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Mar 31, 2020
Roku Q1 2020 Earnings Report
Roku exceeded its prior outlook for revenue and adjusted EBITDA and continued to make significant operational and financial progress.
Key Takeaways
Roku's Q1 2020 total net revenue grew 55% year-over-year to $321 million, with platform revenue increasing 73% year-over-year to $233 million. The company added 2.9 million incremental active accounts, reaching 39.8 million, and streaming hours increased to a record 13.2 billion.
Total net revenue grew 55% YoY to $321 million.
Platform revenue increased 73% YoY to $233 million.
Gross profit was up 40% YoY to $141 million.
Roku added 2.9 million incremental active accounts in Q1 2020 to reach 39.8 million.
Roku
Roku
Roku Revenue by Segment
Revenue by Segment
Platform Revenue
CapyFin.comDevices Revenue
CapyFin.com Forward Guidance
Much uncertainty remains, but a few things are increasingly clear: streaming, and the ease and value it provides, is more relevant to consumers than ever; overall advertising expenditure in the U.S. is likely to fall in 2020, but we expect our ad revenues to still grow substantially year-over-year; Roku is well positioned to be an increasingly valuable partner as brands decide how to invest marketing resources most effectively; and, our outstanding talent is keeping our company highly productive.
Positive Outlook
- Streaming is more relevant to consumers than ever.
- Roku expects ad revenues to still grow substantially year-over-year.
- Roku is well positioned to be an increasingly valuable partner as brands decide how to invest marketing resources most effectively.
- Roku's outstanding talent is keeping the company highly productive.
- The fundamental shift to streaming will continue, perhaps even faster than previously expected.
Challenges Ahead
- COVID-19 became a global pandemic.
- This upended how people live and work.
- This injected great uncertainty into business planning.
- The company withdrew its outlook for the full year.
- The effects of COVID-19 will likely be with us for some time.
Revenue & Expenses
Visualization of income flow from segment revenue to net income