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ROKU · Roku

28 filings

10-Q

ROKU 10-Q Quarterly Reports

Roku - 28 quarterly reports

Filing record · 2017–202610-K910-Q288-K95

2026-Q3
Roku Quarterly Report for Q3 Ended Sep 30, 2026
Roku, Inc. reported third-quarter 2026 total net revenue of $1.50 billion, up from $1.21 billion a year earlier, with Platform revenue of $1.31 billion (Advertising $727.4 million, Subscriptions $580.9 million) and Devices revenue of $193.7 million. Income from operations was $164.1 million versus $9.5 million a year earlier, and net income was $183.3 million, or $1.20 per diluted share, compared with $24.8 million, or $0.16 per diluted share. Adjusted EBITDA, a non-GAAP measure, was $248.8 million versus $116.9 million. The quarter included a $22.3 million net credit from terminating a portion of a previously impaired corporate lease and $13.6 million of merger-related costs. The company ended the quarter with cash and cash equivalents of $2.52 billion and short-term investments of $201.8 million, and had not borrowed under its $300.0 million revolving Credit Agreement. Nine-month operating cash flow was $703.2 million, and repurchases of common stock totaled $162.7 million before the program was suspended in connection with the pending merger. Devices gross profit remained negative at $(48.6) million for the quarter. The dominant event in the filing is the proposed merger with Fox Corporation under an agreement signed June 14, 2026. Each Roku share would receive 0.9693 of a Fox Class A share plus $96.00 in cash, with former Roku stockholders expected to own about 27% of the combined company. The U.S. Department of Justice issued a Second Request on September 8, 2026, which extends the HSR waiting period. Termination fees are $866.1 million payable by Roku and $1.2 billion payable by Fox in specified circumstances.
Nov 2, 2026
2026-Q2
Roku Quarterly Report for Q2 Ended Jun 30, 2026
Roku, Inc. reported strong second-quarter 2026 results in this Form 10-Q for the period ended June 30, 2026. Total net revenue was $1,354.7 million for the three months ended June 30, 2026, up from $1,111.0 million a year earlier, and Platform revenue (Advertising plus Subscriptions) rose to $1,221.0 million from $975.5 million. Advertising revenue was $672.8 million and Subscriptions revenue was $548.2 million, while Devices revenue slipped to $133.7 million from $135.6 million. Income from operations was $146.2 million versus a loss of $23.3 million in the prior-year quarter, and net income was $164.2 million, or $1.08 per diluted share, compared with $10.5 million, or $0.07 per diluted share. Adjusted EBITDA, a non-GAAP measure, was $254.3 million versus $78.2 million, and Free Cash Flow for the trailing twelve months was $704.1 million versus $392.0 million. The most important item for investors is the pending merger with Fox Corporation, signed June 14, 2026. Roku stockholders would receive 0.9693 shares of Fox Class A common stock plus $96.00 in cash per share, and the filing states former Roku stockholders would own approximately 27% of the combined company on a pro forma basis. Closing is anticipated in the first half of 2027 and is subject to stockholder approvals, HSR Act clearance and other conditions. The merger agreement includes a $866.1 million termination fee payable by Roku in certain circumstances and a $1.2 billion fee payable by Fox in certain circumstances. Merger-related costs of $18.7 million were recorded in the quarter, and the company suspended its share repurchase program in the second quarter. Balance sheet liquidity remained substantial, with cash and cash equivalents of $2,001.8 million and short-term investments of $555.4 million at June 30, 2026, and no borrowings under the $300.0 million revolving Credit Agreement. The filing also discloses that the company expects to record a credit of approximately $22 million to operating expenses in the third quarter of 2026 related to a lease termination.
Aug 6, 2026
2026-Q1
Roku Quarterly Report for Q1 Ended Mar 31, 2026
Roku, Inc. reported first-quarter 2026 results in this Form 10-Q. Total net revenue was $1.25 billion versus $1.02 billion a year earlier, and Platform revenue (Advertising plus Subscriptions) was $1.13 billion versus $880.8 million. Advertising revenue rose to $612.7 million from $482.8 million, driven mainly by a 59% increase in video impressions partly offset by a 14% lower average price per impression. Subscriptions revenue rose to $518.5 million from $398.0 million, reflecting a 12% increase in subscriptions and a 22% increase in average price per subscription, including contributions from Frndly TV and Howdy. Devices revenue fell 16% to $117.6 million, with the average selling price down 3% and volume down 15%. Profitability improved. Income from operations was $51.8 million versus an operating loss of $57.7 million a year earlier, and net income was $85.7 million, or $0.57 per diluted share, compared with a net loss of $27.4 million. Adjusted EBITDA was $148.4 million versus $56.0 million, and trailing-twelve-month Free Cash Flow was $538.8 million versus $298.4 million. Operating cash flow for the quarter was $199.1 million. The company repurchased about 1.0 million shares for $100.0 million, leaving $150.0 million available under its $400 million program through December 31, 2026. Cash and cash equivalents were $1.65 billion and short-term investments were $730.3 million at March 31, 2026, and the company had no borrowings under its $300.0 million revolving Credit Agreement. The filing also notes that the company changed its reportable segments to Advertising, Subscriptions, and Devices effective the first quarter of 2026. It reports a full valuation allowance against U.S. net deferred tax assets and says a release may occur within the next twelve months. Customer J accounted for 11% of total net revenue, and Amazon, Best Buy, Target, and Walmart together accounted for 86% of Devices revenue.
May 1, 2026
2025-Q3
Roku Quarterly Report for Q3 Ended Sep 30, 2025
Roku, Inc. reported a return to modest profitability in the third quarter of 2025, with net income of $24.8 million on total net revenue of $1.21 billion, compared with a net loss of $9.0 million in the prior-year quarter. Platform revenue was $1,064.6 million, up from $908.2 million, driven primarily by higher streaming services distribution revenue, including Premium Subscriptions and subscription revenue from third-party and owned-and-operated services, along with higher advertising revenue. Devices revenue declined to $146.0 million from $154.0 million, and the devices segment posted a gross loss of $22.9 million in the quarter. Income from operations was $9.5 million versus an operating loss of $35.8 million a year earlier, and Adjusted EBITDA rose to $116.9 million from $98.2 million. Trailing twelve-month free cash flow was $443.0 million, compared with $157.3 million a year earlier. The balance sheet remained liquid, with cash and cash equivalents of $1,575.5 million and short-term investments of $726.9 million as of September 30, 2025. The company acquired Frndly TV in May 2025 for a total purchase consideration of $169.8 million, including up to $75.0 million of contingent cash consideration tied to performance milestones over two years. The company began repurchasing Class A common stock in August 2025 under a $400 million authorization running through December 31, 2026, repurchasing $50.0 million in the quarter, with $350.0 million remaining. The $300.0 million revolving Credit Agreement remained undrawn, and the company stated it was in compliance with its covenants. The filing also highlights ongoing risks, including tariffs and trade policy changes, a devices segment that operates at negative gross margin, reliance on a small number of content partners for nearly half of Streaming Hours, and concentrated customer and retailer relationships. Mr. Anthony Wood controls a majority of the combined voting power despite owning 11.7% of the outstanding Class A and Class B common stock.
Oct 31, 2025
2025-Q2
Roku Quarterly Report for Q2 Ended Jun 30, 2025
Roku, Inc. reported net revenue of $1,111,038 thousand ($1.11 billion) for the three months ended June 30, 2025, up from $968,179 thousand in the prior-year quarter. Platform revenue was $975,471 thousand, up $151.1 million, or 18%, driven mainly by higher advertising revenue despite continued weakness in the media and entertainment vertical, and by higher Premium Subscriptions revenue and subscription revenue from the Frndly acquisition, which contributed approximately 1.8 points of growth. Devices revenue declined $8.3 million, or 6%, as lower streaming player revenue offset higher average selling prices from Roku-branded TVs. The company recorded net income of $10,503 thousand for the quarter, compared with a net loss of $33,953 thousand a year earlier, and Adjusted EBITDA of $78,188 thousand versus $43,642 thousand. For the six months ended June 30, 2025, the company reported a net loss of $16,928 thousand, narrower than the $84,808 thousand loss in the prior-year period, on total net revenue of $2,131,710 thousand. Net cash provided by operating activities was $248,465 thousand, and trailing twelve-month Free Cash Flow was $391,987 thousand. Cash and cash equivalents totaled $2,253,276 thousand at June 30, 2025. The company acquired Frndly TV, Inc. on May 9, 2025 for a total purchase consideration of $169.8 million, including up to $75.0 million of contingent cash consideration payable over two years. Management stated that for full-year 2025 it expects devices revenue and gross margin to be slightly down, mostly due to tariffs. The filing also notes an accumulated deficit of $1,443.9 million, a $300.0 million revolving Credit Agreement under which nothing had been borrowed as of June 30, 2025, and a valuation allowance against U.S. deferred tax assets. Customer J accounted for 12% of total net revenue for the three and six months ended June 30, 2025.
Aug 1, 2025
2025-Q1
Roku Quarterly Report for Q1 Ended Mar 31, 2025
Roku, Inc. reported first-quarter 2025 results in this Form 10-Q for the quarter ended March 31, 2025. Total net revenue rose to $1,020.7 million from $881.5 million, an increase of 16%, driven by Platform revenue of $880.8 million (up 17%) on higher streaming services distribution revenue and advertising. Devices revenue was $139.9 million (up 11%), with a devices gross loss of $19.3 million. Net loss narrowed to $27.4 million, or $0.19 per share, from $50.9 million, or $0.35 per share, a year earlier, and loss from operations improved to $57.7 million from $72.0 million. Adjusted EBITDA, a non-GAAP measure, was $56.0 million versus $40.9 million. Cash flow and liquidity remained solid. Operating activities provided $138.7 million in the quarter, and cash and cash equivalents stood at $2,256.2 million at March 31, 2025. Trailing-twelve-month Free Cash Flow, a non-GAAP measure, was $298.4 million, down from $426.8 million. The company had not borrowed under its $300.0 million revolving Credit Agreement, which matures in September 2029. Streamed hours reached 35.8 billion, up 16%. The filing also discloses a subsequent event: an April 30, 2025 agreement to acquire Frndly TV, Inc. for a total purchase price of $185 million in cash, including $75 million held back and payable upon achievement of certain metrics over two years, with closing expected in the second quarter of 2025. Customer concentration remains notable, with Amazon, Best Buy, Target and Walmart accounting for 87% of devices revenue in the quarter.
May 2, 2025
2024-Q3
Roku Quarterly Report for Q3 Ended Sep 30, 2024
Roku, Inc. reported third-quarter 2024 results in this Form 10-Q for the period ended September 30, 2024. Total net revenue was $1,062.2 million for the three months, up from $912.0 million a year earlier, with platform revenue of $908.2 million (up from $786.8 million) and devices revenue of $154.0 million (up from $125.2 million). Loss from operations narrowed to $35.8 million from $349.8 million, and net loss was $9.0 million, compared with $330.1 million in the prior-year quarter. For the nine months, total net revenue was $2.91 billion and net loss was $93.8 million, versus $631.3 million a year earlier. Restructuring charges fell sharply, with $18.5 million recorded in the quarter compared with $283.0 million in the prior-year quarter. Key cash and balance sheet metrics were stable. Cash and cash equivalents stood at $2.13 billion as of September 30, 2024, and net cash provided by operating activities was $138.8 million for the nine months. Free Cash Flow on a trailing twelve-month basis was $157.3 million, up from $100.8 million. On September 16, 2024, the company entered into a five-year, $300.0 million revolving Credit Agreement maturing in 2029, under which it had not borrowed as of quarter end. The company also disclosed that it will stop reporting quarterly Streaming Households and ARPU starting with first-quarter 2025, shifting its key metrics to Streaming Hours, Platform Revenue, Adjusted EBITDA, and Free Cash Flow. Operating data in the filing show 85.5 million Streaming Households as of September 30, 2024 (up 13% from 75.8 million), 32.0 billion Streaming Hours in the quarter (up 20%), and ARPU of $41.10, roughly flat versus $41.03. Devices gross margin remained negative, while platform gross profit was $491.8 million in the quarter.
Oct 31, 2024
2024-Q2
Roku Quarterly Report for Q2 Ended Jun 30, 2024
Roku, Inc. reported second-quarter 2024 results in this Form 10-Q, with total net revenue of $968.2 million for the three months ended June 30, 2024, up from $847.2 million a year earlier, and a net loss of $34.0 million, compared with $107.6 million in the prior-year quarter. Platform revenue rose to $824.3 million, driven by higher streaming services distribution revenue, including Premium Subscriptions through The Roku Channel, while devices revenue grew to $143.8 million, led by Roku-branded TVs. Devices gross profit remained negative at $(15.2) million, while platform gross profit was $439.9 million. Operating loss narrowed to $71.2 million from $126.0 million, with lower research and development and sales and marketing expenses partly offset by higher general and administrative costs. Key operating metrics improved: Streaming Households reached 83.6 million as of June 30, 2024, up from 73.5 million, and Streaming Hours were 30.1 billion for the quarter, up from 25.1 billion. ARPU was essentially flat at $40.68 versus $40.67, which the company attributed to a rising share of Streaming Households in international markets. Trailing twelve-month Free Cash Flow was $317.9 million, compared with negative $169.3 million a year earlier, and cash and cash equivalents stood at $2,058.5 million. The company also recorded restructuring charges of $10.7 million in the quarter, primarily related to impairments of office lease right-of-use assets. The filing also highlights ongoing risks, including a $981.0 million estimated contracted revenue backlog, customer concentration in devices (Amazon, Best Buy and Walmart accounted for 76% of devices revenue in the quarter), and a pending Walmart acquisition of Vizio that the company says could increase competition. The company reported an accumulated deficit of $1,382.4 million and a discrete tax benefit of $11.1 million from releasing a valuation allowance on certain foreign deferred tax assets.
Aug 2, 2024
2024-Q1
Roku Quarterly Report for Q1 Ended Mar 31, 2024
Roku, Inc. reported its Form 10-Q for the quarter ended March 31, 2024. Total net revenue was $881.5 million, up 19% from $741.0 million in the prior-year quarter, with platform revenue of $754.9 million (up 19%) and devices revenue of $126.5 million (up 19%). Loss from operations narrowed to $72.0 million from $212.5 million, reflecting lower operating expenses of $460.3 million (down 16%) following restructuring efforts in 2023. Net loss was $50.9 million, or $0.35 per share, compared with a net loss of $193.6 million, or $1.38 per share, a year earlier. Key operating metrics showed Streaming Households of 81.6 million as of March 31, 2024, up 14% from 71.6 million, and Streaming Hours of 30.8 billion for the quarter, up 23% from 25.1 billion. ARPU was flat at $40.65 versus $40.67. Devices gross profit was negative at $(6.1) million, while platform gross profit was $394.4 million. Cash and cash equivalents totaled $2,055.7 million, and trailing twelve-month Free Cash Flow was $426.8 million, compared with negative $448.1 million a year earlier. The company stated that its existing cash balance is sufficient to meet working capital, capital expenditure, and known contractual obligations for the next twelve months and beyond. Remaining performance obligations were $1,030.9 million, with approximately 48% expected to be recognized over the next 12 months. Anthony Wood, the CEO, adopted a Rule 10b5-1 trading arrangement for up to 300,000 Class A shares, expiring December 9, 2024.
Apr 26, 2024
2023-Q3
Roku Quarterly Report for Q3 Ended Sep 30, 2023
Roku, Inc. reported a net loss of $330.1 million for the third quarter ended September 30, 2023, compared with a net loss of $122.2 million in the prior-year quarter. Total net revenue rose to $912.0 million from $761.4 million, an increase of 20%, driven by platform revenue of $786.8 million (up 18%) and devices revenue of $125.2 million (up 33%). Loss from operations widened to $349.8 million, reflecting a company-wide restructuring charge of $283.0 million recorded in the quarter, which included $230.8 million of asset impairments tied to leased office facilities, content removed from The Roku Channel, and related assets. Excluding the restructuring charges, operating expenses still grew year over year, with sales and marketing up 47% and research and development up 36% for the quarter. For the nine months ended September 30, 2023, net loss was $631.3 million versus $260.8 million a year earlier, while total net revenue was $2.50 billion, up 11%. Operating cash flow was $239.5 million compared with $4.4 million in the prior-year period, and cash and cash equivalents stood at $2.00 billion at quarter-end. The company repaid its $80.0 million Term Loan A in February 2023 and has no outstanding debt. Management stated that existing cash is expected to be sufficient for the next twelve months and beyond. Key operating metrics showed active accounts of 75.8 million, up 16%, and streaming hours of 26.7 billion in the quarter, up 22%. However, ARPU declined 7% to $41.03, which management attributed to active account growth outpacing platform revenue growth. Management also cited advertising budget pressure from inflation, rising interest rates, and recessionary fears, and disclosed that the company will continue to pursue operating expense growth reduction measures through workforce reduction and office consolidation.
Nov 2, 2023
2023-Q2
Roku Quarterly Report for Q2 Ended Jun 30, 2023
Roku, Inc. reported net revenue of $847.2 million for the three months ended June 30, 2023, up from $764.4 million a year earlier, with platform revenue of $743.8 million (up from $669.3 million) and devices revenue of $103.4 million (up from $95.2 million). Gross profit for the quarter was $378.3 million, compared with $355.1 million in the prior-year quarter. Net loss narrowed to $107.6 million from $112.3 million, or $0.76 per share versus $0.82 per share. For the six months ended June 30, 2023, net loss was $301.2 million, up from $138.6 million, and loss from operations was $338.4 million, compared with $134.0 million a year earlier. Operating expenses rose 23% for the six months, led by sales and marketing (up 39%) and research and development (up 14%), and the filing notes restructuring charges of $31.3 million for the six months. Key operating metrics improved: active accounts reached 73.5 million as of June 30, 2023 (up 16% from 63.1 million), and streaming hours grew 21% to 25.1 billion in the quarter. ARPU declined 7% to $40.67, which the company attributed to active account growth outpacing platform revenue growth. Platform revenue growth in the six-month period was driven by content distribution services, while advertising revenue was pressured by macroeconomic factors. Cash and cash equivalents were $1,755.3 million at June 30, 2023, down from $1,962.0 million at December 31, 2022, and the company repaid its $80.0 million Term Loan A in February 2023, leaving no outstanding debt. Management believes existing cash will be sufficient for the next twelve months and beyond. The filing highlights ongoing risks, including intense competition in TV streaming, dependence on advertising spend amid macroeconomic pressures, reliance on a small number of content publishers for a majority of streaming hours, concentration of devices revenue with Amazon and Walmart (62% of devices revenue for the quarter), and a dual-class stock structure that gives Chief Executive Officer Anthony Wood majority voting control while he owns 12.3% of outstanding shares.
Jul 28, 2023
2023-Q1
Roku Quarterly Report for Q1 Ended Mar 31, 2023
Roku, Inc. reported a net loss of $193.6 million, or $1.38 per share, for the quarter ended March 31, 2023, compared with a net loss of $26.3 million, or $0.19 per share, a year earlier. Total net revenue was $741.0 million, up slightly from $733.7 million, with platform revenue of $634.6 million declining from $643.7 million and devices revenue rising to $106.4 million from $90.0 million. Gross profit fell to $337.6 million from $364.8 million, while operating expenses rose to $550.1 million from $388.3 million, driven by higher research and development, sales and marketing, and G&A costs, including $31.3 million of restructuring charges. The company cited advertising spend pressure from macroeconomic conditions as the cause of the platform revenue decline. Active accounts reached 71.6 million, up from 61.3 million, and streaming hours rose to 25.1 billion from 20.9 billion. ARPU declined to $40.67 from $42.60. Other income increased to $23.1 million, mainly from higher interest income on cash balances. Cash and cash equivalents were $1.63 billion at March 31, 2023, down from $1.96 billion at December 31, 2022, after operating cash outflows of $153.4 million, capital expenditures of $54.2 million, and the full $80.0 million repayment of the Credit Facility in February 2023. The company stated that its existing cash balance is sufficient to meet its requirements for the next twelve months and beyond. The filing also discloses that approximately $487.0 million of Roku's cash was held at Silicon Valley Bank when it was closed on March 10, 2023, and that the company now has full control of its cash and cash equivalents balance. Management stated that the company expects operating expense year-over-year growth to decline significantly over the course of 2023.
Apr 27, 2023
2022-Q3
Roku Quarterly Report for Q3 Ended Sep 30, 2022
Roku, Inc. reported a net loss of $122.2 million, or $(0.88) per share, for the three months ended September 30, 2022, compared with net income of $68.9 million in the prior-year quarter. Total net revenue rose to $761.4 million from $680.0 million, an increase of 12%, driven by platform revenue of $670.4 million (up 15%), while player revenue fell 7% to $91.0 million. Gross profit was $356.8 million, down 2%, and the player segment posted a gross loss. Operating expenses grew 71% to $503.8 million, led by research and development (up 73%) and sales and marketing (up 91%), producing a loss from operations of $147.0 million compared with operating income of $68.8 million a year earlier. For the nine months, the company reported a net loss of $260.8 million and net cash provided by operating activities of only $4.4 million. The filing attributes the weaker player results to reduced consumer discretionary spending amid rising inflation and recessionary fears, and attributes softer platform margins to higher content costs and curtailed advertising spending. Active accounts reached 65.4 million, up 16%, and streaming hours rose 21% to 21.9 billion in the quarter. ARPU was $44.25, up 10%. As of September 30, 2022, cash and cash equivalents totaled $2,018.6 million, and the Term Loan A balance was $82.5 million, with the Credit Agreement maturing in February 2023. Management stated that existing cash, operating cash flow and undrawn credit availability should be sufficient for the next twelve months and beyond. The filing also details a $40.0 million convertible note investment in a commercial counterparty, a $1,113.2 million remaining performance obligation balance, and $220.4 million of non-cancelable inventory purchase commitments. Management concluded that disclosure controls were effective and reported no material change in internal control over financial reporting during the quarter.
Nov 3, 2022
2022-Q2
Roku Quarterly Report for Q2 Ended Jun 30, 2022
Roku, Inc. reported a net loss of $112.3 million for the three months ended June 30, 2022, compared with net income of $73.5 million in the year-earlier quarter, and a six-month net loss of $138.6 million versus net income of $149.8 million. Total net revenue rose to $764.4 million for the quarter from $645.1 million, driven by platform revenue of $673.2 million, up from $532.3 million, while player revenue fell to $91.2 million from $112.8 million. Gross profit was $355.1 million, but operating expenses grew sharply to $465.7 million, led by research and development and sales and marketing, producing a loss from operations of $110.5 million for the quarter. Management attributes the weakness in player revenue and part of the platform slowdown to inflationary pressures and recessionary fears that reduced consumer discretionary spending and advertiser budgets, and it expects player gross margin to be negative in the near term. Operating metrics continued to expand: active accounts reached 63.1 million, up from 55.1 million a year earlier, streaming hours rose to 20.7 billion for the quarter, and ARPU was $44.10. Cash and cash equivalents totaled $2,050.4 million at June 30, 2022, against $84.9 million of current debt under a Term Loan A facility that matures in February 2023. Operating cash flow for the six months was negative $9.9 million, and the company made a $40.0 million convertible note investment in a commercial counterparty during the quarter. The filing also highlights concentration and risk items: Amazon, Best Buy and Walmart accounted for 66% of player revenue for the six months, and the top three streaming services represented over 50% of hours streamed in the quarter. The company reported an accumulated deficit of $228.6 million and a full valuation allowance against U.S. and certain foreign deferred tax assets.
Jul 29, 2022
2022-Q1
Roku Quarterly Report for Q1 Ended Mar 31, 2022
Roku, Inc. reported net revenue of $733.7 million for the three months ended March 31, 2022, up 28% from $574.2 million a year earlier. Platform revenue rose 39% to $646.9 million, driven by advertising and content distribution services, while Player revenue fell 19% to $86.8 million on lower unit volume and average selling prices. The company posted a net loss of $26.3 million, or $(0.19) per share, compared with net income of $76.3 million in the prior-year quarter, as operating expenses rose 55% to $388.3 million and total gross profit was $364.8 million. Player gross profit turned to a loss of $15.1 million, which management attributes to component and shipping cost increases and supply chain disruptions, and it expects negative player gross margin in the near term. Platform gross profit increased 22% to $379.9 million. Key operating metrics improved: active accounts reached 61.3 million (up 14%), streaming hours were 20.9 billion (up 14%), and ARPU was $42.91 (up 34%). Operating cash flow was $101.8 million, and cash and cash equivalents totaled $2,235.1 million at quarter end. The balance sheet shows total assets of $4.23 billion and stockholders' equity of $2.81 billion. The company's $100.0 million Term Loan A Facility had $88.8 million outstanding, and the Credit Agreement expires in February 2023. Management believes existing cash, operating cash flow and undrawn credit availability will be sufficient for the next twelve months and beyond.
Apr 29, 2022
2021-Q3
Roku Quarterly Report for Q3 Ended Sep 30, 2021
Roku, Inc. reported its quarterly results for the three and nine months ended September 30, 2021. Total net revenue for the third quarter was $679.95 million, up 51% year-over-year from $451.66 million, driven by platform revenue of $582.5 million (up 82%). Player revenue fell 26% to $97.4 million as streaming player volume declined. Income from operations was $68.8 million for the quarter versus $12.0 million a year earlier, and net income was $68.9 million, or $0.48 per diluted share. For the nine months, net revenue was $1.90 billion and net income was $218.7 million. The company reported 56.4 million active accounts as of September 30, 2021, up 23% year-over-year, and 18.0 billion streaming hours in the quarter, up 21%. ARPU rose to $40.10 from $27.00, up 49%. Management noted that account growth slowed relative to the prior year, which it attributed to global supply chain disruptions that raised TV prices and reduced TV sales. Gross profit on the player segment turned negative in the quarter, at a loss of $14.6 million, reflecting higher component and shipping costs. Liquidity strengthened substantially during the period. Cash and cash equivalents were $2.18 billion at September 30, 2021, compared with $1.09 billion at December 31, 2020, following $989.6 million in net proceeds from an at-the-market equity offering. The company also completed the acquisitions of Nielsen's Advanced Video Advertising business and This Old House, with total purchase consideration of $47.4 million and $97.8 million, respectively. Term Loan A debt outstanding was $91.3 million, and the company stated it was in compliance with its Credit Agreement covenants. Accumulated deficit narrowed to $113.7 million from $332.4 million at year-end 2020.
Nov 4, 2021
2021-Q2
Roku Quarterly Report for Q2 Ended Jun 30, 2021
Roku, Inc. reported second-quarter 2021 results in this Form 10-Q for the period ended June 30, 2021. Total net revenue was $645.1 million for the three months, up from $356.1 million, and $1.22 billion for the six months, up from $676.8 million. Platform revenue was $532.3 million for the quarter, an increase of 117% year over year, while player revenue rose 1% to $112.8 million. Income from operations was $69.1 million for the quarter, compared with a loss of $42.2 million a year earlier, and net income was $73.5 million, or $0.52 per diluted share. Active accounts reached 55.1 million, up from 43.0 million, and ARPU was $36.46 versus $24.92. Streaming hours were 17.4 billion for the quarter, though they declined sequentially from the first quarter, which management attributed to consumers spending more time on out-of-home activities. The balance sheet strengthened considerably over the period. Cash and cash equivalents rose to $2.08 billion from $1.09 billion at year-end 2020, driven mainly by $989.6 million of net proceeds from at-the-market equity offerings. Operating cash flow for the six months was $144.8 million. The company completed two acquisitions in 2021: Nielsen's Advanced Video Advertising business for $47.4 million in total consideration, and This Old House for $97.8 million in cash. Goodwill increased to $146.8 million, and intangible assets rose to $97.2 million. Remaining contracted performance obligations totaled $1,248.4 million, of which about 35% is expected to be recognized over the next 12 months. Management stated that the company expects to continue increasing operating expenses sequentially to support growth. Gross margin on players was negative for the quarter, reflecting higher manufacturing and supply-chain costs. The company reported that its existing cash, operating cash flow and undrawn credit facility should be sufficient for at least the next twelve months.
Aug 5, 2021
2021-Q1
Roku Quarterly Report for Q1 Ended Mar 31, 2021
Roku, Inc. reported a strong first quarter of 2021 in its Form 10-Q filed May 7, 2021. Total net revenue was $574.2 million, up from $320.8 million in the first quarter of 2020, an increase of 79%. Platform revenue rose 101% to $466.5 million, while player revenue grew 22% to $107.7 million. Income from operations was $75.8 million, compared with an operating loss of $55.2 million a year earlier, and net income was $76.3 million, versus a net loss of $54.6 million. Diluted earnings per share were $0.54. Gross profit reached $326.8 million, and the platform segment generated $311.9 million of it. Key operating metrics also grew. Active accounts reached 53.6 million at March 31, 2021, up from 39.8 million, and streaming hours were 18.3 billion, versus 12.3 billion in the prior-year quarter. ARPU was $32.14, compared with $24.35 a year earlier. The company also disclosed a logging error that caused pause time to be included in streaming hours, and it estimated that adjusted streaming hours were lower than previously reported for certain periods. On the balance sheet, cash and cash equivalents rose to $2.08 billion from $1.09 billion at December 31, 2020. This increase reflects $989.6 million of net proceeds from an at-the-market equity offering in March 2021 and $95.8 million of operating cash flow. The company also used $102.8 million for acquisitions, mainly This Old House, and it disclosed a subsequent acquisition of Nielsen's Advanced Video Advertising business for $39.1 million in cash, completed April 15, 2021.
May 7, 2021
2020-Q3
Roku Quarterly Report for Q3 Ended Sep 30, 2020
Roku, Inc. reported third-quarter 2020 net revenue of $451.7 million, up 73% from $260.9 million a year earlier, with platform revenue of $319.2 million (up 78%) and player revenue of $132.4 million (up 62%). The company swung to net income of $12.9 million for the quarter, compared with a net loss of $25.2 million in the prior-year quarter, and gross profit rose 81% to $214.8 million. For the nine months, net loss narrowed to $84.8 million from $44.2 million in the prior-year period... Actually, the nine-month loss widened, and total net revenue rose 57% to $1.13 billion. Key operating metrics improved sharply. Active accounts grew 43% to 46.0 million, streaming hours rose 54% to 14.8 billion (after the company disclosed adjustments to historical streaming hour calculations), and ARPU increased 20% to $27.00. The filing attributes the growth in part to the COVID-19 pandemic, which accelerated the shift from linear and pay TV to streaming, though management cautions that these patterns may not continue. Liquidity strengthened considerably. Cash and cash equivalents were $1,047.5 million at September 30, 2020, up from $515.5 million at December 31, 2019, mainly reflecting $497.2 million in net proceeds from an at-the-market equity offering of 4.0 million Class A shares at an average price of $126.01. Operating cash flow was $101.1 million for the nine months, compared with $24.3 million a year earlier. The company remains in compliance with its credit agreement covenants, and the filing notes that the holders of Class B common stock, led by CEO Anthony Wood, control a majority of voting power.
Nov 6, 2020
2020-Q2
Roku Quarterly Report for Q2 Ended Jun 30, 2020
Roku, Inc. reported a net loss of $43.1 million for the quarter ended June 30, 2020, compared with a net loss of $9.3 million in the year-earlier quarter, while total net revenue rose to $356.1 million from $250.1 million. For the six months ended June 30, 2020, net loss was $97.8 million on net revenue of $676.8 million. Platform revenue grew to $244.8 million in the quarter (from $167.7 million), and player revenue grew to $111.3 million (from $82.4 million). Gross profit was $146.8 million for the quarter, with platform gross profit of $138.5 million and player gross profit of $8.4 million. Operating expenses rose to $189.0 million, led by research and development at $84.4 million and sales and marketing at $64.2 million, and loss from operations was $42.2 million. The filing reports active accounts of 43.0 million as of June 30, 2020, versus 30.5 million a year earlier, and 14.6 billion streaming hours in the quarter versus 8.8 billion. ARPU was $24.92, up from $21.06. The company also disclosed that it adjusted its streaming hours after discovering pause-time logging errors, which lowered prior estimates; the adjustments did not affect financial results. Liquidity improved: cash and cash equivalents were $885.8 million at June 30, 2020, after the company sold 3.0 million Class A shares under an at-the-market program for gross proceeds of $354.4 million, and it repaid the $69.3 million drawn on its revolving credit facility in May 2020. Term Loan A debt outstanding was $97.5 million. The filing states that the COVID-19 pandemic had a mixed impact on the business: streaming hours and account activations accelerated, player demand was strong, and advertising budgets declined, and management said the pandemic's ultimate impact cannot be reasonably estimated. The company also disclosed a full valuation allowance on U.S. deferred tax assets and that $205.5 million of estimated contracted revenue remained unsatisfied as of June 30, 2020, with about 62% expected to be recognized over the next 12 months.
Aug 7, 2020
2020-Q1
Roku Quarterly Report for Q1 Ended Mar 31, 2020
Roku, Inc. reported net revenue of $320.8 million for the three months ended March 31, 2020, up 55% from $206.7 million a year earlier, with platform revenue of $232.6 million (up 73%) and player revenue of $88.2 million (up 22%). Gross profit rose 40% to $141.1 million, but the company posted a net loss of $54.6 million, compared with $9.7 million a year earlier, and loss from operations widened to $55.2 million. Operating expenses rose 76% to $196.3 million, led by sales and marketing (up 102%) and research and development (up 58%). Active accounts grew 37% to 39.8 million, streaming hours grew 49% to 13.2 billion, and ARPU rose 28% to $24.35. The filing states that COVID-19 has had a mixed impact on the business. Streaming engagement and account activations accelerated, but advertising campaigns were delayed or canceled, and the company expects an overall decrease in advertising expenditures in the rest of 2020. Player sales remained strong, although supply chain disruptions raised air freight costs. Management said it is unable to accurately predict the full impact of the pandemic. In March 2020 Roku drew the full $69.3 million available on its Revolving Credit Facility as a precaution, bringing total debt to roughly $261.6 million, and cash and cash equivalents were $588.3 million at quarter end. The company's cash flow from operations was $45.9 million for the quarter, versus a use of $10.7 million in the prior-year period, but capital expenditures of $45.3 million drove net cash used in investing activities of $44.3 million. The company says it expects its cash balances and operating cash flow to fund working capital for the foreseeable future, and it has taken steps to slow the growth of operating expenses and capital expenditures. Accumulated deficit reached $369.5 million.
May 11, 2020
2019-Q3
Roku Quarterly Report for Q3 Ended Sep 30, 2019
Roku, Inc. reported third-quarter 2019 net revenue of $260.9 million, up 50% from the prior-year quarter, with platform revenue of $179.3 million (up 79%) and player revenue of $81.6 million (up 11%). Gross profit rose 50% to $118.5 million, but the company still posted a net loss of $25.2 million for the quarter, versus $9.5 million a year earlier, and a nine-month net loss of $44.2 million. Operating expenses grew 60% to $145.0 million, led by research and development and sales and marketing. Active accounts reached 32.3 million, a net increase of 1.7 million from June 30, 2019, and ARPU was $22.58, a 30% increase from September 30, 2018. Users streamed 10.3 billion hours in the quarter. Balance sheet strength improved over the period. Cash and cash equivalents rose to $386.0 million at September 30, 2019, from $155.6 million at December 31, 2018, supported by $179.4 million of net proceeds from at-the-market equity sales and $24.8 million from employee equity plans. Operating cash flow was positive at $24.3 million for the nine months, compared with a use of $9.3 million a year earlier. The company had no outstanding debt at quarter-end, though it had a $100.0 million revolving credit facility and a $100.0 million delayed draw term loan A facility under its Morgan Stanley credit agreement. Subsequent to quarter-end, Roku completed its acquisition of dataxu, Inc., a demand-side platform, on November 8, 2019, for aggregate consideration of $75.0 million in cash and 571,516 shares of Class A common stock. The filing also flags concentration risks: Netflix and YouTube accounted for more than 50% of hours streamed, and Amazon, Best Buy and Walmart together accounted for 72% of player revenue for the nine months ended September 30, 2019. The company expects year-over-year growth in streaming hours in 2020 to be lower than in 2019.
Nov 8, 2019
2019-Q2
Roku Quarterly Report for Q2 Ended Jun 30, 2019
Roku, Inc. reported a net loss of $9.3 million for the three months ended June 30, 2019, compared with net income of $0.5 million in the year-earlier quarter. Total net revenue rose to $250.1 million from $156.8 million, an increase of 59%, driven by platform revenue of $167.7 million (up 86%) and player revenue of $82.4 million (up 24%). Gross profit grew to $114.2 million, up 47%, but gross margin compressed to 46% from 50%, largely due to royalty expenses in player cost of revenue, and operating expenses rose 60% to $124.6 million, producing a loss from operations of $10.4 million. For the six months ended June 30, 2019, net revenue was $456.8 million (up 56%) and the net loss was $19.1 million. Active accounts reached 30.5 million at June 30, 2019, up 39% year over year, and users streamed 9.4 billion hours in the quarter, up 72%. ARPU was $21.06, versus $16.60 a year earlier, representing 27% growth. The company's accumulated deficit stood at $273.0 million. Liquidity improved substantially: cash, cash equivalents and short-term investments totaled $386.5 million at June 30, 2019, supported by at-the-market equity sales of $179.4 million net of offering costs in the first half. The company entered a credit agreement with Morgan Stanley Senior Funding, Inc. providing a $100.0 million revolver and a $100.0 million term loan A facility, with no outstanding borrowings at quarter end. The filing also flags management's expectation of material facility-related expenses from new headquarters leases and notes that Netflix and YouTube accounted for more than 50% of hours streamed, along with significant retailer concentration (Amazon, Best Buy and Walmart accounted for 73% of player revenue in the six months ended June 30, 2019).
Aug 9, 2019
2019-Q1
Roku Quarterly Report for Q1 Ended Mar 31, 2019
Roku, Inc. reported net revenue of $206.7 million for the three months ended March 31, 2019, up 51% from $136.6 million a year earlier, driven by Platform revenue of $134.2 million (up $59.1 million, or 79%) and Player revenue of $72.5 million (up $11.0 million, or 18%). Gross profit rose to $100.9 million from $63.1 million, while the net loss attributable to common stockholders widened to $9.7 million, or $0.09 per share, compared with a net loss of $6.6 million, or $0.07 per share, in the prior-year quarter. Operating expenses grew 59% to $111.6 million, led by research and development, which increased $21.6 million, or 63%. The company reported 29.1 million active accounts as of March 31, 2019, an increase of 40%, and users streamed 8.9 billion hours in the quarter, up 74%. Liquidity improved during the quarter. Roku sold all available shares under a $100.0 million at-the-market equity program in March 2019, with net proceeds of $98.0 million, and ended the quarter with cash, cash equivalents and short-term investments of $263.9 million and no outstanding debt. In February 2019 the company entered into a credit agreement with Morgan Stanley Senior Funding, Inc., and on May 3, 2019 it increased the revolving and term loan A commitments to $100.0 million each. Net cash used in operating activities was $10.7 million for the quarter, compared with $14.6 million a year earlier. The filing also discloses that Roku adopted the new lease standard (ASC 842) on January 1, 2019, recording operating lease right-of-use assets of $39.9 million and lease liabilities of $42.1 million, and that it signed an April 30, 2019 agreement to take assignment of a San Jose, California office lease, with a letter of credit of approximately $4.1 million. Risk factors highlighted by the filing include dependence on a small number of content publishers, Netflix and YouTube, which accounted for more than 50% of hours streamed; concentration among retailers Amazon, Best Buy and Walmart, which accounted for 73% of player revenue in the quarter; and reliance on sole-source suppliers and a single principal contract manufacturer.
May 10, 2019
2018-Q3
Roku Quarterly Report for Q3 Ended Sep 30, 2018
Roku, Inc. reported third-quarter 2018 total net revenue of $173.4 million, up from $124.8 million a year earlier, with the filing stating a 39% increase. Platform revenue reached $100.1 million, compared with $57.5 million, and player revenue reached $73.3 million, compared with $67.3 million. Gross profit rose to $79.0 million from $49.9 million, which the filing describes as up 58%. The company's net loss narrowed to $9.5 million from $46.2 million in the prior-year quarter, which included a $37.7 million charge for the change in fair value of preferred stock warrants. For the nine months, net revenue was $466.8 million, up 44%, and net loss was $15.6 million. Operating metrics showed continued growth. Active accounts reached 23.8 million as of September 30, 2018, an increase of 43% from the prior year. Users streamed 6.2 billion hours in the quarter, an increase of 63%. Average revenue per user was $17.34 for the twelve months ended September 30, 2018, compared with $12.67, a 37% growth. The filing notes that a single content publisher, Netflix, accounted for approximately one-third of hours streamed, although its revenue was not material to the company. Balance sheet and liquidity remained a focus. Cash and cash equivalents were $137.7 million and cash, cash equivalents and short-term investments totaled $179.7 million at September 30, 2018. Operating activities used $9.3 million of cash for the nine months, driven largely by a $36.2 million increase in inventories. The company had no borrowings under its $30.0 million revolving line of credit, with $23.0 million of letters of credit outstanding. The filing states that the company expects the increase in assets and liabilities from adopting the new lease standard on January 1, 2019 to be material.
Nov 9, 2018
2018-Q2
Roku Quarterly Report for Q2 Ended Jun 30, 2018
Roku, Inc. reported a quarterly 10-Q for the three and six months ended June 30, 2018. Total net revenue was $156.8 million for the quarter, up from $99.6 million a year earlier, and $293.4 million for the six months, versus $199.7 million. Platform revenue rose to $90.3 million in the quarter from $46.0 million, while player revenue increased to $66.5 million from $53.7 million. The company reported net income of $0.5 million for the quarter, compared with a net loss of $15.5 million in the prior-year quarter, and a net loss of $6.1 million for the six months. The quarterly result was helped by an $8.9 million release of accruals for IP licensing obligations recorded in cost of player revenue, and the filing notes the company adopted ASU 2014-09 (Topic 606) on January 1, 2018, which added $3.9 million to quarterly platform revenue. Operating activity was a use of cash in the first half: net cash used in operating activities was $11.5 million for the six months ended June 30, 2018, compared with $30.2 million provided in the prior-year period, driven mainly by a $19.0 million decrease in accounts payable and accrued liabilities. Cash and cash equivalents were $174.2 million at June 30, 2018, and the company had no borrowings under its $30.0 million Silicon Valley Bank revolving credit line. Active accounts reached 22.0 million, up 46% year over year, and users streamed 5.5 billion hours in the quarter, up 57%. The filing also discloses forward-looking commitments: on July 31, 2018, Roku entered into leases for approximately 472,319 square feet of office space in San Jose for a new headquarters, with a term of approximately 140 months, and on July 18, 2018 it amended its credit line to allow up to $30.0 million in letters of credit to support those leases. Gross profit rose to $77.8 million for the quarter, up from $37.6 million, and operating expenses increased 53% to $77.9 million as research and development and headcount-related costs grew.
Aug 10, 2018
2018-Q1
Roku Quarterly Report for Q1 Ended Mar 31, 2018
Roku, Inc. reported its first-quarter 2018 results in this Form 10-Q for the three months ended March 31, 2018. Total net revenue rose to $136.6 million from $100.1 million a year earlier, and gross profit increased to $63.1 million from $38.8 million. Platform revenue more than doubled to $75.1 million from $36.4 million, driven by advertising, subscription and transaction revenue share, and by $14.4 million in license revenue from service operators and TV brands that the filing largely attributes to delivery of intellectual property to a licensing partner. Player revenue declined slightly to $61.5 million from $63.7 million, as a 5% increase in units sold was offset by a 7% decrease in average selling prices. The company adopted ASU 2014-09 (Topic 606) on January 1, 2018 using the modified retrospective method, which added $5.3 million to revenue for the quarter. The company remained loss-making. Loss from operations was $6.9 million, compared with $7.8 million a year earlier, and net loss attributable to common stockholders was $6.6 million, or $0.07 per share, versus $8.7 million, or $1.79 per share, in the prior-year quarter. Operating expenses rose 50% to $70.0 million, led by research and development, which increased 53% to $34.1 million. Operating cash flow was negative $14.6 million, compared with positive $26.2 million a year earlier, mainly due to timing of payments and lower deferred revenue. Cash fell to $160.8 million from $177.3 million at December 31, 2017, and the company had no debt outstanding at quarter end. The filing reports active accounts of 20.8 million, up 47% from the prior year, and hours streamed of more than 5.1 billion, up 56%. The company also highlighted that Netflix accounts for approximately one-third of hours streamed, and that Amazon.com, Best Buy and Walmart are important player retail channels. The risk factors flag concentration in content publishers and retailers, reliance on a single contract manufacturer (Foxconn), a temporary ban on Roku device sales in Mexico, and the upcoming GDPR effective date of May 25, 2018.
May 11, 2018
2017-Q3
Roku Quarterly Report for Q3 Ended Sep 30, 2017
Roku, Inc. reported a 10-Q for the quarter ended September 30, 2017, showing total net revenue of $124.8 million for the three months (up from $89.1 million) and $324.5 million for the nine months (up from $251.3 million). Platform revenue was the main driver, rising to $57.5 million in the quarter from $24.3 million and to $139.9 million for the nine months from $67.4 million. Player revenue was roughly flat for the nine months at $184.6 million. Gross profit reached $126.4 million for the nine months, versus $76.4 million a year earlier, with platform gross profit at $106.8 million accounting for most of it. The company still posted a net loss of $70.5 million for the nine months (versus $46.0 million), driven in large part by a $40.3 million charge from the change in fair value of preferred stock warrant liability. Adjusted EBITDA was $(17.7) million for the nine months, compared with $(36.5) million a year earlier. Management states that it is deliberately reducing streaming player average selling prices to grow active accounts, which will lower player gross margin, and that it expects to continue shifting toward platform gross profit. Active accounts reached 16.7 million as of September 30, 2017, and users streamed 10.5 billion hours in the nine months, up 60%. Cash was $66.9 million at quarter end, and the company had $23.0 million outstanding under a subordinated term loan, which it repaid on October 31, 2017. The filing also discloses the October 2, 2017 IPO of Class A common stock: 10,350,000 shares sold at $14.00, with net proceeds of $134.8 million after underwriting discounts. Upon closing, all convertible preferred stock converted into 80,844,138 shares of Class B common stock. Class B shares carry 10 votes per share, and the filing notes that CEO Anthony Wood holds about 27.3% of outstanding common stock and about 32.1% of voting power.
Nov 9, 2017