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Roku to Stop Reporting Quarterly User Numbers; Shares Tumble

Roku products arranged in Hastings-On-Hudson, New York, US, on Tuesday, July 25, 2023. Roku Inc. is scheduled to release earnings figures on July 27. (Tiffany Hagler-Geard/Bloomberg)

(Bloomberg) -- Roku Inc., a manufacturer of set-top boxes used to stream TV, said it will no longer report the number of households that use its products each quarter, starting next year.

Shares of Roku fell as much as 13% to $67.17 in extended trading in New York. If that holds in trading Thursday, it will be the biggest one-day loss since a 24% decline on Feb. 16, when the company issued a lower-than-expected forecast.

The decision to withhold the data follows a similar one by Netflix Inc. in April, when the company announced it would stop reporting quarterly subscriber numbers.

“Beginning with our Q1 2025 earnings results, we will no longer report quarterly updates on streaming households,” the company said in a statement. That means it will also no longer report average revenue per user.

The company said its key performance metrics will be streaming hours, platform revenue, adjusted earnings and free cash flow.

“We will continue to grow streaming households and will continue to track and announce key milestones such as 100 million HHs, which we said we expect to reach in the next 12-18 months,” the company said in an email.

The company also issued a fourth-quarter profit forecast that fell short of Wall Street estimates. Adjusted earnings this quarter will be $30 million before interest, taxes, depreciation and amortization. That’s below the $36.2 million average of analysts’ estimates.

In April, shares of Netflix fell after the company announced it would stop reporting both subscribers and average revenue per user starting in the first quarter of 2025.

(Updates with company comment in sixth paragraph.)

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