KEY TAKEAWAYSRoku shares are jumping in premarket trading Friday, after the streaming company posted better-than-estimated fourth-quarter results.JPMorgan stuck with its outperform rating on Roku and raised its price target on the stock to $115 from $92 each.Roku said it exceeded 90 million streaming households in the first week of January 2025. Roku (ROKU) shares are jumping around 15% in premarket trading Friday, after the streaming company posted better-than-estimated fourth-quarter results. The streamin ...

Shares of Roku are hitting a 52-week high after a blowout report. The good news is everywhere this time.We're in the home stretch for earnings season, and a strong report can send a stock higher. Shares of Roku (ROKU 2.38%) initially moved sharply skyward after the company posted encouraging financial results on Thursday afternoon following the market's closing bell.Roku was already turning heads before this week's blowout fourth-quarter performance. The shares had nearly doubled since bottoming out this pa ...

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Roku, Inc. (NASDAQ:ROKU) Q4 2024 Earnings Conference Call February 13, 2025 5:00 PM ET Company Participants Conrad Grodd - Vice President, Investor Relations Anthony Wood - Founder, Chairman and Chief Executive Officer Dan Jedda - Chief Financial Officer Charlie Collier - President, Roku Media Mustafa Ozgen - President Devices Conference Call Participants Shyam Patil - Susquehanna Michael Morris - Guggenheim Securities Laura Martin - Needham Jason Helfstein - Oppenheimer Matt Condon - Citizens JMP Ralph Sch ...

Core Insights - Roku reported revenue of $1.2 billion for the quarter ended December 2024, marking a 22% increase year-over-year and exceeding the Zacks Consensus Estimate of $1.15 billion by 4.48% [1] - The company's EPS was -$0.24, an improvement from -$0.55 in the same quarter last year, resulting in an EPS surprise of 45.46% against the consensus estimate of -$0.44 [1] Financial Performance Metrics - Active Accounts: Roku had 89.8 million streaming households, surpassing the average estimate of 89.18 million [4] - Average Revenue Per User (ARPU): The ARPU was $41.49, exceeding the average estimate of $40.68 [4] - Streaming Hours: Total streaming hours were 34.1 billion, slightly below the average estimate of 34.48 billion [4] - Net Revenue from Platform: The net revenue from the platform was $1.04 billion, significantly higher than the average estimate of $950.58 million, reflecting a year-over-year increase of 24.9% [4] - Net Revenue from Devices: Revenue from devices was $165.71 million, lower than the average estimate of $194.94 million, but showed a 6.5% increase year-over-year [4] - Gross Profit from Platform: Gross profit from the platform was $559.93 million, exceeding the average estimate of $500.75 million [4] - Gross Profit from Devices: The gross profit from devices was -$47.35 million, worse than the average estimate of -$32.81 million [4] Stock Performance - Roku's shares have returned +10.8% over the past month, outperforming the Zacks S&P 500 composite's +3.9% change, and the stock currently holds a Zacks Rank 2 (Buy) [3]

Here's our initial take on Roku's (ROKU 2.38%) fourth-quarter financial report.Key MetricsMetricQ4 2023Q4 2024Changevs. ExpectationsRevenue$984.4 million$1.2 billion+22%BeatEarnings per share-$0.55-$0.24+56%BeatStreaming households80.0 million89.8 million+12%n/aAverage revenue per user$39.92$41.49+4%n/aPlatform Revenue Shines for RokuRoku's quest to prove to the market that it is more than just a streaming device company got a giant boost in the fourth quarter as platform revenue grew by 25% year over year ...

Roku reported an earnings surprise for Q4 2024, with revenue and earnings exceeding market expectations driven by strong platform growth.Roku (ROKU 2.38%), the leading streaming platform, recently released its Q4 2024 earnings on February 13, 2025. The results showcased strong performance, particularly in platform revenue, which exceeded analyst estimates and management's guidance. Revenue grew by 22% year-over-year to $1,201 million, compared to the expected $1,149 million. Meanwhile, earnings per share (E ...

Core Insights - Roku reported strong fourth-quarter results, crossing the $1 billion mark in platform revenue and ending the quarter with 89.8 million streaming households, surpassing 90 million in January [1][2] - Total revenue reached $1.2 billion, a 22% increase year-over-year, exceeding Wall Street's consensus estimate of $1.15 billion [2] - The company's net loss per share was 22 cents, significantly better than the expected loss of 43 cents, leading to a 13% increase in shares during after-hours trading [2] Revenue and Growth Metrics - Platform revenue totaled $1.035 billion, reflecting a 25% year-over-year increase, with only 6% of this revenue coming from political ads [3] - Excluding political revenue, platform revenue still grew by 15% compared to the same quarter last year [3] - Streaming hours on the Roku Channel increased by 82% year-over-year, attributed to a diverse programming lineup and effective content recommendations [4] Profitability and Margins - Platform gross margins were reported at 54.1% for the quarter and 53.5% for the entire year, surpassing internal projections due to a favorable mix shift in activities [4]

[Shareholder Letter & Performance Highlights](index=1&type=section&id=Shareholder%20Letter%20%26%20Performance%20Highlights) Roku delivered strong Q4 and full-year 2024 results, with Platform revenue exceeding $1 billion and total net revenue reaching $4.1 billion, driven by user growth and increased streaming hours [Q4 & Full Year 2024 Performance Summary](index=1&type=section&id=Q4%20%26%20Full%20Year%202024%20Performance%20Summary) Roku achieved strong Q4 and full-year 2024 results, with Platform revenue exceeding $1 billion and total net revenue reaching $4.1 billion, alongside significant user and streaming hour growth - Q4 2024 was the first quarter with over **$1 billion in Platform revenue**, a **25% YoY increase**[2](index=2&type=chunk) - The company's penetration in the U.S. has surpassed **half of all broadband households**[2](index=2&type=chunk) Full Year 2024 Key Results | Metric | Full Year 2024 | YoY Change | | :--- | :--- | :--- | | Total Net Revenue | $4.1 billion | +18% | | Platform Revenue | $3.5 billion | +18% | | Gross Profit | $1.8 billion | +19% | | Streaming Households | 89.8 million | +9.8 million | | Streaming Hours | 127.1 billion hours | +21.1 billion hours | | ARPU (TTM) | $41.49 | +4% | Q4 2024 Financial Highlights (YoY) | Metric | Q4 2024 | YoY Change | | :--- | :--- | :--- | | Total Net Revenue | $1,201.0 million | +22% | | Platform Revenue | $1,035.3 million | +25% | | Devices Revenue | $165.7 million | +7% | | Total Gross Profit | $512.6 million | +17% | | Adjusted EBITDA | $77.5 million | +62% | [Segment Performance](index=2&type=section&id=Segment%20Performance) Roku's Devices segment maintained market leadership despite negative margins, while the Platform segment achieved strong revenue growth driven by advertising and user engagement initiatives [Devices Segment](index=2&type=section&id=Devices%20Segment) The Devices segment maintained its 1 TV OS market leadership in North America, with full-year revenue growth, despite negative Q4 gross margins due to seasonal discounts - Maintained **1 selling TV OS position** in the U.S. for the sixth consecutive year, as well as in Canada and Mexico[5](index=5&type=chunk)[7](index=7&type=chunk) - Sold more than **1 million Roku-branded TVs** in 2024, the first full year of sales, and expanded retail distribution to Target, Amazon, and Walmart[5](index=5&type=chunk)[7](index=7&type=chunk) Devices Segment Financials | Period | Revenue | YoY Change | Gross Margin | | :--- | :--- | :--- | :--- | | Full Year 2024 | $590.1 million | +20% | (14)% | | Q4 2024 | $165.7 million | +7% | (29)% | [Platform Segment](index=2&type=section&id=Platform%20Segment) The Platform segment achieved strong growth, with Q4 revenue exceeding $1 billion, driven by advertising and strategic initiatives to enhance user experience and content monetization Platform Segment Financials | Period | Revenue | YoY Change | Gross Margin | | :--- | :--- | :--- | :--- | | Full Year 2024 | $3.5 billion | +18% | 53.5% | | Q4 2024 | >$1 billion | +25% | 54.1% | - Excluding political ad spend, full-year 2024 Platform revenue grew **15% YoY**[9](index=9&type=chunk) - Political ad spend represented approximately **6% of Platform revenue** in Q4 2024[9](index=9&type=chunk) [The Roku Experience](index=2&type=section&id=The%20Roku%20Experience) Roku is enhancing its user experience through AI-powered content discovery and dedicated sports zones to boost engagement, premium subscriptions, and ad reach - Debuted an **AI-powered content row** on the Home Screen, which has helped drive growth in Premium Subscription sign-ups and video ad reach in The Roku Channel[11](index=11&type=chunk) - The Roku Sports Zone, which organizes sports programming, contributed to **significant growth in viewers and Streaming Hours** for sports content in 2024[11](index=11&type=chunk)[12](index=12&type=chunk) [The Roku Channel](index=3&type=section&id=The%20Roku%20Channel) The Roku Channel achieved **82% YoY growth** in Q4 Streaming Hours, driven by enhanced content discovery and expanded live sports offerings, maintaining its position as a top app - Q4 Streaming Hours on The Roku Channel grew **82% YoY**[13](index=13&type=chunk) - In December, over **80% of Streaming Hours** on The Roku Channel originated from the Roku Experience, a 15-point increase from the previous year[13](index=13&type=chunk) - Expanded live sports offerings with partnerships for **NBA G League games and the X Games**[14](index=14&type=chunk) [Streaming Services Distribution](index=4&type=section&id=Streaming%20Services%20Distribution) Streaming service distribution outpaced Platform revenue growth in 2024, achieving record Premium Subscription net adds in Q4 due to expanded offerings and improved integration - Q4 2024 was the **highest quarter of Premium Subscription net adds** since its launch in 2019[17](index=17&type=chunk) - Recently added Max, Crunchyroll, and the BET+ ad-tier to its Premium Subscriptions offerings[17](index=17&type=chunk) [Advertising Activities](index=4&type=section&id=Advertising%20Activities) Q4 advertising activities outpaced the broader ad market, driven by strong growth in key verticals and new product launches like Roku Ads Manager and strategic partnerships - Launched Roku Ads Manager, a self-service platform for SMBs, and announced Roku Exchange and Roku Data Cloud to drive new ad demand[19](index=19&type=chunk) - Expanded programmatic partnerships, making Roku ad inventory available to more demand partners, including a partnership with Yahoo DSP[19](index=19&type=chunk) - Deepened partnership with Instacart to make TV ads shoppable, demonstrating ROI and creating personalized shopping experiences[20](index=20&type=chunk) [Outlook](index=4&type=section&id=Outlook) Roku forecasts continued revenue growth for Q1 and full-year 2025, maintaining operational discipline with a clear path to achieving positive operating income by 2026 [Q1 2025 and Full Year 2025 Guidance](index=4&type=section&id=Q1%202025%20and%20Full%20Year%202025%20Guidance) Roku forecasts **14% YoY revenue growth** for Q1 2025 and expects $4.61 billion in total net revenue for FY2025, with a clear path to positive operating income by 2026 Q1 2025 Outlook | Metric | Q1 2025 Estimate | YoY Change | | :--- | :--- | :--- | | Total Net Revenue | $1.005 billion | +14% | | Total Gross Profit | $450 million | - | | Adjusted EBITDA | $55 million | - | Full Year 2025 Outlook | Metric | FY 2025 Estimate | YoY Change | | :--- | :--- | :--- | | Total Net Revenue | $4.610 billion | - | | Platform Revenue | $3.950 billion | +12% | | Devices Revenue | $660 million | +12% | | Total Gross Profit | $2.005 billion | - | | Adjusted EBITDA | $350 million | - | - The company anticipates a path to being **operating income positive** for the full year 2026[23](index=23&type=chunk) [Financial Statements and Reconciliations](index=6&type=section&id=Financial%20Statements%20and%20Reconciliations) Roku's financial statements reflect significant improvements in profitability, with reduced net losses and increased cash and equity, alongside strong Adjusted EBITDA and Free Cash Flow [Consolidated Statements of Operations](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For FY2024, Roku reported **$4.11 billion in total net revenue**, significantly reducing its loss from operations to $(218.2) million and net loss to $(129.4) million Annual Statement of Operations (in thousands) | Account | 2024 | 2023 | | :--- | :--- | :--- | | Total net revenue | $4,112,898 | $3,484,619 | | Total gross profit | $1,805,645 | $1,522,615 | | Loss from Operations | $(218,167) | $(792,377) | | Net Loss | $(129,386) | $(709,561) | | Net loss per share | $(0.89) | $(5.01) | [Consolidated Balance Sheets](index=7&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of December 31, 2024, Roku's balance sheet reflects an improved financial position with **total assets of $4.30 billion**, decreased liabilities, and increased stockholders' equity Balance Sheet Highlights (in thousands) | Account | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $2,160,236 | $2,025,891 | | Total Assets | $4,303,933 | $4,261,792 | | Total Liabilities | $1,811,196 | $1,935,459 | | Total stockholders' equity | $2,492,737 | $2,326,333 | [Consolidated Statements of Cash Flows](index=8&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For FY2024, Roku generated **$218.0 million in net cash from operating activities**, significantly reduced cash used in investing, and ended the year with **$2.16 billion in cash and equivalents** Annual Cash Flow Statement (in thousands) | Account | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $218,045 | $255,856 | | Net cash used in investing activities | $(25,061) | $(92,619) | | Net cash used in financing activities | $(89,203) | $(61,243) | | Net increase in cash | $103,781 | $101,994 | | Cash and cash equivalents — End of period | $2,160,236 | $2,025,891 | [Non-GAAP Reconciliations](index=9&type=section&id=NON-GAAP%20INFORMATION) Roku's non-GAAP metrics demonstrate a significant turnaround, with **Adjusted EBITDA reaching $260.2 million** for FY2024 and **TTM Free Cash Flow at $203.2 million** Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Period | Net Loss | Adjusted EBITDA | | :--- | :--- | :--- | | Q4 2024 | $(35,548) | $77,498 | | Q4 2023 | $(78,291) | $47,737 | | FY 2024 | $(129,386) | $260,208 | | FY 2023 | $(709,561) | $4,294 | Free Cash Flow (TTM, in thousands) | Period | Cash flow from operations | Free cash flow (TTM) | | :--- | :--- | :--- | | Q4 2024 | $218,045 | $203,238 | | Q4 2023 | $255,856 | $175,891 |

Are you curious about Roku's secret to lasting success? The company is ripping entire chapters out of a proven winner's playbook. Here's how.You know Roku (ROKU 2.45%) as a leading provider of media-streaming software and devices in North America. It has been the top seller of smart TV operating systems in the U.S. for the past five years, and also leads the pack in Canada and Mexico.Roku's domestic dominance is so robust that the company doesn't even report international business results yet. But that's ab ...