Skip to main content
No. of Recommendations: 34
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!
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.