NASDAQ$ROKU

Roku Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Solid first quarter results were delivered amidst a challenging macro environment, with growth in both Active Accounts and Streaming Hours year over year.

Roku's Q1 2023 results showed a 1% increase in total net revenue to $741 million, with Active Accounts reaching 71.6 million and Streaming Hours growing to 25.1 billion. The company is focused on managing investments and costs to achieve positive Adjusted EBITDA for the full year 2024.

  • Total net revenue was $741 million, up 1% year over year.
  • Platform revenue was $635 million, down 1% year over year.
  • Gross profit was $338 million, down 7% year over year.
  • Active Accounts reached 71.6 million, a net increase of 1.6 million from Q4 2022.

Headline financials

Total Revenue

$741M

Previous: $734M+1.0%
EPS (adj)

-$1.38

Previous: -$0.19-626.3%
Streaming Hours

25.1B

Previous: 20.9B+20.1%
Capital Expenditures

-$54.2M

Previous: -$14.8M-267.4%
Free Cash Flow

-$248M

Previous: -$41.1M-503.5%
Net Income

-$194M

Previous: -$26.3M-636.0%
Operating Income

-$212M

Previous: -$23.5M-804.5%
Gross Profit

$338M

Previous: $365M-7.5%
Cash & Equivalents

$1.63B

Previous: $2.24B-27.1%
Total Assets

$4.06B

Previous: $4.23B-4.0%
Stock-Based Comp

$96.5M

Previous: $69.6M+38.6%

Revenue & EPS history

Roku · Revenue · Quarterly

$741M

Q1 2023+1%vs Q1 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Roku · $741M total across 2 segments · Q1 2023

  • Platform
    $635M-1.9%
  • Devices
    $106M

Forward guidance

For Q2 2023, Roku expects total net revenue of approximately $770 million, total gross profit of roughly $335 million, and Adjusted EBITDA of negative $75 million. The company is committed to delivering positive Adjusted EBITDA for the full year 2024.

Tailwinds

  • Focus investments on high-priority projects
  • Slowing YoY operating expense growth
  • Reaccelerate revenue growth
  • Improve operational efficiencies
  • Committed to delivering positive Adjusted EBITDA for full year 2024

Headwinds

  • Macro uncertainties to persist throughout 2023
  • Consumers remain pressured by inflation and recessionary fears
  • Discretionary spend is likely to remain muted
  • Advertising market in Q2 to look much the same as it did in Q1
  • Ad spend from certain verticals improving (travel and health and wellness), while others remain pressured (M&E and financial services)

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+6.1%

Avg return

Earnings day

+9.1%

Avg return

5 days after

+11.8%

Avg return

30 days after

49%

19 / 39 earnings

Positive

+76.5%

Q1 2016

Best reaction

-30.3%

Q4 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+6.0%+9.8%+11.7%
Q4 2025+8.6%+8.8%+10.5%
Q3 2025+8.5%+5.6%-3.2%
Q1 2025-8.7%-11.0%+7.7%
Q4 2024+14.1%+6.5%-21.9%
Q3 2024-16.1%-12.1%-9.7%
Q2 2024-8.7%-8.9%+16.4%
Q1 2024-8.9%-6.7%-8.2%
Q4 2023-21.1%-26.3%-29.9%
Q3 2023+31.0%+39.8%+73.8%
Q2 2023+25.4%+36.4%+7.7%
Q1 2023-1.2%-1.8%-2.9%
Q4 2022+24.6%+26.3%+13.4%
Q3 2022-8.7%-11.3%+6.9%
Q2 2022-24.6%-12.9%-21.4%
Q1 2022+9.6%+22.6%+13.8%
Q4 2021-30.3%-24.5%-22.7%
Q3 2021-7.7%-11.6%-34.4%
Q2 2021-3.4%-4.8%-18.1%
Q1 2021+4.2%+3.3%+7.5%
Q4 2020+2.3%-9.0%-24.0%
Q3 2020+17.5%+0.6%+37.4%
Q2 2020-7.6%-9.6%-3.9%
Q1 2020-0.7%-0.3%-18.1%
Q4 2019-5.8%-8.1%-41.5%
Q3 2019-15.1%-7.4%+3.4%
Q2 2019+23.9%+36.4%+72.5%
Q1 2019+29.1%+23.4%+58.2%
Q4 2018+20.2%+21.3%+19.1%
Q3 2018-17.8%-25.5%-31.8%
Q2 2018+20.9%+16.8%+37.6%
Q1 2017-0.5%-2.9%+10.7%
Q1 2018+7.1%+6.6%+18.5%
Q2 2016-7.8%-5.4%-23.7%
Q2 2017-7.8%-5.4%-23.7%
Q4 2017-17.8%-21.0%-37.4%
Q3 2016+76.5%+96.1%+137.7%
Q1 2016+76.5%+96.1%+137.7%
Q3 2017+52.6%+123.3%+134.1%
Q4 2016

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