Roku delivered unbelievably strong quarter… and this is many quarters in a row… last 4q y/y growth rate is… 39%, 48% 51%, 59%…
There is no acquisition… this is all organic…
For these 4 quarters, TTM free cash flow show something like this…
-19.1M, -4.8M, -2.6M, +6.5M
while the growth in active accounts slowed down from 46% (June '18 quarter) to 39% (June '19 quarter), growth in number of streaming hours accelerated from 57% to 71% for the same two quarters… which is why their platform revenue (licensing + ad = all high margin stuff) continues to grow >70%…
Their ER is eye opening… lot of good data there…
https://ir.roku.com/static-files/df3d060c-0975-4903-83d3-0e1…
(BTW - I dont like the strategy report chart forecasting hockey stick… upto Q2 is good but showing that it will take over the world is over the top promotion… but in general, this management shows excellent combination of savvy strategy + execution…)
To me ROKU seems to become better than NFLX story in media industry… and has all the characteristics of much more sustainable business model than TTD.
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Forgot to mention… i added a little bit AH y’day… now its a 10% position for me…
We bought some Roku yesterday, before the earnings report. 22% gain in less than 24 hours. Can’t complain about that! Damn stock is up 300% for the year. I’ve been watching and watching and watching.
Kudos to whoever on this board introduced us to Beth Kindig. I love her tech blog. She’s a big Roku bull, and has been banging the table for a year. “Here’s Why Roku Stock Will Surpass $100 in next two years.” Man, she called it. Only took one year, though.
https://beth.technology/heres-why-roku-will-surpass-100-in-n…
See also
https://beth.technology/long-on-roku-even-if-they-miss-q1-ea…
https://beth.technology/roku-earnings-q3/
https://beth.technology/roku-earnings/
I think she’s right that we will have pullbacks at times. Brutal ones! But she’s also right about the long-term story. Netflix and Amazon and Disney are driving everybody to streaming, and we’re all cutting the cable. This is an obvious and very predictable trend. We’ve got 9% of our ports invested in The Trade Desk to capitalize on this. But why did we skip the consumer side? Why did we just watch as Roku went up, and up, and up? I don’t know. But we’re happy to be in now.
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Hey SC… congrats on getting in ROKU… even with such a run up this year, i think it has a long way to go…
and couldnt agree more on Beth… in fact Beth now has a paid research service… which I just singed up for and I think is much better than anything I have seen in newsletter industry for tech investors… it has deeper dive on tech and why, which nuance matter and what doesnt matter…
(with all due respect to TMF - which I am a big fan and paid subscriber for a more than a decade - TMF is really good for wider audience… Beth and Bert services are for tech focused aggressive investors)
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