Roku Q2 revenue up 14%; adopts UID2
August 2, 2024
Roku, the streaming specialist, has reported its Q2 results with total net revenue at $968 million (€895.4m), up 14 per cent year over year.
In a letter to shareholders, the company said: “We delivered solid results in Q2. Roku grew Streaming Households 14 per cent YoY, Streaming Hours 20 per cent YoY, and Platform revenue 11 per cent YoY. The Roku Home Screen, which is the beginning of our viewers’ streaming experience, reaches US households with over 120 million people every day. We achieved our fourth consecutive quarter of positive Adjusted EBITDA and Free Cash Flow (TTM) as a result of top-line growth and ongoing operational efficiencies. Importantly, Roku is executing well against initiatives to accelerate Platform revenue growth, which include maximizing ad demand for Roku, leveraging our Home Screen as the lead-in for TV, and growing Roku-billed subscriptions”.
Other Q2 2024 Key Results
• Platform revenue was $824 million, up 11 per cent YoY
• Gross profit was $425 million, up 12 per cent YoY
• Streaming Households were 83.6 million, a net increase of 2 million from Q1 2024
• Streaming Hours were 30.1 billion, up 5 billion hours YoY
• Average Revenue Per User (ARPU) was $40.68 on a trailing 12-month basis (TTM), flat YoY
• Fourth consecutive quarter of positive Adjusted EBITDA and Free Cash Flow (TTM)
The letter added: “We are pleased with our continued growth in scale and engagement, along with the execution of our monetisation initiatives that position us strongly in the ongoing shift to streaming. Looking to the second half of 2024, we expect these initiatives to help accelerate revenue from advertising activities. For Q3, we estimate Total net revenue of $1.010 billion growing 11 per cent YoY, with Platform revenue growing 9 per cent YoY and Devices revenue growing 24 per cent YoY. We expect Q3 total gross profit of $440 million and Adjusted EBITDA of $45 million, reflecting our ongoing operational discipline. For Q4, we anticipate the YoY growth rate of Platform revenue will accelerate sequentially. We remain confident in our ability to accelerate Platform revenue in 2025 and beyond as we maximise ad demand, lean into our Home Screen as the lead-in for TV, and grow Roku-billed subscriptions.”
Roku has also announced its adoption of Unified ID 2.0 (UID2), an identity solution, across its streaming inventory. Roku says its advertisers can now implement more precise targeting and a secure means to facilitate data collaboration, powered by automation through Roku Exchange. Developed by The Trade Desk, UID2 is an identity solution that is helping pioneer the new identity fabric of the open internet.
Roku has been at the forefront of addressability, with robust first-party data from the platform’s 83.6 million Streaming Households. Now with UID2, Roku is empowering advertisers to deliver more personalised ad experiences across Roku’s inventory and devices at scale. UID2 integration enables Roku Media to become interoperable across the programmatic ecosystem.
“The adoption of Unified ID 2.0 represents another step forward in Roku’s strategic programmatic path, rooted in our goal to revolutionise the ad ecosystem,” said Jay Askinasi, SVP, Head of Global Media Revenue and Growth, Roku. “By further partnering with The Trade Desk, we aim to enhance targeting capabilities, improve ad performance and efficacy to drive growth, and maintain our leadership position in the TV streaming space.”
“As consumers continue to spend more and more time in streaming, advertisers are looking for ways to reach these viewers at scale,” said Will Doherty, VP of Inventory Development, The Trade Desk. “By adopting Unified ID 2.0, Roku is showing the value the premium internet has to offer advertisers, while prioritizing privacy for their highly valued audiences.”
Roku’s adoption of UID2 allows advertisers to deliver more personalised ad experiences across platforms. This enhanced targeting precision not only increases demand and revenue potential but also fosters a more cohesive and efficient advertising ecosystem.
Other posts by :
- France, Germany resists ESA plan for high-res satellites
- Who wants EchoStar’s spectrum?
- AST SpaceMobile confirms Ligado payment
- Bank ups Rocket Lab value
- Eutelsat “racing” to find extra cash
- Starlink causes problems for United Airlines
- Hanwha dumps Eutelsat OneWeb
- Bank: “FCC fires shot across the bows at EchoStar”