Roku forecasts annual revenue above estimates, shares rise

Feb 12 (Reuters) - Roku ROKU.O forecast annual revenue above Wall Street estimates on Thursday, betting on a rebound in the digital advertising market and a broader shift to ad-based streaming, sending its shares up 8% in extended trading.

Roku is cashing in on changing consumption habits, signaling strong ad sales as more customers switch to streaming platforms.

Streaming viewership has grown substantially, with connected TV devices becoming primary viewing platforms for many households, benefiting Roku.

The company's platform segment, which includes digital advertising and content distribution revenue, has been the primary engine for growth.

Roku reported platform revenue of $1.22 billion for the fourth quarter, up 18% from a year earlier, compared with analysts' average estimate of $1.18 billion according to data compiled by LSEG.

"Looking ahead to 2026 and beyond, we are confident in our ability to sustain double-digit platform revenue growth while continuing to expand both operating and net income margins," Roku said in a letter to shareholders.

The company expects annual revenue of $5.50 billion, ahead of an estimate of $5.34 billion.

It sees platform revenue growing 18% to $4.89 billion in 2026, also ahead of an estimate of $4.66 billion.