Roku (Roku (ROKU)) shares are getting a nice pop after the streaming platform company reported first-quarter results that beat expectations and raised its full-year guidance. Here's a breakdown of what happened and why it matters.

Q1 by the Numbers

Roku reported revenue of $1.248 billion for the first quarter, up 22% from a year ago. That was well above the $1.204 billion analysts were expecting. The star of the show was platform revenue, which hit $1.13 billion, up 28% year-over-year. That breaks down into advertising revenue of $612.7 million (up 27%) and subscription revenue of $518.5 million (up 30%). Devices revenue, however, was a weak spot at $117.6 million, down 16% from last year.

Streaming hours came in at 38.7 billion, up 8% year-over-year. Roku's own channel, The Roku Channel, was the second most-engaged app on the platform in the U.S. during the quarter. The company also noted that its video advertising growth outpaced the broader U.S. OTT and digital ad markets, thanks in part to AI-powered recommendations.

On the subscription front, Roku had its best quarter ever for Premium Subscription sign-ups. It also launched Apple TV and Peacock through its Premium Subscriptions service in March and April. And in April, Roku crossed a milestone: more than 100 million streaming households globally now use a device powered by the Roku TV operating system.

What's Next

For the second quarter, Roku expects revenue of $1.295 billion, above the $1.285 billion consensus. Platform revenue should be up about 20% year-over-year, while devices revenue is expected to decline by high-single digits. That would put overall growth at 17%.

Roku also raised its full-year revenue outlook to $5.535 billion, up from a previous range of $5.50 billion. The new forecast includes platform revenue of $5.0 billion and devices revenue of $535 million.

Stock Reaction

Investors liked what they saw. Roku stock was up 4.33% in after-hours trading to $121.61, which is above its 52-week high of $119.96. The stock's 52-week low is $58.55. So, yeah, it's been a good year for Roku shareholders.