Roku, Inc. (NASDAQ:ROKU) shares are trading lower on Friday, reversing after gaining late Thursday on first-quarter earnings.

The first quarter's gross profit was $388 million, which is up 15% year over year. Gross margin, however, contracted to 44.1% from 45.6% a year ago.

"Looking into the second half of the year, we anticipate normal seasonal spend in Sales & Marketing for Devices, which will cause Adjusted EBITDA to slightly moderate relative to the first half of the year," the company said in a statement.

Roku reported 81.6 million streaming households in the first quarter, an increase of 14% year-over-year. Average revenue per user (ARPU) was $40.65 on a trailing 12-month basis (TTM), flat year over year.

Globally, the company's users streamed 30.8 billion hours in the first quarter, and streaming hours grew 23% year over year as viewers continued to shift to TV streaming.

The Roku Channel became the #3 app on the company's platform in the first quarter by both reach and engagement, with streaming hours up 66% year over year.

The company sees second-quarter total net revenue of $935 million, above the consensus estimate.

Roku exited the quarter with cash and equivalents worth $2.06 billion.

According to Benzinga Pro, ROKU stock has gained over 2% in the past year. Investors can gain exposure to the stock via ARK Innovation ETF (NYSE:ARKK) and ARK Next Generation Internet ETF (NYSE:ARKW).

Price Action: ROKU shares are trading lower by 8.5% to $57.44 at the last check Friday.

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