Roku Q3 20 - Shareholder summary

If you thought Cloudflare had a good Q with 54% rev growth what about Roku? Here are the results:

43% yoy account grth to 46M accts added 2.9M accts this Q same as last Q
Doubled account reach of TRC to 54M
Platform revenue growth 78%, player growth 62%, total rev growth 73%
Gross profit up 81%, platform GM 62%
ARPU 27$ up 20%
Streaming hrs increased up only 0.2B hrs sequentially - only ho hum metric
Player sales up 57% strongest yoy rev grth in 7y! Doubled yoy in Canada and UK! International plan is working.
Many new products roku streamer, cnet editor choice for 9th yr in a row for best streamer overall
Roku TV up more than 1/3rd in first 9m, more support for apple customers
strongest Q in platform rev history!
Traditional TV shifting to streaming, 17% yoy drop in 18-49 in linear TV this Q
Advertisers released from annual TV upfront - so more spend to CTV. Roku monetized ad impressions grew 90% vs 50% in Q2. First-time adv. clients more than doubled yoy, driven by performance marketers using OneView ad platform, and TV advertisers focused on new products like incremental reach guarantees. DraftKings tripled its ad spend year-over-year trusting OneView to engage consumers not only on the Roku platform, but also across desktop, mobile and other TV streaming platforms. Shopper Data Program with Kroger grew Campbell Snacks’ Snyder’s Roku users who saw their advertising spent five times more on the brand’s products than the average Kroger shopper, leading to a 250% return on advertising spend. 97% of TV advertisers that spent $1 million or more with Roku in Q3 2019 continued to invest in Q3 2020. Closed 2021 upfront deals with all six major agency holding companies at significantly increased levels of commitments
TRC fastest grower in streaming hrs, active accts, A&E recently praised ad monetization through TRC, NBC news in the TRC, no. of transactions grew 130% in Roku pay.

It is hard to dislike anything in this Q results. Roku has a P/S of 26.6 if you consider only the TTM platform revenue of $1.056B. They are projecting Q4 platform rev to grow about 60% and I would estimate 55%+ in 2021. I am surprised AH has Roku up only 2%ish. I picked up some more. It is a 14.5% position now!


Thanks for the update, its a solid platform with huge potential!

Any thoughts on their international expansion to English and non-English markets?

Roku is just starting its international journey. It is selling a lot of hardware in Canada, UK, Mexico, Brazil. My guess is platform revenue from international is still very low - they don’t break that out. Over time I expect it to get 50% platform revenue from outside the US just like Netflix.

Roku is starting to rocket… not just Roku, new gen ad platforms PINS, SNAP, TTD and ROKU… this is where next one or two years biggest opportunity lies… as their potential is still underestimated by the market (compared to say cloud / SaaS companies)