NASDAQ$ROKU

Roku Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Roku delivered solid results with growth in scale, engagement, and monetization.

Roku's Q2 2023 showed solid growth with total net revenue up 11% year over year to $847 million. Platform revenue also increased by 11% to $744 million. Active accounts reached 73.5 million, and streaming hours totaled 25.1 billion.

  • Total net revenue was $847 million, up 11% year over year.
  • Platform revenue was $744 million, up 11% year over year.
  • Active Accounts reached 73.5 million, a net increase of 1.9 million from Q1 2023.
  • Streaming Hours were 25.1 billion, up 4.4 billion hours year over year.

Headline financials

Total Revenue

$847M

Previous: $764M+10.8%
EPS (adj)

-$0.76

Previous: -$0.82+7.3%
Streaming Hours

25.1B

Previous: 20.7B+21.3%
Capital Expenditures

-$72.3M

Previous: -$52.2M-38.5%
Free Cash Flow

-$180M

Previous: -$165M-9.3%
Net Income

-$108M

Previous: -$112M+4.2%
Operating Income

-$126M

Previous: -$111M-14.0%
Gross Profit

$378M

Previous: $355M+6.5%
Cash & Equivalents

$1.76B

Previous: $2.05B-14.4%
Total Assets

$4.16B

Previous: $4.31B-3.6%
Stock-Based Comp

$89.6M

Previous: $87M+2.9%

Revenue & EPS history

Roku · Revenue · Quarterly

$847M

Q2 2023+10.8%vs Q2 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Roku · $847M total across 2 segments · Q2 2023

  • Platform
    $744M+10.5%
  • Devices
    $103M+13.6%

Forward guidance

For Q3 2023, Roku expects total net revenue of roughly $815 million, total gross profit of roughly $355 million, and Adjusted EBITDA of negative $50 million. They will continue to moderate YoY OpEx growth rates, with Q3 likely to be lower than Q2, and remain committed to their plan to deliver positive Adjusted EBITDA for the full year 2024 with continued improvements after that.

Tailwinds

  • Consumer spend is showing some modest growth.
  • Roku is committed to deliver positive Adjusted EBITDA for the full year 2024.
  • See some recovery signals within certain advertising verticals such as CPG and health and wellness.
  • Continue to moderate YoY OpEx growth rates, with Q3 likely to be lower than Q2.
  • Roku is growing viewers and hours, while traditional pay TV continues to erode.

Headwinds

  • Macro concerns and uncertainty remain.
  • M&E spend, which was already challenged industry-wide, is expected to be further pressured by limited fall release schedules.
  • Ad spend on traditional TV declined 9.4% YoY, and traditional TV ad scatter was down 17.2% YoY.
  • The macro uncertainty has impacted the timing of Upfront negotiations, with commitments proceeding at a slower pace across the industry.
  • Brand advertising on the Roku platform remained pressured YoY in verticals like technology and M&E (media and entertainment).

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 2023

Historical avgQ2 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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