ROKU sees 20% YoY growth in net revenue in Q3 2023

On November 1, 2023, Roku Inc released its Q3 2023 earnings report, showcasing a strong quarter with significant growth in total net revenue and streaming hours. The company’s active accounts also saw a considerable increase, contributing to its robust performance.

Financial Highlights
Roku Inc reported total net revenue of $912 million in Q3 2023, marking a 20% YoY increase. The platform revenue also saw an 18% YoY rise, reaching $787 million. The company’s gross profit was $369 million, up 3% YoY, and 22% YoY excluding restructuring charges. Roku Inc also reported positive Adjusted EBITDA of $43 million.

Performance and Challenges
The company’s active accounts grew to 75.8 million, a net increase of 2.3 million from Q2 2023. Streaming hours were 26.7 billion, up 4.9 billion hours YoY. However, the Average Revenue Per User (ARPU) was $41.03 (trailing 12-month basis), down 7% YoY.

Key Financial Tables
The company’s condensed consolidated statements of operations showed a significant increase in total net revenue, reaching $912 million in Q3 2023, up 20% YoY. The platform revenue also saw an 18% YoY rise, reaching $787 million. The gross profit was $369 million, up 3% YoY, and 22% YoY excluding restructuring charges.

Company’s Performance Analysis
Roku Inc delivered a strong quarter with accelerated growth in active account net adds and streaming hours. The company’s commitment to achieving positive adjusted EBITDA for the full year 2024, along with its focus on expanding scale, engagement, and monetization, contributed to its robust performance.

Other Pertinent Details
Roku Inc continues to grow its footprint and deepen its presence in key markets. The company’s Roku-branded TVs, launched in March 2023, have received industry accolades, contributing to its strong top-line growth. The company also announced new platform features in October, focusing on further personalizing the streaming experience. GuruFocus Research