(Refiles to fix typo in first paragraph)
By Helen Coster and Ayanti Bera
Nov 6 (Reuters) – U.S. video streaming service Roku Inc beat expectations for third quarter revenue, earnings per share and adjusted EBITDA on Wednesday, benefiting from a widespread trend toward cord-cutting.
But the San Jose, California company reported a wider net loss in the third quarter, as it spent more to attract subscribers to its video streaming platform.
Its shares plunged 15% in extended trading.
The company’s net loss widened to $25.2 million, or 22 cents per share, in the third quarter ended Sept. 30, from $9.5 million, or 9 cents per share, a year earlier.
Total operating expenses for the quarter rose about 60% to $145 million from a year ago.
Total net revenue rose to $260.9 million from $173.4 million.
Roku, which sells devices that allow users to stream video from services like Netflix and Apple Inc’s Apple TV+, said Disney+, the forthcoming streaming service from Walt Disney Co., would soon launch on its platform.
Roku devices compete with Apple TV, Amazon Inc’s Fire TV and Alphabet-owned Google Chromecast.
In September, Roku introduced a new line of streaming players for North America, Latin America and some European markets, with an entry price point of $29.99 for the Roku Express device.
The following month Roku announced it had spent $150 million to acquire Dataxu, a company that lets marketers plan and buy video ad campaigns. The deal is expected to be finalized during the fourth quarter. (Reporting by Helen Coster in New York and Ayanti Bera in Bengaluru, Editing by Rosalba O’Brien)
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