{"id":45254,"date":"2017-09-29T09:35:13","date_gmt":"2017-09-29T09:35:13","guid":{"rendered":"https:\/\/www.biphoo.com\/bipnews\/?p=45254"},"modified":"2017-09-29T09:35:13","modified_gmt":"2017-09-29T09:35:13","slug":"roku-connects-with-investors-in-debut-shares-soar-over-67-percent","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/business\/roku-connects-with-investors-in-debut-shares-soar-over-67-percent.html","title":{"rendered":"Roku connects with investors in debut shares soar over 67 percent"},"content":{"rendered":"

Roku connects with investors in debut shares soar over 67 percent<\/span><\/strong><\/span><\/h2>\n

Roku connects with investors in debut shares soar over 67 percent: Shares of video streaming firm Roku Inc (ROKU.O) rose more than 67 percent in their market debut on Thursday, giving the U.S. IPO market a much-needed shot in the arm.<\/span><\/p>\n

Roku ended trading on the Nasdaq with a share price of $23.50, giving it a market capitalization of about $2.23 billion.<\/span><\/p>\n

The IPO market is struggling to finish on a high note even though it has already notched more money so far this year than in 2016.<\/span><\/p>\n

A pioneer in helping consumers cut the proverbial cord from traditional cable television, Roku made one of the first devices to offer streaming content such as Netflix over TVs.<\/span><\/p>\n

But the market has since become more competitive, with Apple Inc (AAPL.O), Alphabet Inc\u2019s (GOOGL.O) Google, Amazon.com Inc (AMZN.O) and others offering their own devices.<\/span><\/p>\n

To compete better, Roku has opened its platform to more TV apps than its peers, including Amazon Prime Video, Hulu and Google Play, allowing it to offer over 3,000 channels internationally.<\/span><\/p>\n

The Los Gatos, California-based company has also shifted its business model from sales of its Roku box. It licenses its software to companies such as Sharp and Hitachi and gets a cut of the advertising revenue from media companies and new signups for apps on its platform.<\/span><\/p>\n

Roku Chief Executive Anthony Wood said in an interview that the company will keep riding the wave of television content moving online and away from the cable bundle.<\/span><\/p>\n

\u201cWhen we sign up a customer to a subscription service or Hulu or Netflix, we get a revenue share as well,\u201d Wood said.<\/span><\/p>\n

In six months ended June 30, Roku had around 15.1 million active accounts, with around 6.74 billion hours of content streamed, the company said in a filing with the U.S. Securities and Exchange Commission.<\/span><\/p>\n

Those numbers, however, have not translated into profitability as the company pumps cash into marketing and R&D.<\/span><\/p>\n

In the quarter ended June 30, the company posted a net loss of $15.5 million, deeper than its $14.1 million loss in the year-ago quarter.<\/span><\/p>\n

\u201cI don\u2019t like that they are losing cash, but if you wait for a cash flow positive tech company, you may have to wait for a full solar eclipse to come around again,\u201d said Brian Hamilton, founder of data firm Sageworks.<\/span><\/p>\n

Roku\u2019s shareholders include Menlo Ventures, Fidelity and Rupert Murdoch\u2019s Twenty-First Century Fox (FOXA.O).<\/span><\/p>\n

The 15.67 million Class A share offering was priced at $14 per share, the upper end of Roku\u2019s proposed $12 to $14 range, raising about $219.35 million in proceeds.<\/span><\/p>\n

Source:http:\/\/www.reuters.com\/article\/us-roku-ipo\/roku-connects-with-investors-in-debut-shares-soar-over-67-percent-idUSKCN1C31HO<\/span><\/p>\n

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