NASDAQ$ROKU
Roku Inc · Q3 2020 earnings
Q3 2020 earnings · · Investor relations
Briefing
Roku delivered strong financial and operational results driven by demand for TV streaming, advertising growth, and content distribution partnerships.
Roku's Q3 2020 results showcased significant growth, with total net revenue increasing by 73% year-over-year to $452 million. The company added 2.9 million active accounts, reaching a total of 46 million, and streaming hours increased to 14.8 billion. Platform revenue grew by 78% year-over-year, and gross profit increased by 81%.
- Total net revenue grew 73% year-over-year to $452 million.
- Platform revenue increased 78% year-over-year to $319 million.
- Roku added 2.9 million incremental active accounts in Q3 2020, reaching 46 million.
- Streaming hours increased to 14.8 billion.
Headline financials
Revenue & EPS history
Roku · Revenue · Quarterly
$452M
Revenue by segment
Roku · $452M total across 2 segments · Q3 2020
- Platform$319M+78.0%70.7%
- Devices$132M+62.3%29.3%
Forward guidance
Roku anticipates Q4 year-over-year revenue growth to be in the mid-40% range, with platform revenue accounting for roughly two-thirds of total revenue. They plan to keep Q4 player gross margins close to breakeven and expect Q4 platform gross margins to be in the mid-50% to 60% range. The sequential expense growth rate from Q3 to Q4 is expected to be in line with last year, driven primarily by headcount and sales and marketing expense growth.
Tailwinds
- Overall Q4 year-over-year revenue growth will likely be in the mid-40% range.
- Platform revenue to account for roughly two-thirds of total revenue.
- Plan to keep Q4 player gross margins close to breakeven.
- Expect Q4 platform gross margins to be in the mid-50% to 60% range.
- Sequential expense growth rate from Q3 to Q4 to be in line with last year driven primarily by headcount and sales and marketing expense growth.
Headwinds
- Potential for COVID-19 or economic-related disruptions.
- Potential impact to historical consumer spending levels or shopping patterns as we enter the holiday season.
- Short-term macro environment remains both variable and uncertain.
- The company is not providing a formal outlook
- Aware of the potential impact of the pandemic
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 Q3 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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