Roku Q4 2024 Earnings Report
Key Takeaways
Roku delivered a strong Q4 2024, surpassing $1 billion in platform revenue for the first time (+25% YoY). Total revenue grew 22% YoY to $1.20 billion, while net loss narrowed to $35.55 million from $78.29 million a year ago. Adjusted EBITDA increased 62% YoY to $77.50 million, driven by platform growth and ad demand. The company expects continued revenue growth in 2025, with a long-term goal of achieving positive operating income in 2026.
Platform revenue exceeded $1 billion for the first time, growing 25% YoY.
Total revenue increased 22% YoY, driven by strong ad demand and higher engagement.
Net loss reduced by 54.6% YoY, showing improved operational efficiency.
Adjusted EBITDA grew 62% YoY, reflecting strong monetization efforts.
Roku Revenue
Roku EPS
Roku Revenue by Segment
Roku Revenue by Geographic Location
Forward Guidance
Roku expects continued revenue growth in 2025, driven by platform expansion and ad monetization. The company remains focused on cost control and aims for positive operating income by 2026.
Positive Outlook
- Total revenue expected to reach $4.61 billion in FY25 (+12% YoY).
- Platform revenue forecasted to grow 12% YoY, with 15% growth excluding political ads.
- Adjusted EBITDA expected to reach $350 million in FY25, up from $260 million in FY24.
- Focus on ad integrations and subscription growth to drive long-term profitability.
- Continued expansion of Roku-branded TVs into new retail channels.
Challenges Ahead
- Device revenue expected to remain flat in Q1 2025 due to excess inventory.
- Gross margin expected to be slightly lower in FY25 (52%-53%) due to revenue mix shift.
- Mid-single-digit growth in operating expenses could pressure profitability.
- Ongoing investment in platform growth may delay immediate margin expansion.
- Uncertainty in ad market could impact short-term revenue trends.
Revenue & Expenses
Visualization of income flow from segment revenue to net income