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TRENDING
Nov. 6, 2024
Roku's $1B Milestone and Strategic Shift
Roku plans on switching its metrics away from average revenue per user and streaming households to segment revenue, EBITDA, cash flow and streaming hours. The company's net sales rose 16% year-to-year from June to September, reaching $1.1 billion, and it predicts the same increase in next quarter's revenue.
Roku has achieved a significant milestone by
surpassing $1 billion in quarterly revenue for the first time in Q3 2024,
reporting a total of $1.06 billion. This marks a 16% increase from the same
period last year, driven primarily by a 15% rise in platform revenue, which
includes advertising. Despite ongoing challenges in its devices segment, which
saw a 23% revenue increase but continued to face profitability issues, Roku
managed to narrow its net loss to $9 million, a substantial improvement from
the $330 million loss in Q3 2023.
In a strategic shift, Roku announced it will stop
regularly reporting the number of active households starting in 2025, instead
focusing on metrics such as streaming hours, platform revenue, adjusted EBITDA,
and free cash flow. This change aligns with industry trends, as Netflix also
plans to discontinue subscriber number reporting.
Roku’s growth was bolstered by a significant increase
in viewing hours on the Roku Channel, which saw an 80% year-over-year rise. The
company remains optimistic about its advertising outlook, particularly in
categories like political, retail, and consumer packaged goods, despite
pressures in media and entertainment.
This strategic pivot and robust financial performance
position Roku well for continued growth in the evolving streaming landscape.
