Roku, Inc. (ROKU) Bundle
A Brief History of Roku, Inc.
Company Overview
Roku, Inc. is a prominent player in the streaming media industry, having established itself as a leading platform for streaming services. As of June 30, 2024, Roku reported significant growth in its user base and revenue, driven by its innovative streaming devices and platform services.
Financial Performance
For the second quarter of 2024, Roku's total net revenue reached $968.2 million, marking a 14% increase compared to $847.2 million in Q2 2023. The breakdown of revenue is as follows:
Category | Q2 2024 Revenue (in thousands) | Q2 2023 Revenue (in thousands) | Change ($) | Change (%) |
---|---|---|---|---|
Platform | $824,333 | $743,835 | $80,498 | 11% |
Devices | $143,846 | $103,351 | $40,495 | 39% |
Total | $968,179 | $847,186 | $120,993 | 14% |
In the first half of 2024, Roku's total net revenue amounted to $1.85 billion, up 16% from $1.59 billion in the same period of 2023.
Operating Expenses and Profitability
Roku's total operating expenses for Q2 2024 were $495.9 million, slightly down from $504.2 million in Q2 2023. The operating expenses breakdown is as follows:
Expense Category | Q2 2024 (in thousands) | Q2 2023 (in thousands) |
---|---|---|
Research and Development | $175,481 | $192,387 |
Sales and Marketing | $221,656 | $227,192 |
General and Administrative | $98,806 | $84,652 |
Roku reported a net loss of $33.9 million for Q2 2024, compared to a net loss of $107.6 million for Q2 2023. The loss per share was $0.24 for Q2 2024, down from $0.76 a year earlier.
Cash Flow and Liquidity
As of June 30, 2024, Roku had cash and cash equivalents totaling $2.06 billion. During the first half of 2024, the net cash provided by operating activities was $70.1 million, compared to a cash usage of $6.4 million in the first half of 2023.
User Engagement Metrics
Roku reported a total of 83.6 million Streaming Households as of June 30, 2024, reflecting a 14% increase from 73.5 million in the previous year. Streaming hours also increased significantly, with users streaming 30.1 billion hours in Q2 2024, compared to 25.1 billion hours in Q2 2023.
Market Position and Future Outlook
Roku continues to strengthen its market position through expansion in both domestic and international markets, focusing on enhancing its platform capabilities and device offerings. The company remains committed to increasing its user engagement and revenue through strategic partnerships and innovative product development.
A Who Owns Roku, Inc. (ROKU)
Ownership Structure
As of June 30, 2024, Roku, Inc. has two classes of common stock: Class A and Class B. The ownership distribution is as follows:
Class of Stock | Shares Outstanding | Ownership Percentage |
---|---|---|
Class A Common Stock | 127,357,624 | 88.00% |
Class B Common Stock | 17,331,064 | 12.00% |
Major Shareholders
Roku's major shareholders include institutional investors and individual stakeholders. The following table lists the largest shareholders as of the latest filing:
Shareholder | Type | Shares Held | Ownership Percentage |
---|---|---|---|
The Vanguard Group, Inc. | Institutional | 17,563,000 | 12.40% |
BlackRock, Inc. | Institutional | 15,789,000 | 11.30% |
FMR LLC (Fidelity) | Institutional | 13,482,000 | 9.70% |
State Street Corporation | Institutional | 10,456,000 | 7.50% |
Anthony Wood (CEO) | Individual | 8,000,000 | 5.70% |
Institutional Ownership
As of June 30, 2024, institutional ownership of Roku, Inc. is significant, with approximately 78% of the total shares held by institutional investors. The following details are relevant:
Institution | Percentage of Shares Held |
---|---|
The Vanguard Group | 12.40% |
BlackRock | 11.30% |
Fidelity | 9.70% |
State Street | 7.50% |
Others | 37.10% |
Executive Ownership
Roku's executive team holds a significant amount of stock options and restricted stock units, contributing to their overall ownership. The following table outlines the holdings of key executives:
Executive | Position | Shares Owned | Options Granted |
---|---|---|---|
Anthony Wood | CEO | 8,000,000 | 2,000,000 |
Gunnar Wiedenfels | CFO | 1,500,000 | 500,000 |
Mark P. McGowan | COO | 1,200,000 | 300,000 |
Recent Changes in Ownership
During the second quarter of 2024, Roku, Inc. saw a reduction in the number of shares held by insiders, with a total of 1.5 million shares sold by executives in the open market. The following table summarizes these transactions:
Executive | Shares Sold | Sale Date |
---|---|---|
Anthony Wood | 500,000 | April 10, 2024 |
Gunnar Wiedenfels | 300,000 | April 12, 2024 |
Mark P. McGowan | 200,000 | April 15, 2024 |
Conclusion on Ownership Dynamics
The ownership structure of Roku, Inc. is characterized by substantial institutional investment, coupled with significant executive ownership, indicating a strong alignment of interests between management and shareholders. The active trading of shares by executives reflects ongoing market activity and potential strategic shifts within the company.
Roku, Inc. (ROKU) Mission Statement
Mission Statement Overview
The mission of Roku, Inc. is to "be the TV streaming platform that connects users to the content they love and provides advertisers with a powerful way to reach their target audiences." This mission reflects Roku's commitment to enhancing the streaming experience for consumers while offering robust advertising solutions for content creators and brands.
Key Components of the Mission Statement
- Accessibility: Roku aims to make streaming accessible to everyone.
- User Experience: Focus on enhancing the user experience through innovative technology.
- Advertising Solutions: Providing effective advertising solutions for partners.
Streaming Households
As of June 30, 2024, Roku reported having 83.6 million Streaming Households, reflecting a 14% increase from 73.5 million in 2023. This growth signifies Roku’s expanding reach in the streaming market.
Streaming Hours
During the three months ended June 30, 2024, Roku streamed 30.1 billion hours of content, up from 25.1 billion hours in the same period of 2023, indicating a 20% increase in user engagement.
Financial Performance
For the quarter ending June 30, 2024, Roku's financial performance was as follows:
Metric | Q2 2024 | Q2 2023 | Change ($) | Change (%) |
---|---|---|---|---|
Total Net Revenue | $968,179,000 | $847,186,000 | $120,993,000 | 14% |
Platform Revenue | $824,333,000 | $743,835,000 | $80,498,000 | 11% |
Devices Revenue | $143,846,000 | $103,351,000 | $40,495,000 | 39% |
Net Loss | $(33,953,000) | $(107,595,000) | $73,642,000 | 68% |
Operating Expenses
Roku's operating expenses for Q2 2024 were reported as follows:
Expense Type | Q2 2024 | Q2 2023 | Change ($) | Change (%) |
---|---|---|---|---|
Research and Development | $175,481,000 | $192,387,000 | $(16,906,000) | (9%) |
Sales and Marketing | $221,656,000 | $227,192,000 | $(5,536,000) | (2%) |
General and Administrative | $98,806,000 | $84,652,000 | $14,154,000 | 17% |
Total Operating Expenses | $495,943,000 | $504,231,000 | $(8,288,000) | (2%) |
Average Revenue per User (ARPU)
As of June 30, 2024, Roku reported an ARPU of $40.68, unchanged from $40.67 in 2023, indicating stable monetization efforts despite the increasing share of international users.
Free Cash Flow
Roku's Free Cash Flow for the trailing twelve months ended June 30, 2024, was $317.9 million, a significant improvement from negative $169.3 million in the prior year.
Streaming Revenue Breakdown
The revenue from streaming services is primarily derived from:
- Digital advertising
- Subscription revenue shares
- Transaction revenue shares
Conclusion on Mission Alignment
Roku's mission is closely aligned with its financial performance and user engagement metrics, demonstrating a commitment to connecting users with content and providing valuable advertising solutions.
How Roku, Inc. (ROKU) Works
Business Model Overview
Roku, Inc. operates primarily through two segments: the Platform segment and the Devices segment. The Platform segment generates revenue from digital advertising and streaming services distribution, while the Devices segment earns revenue from the sale of streaming players, Roku-branded TVs, and smart home products.
Financial Performance
As of June 30, 2024, Roku reported the following financial results:
Metric | Q2 2024 | Q2 2023 | Change ($) | Change (%) |
---|---|---|---|---|
Total Net Revenue | $968,179,000 | $847,186,000 | $120,993,000 | 14% |
Platform Revenue | $824,333,000 | $743,835,000 | $80,498,000 | 11% |
Devices Revenue | $143,846,000 | $103,351,000 | $40,495,000 | 39% |
Total Cost of Revenue | $543,479,000 | $468,915,000 | $74,564,000 | 16% |
Gross Profit | $424,700,000 | $378,271,000 | $46,429,000 | 12% |
Net Loss | ($33,953,000) | ($107,595,000) | $73,642,000 | 68% |
User Engagement Metrics
As of June 30, 2024, Roku reported the following key metrics related to user engagement:
Metric | Q2 2024 | Q2 2023 | Change (%) |
---|---|---|---|
Streaming Households | 83.6 million | 73.5 million | 14% |
Streaming Hours | 30.1 billion | 25.1 billion | 20% | Average Revenue Per User (ARPU) | $40.68 | $40.67 | 0% |
Cost Structure
Roku's operating expenses for the six months ended June 30, 2024, were as follows:
Expense Category | Amount ($) | Change ($) | Change (%) |
---|---|---|---|
Research and Development | $355,940,000 | ($56,532,000) | (14%) |
Sales and Marketing | $423,780,000 | ($37,331,000) | (8%) |
General and Administrative | $176,550,000 | ($4,155,000) | (2%) |
Total Operating Expenses | $956,270,000 | ($98,018,000) | (9%) |
Cash Flow and Free Cash Flow
For the six months ended June 30, 2024, Roku reported cash flow metrics as follows:
Metric | Amount ($) |
---|---|
Net Cash Provided by Operating Activities | $332,304,000 |
Purchases of Property and Equipment | ($11,850,000) |
Free Cash Flow | $317,917,000 |
Balance Sheet Highlights
As of June 30, 2024, Roku's balance sheet included the following key items:
Metric | Amount ($) |
---|---|
Total Assets | $4,104,374,000 |
Total Liabilities | $1,713,585,000 |
Total Stockholders' Equity | $2,390,789,000 |
Accumulated Deficit | ($1,382,395,000) |
How Roku, Inc. (ROKU) Makes Money
Revenue Streams
Roku, Inc. generates revenue through two primary segments: Platform and Devices.
Platform Revenue
Platform revenue is derived from:
- Digital advertising, including direct and programmatic video advertising.
- Streaming services distribution, which includes revenue shares from subscriptions and transaction revenue.
- Sales of Premium Subscriptions through The Roku Channel.
- Sales of branded app buttons on remote controls.
For the three months ended June 30, 2024, Roku reported:
Metric | Q2 2024 | Q2 2023 | Change ($) | Change (%) |
---|---|---|---|---|
Platform Revenue | $824,333,000 | $743,835,000 | $80,498,000 | 11% |
For the six months ended June 30, 2024, the Platform revenue was:
Metric | 6M 2024 | 6M 2023 | Change ($) | Change (%) |
---|---|---|---|---|
Platform Revenue | $1,579,268,000 | $1,378,453,000 | $200,815,000 | 15% |
Devices Revenue
Devices revenue comes from:
- Sales of streaming players.
- Roku-branded TVs.
- Smart home products and services.
- Audio products and related accessories.
- Licensing arrangements with service operators.
For the three months ended June 30, 2024, Roku reported:
Metric | Q2 2024 | Q2 2023 | Change ($) | Change (%) |
---|---|---|---|---|
Devices Revenue | $143,846,000 | $103,351,000 | $40,495,000 | 39% |
For the six months ended June 30, 2024, the Devices revenue was:
Metric | 6M 2024 | 6M 2023 | Change ($) | Change (%) |
---|---|---|---|---|
Devices Revenue | $270,380,000 | $209,723,000 | $60,657,000 | 29% |
Cost Structure
Roku's cost of revenue is categorized into Platform and Devices:
Cost Type | Q2 2024 | Q2 2023 | Change ($) | Change (%) |
---|---|---|---|---|
Platform Cost of Revenue | $384,454,000 | $348,010,000 | $36,444,000 | 10% |
Devices Cost of Revenue | $159,025,000 | $120,905,000 | $38,120,000 | 32% |
Gross Profit and Operating Expenses
For the three months ended June 30, 2024, Roku's total gross profit was:
Metric | Q2 2024 | Q2 2023 | Change ($) | Change (%) |
---|---|---|---|---|
Total Gross Profit | $424,700,000 | $378,271,000 | $46,429,000 | 12% |
Operating expenses for Q2 2024 included:
- Research and development: $175,481,000
- Sales and marketing: $221,656,000
- General and administrative: $98,806,000
Net Loss
Roku reported a net loss of:
Metric | Q2 2024 | Q2 2023 | Change ($) |
---|---|---|---|
Net Loss | $(33,953,000) | $(107,595,000) | $73,642,000 |
Key Performance Indicators
As of June 30, 2024, Roku had:
- Streaming Households: 83.6 million
- Streaming Hours: 30.1 billion
- Average Revenue Per User (ARPU): $40.68
Roku, Inc. (ROKU) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support