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Roku 8-K Report, Financial Results (Feb 15, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 15, 2024
Period End
February 15, 2024
Security
ROKU
In the record · 2017–202610-K910-Q288-K95

ROKU filed 9 annual reports (10-K), 28 quarterly reports (10-Q) and 95 current reports (8-K) between 2017 and 2026.

  1. Leadership change8-K · Dec ’18Dec ’18
  2. Material agreement8-K · Mar ’21Mar ’21
  3. Restructuring8-K · Mar ’23Mar ’23
  4. Material agreement8-K · Jun ’26Jun ’26

01—Abstract

Summary

Summary of the 8-K filed February 15, 2024. Cited figures are marked; the original filing is the authoritative source.

Roku, Inc. filed this Form 8-K under Item 2.02 (Results of Operations and Financial Condition) to announce results for the quarter and year ended December 31, 2023, furnishing its Q4 and Full Year 2023 Shareholder Letter as Exhibit 99.1.

For full year 2023, total net revenue was $3.48 billiona (up 11% YoY), Platform revenue was $2.99 billion (up 10% YoY), and gross profit was $1.52 billion. Active Accounts reached 80.0 million, with 10.0 million net adds in 2023, and Streaming Hours totaled 106.0 billion, the first year above 100 billion. Net loss narrowed to $709.6 million for 2023 from $498.0 million in 2022 is a widening; the filing reports net loss of $709.6 million versus $498.0 million, which included $356.1 million of restructuring charges.

Management reported positive Adjusted EBITDA of $4.3 millionb and positive free cash flow for full year 2023, a year ahead of schedule. For Q4 2023, total net revenue was $984.4 million (up 14% YoY) and Platform revenue was $828.9 million (up 13% YoY). Average Revenue Per User (trailing 12-month basis) was $39.92, down 4% YoY, which management attributed to a growing share of Active Accounts in international markets where Roku is focused on scale and engagement.

Operating loss improved to $104.2 millionc in Q4 from $249.9 million a year earlier. Looking ahead, management guided to Q1 2024 total net revenue of $850 million, total gross profit of roughly $370 million, and break-even Adjusted EBITDA, and expects positive Adjusted EBITDA for full year 2024. The company also noted a difficult macro environment, an uneven ad market recovery, and tougher year-over-year comparisons in streaming services distribution.

02—Key points

Key Highlights

  1. Full year 2023 total net revenue of $3.48 billion, up 11% YoY, with Platform revenue of $2.99 billion, up 10% YoY.
  2. Q4 2023 total net revenue of $984.4 million, up 14% YoY, and Platform revenue of $828.9 million, up 13% YoY.
  3. Active Accounts reached 80.0 million at year-end 2023, a net increase of 10.0 million for the year; Streaming Hours reached 106.0 billion for 2023.
  4. Positive Adjusted EBITDA ($4.3 million) and positive free cash flow for full year 2023, achieved a year ahead of schedule.
  5. Full year 2023 net loss was $709.6 million, including $356.1 million of restructuring charges, compared with a net loss of $498.0 million in 2022.
  6. ARPU of $39.92 on a trailing 12-month basis in Q4 2023, down 4% YoY, reflecting growth in international Active Accounts.
  7. Q1 2024 outlook: total net revenue of $850 million, total gross profit of roughly $370 million, and break-even Adjusted EBITDA; positive Adjusted EBITDA expected for full year 2024.

03—Questions

Frequently Asked Questions

  1. Did Roku achieve profitability in 2023?

    Roku reported positive Adjusted EBITDA of $4.3 million and positive free cash flow for full year 2023, but its GAAP net loss was $709.6 million, which included $356.1 million of restructuring charges. The company's Q4 2023 net loss was $78.3 million.

  2. How did Roku's revenue perform in Q4 2023?

    Q4 2023 total net revenue was $984.4 million, up 14% YoY, led by Platform revenue of $828.9 million, up 13% YoY. Devices revenue was $155.6 million.

  3. What is Roku's guidance for 2024?

    For Q1 2024, management expects total net revenue of $850 million, total gross profit of roughly $370 million, and break-even Adjusted EBITDA. The company expects positive Adjusted EBITDA for full year 2024 and plans to increase revenue and free cash flow over time.

  4. Why did ARPU decline?

    Trailing 12-month ARPU was $39.92 in Q4 2023, down 4% YoY. Management attributed this to an increasing share of Active Accounts in international markets, where Roku is currently focused on growing scale and engagement.

  5. What drove Active Account and engagement growth?

    Active Accounts grew to 80.0 million, with 10.0 million net adds in 2023, driven primarily by the Roku TV program in the U.S. and international markets. Streaming Hours grew 21% YoY in Q4 2023 to 29.1 billion.

04—Continue

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