Roku, Inc. (ROKU) Bundle
A Brief History of Roku, Inc.
Roku, Inc., founded in 2002, is a leading streaming platform that pioneered the concept of streaming devices. The company went public in 2017 and has since become a major player in the digital streaming industry.
Financial Performance Overview
As of September 30, 2024, Roku reported significant financial metrics:
| Metric | 2024 Q3 | 2023 Q3 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Net Revenue | $1,062,203,000 | $912,018,000 | $150,185,000 | 16% |
| Net Loss | ($9,030,000) | ($330,071,000) | $321,041,000 | 97% |
| Gross Profit | $480,075,000 | $368,823,000 | $111,252,000 | 30% |
Revenue Segments
Roku's revenue is categorized into two primary segments: Platform and Devices. The breakdown for Q3 2024 is as follows:
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | Change ($) | Change (%) |
|---|---|---|---|---|
| Platform | $908,175,000 | $786,785,000 | $121,390,000 | 15% |
| Devices | $154,028,000 | $125,233,000 | $28,795,000 | 23% |
Operating Expenses
Roku's operating expenses have seen a significant reduction, with total operating expenses amounting to:
| Expense Type | 2024 Q3 | 2023 Q3 | Change ($) | Change (%) |
|---|---|---|---|---|
| Research and Development | $178,798,000 | $282,201,000 | ($103,403,000) | (37)% |
| Sales and Marketing | $237,047,000 | $307,694,000 | ($70,647,000) | (23)% |
| General and Administrative | $99,993,000 | $128,717,000 | ($28,724,000) | (22)% |
| Total Operating Expenses | $515,838,000 | $718,612,000 | ($202,774,000) | (28)% |
Streaming Metrics
As of September 30, 2024, Roku reported:
- Streaming Households: 85.5 million (an increase of 13% from 75.8 million in 2023)
- Streaming Hours: 32.0 billion hours streamed (up 20% from 26.7 billion hours in 2023)
- Average Revenue Per User (ARPU): $41.10, compared to $41.03 in 2023
Cash Flow and Balance Sheet Highlights
For the nine months ended September 30, 2024, Roku's cash flow metrics included:
| Metric | 2024 | 2023 |
|---|---|---|
| Net Loss | ($93,838,000) | ($631,270,000) |
| Cash Flows from Operating Activities | $138,753,000 | $239,529,000 |
| Total Assets | $4,018,705,000 | $3,654,689,000 |
| Total Liabilities | $1,558,195,000 | $1,490,151,000 |
| Total Stockholders' Equity | $2,460,510,000 | $2,164,538,000 |
Stockholder Information
As of September 30, 2024, Roku's stockholder equity is reported as follows:
| Category | Amount |
|---|---|
| Common Stock | $15 |
| Additional Paid-in Capital | $3,851,967,000 |
| Accumulated Deficit | ($1,391,425,000) |
| Total Stockholders' Equity | $2,460,510,000 |
Roku continues to adapt and innovate within the competitive streaming landscape, leveraging its platform to enhance user engagement and drive revenue growth.
A Who Owns Roku, Inc. (ROKU)
Ownership Structure
As of September 30, 2024, Roku, Inc. (ROKU) has a total of 145.2 million shares of common stock outstanding, distributed between Class A and Class B shares. The breakdown of ownership is as follows:
| Shareholder Type | Shares Owned | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | Approximately 70 million | 48.2% |
| Insider Ownership | Approximately 15 million | 10.3% |
| Public Float | Approximately 60 million | 41.5% |
Major Institutional Shareholders
The following table highlights the major institutional shareholders of Roku, Inc. as of the end of Q3 2024:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 10.5 million | 7.2% |
| BlackRock, Inc. | 9.8 million | 6.8% |
| State Street Corporation | 8.0 million | 5.5% |
| Invesco Ltd. | 5.2 million | 3.6% |
| Fidelity Investments | 4.6 million | 3.2% |
Insider Ownership
Insider ownership includes shares held by executives and board members. The table below provides details on key insiders:
| Name | Position | Shares Owned |
|---|---|---|
| Anthony Wood | CEO | 3.2 million |
| Alfred C. Lin | Chairman | 2.5 million |
| Gina Bianchini | Board Member | 1.0 million |
| Other Executives | Various | 8.3 million |
Recent Stock Performance
As of September 30, 2024, Roku, Inc. stock (ROKU) traded at $32.00 per share, reflecting a market capitalization of approximately $4.6 billion. The stock has seen a year-to-date increase of approximately 25%.
Market Trends
Roku has reported substantial growth in user engagement, with 85.5 million streaming households as of September 30, 2024, up from 75.8 million in the same period of the previous year, marking a 13% increase. Streaming hours also increased by 20%, reaching 32 billion hours.
Financial Overview
For the three months ended September 30, 2024, Roku reported total net revenue of $1.062 billion, up from $912 million in Q3 2023, representing a 16% year-over-year increase. The breakdown of the revenue is:
| Revenue Source | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) |
|---|---|---|
| Platform Revenue | 908.2 | 786.8 |
| Devices Revenue | 154.0 | 125.2 |
Accumulated Deficit
As of September 30, 2024, Roku reported an accumulated deficit of $1.391 billion, reflecting ongoing investments in growth and expansion strategies.
Conclusion on Ownership Dynamics
Roku's ownership structure is characterized by a significant institutional presence, substantial insider ownership, and a public float that contributes to the overall liquidity of the stock. The continued growth in streaming households and hours streamed indicates a positive outlook for revenue generation, further influencing ownership dynamics in the company.
Roku, Inc. (ROKU) Mission Statement
Mission Statement
Roku, Inc. aims to "be the TV streaming platform that connects users with the content they love." The company focuses on enhancing the streaming experience through its innovative technology and user-friendly interface, providing both consumers and advertisers with a seamless platform for engagement.
Financial Overview
As of September 30, 2024, Roku reported significant financial metrics that reflect its operational performance:
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Net Revenue | $1,062,203,000 | $912,018,000 | $150,185,000 | 16% |
| Platform Revenue | $908,175,000 | $786,785,000 | $121,390,000 | 15% |
| Devices Revenue | $154,028,000 | $125,233,000 | $28,795,000 | 23% |
| Total Gross Profit | $480,075,000 | $368,823,000 | $111,252,000 | 30% |
| Net Loss | $(9,030,000) | $(330,071,000) | $321,041,000 | 97% |
Key Performance Indicators
Roku's mission aligns with its performance metrics, which are critical for evaluating operational success:
- Streaming Households: 85.5 million as of September 30, 2024, up from 75.8 million in 2023, reflecting a 13% increase.
- Streaming Hours: 32.0 billion hours streamed in Q3 2024, compared to 26.7 billion hours in Q3 2023, a 20% increase.
- Average Revenue Per User (ARPU): $41.10 in Q3 2024, slightly up from $41.03 in Q3 2023.
- Free Cash Flow: $157.3 million for the trailing twelve months ending September 30, 2024.
Cost Structure
Roku's cost structure is essential for understanding its operational efficiency:
| Cost Type | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Cost of Revenue | $582,128,000 | $543,195,000 | $38,933,000 | 7% |
| Platform Cost of Revenue | $416,396,000 | $408,554,000 | $7,842,000 | 2% |
| Devices Cost of Revenue | $165,732,000 | $134,641,000 | $31,091,000 | 23% |
| Total Operating Expenses | $515,838,000 | $718,612,000 | $(202,774,000) | (28%) |
Equity and Financial Position
Roku’s equity situation as of September 30, 2024, is as follows:
| Equity Component | Amount (in thousands) |
|---|---|
| Common Stock | $15 |
| Additional Paid-in Capital | $3,851,967 |
| Accumulated Other Comprehensive Income (Loss) | $(47) |
| Accumulated Deficit | $(1,391,425) |
| Total Stockholders’ Equity | $2,460,510 |
Conclusion
Roku, Inc. continues to align its mission with its financial and operational performance, fostering growth in streaming households and hours while managing costs effectively.
How Roku, Inc. (ROKU) Works
Business Model Overview
Roku, Inc. operates primarily through two segments: Platform and Devices. The Platform segment generates revenue from digital advertising and streaming services distribution, while the Devices segment derives revenue from the sale of streaming players, Roku-branded TVs, and related accessories.
Financial Performance
As of September 30, 2024, Roku reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Net Revenue | $1,062,203,000 | $912,018,000 | $150,185,000 | 16% |
| Platform Revenue | $908,175,000 | $786,785,000 | $121,390,000 | 15% |
| Devices Revenue | $154,028,000 | $125,233,000 | $28,795,000 | 23% |
| Net Loss | $(9,030,000) | $(330,071,000) | $321,041,000 | 97% |
| Net Loss per Share | $(0.06) | $(2.33) | $2.27 | 97% |
Revenue Breakdown
The revenue for the three months ended September 30, 2024, is categorized as follows:
| Segment | Revenue Amount | Percentage of Total Revenue |
|---|---|---|
| Platform | $908,175,000 | 85% |
| Devices | $154,028,000 | 15% |
Cost of Revenue
Roku's cost of revenue for Q3 2024 was structured as follows:
| Cost Category | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Platform | $416,396,000 | $408,554,000 | $7,842,000 | 2% |
| Devices | $165,732,000 | $134,641,000 | $31,091,000 | 23% |
| Total Cost of Revenue | $582,128,000 | $543,195,000 | $38,933,000 | 7% |
Operating Expenses
Operating expenses for the three months ended September 30, 2024, included:
| Expense Category | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Research and Development | $178,798,000 | $282,201,000 | $(103,403,000) | (37%) |
| Sales and Marketing | $237,047,000 | $307,694,000 | $(70,647,000) | (23%) |
| General and Administrative | $99,993,000 | $128,717,000 | $(28,724,000) | (22%) |
| Total Operating Expenses | $515,838,000 | $718,612,000 | $(202,774,000) | (28%) |
Cash Flow Analysis
Cash flows for the nine months ended September 30, 2024, were as follows:
| Cash Flow Category | Amount |
|---|---|
| Cash Flows from Operating Activities | $138,753,000 |
| Cash Flows used in Investing Activities | $(22,603,000) |
| Cash Flows used in Financing Activities | $(56,732,000) |
Key Performance Metrics
As of September 30, 2024, Roku reported:
- Streaming Households: 85.5 million
- Streaming Hours: 32.0 billion
- Average Revenue per User (ARPU): $41.10
Accumulated Deficit
As of September 30, 2024, Roku had an accumulated deficit of:
| Accumulated Deficit | Amount |
|---|---|
| Accumulated Deficit | $(1,391,425,000) |
Long-term Assets
Long-lived assets as of September 30, 2024, were as follows:
| Geographic Area | Long-lived Assets (in thousands) |
|---|---|
| United States | $416,734 |
| United Kingdom | $93,984 |
| Other Countries | $26,607 |
| Total | $537,325 |
How Roku, Inc. (ROKU) Makes Money
Revenue Model Overview
Roku, Inc. operates under two primary segments: Platform and Devices. These segments contribute to the company's revenue through various channels.
Platform Revenue
Platform revenue is derived from:
- Digital advertising (including direct and programmatic video advertising)
- Streaming services distribution (subscription and transaction revenue shares)
- Sales of Premium Subscriptions through The Roku Channel
For the three months ended September 30, 2024, platform revenue was $908.2 million, representing a 15% increase from $786.8 million during the same period in 2023. For the nine months ended September 30, 2024, platform revenue reached $2.49 billion, up from $2.17 billion, marking a 15% increase year-over-year.
Devices Revenue
Devices revenue is generated from:
- Sales of streaming players
- Roku-branded TVs
- Smart home products and services
- Audio products and related accessories
During the three months ended September 30, 2024, devices revenue was $154.0 million, a 23% increase from $125.2 million the previous year. For the nine months ended September 30, 2024, devices revenue totaled $424.4 million, compared to $335.0 million in the same period of 2023, reflecting a 27% increase.
| Revenue Breakdown | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Platform Revenue | $908.2 million | $786.8 million | $2.49 billion | $2.17 billion |
| Devices Revenue | $154.0 million | $125.2 million | $424.4 million | $335.0 million |
| Total Revenue | $1.06 billion | $912.0 million | $2.91 billion | $2.50 billion |
Cost of Revenue
The cost of revenue associated with the platform segment for the three months ended September 30, 2024, was $416.4 million, a 2% increase from $408.6 million in the same period of 2023. The total cost of revenue for the platform for the nine months ended September 30, 2024, was $1.16 billion, up 10% from $1.06 billion a year earlier.
For devices, the cost of revenue was $165.7 million for the three months ended September 30, 2024, representing a 23% increase from $134.6 million in 2023. For the nine months, this cost was $457.4 million, compared to $358.4 million, marking a 28% increase.
| Cost of Revenue Breakdown | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Platform Cost of Revenue | $416.4 million | $408.6 million | $1.16 billion | $1.06 billion |
| Devices Cost of Revenue | $165.7 million | $134.6 million | $457.4 million | $358.4 million |
Operating Expenses
For the three months ended September 30, 2024, total operating expenses were $515.8 million, down from $718.6 million in the same period of 2023. For the nine months ended September 30, 2024, total operating expenses were $1.47 billion, down from $1.77 billion year-over-year.
| Operating Expenses Breakdown | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Research and Development | $178.8 million | $282.2 million | $534.7 million | $694.7 million |
| Sales and Marketing | $237.0 million | $307.7 million | $660.8 million | $768.8 million |
| General and Administrative | $100.0 million | $128.7 million | $276.5 million | $309.4 million |
| Total Operating Expenses | $515.8 million | $718.6 million | $1.47 billion | $1.77 billion |
Net Loss
Roku reported a net loss of $9.0 million for the three months ended September 30, 2024, compared to a net loss of $330.1 million in the same period in 2023. For the nine months ended September 30, 2024, the net loss was $93.8 million compared to $631.3 million in the previous year.
| Net Loss Overview | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Net Loss | $9.0 million | $330.1 million | $93.8 million | $631.3 million |
Key Performance Metrics
As of September 30, 2024, Roku had:
- 85.5 million Streaming Households, up from 75.8 million in 2023
- 32.0 billion Streaming Hours, compared to 26.7 billion hours in 2023, a 20% increase
- Average Revenue Per User (ARPU) was $41.10, slightly up from $41.03 in the prior year
Free Cash Flow for the trailing twelve months ended September 30, 2024, was $157.3 million, compared to $100.8 million for the same period in 2023.
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Article updated on 8 Nov 2024
Resources:
- Roku, Inc. (ROKU) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Roku, Inc. (ROKU)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Roku, Inc. (ROKU)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.