By Sam Boughedda
Roku (NASDAQ:ROKU) will likely print a modest beat and bracket-to-lower Q1 when it reports its latest results on April 26, Evercore ISI analysts told investors in a note Friday.
The analysts said the view is based on the firm's "intra-quarter data points, industry channel checks, and model sensitivity analysis."
"We view the Street's Q1 Revenue decline estimate of -4% Y/Y (-18.5% Q/Q) and EBITDA estimate (-$104MM, -14.7% margin) as beatable and believe mgmt's guide was modestly conservative given the uncertainty from the macro environment and M&E headwinds," wrote analysts. "[I]n terms of Q2:23, we view the Street's Revenue estimate of $771MM (+1% Y/Y growth or +9% Q/Q) as modestly aggressive and EBITDA loss of -$87MM (-11.3% margin) as bracketable."
Evercore views Roku as a macro stock for investors who believe the macro environment will improve.
However, analysts confirmed that Evercore currently remains on the sidelines when it comes to Roku as "visibility remains low, scatter market demand trends remain muted, M&E could remain pressured, and it could take at least another quarter before Roku opens up TRC inventory to 3P DSPs at scale."