Roku-ROKU Q2 Loss Narrower Than Expected, Revenues Increase Y/Y

Core Insights - Roku reported a narrower loss of 24 cents per share for Q2 2024, compared to a loss of 76 cents per share in the same quarter last year, and better than the Zacks Consensus Estimate of a loss of 45 cents [1] - Revenues increased by 14.3% year-over-year to $968.2 million, surpassing the consensus estimate by 3.52%, driven by growth in streaming households and hours [2] Revenue and User Growth - Streaming households reached 83.6 million, with a net increase of 2 million from Q1 2024, and the Roku Home Screen engages over 120 million U.S. households daily [3] - The Roku operating system maintained its position as the 1 selling TV OS in the U.S., Mexico, and Canada, with users streaming a record 30.1 billion hours in Q2, up 5 billion hours from the previous quarter [4] Platform and Device Revenue - Platform revenues, accounting for 85.1% of total revenues, rose 10.8% year-over-year to$ 824.3 million, while device revenues increased by 39.2% to $143.8 million [6] Operating Performance - Gross margin contracted by 80 basis points year-over-year to 43.9%, while operating expenses decreased by 1.6% to$ 495.9 million, representing 51.2% of total revenues [7] - Adjusted EBITDA improved to $43.6 million from a negative$ 17.8 million in the prior year, marking the fourth consecutive quarter of positive adjusted EBITDA [8] Financial Position - Operating loss was reduced to $71.2 million from$ 126 million in the year-ago quarter, with cash and cash equivalents at $2.05 billion as of June 30, 2024, and no long-term debt [9] Future Guidance - For Q3 2024, Roku anticipates total net revenues of$ 1.01 billion, gross profit of approximately $440 million, and adjusted EBITDA of$ 45 million [10]