Analyst Note| Neil Macker, CFA |
Roku posted a slightly better-than-expected start to 2022 with revenue in line and EBITDA ahead of FactSet consensus expectations for the first quarter. Total revenue came in 28% ahead of the same period last year with management guiding for 25% growth in the second quarter. Despite guiding to sub-30% growth in the first half, management reiterated its full-year top-line guidance of 35% growth, which we believe may be too aggressive given the issues in the streaming market, particularly in the United States. We are reducing our fair value estimate to $135 per share from $150 to account for lower revenue expectations.