Core Viewpoint - Roku has faced challenges since its peak in 2021, with a shift in focus from rapid customer acquisition to profitability among streaming platform customers [1] Financial Performance - In Q4, Roku's revenue increased by 22% year-over-year to $1.2 billion, surpassing its guidance of $1.14 billion, driven by political advertising and improved home screen usage [4] - Adjusted EBITDA rose 62% year-over-year to $77.5 million, significantly exceeding the guidance of $30 million [5] - Platform revenue grew by 25% to $1.04 billion, with 4.3 million new user households added, bringing the total to 89.8 million, a 12% increase from the previous year [6] - Average revenue per user (ARPU) increased by 4% to $41.49, but has only grown 1% since the end of 2021 [6] Margins and Profitability - Platform gross profits rose 22% to $559.9 million, but gross margins fell by 120 basis points [7] - Device revenue increased by 7% to $165.7 million, but the company reported a negative gross profit of $47.4 million on equipment sales due to competitive pricing and excess inventory [7] Future Guidance - Roku forecasts 2025 revenue to be approximately $4.61 billion, representing 12% growth, with platform revenue expected to increase by 12% [8] - For Q1, Roku projects revenue of $1 billion, a 13% year-over-year increase, and adjusted EBITDA of $55 million, a 35% increase [9] Strategic Initiatives - The company is focusing on international expansion, particularly in the Americas and the U.K., and is making progress in monetization efforts in Canada [10] - Roku is launching new ad products and enhancing integration with third-party platforms, including innovations like Roku Data Cloud and Roku Ads Manager [11] Valuation Perspective - Roku trades at an enterprise value (EV)-to-EBITDA multiple of about 35 times 2025 analyst estimates, which is considered high given the significant stock-based compensation expenses [14] Overall Outlook - The company is positioned for a potentially strong 2025, with solid full-year guidance and new adtech innovations that could drive future growth [13][15]

Group 1 - Roku is the leading streaming operating system in the U.S., Canada, and Mexico, with its devices outselling competitors like Amazon and Vizio [2] - In Q4 2024, Roku reached 89.8 million households, a 12% year-over-year increase, and average revenue per user (ARPU) rose by 4% year-over-year [3] - The platform segment generated 86% of total revenue in Q4, indicating strong ad spend growth alongside user growth [3] Group 2 - Roku benefits from the shift towards ad-supported streaming, with total streaming hours increasing by 18% year-over-year and 82% on the Roku Channel [5] - Adjusted EBITDA increased by 62% year-over-year in Q4, marking the sixth consecutive quarter of positive EBITDA, although the company reported a net loss of $35 million [6] - Analysts do not expect Roku to achieve GAAP profitability this year, but positive earnings are anticipated by 2026 as the company scales [7] Group 3 - Roku reported $4.1 billion in revenue for 2024, an 18% year-over-year increase, but achieving a 10,000% stock increase is considered unlikely [9] - A diversified portfolio of stocks is recommended for investors, with Roku being a potential growth stock within such a strategy [10]

Core Insights - Roku achieved platform revenue exceeding $1.0 billion for the first time in its history during the fourth fiscal quarter, marking a 25% year-over-year growth [1] Financial Performance - The company exceeded both bottom and top line estimates in its latest financial results [1]

Core Insights - Roku, Inc. achieved a significant milestone in Q4 2024 with Platform revenues growing 25% year over year to $1.035 billion, marking its first quarter exceeding the billion-dollar threshold for this segment [1] - The company reported narrower-than-expected losses, with a loss of 24 cents per share compared to the Zacks Consensus Estimate of a loss of 44 cents, and total revenues climbed 22% year over year to $1.2 billion, beating consensus by 4.48% [2] - Roku's stock surged 13% in after-hours trading following the announcement of these results [2] User Growth and Engagement - Roku ended 2024 with 89.8 million streaming households globally, adding 4.3 million in Q4 and 9.8 million for the full year, surpassing the 90 million milestone in early January 2025 [5] - Streaming hours increased 18% year over year to 34.1 billion hours in Q4, with full-year streaming hours reaching 127.1 billion, up 21.1 billion hours compared to 2023 [6] - The Roku Channel, an ad-supported streaming service, saw streaming hours rise 82% year over year, reaching approximately 145 million people in U.S. households [7] Revenue Growth Strategy - Roku's strategy to grow Platform revenues includes leveraging its Home Screen, expanding third-party platform integrations, and increasing subscription revenues [8] - The advertising business performed well in Q4, with political ad spending accounting for about 6% of Platform revenues, and diversification into retail, automotive, and other sectors showing strong growth [9] Financial Outlook - For 2025, Roku expects total net revenues of $4.61 billion, representing 12% year-over-year growth, with Platform revenues anticipated to reach $3.95 billion, also growing 12% year over year [10] - Adjusted EBITDA is projected at $350 million for 2025, a 35% increase from 2024, indicating improving profitability [11] - The Zacks Consensus Estimate for 2025 revenues is pegged at $4.61 billion, suggesting 12.19% year-over-year growth, with a projected loss of 80 cents per share [12] Competitive Positioning - Roku maintains its position as the market leader in streaming, with significant penetration in U.S. broadband households, providing leverage in negotiations with content providers and advertisers [18] - The company is expanding its international presence, particularly in Latin America and the United Kingdom, which represent long-term growth opportunities [21] Investment Appeal - Roku's financial trajectory is promising, with stable Platform gross margins expected between 52-53% in 2025 and a balanced approach to operating expenses [19] - The company anticipates free cash flow exceeding Adjusted EBITDA in 2025, allowing for reinvestment and potential shareholder returns [20] - With the ongoing shift from traditional TV to streaming, Roku's strengthening financial profile and clear path to profitability make it an attractive investment consideration for 2025 [22]

Company Overview - Roku is a leading company in the streaming media industry, primarily known for its digital media players and smart TV operating system. The business is centered around three key areas: streaming devices and smart TVs, advertising and content distribution, as well as platform services and subscriptions [3]. Earnings Performance - Roku's recent earnings report led to several analysts increasing their earnings estimates for the current year and next year. The company reported a beat on both top and bottom lines, guiding initial FY25 revenues of $4.61 billion [4]. - The current year Zacks Consensus Estimate calls for a loss of 80 cents, improved from a loss of 93 cents sixty days ago. Next year's estimate has increased to a profit of 10 cents, compared to previous expectations of a 5-cent loss [5]. Stock Performance - Roku has achieved five consecutive quarterly earnings beats, indicating a consistent upward trend in earnings estimates. The stock is currently trading below $100, significantly off its all-time highs of over $450 [6].

Core Insights - Roku and Twilio have been among the top-performing stocks in early 2024, with Roku up over 30% and Twilio up 14% year to date [1] Roku's Q4 Review - Roku's Q4 sales increased by 22% year over year to $1.2 billion, surpassing estimates of $1.14 billion [3] - The company reported a narrower-than-expected loss of -$0.24 per share, compared to an expected loss of -$0.44, marking a significant improvement from an adjusted loss of -$0.55 in Q4 2023 [4] - Roku has exceeded earnings expectations for five consecutive quarters, edging closer to profitability since its IPO in 2017 [4] Twilio's Q4 Review - Twilio's Q4 sales rose by 11% year over year to $1.19 billion, slightly exceeding sales estimates [6] - The reported EPS of $1.00 missed expectations of $1.02 but increased by 16% from $0.86 in the previous quarter [7] - Twilio has beaten earnings expectations in three of the last four quarters, with an average EPS surprise of 17.79% [7] Full-Year Results - Roku's total sales for fiscal 2024 increased by 18% to $4.11 billion, with annual losses narrowing to -$0.89 per share from -$5.02 in 2023 [8] - Twilio's total sales rose by 7% to $4.45 billion, with annual earnings increasing by 50% to $3.67 per share from $2.45 in 2023 [9] Outlook for Roku - Roku expects a 12% increase in total sales for FY25, projecting $4.61 billion, with further growth of 13% in FY26 to $5.22 billion [10] - The company aims for positive operating margins by 2026, with projected EPS of $0.10 for FY26 [11] Outlook for Twilio - Twilio anticipates Q1 sales between $1.13 billion and $1.14 billion, reflecting 8% to 9% growth, with Q1 EPS expected in the range of $0.88 to $0.93 [12] - For FY25, Twilio forecasts total sales growth of 7% to $4.78 billion, with EPS projected to expand by 18% to $4.33 [13] Bottom Line - Both Roku and Twilio are currently rated as Zacks Rank 1 (Strong Buy), with positive earnings estimate revisions for FY26 potentially extending their stock rallies [14]

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock char ...

Have you been paying attention to shares of Roku (ROKU) ? Shares have been on the move with the stock up 30.5% over the past month. The stock hit a new 52-week high of $104.96 in the previous session. Roku has gained 33.3% since the start of the year compared to the 8.7% move for the Zacks Consumer Discretionary sector and the 27.1% return for the Zacks Broadcast Radio and Television industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed o ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K Delaware 4841 26-2087865 organization) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the year ended December 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-38211 Roku, Inc. (Exact name of Registrant as specified in its charter) (State or other jurisdiction of incorporation or (Primary standard indust ...

Roku, Inc. ROKU shares are trading higher on Friday.Yesterday, the company reported fourth-quarter losses of 24 cents per share, which beat the analyst consensus estimate of losses of 41 cents. Quarterly revenue came in at $1.2 billion, which beat the analyst consensus estimate of $1.14 billion.Roku sees first-quarter revenue of $1.005 billion.Here are the analysts’ takes on the quarterly performance:BofA Securities analyst Ruplu Bhattacharya reiterated the Buy rating on the stock, raising the price forecas ...