Roku reported third quarter revenues that impressed investors, sending shares up over 48% in morning trading. This was the streaming device’s first earnings release as a public company. It went public on September 28.
Third quarter revenues were $124.7 million, a 40% increase. The net loss for the company was $7.8 million. Roku now has 16.7 million active accounts, up 48%. Year to date in 2017, one in five smart TVs sold in the U.S. and Canada were licensed Roku TVs. Streaming hours were up 58% to 3.8 billion in the quarter.
Roku said it expects full year revenues to reach or exceed $500 million in 2017, up from nearly $400 million last year. The company’s higher margin platform segment is the key driver of our growth and gross margin expansion, and our advertising business has more than doubled in size year-to-date.
The company said it sees strong momentum with the Roku TV program. One of Roku’s TV partners, TCL, achieved the #2 spot for U.S. smart TV sales in September 2017 and #4 spot in 2017 year-to-date, up from #19 in 2014. We are leading the way in a rapidly evolving TV streaming ecosystem and will continue to focus on delighting our customers and creating value for our partners.
Roku Q3 2017 summary highlights:
• Total net revenue increased 40% YoY to $124.8 million driven by platform revenue growth of 137% YoY to $57.5 million;
• Gross Profit grew 92% YoY to $49.9 million;
• Active Accounts increased 48% YoY to 16.7 million at quarter end;
• Streaming Hours grew 58% YoY to 3.8 billion hours;
• Average Revenue Per User (ARPU) grew 37% YoY to $12.68 (trailing twelve-month basis);