Roku withdraws forecast for annual revenue growth rate as ad spend slows

(Reuters) -Roku Inc posted lower-than-expected quarterly sales, forecast downbeat revenue and withdrew its growth rate estimate for the year as economic uncertainties crimp spending on ads, sending the streaming device maker’s shares down 20%.

With decades-high inflation creating a dent in consumers’ wallets, discretionary spending has slowed with demand for TV streaming taking a hit, while advertisers curtailing spend in the ad scatter market also pinched Roku’s business, the company said.

Roku posted total net revenue of $764.4 million for the quarter ended June 30, up from the $645.1 million reported a year earlier, but missed analysts estimates of $805.2 million, according to Refinitiv IBES data.

The company projected current-quarter revenue to grow 3% to $700 million, lower than the $901.7 million estimated by analysts.

(Reporting by Deborah Sophia in Bengaluru; Editing by Anil D’Silva)