Roku (ROKU 3.90%), the pioneer in streaming platform technology, announced its Q1 2024 earnings on April 25, detailing a notable quarter. The company surpassed analysts' forecasts with a net loss of $0.35 per share, significantly smaller than the expected $0.61 loss. Overall, the net loss totaled $50.9 million compared to a loss of $193.6 million in the year-ago period.
Revenue beat estimates with $881.5 million against an expected $843.5 million, marking a 19% year-over-year increase. This performance signals a strong quarter for Roku amid a competitive streaming landscape.
| Metric | Q1 2024 Result | Analyst Estimate | Q1 2023 Result | Change (YOY) |
|---|---|---|---|---|
| Total net revenue (in millions) | $881.5 | $843.5 | $741.0 | 19% |
| Net loss (in millions) | ($50.9) | ($61.0) | ($193.6) | N/A |
| Net loss per share (adjusted) | ($0.35) | ($0.61) | ($1.38) | N/A |
| Streaming households (in millions) | 81.6 | N/A | 71.6 | 14% |
| Streaming hours (in billions) | 30.8 | N/A | 25.1 | 23% |
| Platform revenue (in millions) | $754.9 | N/A | $634.6 | 19% |
| Average revenue per user (trailing 12 months) | $40.65 | N/A | N/A | Flat |
The core of Roku's business
Roku is a leader in streaming, making it easy for users to access a wide array of streaming services through its devices and smart TV interfaces. At its core, Roku's business thrives on offering diverse content, growing its user base, and bringing in advertising and distribution revenue.
The company aims to grow its platform revenue through innovative advertising and content recommendations that bolster user engagement. Based on the growth in streaming households and streaming hours, its strategy appears to be working.
Quarterly highlights
Roku made strides in growing its platform revenue, which reached $755 million, up 19% year over year. This was coupled with a significant reduction in net losses even as average revenue per user (ARPU) held steady from a year ago. The growth in streaming households and hours underscores Roku's success at user engagement. While ARPU numbers stayed flat, the growth in streaming metrics and revenue were encouraging.
Looking forward
Looking ahead, management has set a cautiously optimistic tone for the second quarter with a revenue forecast of $935 million and an adjusted EBITDA of $30 million. These projections reflect a confidence in achieving further operational efficiency and market expansion, especially internationally.
Investors would do well to monitor Roku's user engagement metrics and platform revenue as key indicators of its market position and future potential.
