Roku Inc · Q3 2023 earnings

Briefing

Roku's Active Account net additions accelerated, surpassing 100 billion Streaming Hours on a trailing 12-month basis and achieving positive Adjusted EBITDA due to strong revenue growth and cost reductions.

Roku delivered a strong quarter with a 20% YoY increase in total net revenue, driven by content distribution, video advertising, and Roku-branded TV sales. Active Account net adds accelerated, and Streaming Hours surpassed 100 billion on a trailing 12-month basis. Cost reductions and measures to reduce OpEx growth contributed to positive Adjusted EBITDA.

• Total net revenue was $912 million, up 20% year over year.
• Platform revenue was $787 million, up 18% year over year.
• Active Accounts reached 75.8 million, with a net increase of 2.3 million from Q2 2023.
• Streaming Hours were 26.7 billion, up 4.9 billion hours year over year.

Headline financials

Revenue & EPS history

For Q4, Roku expects total net revenue of roughly $955 million, total gross profit of roughly $405 million, and Adjusted EBITDA of $10 million. The company remains committed to positive Adjusted EBITDA for the full year 2024, with continued improvements after that.