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 ...

Analysts on Wall Street project that Roku (ROKU) will announce quarterly loss of $0.44 per share in its forthcoming report, representing an increase of 20% year over year. Revenues are projected to reach $1.15 billion, increasing 16.4% from the same quarter last year.The consensus EPS estimate for the quarter has undergone an upward revision of 2.9% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during thi ...

Roku (ROKU -0.70%) is scheduled to provide an investor update that will answer many shareholders' questions.*Stock prices used were the afternoon prices of Feb. 3, 2025. The video was published on Feb. 5, 2025. ...

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Roku, driven by higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2] Earnings Expectations - Roku is expected to report a quarterly loss of $0.44 per share, reflecting a year-over-year improvement of +20% [3] - Revenue projections stand at $1.15 billion, indicating a 16.4% increase from the previous year [3] Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, suggesting stability in analyst expectations [4] - The Zacks Earnings ESP model indicates that recent analyst revisions may provide more accurate insights into earnings potential [5][6] Earnings Surprise Prediction - Roku's Most Accurate Estimate exceeds the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +1.53%, indicating a likelihood of beating the consensus EPS estimate [10][11] - The stock holds a Zacks Rank of 2, further supporting the expectation of an earnings beat [11] Historical Performance - In the last reported quarter, Roku surprised analysts by posting a loss of $0.06 per share against an expected loss of $0.35, achieving a surprise of +82.86% [12] - Over the past four quarters, Roku has consistently beaten consensus EPS estimates [13] Conclusion - While an earnings beat is anticipated, other factors may influence stock movement post-earnings release, making it essential to consider the broader context [14][16] - The combination of a positive Earnings ESP and a strong Zacks Rank enhances the probability of a successful earnings outcome [8][15]

Shares of Roku (ROKU 1.34%) stock climbed 11% in January according to data provided by S&P Global Market Intelligence. There was no big news during the month, but investors are feeling more confident about the economy since President Donald Trump took office, and Netflix's excellent quarter might have the market feeling good about Roku, too.What's wrong with Roku stock?There doesn't seem to be anything wrong with Roku, except that it's still fighting its way toward profits. Whenever a company gets big and s ...

Company Performance - Roku's stock closed at $80.16, reflecting a +1.34% change from the previous day's closing price, outperforming the S&P 500's gain of 0.72% [1] - Over the past month, Roku's stock has decreased by 1.01%, underperforming the Consumer Discretionary sector's increase of 2.95% and the S&P 500's increase of 1.02% [1] Upcoming Earnings - Roku is scheduled to release its earnings report on February 13, 2025, with an expected EPS of -$0.44, indicating a 20% growth compared to the same quarter last year [2] - The consensus estimate for quarterly revenue is $1.15 billion, representing a 16.37% increase from the previous year [2] Analyst Projections - Recent shifts in analyst projections for Roku are important for investors, as positive estimate revisions indicate optimism regarding the company's business and profitability [3] - The Zacks Rank system, which incorporates estimate changes, provides a functional rating system for stocks [4] Zacks Rank and Industry Performance - Roku currently holds a Zacks Rank of 2 (Buy), with the consensus EPS estimate having increased by 0.72% over the last 30 days [5] - The Broadcast Radio and Television industry, part of the Consumer Discretionary sector, has a Zacks Industry Rank of 62, placing it in the top 25% of over 250 industries [6]

Roku - Roku stock trades near $84 per share and needs a 20% rise in 2025 to surpass $100 [4] - Active accounts increased from 60 million in 2021 to over 90 million in January 2024, a 50% growth in three years [5] - The platform streams more hours of video content than ever, driven by its expanding user base [6] - Roku generates most of its revenue from advertising and launched Roku Data Cloud in January to improve ad inventory transparency [7] - The stock is up over 30% in the last six months, and accelerated growth in 2025 could push it above $100 [8] PayPal - PayPal stock trades just below $90 per share and needs an 11% gain in 2025 to clear $100 [9] - The stock was up 39% in 2024, making an 11% gain in 2025 realistic [9] - PayPal's enterprise-facing business, including Braintree, has driven growth but initially at the expense of profits [10][11] - New management renegotiated Braintree contracts in 2023, improving profit margins without losing customers [12] - Ongoing profit-margin improvements could build on the gains from 2024 [12] Etsy - Etsy stock trades at $53 and needs an 88% jump to reach $100, making it the biggest longshot among the three [13] - The stock trades at 10 times its free cash flow, which is considered cheap [14] - Active buyers dipped slightly in Q3 2024, and gross merchandise sales are falling [14] - Q3 revenue rose 4% year over year due to an improved take rate and disciplined management [15] - A new loyalty program and other initiatives aim to drive more spending from active buyers, potentially reigniting growth in 2025 [16] Comparison - Roku is the riskiest pick due to ongoing net losses, while PayPal offers the smallest potential upside due to its size [17] - Etsy represents the best balance between risk and reward among the three [17]