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Dec 31, 2020
Roku Q4 2020 Earnings Report
Roku had a strong Q4 and 2020, achieving record revenue, gross profit, and adjusted EBITDA, driven by the shift to streaming.
Key Takeaways
Roku's Q4 2020 saw significant growth, with total net revenue increasing by 58% year-over-year to $649.9 million. The company surpassed 50 million active accounts and experienced a doubling of Roku monetized video advertising impressions. The Roku OS was the No. 1 smart TV operating system in the U.S. with 38% unit share of smart TVs sold.
Total net revenue grew 58% YoY to $649.9 million.
Platform revenue increased 81% YoY to $471.2 million.
Total gross profit was up 89% YoY to $305.5 million.
Active Accounts increased 39% year-over-year to 51.2 million.
Roku
Roku
Roku Revenue by Segment
Revenue by Segment
Platform Revenue
CapyFin.comDevices Revenue
CapyFin.com Forward Guidance
Roku provided Q1 2021 outlook, with total net revenue expected to be between $478 million and $493 million and total gross profit of roughly $238 million at the midpoint. Adjusted EBITDA is expected to be $31 million at the midpoint.
Positive Outlook
- Expect strong financial comparisons in the first half of the year compared to the first half of 2020.
- Gross profit growth outpacing OPEX growth is expected to result in adjusted EBITDA of $31 million at the midpoint.
- Overall 2021 gross margin to be in the mid-40% range as platform margins remain fairly stable.
- Player segment operated at a gross margin close to zero to continue driving device sales and growing active accounts.
- Continue investing in our business to enhance our competitive differentiation and seed future growth.
Challenges Ahead
- Year-over-year comparisons will be quite volatile in 2021.
- Anticipate much tougher comparisons in the second half of the year due to exceptional performance in 2H20.
- Overall year-over-year revenue growth will fall below levels expected in the first and second quarters of 2021.
- Returning to robust year over year OPEX organic growth rates similar to 2019
- Uncertainty compounds when trying to assess the net impact of a variety of factors such as the timing of the vaccine rollouts, emergence of new COVID-19 variants as well as the lasting economic impacts of the pandemic.
Revenue & Expenses
Visualization of income flow from segment revenue to net income