Roku, Inc. (NASDAQ:ROKU) shares dropped more than 25% Friday afternoon following the company’s reported Q2 results, with EPS coming in at ($0.82), missing the Street estimate of ($0.68).

Revenue increased 18% year-over-year to $764.4 million, compared to the Street estimate of $804.13 million. Platform revenue grew 26% year-over-year to $673 million, with the lower-than-expected growth reflecting marketers abruptly curtailing or pausing advertising spend in the ad scatter market during the latter half of Q2.

According to Oppenheimer analysts, the company competes for TV ad dollars, but it doesn’t benefit from material Upfront deals, which discourage intra-quarter cancellations. As such, the company is disproportionally exposed when advertising slows, similar to Q2/20. On the flip side, the analysts noted that the company benefit disproportionately in recovery and is gradually building an Upfront book.

The company anticipates Q3 revenue to be $700 million, compared to the Street estimate of $901.7 million. It withdrew the full-year revenue growth rate guidance due to the uncertainties and volatility in the macro environment.

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