In this video, I will be going over Roku's (ROKU 8.48%) Q4 earnings report and call. The stock crashed 26% because of revenue miss for the quarter and weak Q1 guidance. Long-term investors might see this as a good opportunity rather than a catastrophe. You can find the video below, but here are some highlights.
- The company reported total net revenue of $865.3 million, growing 33% year over year (YOY), with platform revenue increasing 49% and player revenue decreasing 9%. The latter is the result of ongoing supply chain issues.
- For the fiscal year 2021, total net revenue grew 55% YOY to $2.76 billion. Platform revenue increased 80% YOY to $2.28 billion, and gross profit was up 74% YOY to $1.40 billion.
- Roku is the No. 1 TV streaming platform in the U.S., Canada, and Mexico by hours streamed.
- Roku's U.S. active account base has surpassed the U.S. video subscribers of all cable companies combined.
- Active accounts grew 17% YOY to 60.1 million, while average revenue per user (ARPU) grew 43% to $41.03.
- As for Q1 outlook, Roku expects total net revenue of $720 million, up 25% YOY. Total gross profit was roughly $360 million, and adjusted EBITDA was $55 million due to higher operating expenses (opex), which is expected to increase approximately 55% YOY. Headcount expense is the largest single line item on the company's opex.
The growth story for Roku and other streaming platform players is far from over. According to Nielsen, in Q4 adults aged 18-49 spent 45% of their TV time streaming, up from 40% in the prior year. Yet it is estimated that advertisers spent just 18% of their U.S. TV budgets on streaming in 2021.
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*Stock prices used were the closing prices of Feb. 17, 2022. The video was published on Feb. 18, 2022.