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Jun 30, 2023
Roku Q2 2023 Earnings Report
Roku delivered solid results with growth in scale, engagement, and monetization.
Key Takeaways
Roku's Q2 2023 showed solid growth with total net revenue up 11% year over year to $847 million. Platform revenue also increased by 11% to $744 million. Active accounts reached 73.5 million, and streaming hours totaled 25.1 billion.
Total net revenue was $847 million, up 11% year over year.
Platform revenue was $744 million, up 11% year over year.
Active Accounts reached 73.5 million, a net increase of 1.9 million from Q1 2023.
Streaming Hours were 25.1 billion, up 4.4 billion hours year over year.
Roku
Roku
Roku Revenue by Segment
Revenue by Segment
Platform Revenue
CapyFin.comDevices Revenue
CapyFin.com Forward Guidance
For Q3 2023, Roku expects total net revenue of roughly $815 million, total gross profit of roughly $355 million, and Adjusted EBITDA of negative $50 million. They will continue to moderate YoY OpEx growth rates, with Q3 likely to be lower than Q2, and remain committed to their plan to deliver positive Adjusted EBITDA for the full year 2024 with continued improvements after that.
Positive Outlook
- Consumer spend is showing some modest growth.
- Roku is committed to deliver positive Adjusted EBITDA for the full year 2024.
- See some recovery signals within certain advertising verticals such as CPG and health and wellness.
- Continue to moderate YoY OpEx growth rates, with Q3 likely to be lower than Q2.
- Roku is growing viewers and hours, while traditional pay TV continues to erode.
Challenges Ahead
- Macro concerns and uncertainty remain.
- M&E spend, which was already challenged industry-wide, is expected to be further pressured by limited fall release schedules.
- Ad spend on traditional TV declined 9.4% YoY, and traditional TV ad scatter was down 17.2% YoY.
- The macro uncertainty has impacted the timing of Upfront negotiations, with commitments proceeding at a slower pace across the industry.
- Brand advertising on the Roku platform remained pressured YoY in verticals like technology and M&E (media and entertainment).
Revenue & Expenses
Visualization of income flow from segment revenue to net income