NASDAQ$ROKU

Roku Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Delivered meaningful growth in scale and engagement

Roku's Q3 2022 results showed a 12% year-over-year increase in total net revenue, reaching $761 million. The company added 2.3 million incremental active accounts, bringing the total to 65.4 million. Streaming hours increased to 21.9 billion, and ARPU grew by 10% year-over-year to $44.25. Platform revenue grew 15% year over year to $670 million.

  • Total net revenue grew 12% year-over-year to $761 million.
  • Platform revenue increased 15% year-over-year to $670 million.
  • Roku added 2.3 million incremental Active Accounts in Q3 2022 to reach 65.4 million.
  • Streaming Hours were 21.9 billion hours, an increase of 1.1 billion hours from last quarter.

Headline financials

Total Revenue

$761M

Previous: $680M+12.0%
EPS (adj)

-$0.88

Previous: $0.48-283.3%
Streaming Hours

21.9B

Previous: 18.0B+21.7%
Capital Expenditures

-$96.3M

Previous: -$28M-243.7%
Free Cash Flow

-$219M

Previous: $40.9M-634.0%
Net Income

-$122M

Previous: $68.9M-277.2%
Operating Income

-$147M

Previous: $68.8M-313.5%
Gross Profit

$357M

Previous: $364M-2.0%
Cash & Equivalents

$2.02B

Previous: $2.18B-7.4%
Total Assets

$4.39B

Previous: $3.91B+12.3%
Stock-Based Comp

$99.1M

Previous: $50.4M+96.5%

Revenue & EPS history

Roku · Revenue · Quarterly

$761M

Q3 2022+12%vs Q3 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Roku · $761M total across 2 segments · Q3 2022

  • Platform
    $670M+15.1%
  • Devices
    $91M-6.6%

Forward guidance

The company expects macro environment to further pressure consumer discretionary spend and degrade advertising budgets in Q4. Q4 outlook is for total net revenue of roughly $800 million, total gross profit of roughly $325 million, and adjusted EBITDA of negative $135 million.

Tailwinds

  • Significant scale
  • Direct relationship with tens of millions of consumers
  • Ad proposition that delivers measurable ROI to marketers
  • Exceptional user experience
  • Broad array of free entertainment through The Roku Channel

Headwinds

  • Macro environment to further pressure consumer discretionary spend
  • Degraded advertising budgets, especially in the TV scatter market
  • Expect Q4 Player revenue to be lower year over year
  • Expect Platform revenue to be lower year over year
  • It will take a few more quarters for YoY OpEx growth rate to normalize

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 2022

Historical avgQ3 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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