NASDAQ$ROKU

Roku Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Roku's performance demonstrated strength and platform monetization continued to show momentum.

Roku reported a 51% year-over-year increase in total net revenue, reaching $680 million. Platform revenue grew by 82% year-over-year to $583 million, and gross profit increased by 69% year-over-year to $364 million. Active Accounts reached 56.4 million, and streaming hours totaled 18.0 billion.

  • Total net revenue grew 51% year-over-year to $680 million.
  • Platform revenue increased 82% year-over-year to $583 million.
  • Gross profit was up 69% year-over-year to $364 million.
  • Active Accounts reached 56.4 million, with a net increase of 1.3 million from Q2 2021.

Headline financials

Total Revenue

$680M

Previous: $452M+50.5%
EPS (adj)

$0.48

Previous: $0.09+433.3%
Streaming Hours

18.0B

Previous: 14.8B+21.6%
Capital Expenditures

-$28M

Previous: -$76M+63.1%
Free Cash Flow

$40.9M

Previous: -$63.1M+164.9%
Net Income

$68.9M

Previous: $12.9M+432.4%
Operating Income

$68.8M

Previous: $12M+475.2%
Gross Profit

$364M

Previous: $215M+69.4%
Cash & Equivalents

$2.18B

Previous: $1.05B+108.1%
Total Assets

$3.91B

Previous: $2.1B+85.9%
Stock-Based Comp

$50.4M

Previous: $34.9M+44.4%

Revenue & EPS history

Roku · Revenue · Quarterly

$680M

Q3 2021+50.5%vs Q3 2020
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

Roku · $680M total across 2 segments · Q3 2021

  • Platform
    $583M+82.5%
  • Devices
    $97.4M-26.5%

Forward guidance

The company's Q4 outlook is for strong growth with total net revenue of $893 million at the midpoint (up 37% year-over-year), and total gross profit of $385 million at the midpoint (up 26% year-over-year). They expect Q4 adjusted EBITDA to be $70 million at the midpoint.

Tailwinds

  • Total net revenue of $885 - $900 million.
  • Total gross profit of $380 - $390 million.

Headwinds

  • Net income (loss) $(5) - $5 million.
  • Adjusted EBITDA $65 - $75 million.
  • Challenges created by the global supply chain disruptions will likely continue into 2022.
  • Headwinds may have a broad impact on the holiday season in terms of consumer confidence, product pricing and availability, and advertising spend levels.

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 2021

Historical avgQ3 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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