Roku Inc (NAS:ROKU)
$ 69.67 2.49 (3.71%) Market Cap: 10.12 Bil Enterprise Value: 8.24 Bil PE Ratio: 0 PB Ratio: 4.11 GF Score: 84/100
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Q2 2024 Roku Inc Earnings Call Transcript

Aug 01, 2024 / 09:00PM GMT
Release Date Price: $55.33 (-4.95%)

Key Points

Positve
  • Roku Inc (ROKU) reported a 14% year-over-year increase in streaming households, reaching 83.6 million.
  • Streaming hours grew by 20% year-over-year, indicating strong user engagement.
  • Platform revenue increased by 11% year-over-year, driven by both streaming services distribution and advertising activities.
  • Roku Inc (ROKU) achieved its fourth consecutive quarter of positive adjusted EBITDA and generated positive free cash flow.
  • The company expanded its retail distribution for Roku-branded TVs, contributing to a 39% year-over-year increase in devices revenue.
Negative
  • Platform gross margin remained relatively flat year-over-year, while devices gross margin was negative 11%, indicating challenges in the devices segment.
  • The Media and Entertainment (M&E) vertical continues to face challenges, impacting overall platform revenue growth.
  • Despite the growth in streaming households and hours, the Average Revenue Per User (ARPU) remained flat year-over-year at $4.68.
  • The company anticipates a challenging year-over-year growth rate comparison within streaming services distribution for Q3.
  • Roku Inc (ROKU) expects device margins to remain in the negative low double digits for the next several quarters due to the ramp-up of Roku-branded TVs.
Operator

Ladies and gentlemen, thank you for standing by. Welcome to the second-quarter 2024 Roku earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.

I would like now to turn the conference over to Conrad Grodd, Vice President of Investor Relations. Please go ahead.

Conrad Grodd
Roku Inc - Vice President, Investor Relations

Welcome to Roku's second-quarter 2024 earnings call. On today's call are Anthony Wood, Roku's Founder and CEO; Dan Jedda, our CFO; and Charlie Collier, President, Roku Media.

Our full results and additional management commentary are available in our shareholder letter on our IR website at roku.com/investor. On this call, we'll make forward-looking statements, which are subject to risks and uncertainties. Please refer to our shareholder letter and periodic SEC filings for risk factors that could cause our results to differ materially from these forward-looking statements.

We'll also present GAAP and non-GAAP financial measures. Reconciliations of non-GAAP

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