Roku achieved significant revenue growth and strong engagement metrics, buoyed by political advertising and increased device revenue. However, challenges remain with flat ARPU and negative device gross margins, combined with ongoing pressures in the M&E market.

Company Guidance

In the third quarter of 2024, Roku reported strong financial performance, achieving over $1 billion in total net revenue for the first time, marking a 16% year-over-year increase. Platform revenue grew by 15% to $908 million, driven by streaming services distribution and advertising activities. The device revenue saw a 23% year-over-year growth due to expanded retail distribution of Roku-branded TVs. Roku's engagement metrics showed a 20% increase in streaming hours year-over-year, with an average of 4.1 streaming hours per household per day, up from 3.9 hours. The company achieved a gross profit of $480 million, a 30% increase from the previous year, with a total gross margin of 45%, up 480 basis points year-over-year. Roku's adjusted EBITDA for Q3 was $98 million, significantly surpassing expectations, and free cash flow reached $157 million on a trailing 12-month basis. Looking ahead to Q4, Roku anticipates total net revenue of $1.14 billion, a 16% year-over-year increase, with a gross margin of 41% and adjusted EBITDA of $30 million.

Record-Breaking Revenue

Roku reported its first quarter with over $1 billion in total net revenue, achieving $1.06 billion, a 16% increase year-over-year.

Platform Revenue Growth

Platform revenue grew by 15% year-over-year to $908 million, driven by advertising and streaming services distribution.

Streaming Engagement Increase

Streaming hours were up 20% year-over-year, with engagement per account globally increasing to 4.1 hours per day from 3.9 hours.

Political Advertising Boost

Significant outperformance in political advertising contributed to the quarter's results.

Device Revenue Growth

Device revenue increased by 23% year-over-year, supported by an expansion in retail distribution of Roku-branded TVs.

Strong Free Cash Flow

Free cash flow was $157 million on a trailing 12-month basis, with the company ending the quarter with $2.1 billion in cash.

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Roku (ROKU) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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ROKU Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Aug 08, 2018	2018 (Q2)	- / 0.00	-0.18	―	―	―
Nov 07, 2018	2018 (Q3)	- / -0.09	-8.79	98.98% (+8.70)	―	―
Feb 21, 2019	2018 (Q4)	- / 0.05	0.06	-16.67% (>-0.01)	―	―
May 08, 2019	2019 (Q1)	- / -0.09	-0.07	-28.57% (-0.02)	―	―
Aug 07, 2019	2019 (Q2)	- / -0.08	0	―	―	―
Nov 06, 2019	2019 (Q3)	- / -0.22	-0.09	-144.44% (-0.13)	―	―
Feb 13, 2020	2019 (Q4)	- / -0.13	0.05	-360.00% (-0.18)	―	―
May 07, 2020	2020 (Q1)	- / -0.45	-0.09	-400.00% (-0.36)	―	―
Aug 05, 2020	2020 (Q2)	- / -0.35	-0.08	-337.50% (-0.27)	―	―
Nov 05, 2020	2020 (Q3)	- / 0.09	-0.22	140.91% (+0.31)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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ROKU Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Oct 30, 2024	$77.51	$64.08	-17.33%
Aug 01, 2024	$55.33	$53.14	-3.96%
Apr 25, 2024	$62.81	$56.35	-10.28%
Feb 15, 2024	$94.50	$72.00	-23.81%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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