on yesterday (15 February), the founder and CEO of Smart TV manufacturer Anthony Wood is being asked to comment on the company’s sinking stock price.
“I am super confident in my business. More confident than ever,” Wood said in an interview with today (16 February).
Roku reported an increase in both revenue and customers for the quarter ended December. The number of user accounts from 75.8 million in the previous quarter increased to 80 million. Analyst had a quarterly revenue $ 829 million, by defeating expectations, up to 13 percent from the same quarter to the same quarter. However, the year-by-year $ 39.92 per user average revenue (APRU) declined by 4 percent. And Roku warned of a “challenging macro environment and recovery of uneven advertising market” this year, which today has a stock price of more than 23 percent.
Wood insisted that Roku is watching a good growth in its video advertising business, but said the company’s media and entertainment division said, where it helps media companies promote its services on Roku’s platform, was affected by the new streaming services emerging last year and the level of spending levels of media companies coming with it.
Wood said about Roku’s media and entertainment division, “It has been challenged for the last fourth quarter business and pressurized and it is probably going to continue pressure for the rest of this year.” “The root cause of this is that a lot of streaming services were launched, and they historically spent a lot of money to promote their services, and it was at unstable levels.”
However, the CEO also stated that Roku’s streaming service distribution was “very strong” due to the increase in prices on various platforms last year. Roku TVs have free, underlying programs from popular streams such as Netflix.
Earning was not in the headlines this week itself. On Valentine’s Day, Wall Street Journal reported that Walmart wants to buy a Roku competitor, wiso. This news sent Roku’s shares down about 9 percent.
The wood will not directly address the report, but repeated its confidence in Roku. Walmart’s business cap is relatively smaller than Roku’s $ 2 billion market cap, compared to Roku’s $ 13 billion evaluation, compared to Roko.
“We have a very strong brand,” Wood said. “Our streaming, our innovation, our measure, our loyalty towards customers, our brand, all assures me that we are going to continue to increase the distribution of our platform.”