NASDAQ$ROKU

Roku Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Roku delivered strong results, achieving its first quarter with over $1 billion in total net revenue and growing Platform revenue year-over-year.

Roku's Q3 2024 results demonstrated strong financial performance, with total net revenue exceeding $1 billion for the first time. Platform revenue increased 15% year-over-year, and the company achieved its fifth consecutive quarter of positive Adjusted EBITDA and Free Cash Flow (TTM). Streaming Hours on The Roku Channel also saw significant growth, up 80% year-over-year.

  • Total net revenue reached $1.062 billion, a 16% increase year-over-year.
  • Platform revenue grew to $908 million, up 15% year-over-year.
  • Gross profit increased by 30% year-over-year to $480 million.
  • Streaming Hours were 32.0 billion, up 5.3 billion hours year-over-year.

Headline financials

Total Revenue

$1.06B

Previous: $912M+16.5%
EPS

-$0.06

Previous: -$2.33+97.4%
Streaming Hours

32.0B

Previous: 26.7B+19.9%
Capital Expenditures

-$2.6M

Previous: -$79.1M+96.7%
Free Cash Flow

-$11.6M

Previous: -$409M+97.2%
Net Income

-$9.03M

Previous: -$330M+97.3%
Operating Income

-$35.8M

Previous: -$350M+89.8%
Gross Profit

$480M

Previous: $369M+30.2%
R&D Expense

$179M

Previous: $282M-36.6%
Stock-Based Comp

$100M

Previous: $91.3M+9.6%

Revenue & EPS history

Roku · Revenue · Quarterly

$1.06B

Q3 2024+16.5%vs Q3 2023
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Roku · $912M total across 2 segments · Q3 2023

  • Platform
    $787M+17.4%
  • Devices
    $125M+37.7%

Forward guidance

The company estimates Q4 Total net revenue of $1.140 billion growing 16% YoY, with Platform revenue growing 14% YoY and Devices revenue growing 25% YoY. They estimate Q4 Total gross profit of $465 million and Adjusted EBITDA of $30 million.

Tailwinds

  • Monetization initiatives are expected to continue in Q4.
  • Early positive impacts from deeper integration with The Trade Desk.
  • Tailwinds from Political ad spend to continue in Q4.
  • Expects to grow Platform revenue in 2025 and beyond as they grow ad demand.
  • Expects to grow Platform revenue in 2025 and beyond as they lean into their Home Screen as the lead-in for TV.

Headwinds

  • Expect Sales and Marketing to be more seasonal this year than in the prior year.
  • Expect OpEx to be up 9% YoY in Q4.
  • M&E and Health & Wellness ad verticals were pressured.
  • Each country is at a different stage of monetization, and each has different economic characteristics.
  • ARPU of $41.10 (TTM) was relatively flat YoY.

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 2024

Historical avgQ3 2024

+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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