(Reuters) -Roku ( ROKU ) topped Wall Street estimates for second-quarter revenue on Thursday, helped by its expanding user base and advertising sales, sending its shares up 8% in trading after the bell.
Analysts expect connected TV to be one of the fastest-growing ad media outlets over the next three to five years as ad budgets shift from linear TV to streaming, with Roku ( ROKU ) being a key beneficiary given its leading scale and engagement.
In June, Roku ( ROKU ) announced an advertising partnership with Amazon.com ( AMZN ), giving advertisers access to the largest authenticated connected TV footprint in the U.S., with a combined reach of 80 million U.S. households through the Amazon ( AMZN ) platform.
Roku ( ROKU ) has a number of growth drivers for the second half of the year, including third-party programmatic partnerships, home screen monetization and subscriptions.
The company reported revenue of $1.11 billion for the quarter, compared to the analysts' average estimate of $1.07 billion, according to data compiled by LSEG.
Roku's ( ROKU ) platform segment - which includes advertising and subscription revenue - grew 18% to $975 million in the quarter, driven by video advertising and its acquisition of Frndly.
It expects third-quarter revenue of $1.2 billion, slightly above estimates of $1.17 billion.