Roku Q4 Revenue Rises 49%, Active Accounts Hit 37 Million 02/14/2020

Carla Harmon
February 15, 2020

Roku's 2019 revenues totaled $1.1 billion for the year; it projects rising to $1.6 billion in 2020.

Roku finished the fourth quarter with 36.9 million active accounts, up roughly 5 million from the third quarter.

"2019 was a tremendous year for TV streaming as the massive shift of the TV ecosystem gained momentum", Roku said in its letter to shareholders.

Roku forecasts that over 4 decades, half of US houses are going to have never had cable TV or may have canceled their subscription, the business stated in a letter to shareholders Thursday published together with the organization's fourth quarter 2019 outcomes. Amazon said last month it had surpassed 40 million active users globally for its streaming device.

Advertising is one of the biggest opportunities for Roku as the viewership moves from traditional TV to streaming, Louden added. The adjusted EBITDA went 38 percent lower year-on-year to Dollars 15.1 million, but improved from the loss of 0.4 million in Q3, and the gains booked in the second and first quarters of 11.1 million and 10.0 million, respectively.

Its loss of 13 cents per share was also in-line with projections. A strong holiday buying season helped revenues in Roku's Player division (encompassing its retail hardware) surge 22%, to $151.6 million, in Q4.

Roku added 4.6 million active accounts in the fourth quarter, bringing the total to 36.9 million at the end of the year. Revenues from Roku's Platforms division (encompassing advertising, subscription revenue sharing and license fees from TV makers that use the Roku operating system) continued to dominate, raking in $259.6 million in Q4, up 71%.

Aided by its subscription and advertising business, Roku's average revenue per unit reached $23.14 in Q4, up 29%. Wall Street analysts had predicted Roku would lose 16 cents per share on sales of $297 million in the first quarter. Looking ahead, the company said it will invest its incremental gross profit in 2020 to ensure its strategic advantages for the decade ahead.

Shares of Roku closed Thursday at $139.93, in a 52-week range of $49.33 to $176.55.

Other reports by iNewsToday