NASDAQ$ROKU

Roku Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Slowdown in TV advertising spend impacted platform revenue growth; however, active accounts continued to grow.

Roku's Q2 2022 results were affected by a slowdown in TV advertising spend due to the macroeconomic environment. Total net revenue grew 18% year over year to $764 million, with platform revenue increasing 26% year over year to $673 million. The company added 1.8 million incremental active accounts, reaching 63.1 million.

  • Total net revenue grew 18% year over year to $764 million.
  • Platform revenue increased 26% year over year to $673 million.
  • Gross profit was up 5% year over year to $355 million.
  • Roku added 1.8 million incremental active accounts to reach 63.1 million.

Headline financials

Total Revenue

$764M

Previous: $645M+18.5%
EPS (adj)

-$0.82

Previous: $0.52-257.7%
Streaming Hours

20.7B

Previous: 17.4B+19.0%
Capital Expenditures

-$52.2M

Previous: -$13.9M-275.7%
Free Cash Flow

-$165M

Previous: $59.6M-376.2%
Net Income

-$112M

Previous: $73.5M-252.9%
Operating Income

-$111M

Previous: $69.1M-260.0%
Gross Profit

$355M

Previous: $338M+5.0%
Cash & Equivalents

$2.05B

Previous: $2.08B-1.6%
Total Assets

$4.31B

Previous: $3.64B+18.6%
Stock-Based Comp

$87M

Previous: $42.5M+104.5%

Revenue & EPS history

Roku · Revenue · Quarterly

$764M

Q2 2022+18.5%vs Q2 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Roku · $764M total across 2 segments · Q2 2022

  • Platform
    $673M+26.4%
  • Devices
    $91M-19.3%

Forward guidance

Roku anticipates total net revenue of approximately $700 million and total gross profit of roughly $325 million for Q3 2022. Adjusted EBITDA is expected to be negative $75 million.

Headwinds

  • Advertising spend, particularly in the scatter market, will continue to be negatively impacted.
  • Consumer discretionary spend will continue to moderate, pressuring both Roku TV and Roku player sales.
  • Economic environment defined by recessionary fears.
  • Inflationary pressures.
  • Rising interest rates and ongoing supply chain disruptions.

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 2022

Historical avgQ2 2022

+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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