Roku, Inc. (ROKU): history, ownership, mission, how it works & makes money

Roku, Inc. (ROKU) Bundle

Get Full Bundle:

TOTAL:

Roku, Inc. (ROKU) Information


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

DCF model

Roku, Inc. (ROKU) DCF Excel Template

    5-Year Financial Model

    40+ Charts & Metrics

    DCF & Multiple Valuation

    Free Email Support