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Sep 30, 2024
Roku Q3 2024 Earnings Report
Roku delivered strong results, achieving its first quarter with over $1 billion in total net revenue and growing Platform revenue year-over-year.
Key Takeaways
Roku's Q3 2024 results demonstrated strong financial performance, with total net revenue exceeding $1 billion for the first time. Platform revenue increased 15% year-over-year, and the company achieved its fifth consecutive quarter of positive Adjusted EBITDA and Free Cash Flow (TTM). Streaming Hours on The Roku Channel also saw significant growth, up 80% year-over-year.
Total net revenue reached $1.062 billion, a 16% increase year-over-year.
Platform revenue grew to $908 million, up 15% year-over-year.
Gross profit increased by 30% year-over-year to $480 million.
Streaming Hours were 32.0 billion, up 5.3 billion hours year-over-year.
Roku
Roku
Roku Revenue by Segment
Revenue by Segment
Platform Revenue
CapyFin.comDevices Revenue
CapyFin.com Forward Guidance
The company estimates Q4 Total net revenue of $1.140 billion growing 16% YoY, with Platform revenue growing 14% YoY and Devices revenue growing 25% YoY. They estimate Q4 Total gross profit of $465 million and Adjusted EBITDA of $30 million.
Positive Outlook
- Monetization initiatives are expected to continue in Q4.
- Early positive impacts from deeper integration with The Trade Desk.
- Tailwinds from Political ad spend to continue in Q4.
- Expects to grow Platform revenue in 2025 and beyond as they grow ad demand.
- Expects to grow Platform revenue in 2025 and beyond as they lean into their Home Screen as the lead-in for TV.
Challenges Ahead
- Expect Sales and Marketing to be more seasonal this year than in the prior year.
- Expect OpEx to be up 9% YoY in Q4.
- M&E and Health & Wellness ad verticals were pressured.
- Each country is at a different stage of monetization, and each has different economic characteristics.
- ARPU of $41.10 (TTM) was relatively flat YoY.
Revenue & Expenses
Visualization of income flow from segment revenue to net income