(NASDAQ: ROKU) has been doing its best to deal with the uncertain economic environment, and the latest financial results demonstrate that. The business posted revenue of $741 million in the first quarter of 2023, which exceeded internal estimates laid out just three months prior. And the first quarter's net loss of $194 million was an improvement from the fourth quarter last year.
As of this writing, Roku shares are up 29% in 2023, indicating the market's optimism. However, they are still down a jaw-dropping 89% from their July 2021 peak. What should investors do? Let's take a closer look at this popular streaming stock.
Roku counted 71.6 million active accounts as of March 31, up 17% year over year. This figure was also up sequentially, a very encouraging sign. Hours streamed during the three-month period totaled an incredible 25.1 billion, a 20% rise compared to the first quarter of 2022. But unsurprisingly, the key takeaway for the quarter was that the ad market is still struggling as companies look to cut back marketing spending. This directly affected Roku. Its average revenue per user declined 5%, while revenue for the Platform segment dropped 1%.
Source Fool.com