NASDAQ$ROKU
Roku Inc · Q2 2020 earnings
Q2 2020 earnings · · Investor relations
Briefing
Roku delivered strong results, marked by exceptional account growth and a surge in growth for AVOD, SVOD, and TVOD services, along with strong advertising growth relative to the overall TV ad market.
Roku's Q2 2020 was strong, with a 42% YoY increase in total net revenue to $356.1 million, driven by a significant increase in active accounts and streaming hours. The company saw substantial growth in its ad business and platform revenue, despite the pandemic's impact on the broader advertising market.
- Total net revenue grew 42% year-over-year to $356.1 million.
- Platform revenue increased 46% year-over-year to $244.8 million.
- Roku added 3.2 million incremental active accounts in Q2 2020, reaching a total of 43 million.
- Streaming hours increased by 2.3 billion hours over last quarter to 14.6 billion.
Headline financials
Revenue & EPS history
Roku · Revenue · Quarterly
$356M
Revenue by segment
Roku · $356M total across 2 segments · Q2 2020
- Platform$245M+46.0%68.7%
- Devices$111M+35.1%31.3%
Forward guidance
Due to the uncertainty of the pandemic, Roku is not issuing formal outlook. However, they anticipate that overall revenue will grow substantially year-over-year in the second half and for the full-year 2020, though not as strongly as expected pre-pandemic. They also anticipate running at an adjusted EBITDA loss for the year.
Tailwinds
- Roku believes the pandemic has accelerated the long-term trend towards all TV being streamed.
- Roku remains confident in their ability to grow their ad business as marketers re-allocate spend and follow consumers in the shift to streaming.
- Roku is committed to their strategic investment areas and are continuing to hire, albeit at a slower pace than pre-COVID-19 levels.
- Roku raised approximately $350 million in incremental equity capital to provide more flexibility and augment their cash and liquidity position.
- Roku ended Q2 with $887 million of cash, cash equivalents, restricted cash and short-term investments and have approximately $70 million of available liquidity under their credit facility.
Headwinds
- The short-term outlook is both variable and uncertain due to the pandemic.
- The increasing prevalence of COVID-19 infections around the world and the potential for disruptions and changes to historical consumer behavior and spending patterns during the back-to-school and holiday seasons greatly inhibit their ability to forecast.
- Q4 is the seasonally largest quarter for Roku, and there is a wide range of potential outcomes given increased consumer interest in streaming on one hand, and the possibility of retailer, supply chain and advertising constraints at critical times on the other.
- The ad industry outlook remains uncertain for Q3 and Q4, and Roku believes that total TV ad spend will not recover to pre-COVID-19 levels until well into 2021.
- Advertisers in industries like Casual Dining, Travel and Tourism have significantly slowed their spending.
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 Q2 2020
+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
| Quarter | Report date | Reaction (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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