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Roku(ROKU) - 2024 Q2 - Quarterly Results
ROKURoku(ROKU)2024-08-01 20:12

Financial Performance - Total net revenue for Q2 2024 was 968million,representinga14968 million, representing a 14% year-over-year increase[2] - In Q2 2024, Roku's total net revenue reached 968.2 million, a 14.3% increase from 847.2millioninQ22023[20]−TotalrevenueforQ22024was847.2 million in Q2 2023[20] - Total revenue for Q2 2024 was 688 million, a decrease of 1% compared to 696millioninQ22023[21]−Thecompanyreportedanetlossof696 million in Q2 2023[21] - The company reported a net loss of 33.9 million in Q2 2024, an improvement from a net loss of 107.6millioninQ22023[20]−NetlossforthesixmonthsendedJune30,2024,was107.6 million in Q2 2023[20] - Net loss for the six months ended June 30, 2024, was 84.8 million, significantly improved from a net loss of 301.2millioninthesameperiodlastyear[22]−AdjustedEBITDAforQ22024was301.2 million in the same period last year[22] - Adjusted EBITDA for Q2 2024 was 43.6 million, compared to a negative 17.8millioninQ22023[25]−Freecashflowforthetrailingtwelvemonths(TTM)was17.8 million in Q2 2023[25] - Free cash flow for the trailing twelve months (TTM) was 317.9 million, showing a significant recovery from a negative 169.3millioninthepreviousTTM[27]RevenueBreakdown−Platformrevenuereached169.3 million in the previous TTM[27] Revenue Breakdown - Platform revenue reached 824 million in Q2 2024, up 11% year-over-year[2] - Platform revenue for Q2 2024 was 824.3million,up10.8824.3 million, up 10.8% year-over-year from 743.8 million[20] - Devices revenue increased to 143.8millioninQ22024,comparedto143.8 million in Q2 2024, compared to 103.4 million in the same quarter last year, reflecting a 38.9% growth[20] User Engagement - Streaming Households grew to 83.6 million, with a net increase of 2.0 million from Q1 2024[2] - Streaming Hours totaled 30.1 billion, an increase of 5.0 billion hours year-over-year, reflecting a 20% growth[2] - The Roku Channel's Streaming Hours increased nearly 75% year-over-year, driven by the Home Screen's features[7] - The Roku Sports Experience saw Streaming Hours originating from it more than triple year-over-year[6] Future Outlook - Roku expects Q3 2024 net revenue to grow 24% year-over-year, estimating 1.010billion[13]−ForQ42024,Rokuanticipatessequentialaccelerationinplatformrevenuegrowth,drivenbyincreasedaddemandandsubscriptions[13]AdvertisingandMonetization−RokuisfocusingonincreasingsubscriptionsbilledthroughRokuPay,enhancingmonetizationopportunities[10]−TheRokuHomeScreenreachesover120millionU.S.householdsdaily,providingsignificantadvertisingopportunities[12]−Roku′snewvideoadunitontheHomeScreensoldoutinitsfirstmonthofbetatesting,indicatingstrongdemandfromadvertisers[13]−Thecompanyisexpandingpartnershipswiththird−partyadplatformstoenhancetargetingandmeasurementcapabilities[13]FinancialPosition−Cashandcashequivalentsattheendoftheperiodincreasedto1.010 billion[13] - For Q4 2024, Roku anticipates sequential acceleration in platform revenue growth, driven by increased ad demand and subscriptions[13] Advertising and Monetization - Roku is focusing on increasing subscriptions billed through Roku Pay, enhancing monetization opportunities[10] - The Roku Home Screen reaches over 120 million U.S. households daily, providing significant advertising opportunities[12] - Roku's new video ad unit on the Home Screen sold out in its first month of beta testing, indicating strong demand from advertisers[13] - The company is expanding partnerships with third-party ad platforms to enhance targeting and measurement capabilities[13] Financial Position - Cash and cash equivalents at the end of the period increased to 2.1 billion, up from 1.8billionayearago[23]−Totalcurrentassetsdecreasedto1.8 billion a year ago[23] - Total current assets decreased to 2.98 billion as of June 30, 2024, down from 3.07billionattheendof2023[21]−Totalliabilitiesdecreasedto3.07 billion at the end of 2023[21] - Total liabilities decreased to 1.71 billion from 1.94billionattheendof2023,reflectingareductionincurrentliabilities[21]−Thecompanyreportedadecreaseinaccountsreceivableto1.94 billion at the end of 2023, reflecting a reduction in current liabilities[21] - The company reported a decrease in accounts receivable to 669.1 million as of June 30, 2024, down from 816.3millionattheendof2023[21]Expenses−Stock−basedcompensationexpenseforthesixmonthsendedJune30,2024,was816.3 million at the end of 2023[21] Expenses - Stock-based compensation expense for the six months ended June 30, 2024, was 183 million, slightly lower than 186millioninthesameperiodlastyear[25]−ResearchanddevelopmentexpensesforthesixmonthsendedJune30,2024,totaled186 million in the same period last year[25] - Research and development expenses for the six months ended June 30, 2024, totaled 70.9 million, compared to 73.5millioninthesameperiodlastyear[21]Profitability−Roku′sgrossprofitforQ22024was73.5 million in the same period last year[21] Profitability - Roku's gross profit for Q2 2024 was 424.7 million, a 12.3% increase from $378.3 million in Q2 2023[20] - Platform gross margin was 53% in Q2 2024, consistent with the previous year[9]