Financial Data and Key Metrics Changes - In Q1 2024, total net revenue grew 19% year-over-year to $882 million, with platform revenue also increasing by 19% to $755 million, driven by streaming service distribution and advertising activities [25][35][38] - Q1 total gross margin was 44%, slightly down year-over-year, while platform gross margin remained stable at 52%. Device gross margin was negative 5%, down 8 points year-over-year [2][25] - Adjusted EBITDA for Q1 was $41 million, exceeding the breakeven outlook, driven by the platform segment and improved operating expense profile [38][39] - Free cash flow on a trailing 12-month basis was $427 million, with cash and cash equivalents at $2.1 billion at the end of the quarter [38] Business Line Data and Key Metrics Changes - Device revenue increased by 19% year-over-year in Q1, attributed to the expansion of retail distribution of Roku branded TVs [61] - Streaming hours grew 23% year-over-year, surpassing 30 billion hours for the first time in a single quarter, with engagement per account increasing to 4.2 hours per streaming household per day [37][35] - Roku Pay, the payment and billing service, is expected to enhance subscription growth by simplifying the sign-up process for users [36][42] Market Data and Key Metrics Changes - Roku's home screen reaches nearly 120 million people in US households daily, creating significant monetization opportunities [10][66] - The company is focusing on international markets, achieving a 40% market share for TVs in Mexico, and is ramping up monetization efforts in various countries [100] Company Strategy and Development Direction - The company is prioritizing platform growth and innovation, aiming to accelerate platform revenue, adjusted EBITDA, and free cash flow growth by 2025 through maximizing the Roku home screen, growing Roku-billed subscriptions, and increasing ad demand [23][66] - A strategic shift towards enhancing the home screen experience and integrating more programmatic ad capabilities is underway, with plans to introduce video ads and personalized content recommendations [66][113] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to grow streaming households and improve operational efficiency, with expectations for total net revenue of $935 million in Q2, reflecting a 10% year-over-year increase [26][39] - The company anticipates device margins to decline from negative 5% in Q1 to negative low-teens in Q2 due to continued investment in Roku branded TV programs [26][63] Other Important Information - The Roku channel has become the third most popular app on the platform, indicating strong engagement and growth potential [66][97] - The company is expanding its relationships with third-party demand-side platforms (DSPs) to enhance programmatic advertising capabilities [66][109] Q&A Session All Questions and Answers Question: Can you elaborate on the drivers of the platform re-acceleration expected in '25? - Management highlighted three key areas for growth: enhancing the Roku home screen, improving programmatic ad capabilities, and increasing Roku-billed subscriptions [66] Question: What is the outlook for device margins from Q1 to Q2? - Device margins are expected to decline from negative 5% in Q1 to negative low-teens in Q2 due to increased marketing spend and investment in Roku branded TVs [50][63] Question: How is Roku Pay being utilized for subscription growth? - Roku Pay simplifies the sign-up process, which is expected to drive higher subscription rates and reduce churn [42][74] Question: What is the trend for ARPU going forward? - ARPU was flat year-over-year, but there are positive trends in the US market, with expectations for improvement as international markets scale [77] Question: How does the company view the Home Screen's advertising potential? - The Home Screen is seen as a significant opportunity for monetization, with plans to integrate more video ads and personalized content recommendations [90][113]

For the quarter ended March 2024, Roku (ROKU) reported revenue of $881.47 million, up 19% over the same period last year. EPS came in at -$0.35, compared to -$1.38 in the year-ago quarter.The reported revenue represents a surprise of +3.58% over the Zacks Consensus Estimate of $850.97 million. With the consensus EPS estimate being -$0.64, the EPS surprise was +45.31%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their n ...

Roku (ROKU) came out with a quarterly loss of $0.35 per share versus the Zacks Consensus Estimate of a loss of $0.64. This compares to loss of $1.38 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 45.31%. A quarter ago, it was expected that this video streaming company would post a loss of $0.65 per share when it actually produced a loss of $0.55, delivering a surprise of 15.38%.Over the last four quarters, the company has sur ...

Roku posted solid first-quarter financials, with positive results in several key metrics illustrating the benefits of ongoing price inflation in the streaming sector. Net losses totaled 35 cents a share, far better that Wall Street analysts’ consensus estimate of 62 cents and much narrower than the $1.38 recorded in the year-ago quarter. Revenue of $754.9 million fell significantly short of the Street’s expectation for $848.6 million, but the company notched its third straight quarter of positive Adjusted ...

Fellow Shareholders, April 25, 2024 We delivered solid results in Q1, growing Streaming Households (previously "Active Accounts") 14% YoY, Streaming Hours 23% YoY, and Platform Revenue 19% YoY. Roku remains the #1 selling TV OS in the U.S. and Mexico, and we continue to expand our retail distribution. The Roku Channel's ongoing growth made it the #3 app on our platform by both reach and engagement. This strong performance demonstrates the impact of surfacing relevant content throughout our platform. We also ...

Certain Wall Street analysts believe SoundHound AI and Roku are significantly undervalued.The Nasdaq Composite (NASDAQINDEX: ^IXIC) entered a bull market 16 months ago, and the technology-heavy index has already advanced 50%. Those gains have left many stocks trading at pricey valuations, but certain Wall Street analysts still see SoundHound AI (SOUN 6.48%) and Roku (ROKU 2.94%) as compelling buys.Specifically, Gil Luria at DA Davidson recently raised his price target on SoundHound AI to $9.50 per share, 16 ...

Wall Street analysts forecast that Roku (ROKU) will report quarterly loss of $0.64 per share in its upcoming release, pointing to a year-over-year increase of 53.6%. It is anticipated that revenues will amount to $850.97 million, exhibiting an increase of 14.8% compared to the year-ago quarter.The current level reflects an upward revision of 1% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initia ...

If you're looking for big gains from AI, these two stocks could deliver.At this point, many of the biggest winners in artificial intelligence have been the world's most valuable companies.However, if you're looking for stocks that can double this year, mega-cap names like Nvidia and Microsoft, which have already seen big gains from AI, aren't the best candidates. Adding more than $2 trillion or even $3 trillion in market cap in one year would be extraordinarily difficult for even the best companies.Instead, ...

In the latest market close, Roku (ROKU) reached $58.69, with a +1.91% movement compared to the previous day. The stock exceeded the S&P 500, which registered a loss of 0.22% for the day. Meanwhile, the Dow experienced a rise of 0.06%, and the technology-dominated Nasdaq saw a decrease of 0.52%.The video streaming company's shares have seen a decrease of 11.33% over the last month, not keeping up with the Consumer Discretionary sector's loss of 5.12% and the S&P 500's loss of 1.66%.Investors will be eagerly ...

Investors should gain a better understanding of the industry landscape.One of the most powerful and recognizable trends across the economy in the past decade has been the changing video entertainment landscape. The rise of streaming is something all investors are paying attention to.I believe Roku (ROKU -1.90%) is a smart way to play this secular shift, as it's positioned well to benefit from the industry's growth. But before you rush to buy and hold this streaming stock, you need to know more about what mi ...