NASDAQ$ROKU

Roku Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Roku's Q4 2021 earnings demonstrated strong growth in revenue and active accounts, but profitability was impacted by supply chain disruptions and increased investments.

Roku's Q4 2021 results showed a 33% increase in total net revenue to $865.3 million, driven by a 49% increase in platform revenue. Active accounts reached 60.1 million, and streaming hours increased to 19.5 billion. However, income from operations decreased by 67% to $21.4 million, and adjusted EBITDA decreased by 24% to $86.7 million.

  • Total net revenue grew by 33% year-over-year to $865.3 million.
  • Platform revenue increased by 49% year-over-year to $703.6 million.
  • Active accounts reached 60.1 million, a 17% increase year-over-year.
  • Streaming hours increased by 15% year-over-year to 19.5 billion hours.

Headline financials

Total Revenue

$865M

Previous: $650M+33.2%
EPS (adj)

$0.17

Previous: $0.49-65.3%
Streaming Hours

19.5B

Previous: 17.0B+14.7%
Capital Expenditures

$12M

Previous: $6.37M+88.7%
Free Cash Flow

-$37.4M

Previous: $40.7M-192.1%
Net Income

$23.7M

Previous: $67.3M-64.8%
Operating Income

$21.4M

Previous: $65.2M-67.2%
Gross Profit

$380M

Previous: $305M+24.3%
Cash & Equivalents

$2.15B

Previous: $1.09B+96.4%
Total Assets

$4.08B

Previous: $2.27B+79.8%
Stock-Based Comp

$54.1M

Previous: $38.7M+39.6%

Revenue & EPS history

Roku · Revenue · Quarterly

$865M

Q4 2021+33.2%vs Q4 2020
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Roku · $865M total across 2 segments · Q4 2021

  • Platform
    $704M+49.3%
  • Devices
    $162M-9.5%

Forward guidance

Roku anticipates total net revenue of $720 million, total gross profit of roughly $360 million, and adjusted EBITDA of $55 million for Q1 2022.

Tailwinds

  • The global shift to TV streaming remains intact.
  • Account acquisition will remain a priority.
  • Platform gross margin of around 60% is expected as the business mix normalizes toward video advertising.
  • There remains an enormous opportunity to capture through competitive differentiators.
  • Continued aggressive investment in strategic initiatives to drive growth and enhance competitive differentiation.

Headwinds

  • Ongoing supply chain disruptions will continue to impact the global economy.
  • Overall TV unit sales are likely to remain below pre-COVID levels, which could affect active account growth.
  • Intention to continue to insulate customers from elevated costs in our player business will continue to cause negative player gross margins until conditions normalize.
  • Delayed ad spend in verticals most impacted by supply/demand imbalances may continue into 2022.
  • Q1 outlook anticipates seasonality with total net revenue of $720 million, up 25% year-over-year.

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 Q4 2021

Historical avgQ4 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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro