Roku (NASDAQ:ROKU) shares were trading more than 26% lower Friday afternoon following the company’s reported Q4 results, with revenue of $865.3 million coming in below the Street estimate of $896.54 million. EPS was $0.17, beating the consensus of $0.07. But most importantly, the company’s outlook for Q1 and full 2022-year were softer compared to the Street expectations.

According to the analysts at Berenberg Bank, the company, while primarily an advertising video on demand (AVoD) platform, reflects a trend similar to most of the subscription video on demand (SVoD) platforms in Q4, which were either weaker on subscriber growth or indicated higher investments going into 2022 – pushing out the profitability timetable.

The analysts mentioned that Q4 results continued to demonstrate pressure on revenue growth driven by component shortages, an inflationary pricing environment for TVs, and softer advertising, particularly from auto and consumer packaged goods.