Roku, the streaming specialist, has reported total Q3 net revenue of $1.062 billion (€0.98bn), up 16 per cent YoY. Platform revenue was at $908 million, up 15 per cent YoY. Gross profit was $480 million, up 30 per cent YoY.

Streaming Households stood at 85.5 million, a net increase of 2 million from Q2 2024. Streaming Hours were 32 billion, up 5.3 billion hours YoY.

In a letter to shareholders, Roku said: “We delivered strong results in Q3, our first quarter of more than $1 billion in Total net revenue, with Platform revenue up 15 per cent YoY. We achieved our fifth straight quarter of positive Adjusted EBITDA and Free Cash Flow (TTM), and we also grew Streaming Hours on The Roku Channel 80 per cent YoY. With our intuitive Home Screen and UI (user interface), our viewers can easily find what to watch; our content partners can attract, engage, and retain audiences; and our advertisers can reach consumers and grow their businesses. As we look forward, we remain focused on growing Platform revenue. Our key initiatives include innovating our Home Screen to expand monetisation, growing ad demand through deeper third-party platform integrations, and growing Roku-billed subscriptions.”

“Globally, our users streamed 32 billion hours in Q3, up 20 per cent YoY. We also grew engagement per household globally, with average Streaming Hours per Streaming Household per day of 4.1 hours in Q3 2024, up from 3.9 hours in Q3 2023. On traditional TV, average viewing time per US household per day was 7 hours (Nielsen), highlighting the significant opportunity for us to continue to grow our engagement,” added the letter.

“In Q3, we grew Platform revenue to $908 million, with Platform gross margin of 54 per cent, which is up 80 basis points QoQ. While Platform revenue was up 15 per cent YoY, ARPU of $41.10 (TTM) was relatively flat YoY. This reflects an increasing share of Streaming Households in international markets, where we are currently focused on scale and engagement. Additionally, each country is at a different stage of monetisation, and each has different economic characteristics. For example, Mexico is one of our fastest growing countries, and we have significant penetration of broadband households. However, we are in the early stages of monetization, and our ARPU in Mexico is currently a fraction of our ARPU in the US.”

“In Q3, streaming services distribution activities grew faster than Platform revenue overall, due primarily to price increases for subscription-based services on our platform. We continue to focus on growing the share of subscriptions billed through Roku Pay, our payments and billing service that makes it easy for both our viewers and content partners to transact subscriptions. In the NBC Olympic Zone, viewers could use Roku Pay to subscribe to Peacock – an easy way to begin watching the games immediately. The NBC Olympic Zone helped to drive Peacock sign-ups, and a significant portion were first-time subscribers.”

Looking ahead, the company said: “We are pleased with the execution of our monetisation initiatives. We expect these initiatives, including the early positive impacts from our deeper integration with The Trade Desk, along with tailwinds from Political ad spend to continue in Q4. We estimate Q4 Total net revenue of $1.140 billion growing 16 per cent YoY, with Platform revenue growing 14 per cent YoY and Devices revenue growing 25 per cent YoY. We estimate Q4 Total gross profit of $465 million and Adjusted EBITDA of $30 million. We expect Sales and Marketing to be more seasonal this year than in the prior year. As a result, we expect OpEx to be up 9 per cent YoY in Q4. However, Sales and Marketing and total OpEx will be slightly down for the full year 2024, reflecting our ongoing operational discipline. Our expectations for both Q4 and 2024 OpEx YoY growth rates exclude one-time restructuring charges from 2023. We remain confident in our ability to grow Platform revenue in 2025 and beyond as we grow ad demand, lean into our Home Screen as the lead-in for TV, and grow Roku-billed subscriptions.”

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