(Reuters) -Shares of Roku Inc fell more than 20% in extended trading on Wednesday after the streaming platform said it expects fourth-quarter revenue to be lower than last year.
The company expects total revenue to be about $800 million in the fourth quarter, down from $865.33 million an year earlier.
The forecast mirror warnings signals on ad spending from Snap Inc as companies cut their advertising budgets to rein in costs.
“As we enter the holiday season, we expect the macro environment to further pressure consumer discretionary spend and degrade advertising budgets, especially in the TV scatter market,” the company said.
The company, which reported a 12% rise in quarterly revenue, said the advertising spend continues to grow slowly due to current weakness in the overall TV ad market.
Separately, the California-based firm also announced that its chief financial officer, Steve Louden, will leave the company sometime in 2023.
(Reporting by Aishwarya Nair in Bengaluru; Editing by Shinjini Ganguli)
