NASDAQ$ROKU

Roku Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Roku's Q4 2023 earnings showcased strong growth in active accounts and streaming hours, with platform revenue up double digits YoY. The company achieved positive Adjusted EBITDA and Free Cash Flow for the full year, ahead of schedule, and is focusing on innovation and growth in 2024.

Roku's Q4 2023 results demonstrated solid growth, with active accounts reaching 80 million and streaming hours exceeding 100 billion for the year. Platform revenue increased by 13% YoY in Q4, driving overall revenue growth. The company is prioritizing innovation and growth in 2024, leveraging its platform advantages to enhance viewer experience and monetization.

  • Active Accounts reached 80 million globally, with Q4 net adds of 4.2 million.
  • Streaming Hours hit a record 29.1 billion in Q4, and 106 billion for the full year.
  • Platform revenue grew by 13% YoY in Q4, driven by streaming services distribution and video advertising.
  • Roku is focusing on innovation and growth in 2024, with emphasis on enhancing viewer experience and monetization.

Headline financials

Total Revenue

$984M

Previous: $867M+13.5%
EPS (adj)

-$0.55

Previous: -$1.70+67.6%
Streaming Hours

29.1B

Previous: 23.9B+21.8%
Capital Expenditures

-$3.52M

Previous: $65.4M-105.4%
Net Income

-$78.3M

Previous: -$237M+67.0%
Operating Income

-$104M

Previous: -$250M+58.3%
Gross Profit

$438M

Previous: $364M+20.2%
R&D Expense

$184M

No prior period
Stock-Based Comp

$92.8M

Previous: $104M-11.0%

Revenue & EPS history

Roku · Revenue · Quarterly

$984M

Q4 2023+13.5%vs Q4 2022
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

Roku anticipates Total net revenue of $850 million and total gross profit of roughly $370 million for Q1 2024, with break-even Adjusted EBITDA. The company expects to deliver positive Adjusted EBITDA for full year 2024.

Tailwinds

  • Expects to maintain Q4 2023 YoY Platform growth rates in Q1 2024.

Headwinds

  • Faces difficult YoY growth rate comparisons in streaming services distribution.
  • Navigating a challenging M&E environment for the rest of the year.
  • Mindful of near-term challenges in the macro environment.
  • Uneven ad market recovery.

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 2023

Historical avgQ4 2023

+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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