11:24 AM EDT, 08/02/2024 (MT Newswires) -- Roku ( ROKU ) is expected to see continued growth after reporting solid results for Q2, with revenue and adjusted earnings before interest, taxes, depreciation and amortization topping market expectations, Macquarie said in a note Friday.

"The Q2 revenue beat came from both the devices and the platform side," the firm said.

Roku ( ROKU ) on Thursday issued a Q3 revenue outlook of $1.01 billion, up 11% year over year, and adjusted EBITDA guidance of $45 million.

The company still expects strong devices revenue in Q3, driven by the launch of high-end models and continued growth in distribution channels, Macquarie said.

Roku's ( ROKU ) platform revenue growth guidance in Q3 demonstrated an expected slowdown from Q2 due to "tougher comp and flattish [average revenue per unit] as international expansion continues" but platform growth is likely to accelerate in Q4 "as Roku's ( ROKU ) many efforts to improve monetization take hold," Macquarie added.

Macquarie said it is raising its 2024 EBITDA forecast for Roku ( ROKU ) to $144 million from $124 million, but is cutting the 2025 forecast to $241 million from $287 million.

Macquarie said it reduced its target price on Roku ( ROKU ) to $72 from $88 in line with the firm's lower 2025 EBITDA forecast. It maintained its outperform rating on the company.

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