NASDAQ$ROKU

Roku Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Roku reported strong Q4 2024 results with record platform revenue and improved profitability.

Roku delivered a strong Q4 2024, surpassing $1 billion in platform revenue for the first time (+25% YoY). Total revenue grew 22% YoY to $1.20 billion, while net loss narrowed to $35.55 million from $78.29 million a year ago. Adjusted EBITDA increased 62% YoY to $77.50 million, driven by platform growth and ad demand. The company expects continued revenue growth in 2025, with a long-term goal of achieving positive operating income in 2026.

  • Platform revenue exceeded $1 billion for the first time, growing 25% YoY.
  • Total revenue increased 22% YoY, driven by strong ad demand and higher engagement.
  • Net loss reduced by 54.6% YoY, showing improved operational efficiency.
  • Adjusted EBITDA grew 62% YoY, reflecting strong monetization efforts.

Headline financials

Total Revenue

$1.2B

Previous: $984M+22.0%
EPS (adj)

-$0.24

Previous: -$0.55+56.4%
Free Cash Flow

$203M

No prior period
Net Income

-$35.5M

Previous: -$78.3M+54.6%
Operating Income

-$39.1M

Previous: -$104M+62.4%
Gross Profit

$513M

Previous: $438M+17.0%

Revenue & EPS history

Roku · Revenue · Quarterly

$1.2B

Q4 2024+22%vs Q4 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

Roku expects continued revenue growth in 2025, driven by platform expansion and ad monetization. The company remains focused on cost control and aims for positive operating income by 2026.

Tailwinds

  • Total revenue expected to reach $4.61 billion in FY25 (+12% YoY).
  • Platform revenue forecasted to grow 12% YoY, with 15% growth excluding political ads.
  • Adjusted EBITDA expected to reach $350 million in FY25, up from $260 million in FY24.
  • Focus on ad integrations and subscription growth to drive long-term profitability.
  • Continued expansion of Roku-branded TVs into new retail channels.

Headwinds

  • Device revenue expected to remain flat in Q1 2025 due to excess inventory.
  • Gross margin expected to be slightly lower in FY25 (52%-53%) due to revenue mix shift.
  • Mid-single-digit growth in operating expenses could pressure profitability.
  • Ongoing investment in platform growth may delay immediate margin expansion.
  • Uncertainty in ad market could impact short-term revenue trends.

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 2024

Historical avgQ4 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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