Roku, Inc (NASDAQ:ROKU) stock is trading higher Wednesday after the company disclosed additional measures to cut down its year-over-year operating expense growth rate.
It intends to do so by consolidating its office space utilization, performing a strategic review of its content portfolio, reducing outside services expenses, and slowing its year-over-year headcount expense growth rate through a workforce reduction and limiting new hires, among other measures.
Also Read: Roku’s Innovation and Shift in Investment Strategy Sets the Stage for Positive Cash Flow: Analyst
The workforce reduction will likely impact approximately 10% of the employees.
It expects to record a restructuring charge for the workforce reduction of $45 million – $65 million, excluding charges related to the potential impairment of office facilities and content.
Roku will likely incur most of the restructuring charge in Q3. The implementation of the workforce reduction, including cash payments, will be substantially complete by the end of Q4.
Roku now expects total net revenue of $835 million – $875 million (up from the prior $815 million) vs. consensus $$829.19 million, and adjusted EBITDA loss of $(40) million to negative $(20) million for Q3.
The stock has gained over 106% YTD. Earlier in March, Roku disclosed plans to reduce its workforce by 6% or 200 people, and pare back certain unoccupied office facilities.
Price Action: ROKU shares traded higher by 10.9% at $92.75 premarket on the last check Wednesday.
