Roku Stock Tumbles on Disappointing Outlook, Plan To Withhold Streaming Numbers

Shares of Roku ( ROKU ) fell 14% in pre-market trading Thursday, a day after the company posted a disappointing fourth-quarter forecast and said it would stop releasing quarterly home streaming numbers starting next year.

For the fourth quarter, Roku said it expects a net loss of $65 million, which is larger than the consensus loss of $57.6 million of analysts surveyed by Visible Alpha. It also expected total net revenues to reach $1.14 billion, which is in line with estimates.

The plan to block streaming numbers follows a similar move by Netflix

Roku also said that starting with its fiscal 2025 first-quarter earnings results, it will no longer provide quarterly updates on household streaming. Its decision to withhold user data follows a similar decision by Netflix (NFLX), which said in April that it would stop reporting subscriber data starting in 2025 and would instead focus on financial metrics.

During the third quarter, Roku reported 85.5 million in streaming households, up from 75.8 million last year and 83.6 million last quarter.

Roku crossed the $1 billion revenue mark for the first time at $1.06 billion, up 16% year over year and beating estimates. It narrowed its net loss to $9.03 million, or $0.06 per share, also better than expectations.

Roku shares have lost 15% of their value this year as of Wednesday’s close.