Roku's 10-Q Report Reveals 14% Increase in Streaming Households

By Bobby Samwell • Sunday, August 04 08:04 • Permanent Link

Roku, Inc. has recently released its 10-Q report, providing a detailed look at the company's financial performance and operations. The company operates a TV streaming platform in the United States and internationally, with two segments: Platform and Devices. The Platform segment includes digital advertising, media and entertainment promotional spending, and streaming services distribution, while the Devices segment provides sales of streaming players, Roku-branded TVs, smart home products, and related accessories.

In its Management’s Discussion and Analysis of Financial Condition and Results of Operations, Roku highlights key performance metrics and non-GAAP measures. As of June 30, 2024, the company had 83.6 million Streaming Households, reflecting a 14% increase from the previous year. Streaming Hours also saw a significant increase, reaching 30.1 billion hours in the three months ended June 30, 2024, up 20% from the same period in 2023.

The company's Average Revenue Per User (ARPU) remained flat at $40.68 as of June 30, 2024, compared to the previous year. However, Free Cash Flow significantly improved, reaching $317.9 million for the trailing twelve months ended June 30, 2024, compared to negative $169.3 million for the same period in 2023.

Roku's revenue composition showed that Platform revenue accounted for 85% of total net revenue, while Devices revenue contributed 15%. Platform revenue increased by 11% in the three months ended June 30, 2024, primarily driven by higher revenue from streaming services distribution and advertising. Devices revenue also saw a notable increase, rising by 39% in the same period, mainly due to higher revenue from Roku-branded TVs.

The company's gross profit margin stood at 44%, with Platform revenue contributing 45% and Devices revenue at (1)%. However, operating expenses accounted for 51% of total revenue, with research and development expenses at 18%, sales and marketing at 23%, and general and administrative at 10%.

Following these announcements, the company's shares moved -4.0%, and are now trading at a price of $53.14. For the full picture, make sure to review Roku's 10-Q report.

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