Roku stock falls 10% after reporting Q3 earnings

Roku CEO Anthony WoodRoku

• Roku reported third-quarter results Wednesday that topped Wall Street’s expectations.
• But investors sold off its stock following the announcement; in recent trading it was off more than 10%.
• The growth rate of the company’s platform business, while still robust, slowed markedly in the quarter, and it offered a disappointing forecast for its bottom line in the fourth quarter.

Roku’s investors may not have been pleased with the company’s third-quarter earnings report, but CEO Anthony Wood insists that everything’s going just fine.

The streaming media device maker’s results beat Wall Street’s expectations on the top and bottom lines. But investors found the results disappointing nonetheless, sending Roku’s stock down more than 10% in after-hours exchanges.

Potentially feeding shareholder worries: Roku projected that its bottom line in the holiday quarter won’t be as robust as analysts were hoping, and it revealed that the growth rate of its platform business, which includes its fast-growing advertising sales, slowed considerably in the third quarter.

“We had a great quarter,” Wood insisted in an interview with Business Insider. “We’re very happy with how things are going.”