You can't blame TiVo (NASDAQ:TIVO) for trying. The company posted better-than-expected fiscal second-quarter results last night. The period's loss widened to $0.09 a share, with net revenues clocking in 50.4% higher at $59.4 million.

Analysts were expecting the company to post a loss of $0.14 a share on only $51.3 million in revenues.

Investors in the DVR, or digital video recorder, pioneer weren't immediately rewarded for the good news. The stock traded mostly flat last night. What held back the gains? It could be that the red ink will flow even more freely in the current period. It could be the problematic churn, as the company landed 74,000 gross TiVo-owned additions for the period but only had 30,000 net new additions.

However, no one is buying into TiVo for immediate gratification. Even the most optimistic analyst doesn't expect the company to turn an annual profit for another two years.

For now, TiVo is all about growing its user base, and that doesn't come cheap. During the quarter, the company generated $16 million in hardware revenue, but had to spit $10 million of that back in the form of consumer rebates and revenue-sharing with its partners. Then you have to subtract $21 million in hardware-related costs. Ouch. The TiVo service revenue offers a higher-margin respite, but we can't get to that point if TiVo stops selling, and sadly subsidizing, the boxes.

The Motley Fool Stock Advisor newsletter recommendation is still in a good place. TiVo is the only brand that matters in this space. It has amassed 4.4 million subscribers, is prying its way into more retail channels like RadioShack (NYSE:RSH), and also apparently has a defensible patent, given its legal victory over EchoStar (NASDAQ:DISH). TiVo also factors to be an ironic force in television advertising, a point hammered home in last night's report with ad revenues doubling.

Yes, TiVo's report isn't perfection. At this price, it doesn't have to be. All TiVo can do at this point is feed hope for the future, and right now that particular cupboard is loaded with dining possibilities.

Longtime Fool contributor Rick Munarriz does have a TiVo, but he does not own shares in the company. He is also part of theRule Breakersnewsletter research team, seeking out tomorrow's ultimate growth stocks a day early.The Fool has a disclosure policy.