- Roku reported a net revenue of $1.20 billion in the fourth quarter, marking a 22% increase year-on-year, surpassing the estimated $1.15 billion.
- Player revenue reached $165.7 million, a 6.5% increase from the previous year but lower than the estimated $195.8 million.
- Platform revenue soared to $1.04 billion, a 25% rise year-on-year, exceeding expectations of $952.7 million.
- Streaming hours tallied to 34.1 billion, up by 17% year-on-year, slightly below the forecasted 34.44 billion.
- The average revenue per user was recorded at $41.49, a 3.9% increase, beating the expected $40.85.
- Adjusted EBITDA demonstrated substantial growth, reaching $77.5 million, a 62% increase year-on-year, far beyond the estimated $34.9 million.
- Overall gross margin stood at 42.7%, slightly lower compared to 44.5% last year, but higher than the anticipated 40.9%.
- The platform segment maintained a strong gross margin of 54.1%, nearly on par with last year’s 55%, and exceeded the estimated 52.8%.
- Player gross margin declined sharply to -28.6% from -13.2% last year, underperforming against the expected -16.8%.
- R&D expenses showed a slight rise of 0.9% to $185.4 million, slightly under the estimate of $187.7 million.
- The number of streaming households increased to 89.8 million, indicating a 12% growth from the previous year, surpassing the estimate of 88.99 million.
- In post-market trading, Roku shares rose by 3.7% to $90.00, with 14,519 shares traded.
Roku on Smartkarma
Analyst coverage on Smartkarma by Baptista Research shows a positive outlook on Roku Inc. The report titled “Roku Inc.: Advertising Model Innovation & Means To Achieve Top-Line Growth! – Major Drivers” highlights Roku’s strong performance in Q3 2024, achieving over $1 billion in total net revenue for the first time, with key financial highlights including a 15% increase in platform revenue driven by growth in streaming services distribution and advertising activities. The Roku Channel’s significant growth, remaining the third most engaged application on the platform, with streaming hours surging by 80% year over-year, further reinforces its market position.
Another report by Baptista Research, “Roku Inc.: Focus on Media and Entertainment Partnerships Could Be A Critical Growth Catalyst! – Major Drivers,” emphasizes Roku’s strategic expansion and adaptation to the evolving demands of streaming and digital advertising markets. In the second quarter of 2024, Roku reported a 14% year-over-year increase in streaming households and a 20% increase in streaming hours, reflecting robust user engagement and market penetration. These metrics enhance Roku’s attractiveness to advertisers and content distributors, positioning the company for continued growth and success in the competitive streaming industry.
A look at Roku Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 2 | |
| Resilience | 5 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Roku has a mixed long-term outlook. With moderate scores in Value and Growth, Roku appears to have some room for improvement in these areas. However, the company excels in Resilience, indicating a strong ability to withstand market challenges. Additionally, Roku shows promising Momentum, suggesting positive overall market sentiment towards the company’s performance.
Roku, Inc. is a global consumer electronics company that specializes in designing and manufacturing wireless streaming devices for home entertainment systems. With its strong focus on resilience and positive momentum, Roku seems well-positioned to navigate the ever-evolving digital entertainment landscape in the long term, despite the need for potential enhancements in value and growth aspects.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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