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Roku $ROKU 1Q22 Earnings 
- Rev $734m +28%
- Gross Profit $365m +12% margin 50% -719 bps 
- Adj EBITDA $58m -54% margin 8% -1409 bps
- OCF $102m +6% margin 14% -281 bps
- Rev $734m +28%
- Gross Profit $365m +12%
margin 50% -719 bps - Adj EBITDA $58m -54%
margin 8% -1409 bps - OCF $102m +6%
margin 14% -281 bps
By Segment
Platform
- Rev $647m +39%
- Gross Profit $380m +22% margin 59% -813 bps 
Player
- Rev $87m -19%
- Gross Profit -$15m margin -17% -3119 bps
Platform
- Rev $647m +39%
- Gross Profit $380m +22%
margin 59% -813 bps Player
- Rev $87m -19%
- Gross Profit -$15m
margin -17% -3119 bps
Business Metrics
- Active Accts 61.3m +1.1m +14%
- Streaming Hrs 20.9bn +14%
- ARPU $42.91
- Retained 96% of $1m+ advertisers
Management Guide
- 2Q22 Rev $805m +25%
- FY22 Rev +35%
- FY22 Adj EBITDA $150m
- Active Accts 61.3m +1.1m +14%
- Streaming Hrs 20.9bn +14%
- ARPU $42.91
- Retained 96% of $1m+ advertisers
Management Guide
- 2Q22 Rev $805m +25%
- FY22 Rev +35%
- FY22 Adj EBITDA $150m
1 | Solid Quarter - Continued Growth
“solid Q1 with Platform revenue up 39% YoY, driven by higher content distribution & advertising revenue…financial performance and continued growth, even in a challenging operating environment, validates the strength of our business model.”
“solid Q1 with Platform revenue up 39% YoY, driven by higher content distribution & advertising revenue…financial performance and continued growth, even in a challenging operating environment, validates the strength of our business model.”
2 | Top Dog
“We are the No. 1 TV streaming platform by hours streamed in the U.S., Canada, and Mexico (Oct 2021, Hypothesis Group).”
“We are the No. 1 TV streaming platform by hours streamed in the U.S., Canada, and Mexico (Oct 2021, Hypothesis Group).”
3 | Expect Growth to Continue
“As a leading platform in TV streaming, we expect to continue to grow, both active accounts and platform monetization, for years to come.“
“As a leading platform in TV streaming, we expect to continue to grow, both active accounts and platform monetization, for years to come.“
4 | Eventually all TV will be streaming.
“…audiences spend 46% of their TV time streaming, while eMarketer reports that advertisers spend just 18% of their TV ad budgets on streaming. Both of these will become 100% as eventually all TV and all TV advertising will be streamed.”
“…audiences spend 46% of their TV time streaming, while eMarketer reports that advertisers spend just 18% of their TV ad budgets on streaming. Both of these will become 100% as eventually all TV and all TV advertising will be streamed.”
5 | Streaming Displacing Legacy Pay TV
“…secular shift to TV streaming continues…investing in the significant opportunity ahead of us.
Our unique assets, OS, TV, Channel, and our sophisticated ad platform continue to position us to extend our leadership in the years ahead.”
“…secular shift to TV streaming continues…investing in the significant opportunity ahead of us.
Our unique assets, OS, TV, Channel, and our sophisticated ad platform continue to position us to extend our leadership in the years ahead.”
6 | Sports last pillar holding Traditional Pay TV bundles.
“…sports is the last pillar holding the traditional Pay TV bundle together.”
“Sports is more of a mixed bag with obviously some content still locked up behind more traditional linear services.”
“…sports is the last pillar holding the traditional Pay TV bundle together.”
“Sports is more of a mixed bag with obviously some content still locked up behind more traditional linear services.”
7 | Roku’s moat
“…a very high quality, high tech, big data, targeted, measurement, performance based advertising stack.”
“…a very high quality, high tech, big data, targeted, measurement, performance based advertising stack.”
Final Thoughts on $ROKU:Continues to benefit from LT secular shift to TV & ad streaming. Players had always been a subsidy to grow the Platform biz, not bothered by temp negative margins. Platform continues to dominate growth in topline,
mkt share & profitability.
