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Roku (NASDAQ:ROKU) shares rose more than 12% in pre-market trading on Wednesday after the streaming video company announced plans to lay off about 10% of its workforce and said it expected third-quarter revenue to be higher than initially planned.
The Anthony Wood-led Roku (ROKU) said in a filing that it now expects sales to be between $835M and $875M, up from a prior outlook of $815M, up from a prior outlook of $815M. Analysts are expecting $827.93M.
It also expects adjusted EBITDA to be between negative $40M and $20M.
Regarding the layoffs, Roku (ROKU) expects to incur restructuring charges between $45M and $65M, with most occurring in the third-quarter. It expects the layoffs to be “substantially complete” by the fourth quarter.
In addition, Roku (ROKU) said it would incur an impairment charge between $160M and $200M as it consolidates its offices around the globe. It will also incur another $55M to $65M in charges on removing select content from its TV streaming platform.
Other streaming and media stocks were mixed in pre-market trading on Wednesday, with Warner Bros. Discovery (WBD) and Netflix (NFLX) modestly lower, while Walt Disney (DIS) and Paramount (PARA) (PARAA) saw fractional gains.
