Roku Posts Strong Earnings But Warns on Future

Posted on November 3, 2022 by Paul Thurrott in Music + Videos with 5 Comments

Roku posted a net loss of $122 million on revenues of $761 million for the quarter ending September 30, the firm reported last night. Revenues were up 12 percent year-over-year (YOY).

“In Q3, we delivered meaningful growth in scale and engagement,” a Roku letter to shareholders reads. “We added 2.3 million incremental active accounts, and The Roku Channel’s Streaming Hours increased more than 90 percent year-over-year [YOY]. Platform revenue grew 15 percent YOY, which was lower than our historical growth rates but positive given the difficult macro environment.”

Roku said that it added 2.3 million active accounts in the quarter, bringing its total to 65.4 million. Total streaming hours were up by 1.1 billion hours to 21.9 billion hours, and the average revenue per user was up 10 percent to $44.25. Streaming hours on The Roku Channel grew more than 90 percent YOY, though Roku didn’t provide an exact number.

Like many tech companies, Roku warned about the current quarter, saying that it expected a revenue decline of 7.5 percent, to roughly $800 million. “We expect these conditions to be temporary, but it is difficult to predict when they will stabilize or rebound,” the firm noted.

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