Roku delivers better-than-expected Q2 forecasts with over 30 Million users
Streaming player provider Roku has 30.5 million active monthly users, the American company confirmed in its Q2 earnings.
The company also exceeded Wall Street expectations with quarterly revenues of US$250 million.
On the company’s earnings call, Roku founder and CEO Anthony Wood said that Roku now reaches “one in five US households” and that the company had its “highest Q2 rate since going public”.
Those 30.5 million users are up 1.5 million from the previous quarter, and a year-over-year increase of 39%. Users streamed 9.4 billion hours of content in the quarter, representing a year-over-year increase of 72%.
A major share of Roku’s revenue — 67%, to be precise — was once again driven by the company’s fast-growing advertising and services business, which delivered US$168 million in revenue – a year-over-year increase of 86%. That’s a direct result of those 30.5 million active accounts, which collectively streamed some 9.4 billion hours of entertainment during the quarter.
Meanwhile, gross hardware profits declined by 69% year-over-year, with the company focused on maintaining a low financial barrier to entry for customers.
On this, CFO Steve Louden said: “As anticipated, overall gross margin declined sequentially from 48.8% to 45.7% due to the continued mix shift to video advertising, the introduction of premium subscriptions and our strategy of driving down player ASPs.”