By Christiana Sciaudone
Investing.com -- We streamed galore during lockdowns, but not enough to compensate for slowing ad spending. Roku (NASDAQ:ROKU) fell more than 7% Thursday on an uncertain outlook as companies cut spending on advertisements, despite beating expectations.
"The ad industry outlook remains uncertain for Q3 and Q4, and we believe that total TV ad spend will not recover to pre-COVID-19 levels until well into 2021," Roku said in a statement. "Advertisers in industries like Casual Dining, Travel and Tourism have significantly slowed their spending."
Overall revenue "will grow substantially on a year-over-year basis in the second half and for the full-year 2020, albeit not as strongly as we had anticipated prior to the pandemic," Roku said.
The second quarter loss per share of 35 cents beat the expected loss of 53 cents on revenue of $356 million, which beat the average forecast of $313 million.
Shares had more than doubled since March before Thursday.