Day: May 7, 2020

Roku sees ad sales growth slowing as businesses conserve cash

(Reuters) – Roku Inc said it expects 2020 ad sales to grow at a slower pace and recorded higher cancellations in the first quarter as advertisers save cash amid the COVID-19 pandemic, sending its shares down 10% in extended trading on Thursday.

FILE PHOTO A video sign displays the logo for Roku Inc, a Fox-backed video streaming firm, in Times Square after the company’s IPO at the Nasdaq Market in New York, U.S., September 28, 2017. REUTERS/Brendan McDermid

The ad crunch comes at a time when the video streaming device maker is trying to shift focus from device sales to advertising as more streaming services enter the market.

Roku puts advertisements on its free Roku Channel and also charges a commission from media companies that stream programming on the free, ad-supported channel.

“The main driver now is that advertising spend has dried up even on a market share leading platform

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Uber sees rides recovering from coronavirus lows, banks on food-delivery momentum

(Reuters) – Uber Technologies Inc’s (UBER.N) ride service bookings slowly recovered in recent weeks as the company expects a coronavirus-related slowdown will delay the goal of becoming profitable by a matter of quarters, not years, Chief Executive Dara Khosrowshahi said on Thursday.

FILE PHOTO: An Uber Eats food delivery courier closes a bag with an order during a lockdown, imposed to prevent the spread of coronavirus disease (COVID-19), in central Kiev, Ukraine April 2, 2020. REUTERS/Valentyn Ogirenko

He spoke after Uber reported it had seen encouraging signs in markets hit by the pandemic and posted a 14% rise in revenue for the first quarter, supported by a jump in food-delivery orders at its Uber Eats business.

Khosrowshahi said stringent cost cutting, to the tune of more than $1 billion in 2020, would ensure the company stayed on track. Uber on Wednesday said it would lay off 3,700 full-time

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California sets rules to reopen manufacturing; Tesla’s Musk cheers

FILE PHOTO: California governor Gavin Newsom waits to speak at a news conference in San Diego, California, U.S. October 9, 2019. REUTERS/ Mike Blake

SAN FRANCISCO (Reuters) – California has set rules to allow state manufacturers to begin reopening on Friday from a coronavirus lockdown, Governor Gavin Newsom said, drawing an enthusiastic “Yeah!!” on Twitter from Tesla Inc (TSLA.O) Chief Executive Elon Musk.

But Tesla is located in one of the San Francisco Bay Area counties, Alameda, that have a separate lockdown scheduled to last until the end of May. Under that county order, Tesla’s only U.S. vehicle factory, in Fremont, California, is not allowed to operate regularly.

The state order announced on Thursday does not supersede the county plan, Alameda Sheriff’s Office spokesman Ray Kelly told Reuters by text message.

The state plan outlined by the governor includes several requirements for reopening, such as implementing physical distancing,

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Roku posts bigger loss due to higher spending; shares fall 7%

FILE PHOTO A video sign displays the logo for Roku Inc, a Fox-backed video streaming firm, in Times Square after the company’s IPO at the Nasdaq Market in New York, U.S., September 28, 2017. REUTERS/Brendan McDermid

(Reuters) – Roku Inc posted a bigger net loss in the first quarter on Thursday, as the video streaming device maker spent more to attract subscribers to its free ad-supported channel, sending its shares down 7% in extended trading.

The company, whose devices compete with Amazon Fire TV and Google Chromecast, said sales and marketing expenses doubled to $68.2 million from a year earlier.

Total operating expenses rose 76% to 196.3 million in the quarter.

The company said its ad business saw “higher than normal cancellations” in the quarter, mirroring a broader decline in overall advertisement spending due to the COVID-19 pandemic.

This comes at a time when Roku is shifting its focus from

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