In this video, I will be going over Roku's (ROKU +0.23%) third-quarter earnings and explain what went wrong and right in this quarter. You can find the video below but here are some of the highlights.
Earnings summary
The company reported total net revenue of $680 million, growing 51% year over year (YOY), with platform revenue increasing 82% and player revenue decreasing 26%. The latter is a result of ongoing supply chain issues.
- Gross profit was up 69% YOY to $364 million.
- Active accounts reached 56.4 million, a net increase of 1.3 million active accounts from Q2 2021. The slowdown in growth is due to the negative impact that global supply chain issues are having on U.S. TV sales.
- Streaming hours were 18 billion hours, an increase of 0.7 billion hours from Q2 2021.
- Average revenue per user grew to $40.10, which is up 49% YOY.
The main reason the stock is down is because of weak guidance for Q4, which is the holiday quarter and usually very strong.
- Total net revenue to come in at a midpoint of $892.5 million, representing a 37% growth YOY.
- Total gross profit of $385 million, representing a 37% growth YOY.
- Adjusted EBITDA of $70 million.
For the full insights, please watch the video below and consider subscribing.
*Stock prices used were the closing prices of Nov. 3, 2021. The video was published on Nov. 4, 2021.
