As a seasoned gamer with decades of experience under my belt, I can’t help but feel a tinge of nostalgia as we witness yet another giant in the streaming industry taking a significant step forward. Roku, a name synonymous with the evolution of our living rooms and gaming setups, has announced its decision to align with Netflix in ceasing quarterly updates on streaming households and average revenue per user, starting in 2025.
As a dedicated gamer, I’m excited to share that Roku smashed the predictions set by Wall Street in the third quarter! Here’s an interesting twist: Starting from Q1 2025, they’ve decided to halt the regular release of data concerning the number of streaming households and average revenue per user. So, get ready for a new gaming experience with Roku – it’s gonna be a thrilling ride!
Ever since our initial public offering in 2017, the streaming sector has undergone substantial development. Nowadays, Americans spend more of their TV time streaming rather than watching cable. In line with this transformation, our business too has expanded and adapted, with our main focus shifting towards expanding Platform revenue and improving profitability,” the company explained in its Q3 shareholder correspondence.
This moves follows in the footsteps of Netflix, which set the same timeline.
For the third quarter, Roku reported total net revenue of $1.062 billion, up 16 percent year-over-year, gross profit of $480 million and a net loss of 6 cents per share. Analysts had expected a loss of 32 cents per share and revenue of $1.02 billion.
Roku was expected to generate approximately $1 billion in revenue, a gross profit of around $440 million, and an adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $45 million.
In the latest quarter, the number of homes streaming content via Roku surged to 85.5 million, a jump of 2 million compared to the previous period. Additionally, streaming hours soared by 20% compared to the same time last year, totaling an impressive 32 billion hours.
The average revenue per user came in at $41.10, which is flat year-over-year. The flat ARPU numbers “reflects an increasing share of Streaming Households in international markets, where we are currently focused on scale and engagement,” the company said in its shareholder letter, with different countries in different stages of monetization.
Although a significant number of our Streaming Household expansion is happening in foreign territories, it’s important to note that most of our Platform earnings are still coming from the U.S. This means that an increase in Streaming Households doesn’t necessarily equate to growth in Platform revenue on a global scale. As we keep expanding internationally, we aim to boost Streaming Households across all regions, including the U.S. We will share updates on our progress as we hit key milestones, such as reaching 100 million Streaming Households, which we anticipate happening within the next 12-18 months.
During the third quarter, our platform’s income, derived from both advertising and streaming service distribution, reached $908 million, marking a 15% increase compared to the same period last year. It was noted that income from streaming service distribution, encompassing subscriptions, expanded at a faster rate than total platform income. This growth was mainly driven by price hikes for subscription-based services on our platform, as per the company’s statement.
More to come.
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2024-10-30 23:54