NASDAQ$ROKU

Roku Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Roku delivered strong results driven by platform monetization.

Roku reported a strong second quarter with record revenue growth, driven by exceptional performance in platform monetization. Total net revenue grew 81% year-over-year to $645 million, with platform revenue increasing 117% year-over-year to $532 million. Active accounts reached 55.1 million, and streaming hours were 17.4 billion. Average Revenue Per User (ARPU) grew to $36.46, up 46% year-over-year.

  • Total net revenue grew 81% year-over-year to $645 million.
  • Platform revenue increased 117% year-over-year to $532 million.
  • Gross profit was up 130% year-over-year to $338 million.
  • Active Accounts reached 55.1 million.

Headline financials

Total Revenue

$645M

Previous: $356M+81.2%
EPS (adj)

$0.52

Previous: -$0.35+248.6%
Streaming Hours

17.4B

Previous: 14.6B+19.2%
Capital Expenditures

-$13.9M

Previous: -$64.1M+78.3%
Free Cash Flow

$59.6M

Previous: -$107M+155.5%
Net Income

$73.5M

Previous: -$43.1M+270.3%
Operating Income

$69.1M

Previous: -$42.2M+263.7%
Gross Profit

$338M

Previous: $147M+130.4%
Cash & Equivalents

$2.08B

Previous: $886M+135.2%
Total Assets

$3.64B

Previous: $1.85B+97.1%
Stock-Based Comp

$42.5M

Previous: $30M+41.7%

Revenue & EPS history

Roku · Revenue · Quarterly

$645M

Q2 2021+81.2%vs Q2 2020
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

Roku · $645M total across 2 segments · Q2 2021

  • Platform
    $532M+117.4%
  • Devices
    $113M+1.4%

Forward guidance

Roku's Q3 outlook includes total net revenue of $680 million at the midpoint (up 51% year-over-year) and total gross profit of $320 million at the midpoint (up 49% year-over-year). Adjusted EBITDA is expected to be $65 million at the midpoint.

Tailwinds

  • Total net revenue of $680 million at the midpoint (up 51% year-over-year)
  • Total gross profit of $320 million at the midpoint (up 49% year-over-year)
  • Monetization remains strong within the Platform segment.
  • Continued significant growth expected in the second half of the year within the Platform segment.
  • Roku remains very well positioned to benefit from the long-term secular trend of audiences.

Headwinds

  • Global supply chain constraints and component cost increases to worsen in the second half of 2021, leading to increasing negative player gross margin.
  • Industry supply chain constraints and cost increases for streaming players and TV OEM partners will continue into 2022.
  • Varying rates of recovery from the pandemic around the world continue to present an uncertain operating environment.
  • Expect quarterly sequential increases in operating expenses in the second half of 2021 from investments in headcount, product development, and sales & marketing.
  • Adjusted EBITDA to be $65 million at the midpoint in Q3.

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 2021

Historical avgQ2 2021

+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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