CEO of Roku, Anthony Wood speaks onstage at The Future of TV Streaming & Entertainment during Tribeca X – 2021 Tribeca Festival at Spring Studios on June 18, 2021 in New York City.
Arturo Holmes | Getty Images
Roku shares dropped in after-hours trading on Wednesday after the company reported third-quarter earnings that missed revenue estimates.
Roku reported third-quarter earnings of 48 cents per share on revenue of $680 million. Analysts had expected earnings of 6 cents on revenue of $683.4 million. Revenue increased 51% from a year earlier.
Active accounts on the platform increased 23% year-over-year to 56.4 million. That’s also an increase of 1.3 million active accounts from the second quarter, but the growth rate has slowed.
In its shareholder letter, the company said the slowdown is a result of “global supply chain disruptions that have impacted the U.S. TV market.” TV sales in the quarter also fell below pre-pandemic levels in 2019, while original equipment manufacturers suffered from inventory constraints, the company added.
“The pandemic continues to disrupt global supply chains,” CFO Steve Louden told CNBC, in an interview after the report. “For the TV industry, you’re having elevated component pricing, inventory availability issues, and supply chain logistics delays.”
— CNBC’s Alex Sherman contributed to this report.
