Loading...
•
Mar 31, 2021
Roku Q1 2021 Earnings Report
Roku delivered strong growth in advertising and content distribution partnerships, achieving record revenue, gross profit growth, and Adjusted EBITDA.
Key Takeaways
Roku's Q1 2021 showed exceptional performance with a 79% year-over-year increase in total net revenue, reaching $574.2 million. The company added 2.4 million incremental active accounts, bringing the total to 53.6 million, and streaming hours increased to 18.3 billion. Platform revenue grew by 101% year-over-year, driven by advertising and content distribution.
Total net revenue grew 79% year-over-year to $574.2 million.
Platform revenue increased 101% year-over-year to $466.5 million.
Gross profit was up 132% year-over-year to $326.8 million.
Roku added 2.4 million incremental Active Accounts in Q1 2021 to reach 53.6 million.
Roku
Roku
Roku Revenue by Segment
Revenue by Segment
Platform Revenue
CapyFin.comDevices Revenue
CapyFin.com Forward Guidance
Roku anticipates robust growth for Q2 2021, with total net revenue expected to be $615 million at the midpoint, representing a 73% year-over-year increase. Total gross profit is projected to be $300 million at the midpoint, up 104% year-over-year. Adjusted EBITDA is expected to be $65 million at the midpoint.
Positive Outlook
- Total net revenue of $615 million at the midpoint (up 73% year-over-year)
- Total gross profit of $300 million at the midpoint (up 104% year-over-year)
- Strong gross profit growth is expected to outpace operating expense (OPEX) growth
- Q2 Adjusted EBITDA of $65 million at the midpoint
- Expect net adds of both active accounts and streaming hours to be above pre-COVID-19 levels.
Challenges Ahead
- Supply chain constraints to persist for the rest of the year
- Costs in components and logistics to correspondingly increase as the year progresses
- Slightly negative Player margins for Q2 and the likelihood of increasing negative Player margins in the second half of 2021
- Year-over-year growth rates of both metrics to be lower than those in 2020
- Adjusted EBITDA is expected to be higher in the first half than in the second half.
Revenue & Expenses
Visualization of income flow from segment revenue to net income