Roku had a blowout holiday quarter: The company was able to handily surpass analyst expectations, thanks largely to a big increase of its licensing and advertising revenue.
Roku booked revenue of $188.26 million during the holiday quarter, compared to $147.3 million during the same quarter in 2016. The company’s Q4 income was $9.49 million, compared to earnings of $3.38 million for Q4 of 2016. However, Roku had a $2.3 million charge for paying off some debt, which resulted in a total net income of $6.9 million.
This translated to earnings per share of $0.06. Analysts had expected revenue of 183 million, and net losses of $9.8 million.
Much of that unexpected income was due to a growth in the company’s platform business, which includes both licensing fees Roku generates from device partners as well as advertising revenue. This platform revenue grew to $85.44 million in Q4, and now accounts for 45 percent of all of Roku’s revenue.