Roku Climbs Over 14% On Cost Cut Initiatives, Better-than-expected Q3 Revenue Outlook

(RTTNews) - Shares of Roku, Inc. (ROKU) rose over 14 percent on Wednesday after the company announced initiatives to reduce expenses including workforce. In addition, the stock was influenced by the company's revenue expectations, above analysts' view.

ROKU was trading up by 14.52 percent at $95.50 per share on the Nasdaq.

The audio and video equipment maker expects its workforce reduction initiatives to impact around 10 percent of its staff.

The majority of the restructuring charge will be incurred in the third quarter of 2023. For the third-quarter, excluding the restructuring and impairment charges, the firm expects revenue of $835 million to $875 million.

On average, 24 analysts polled by Thomson Reuters expect the company to post revenue of $829.19 million, for the quarter. Analysts' estimates typically exclude special items.