Roku Reports Strong Q3 2024 Earnings, Surpasses $1 Billion in Revenue
Roku announced strong third-quarter results today, exceeding $1 billion in total net revenue for the first time in the company’s history. Platform revenue, which includes advertising and subscription revenue, surged 15% year-over-year, demonstrating the continued growth of Roku’s streaming platform.
Key Highlights:
Total net revenue reached $1.062 billion, a 16% increase year-over-year.
Platform revenue hit $908 million, up 15% year-over-year.
Gross profit increased 30% year-over-year to $480 million.
Streaming Households grew to 85.5 million, adding 2 million new households in the quarter.
Streaming Hours reached 32 billion, a 20% increase year-over-year.
The Roku Channel saw streaming hours increase 80% year-over-year, solidifying its position as a top streaming destination.
Focus on Platform Growth:
Roku emphasized its commitment to expanding its platform revenue through several key initiatives:
Home Screen Innovation: Roku continues to refine its home screen experience to enhance monetization opportunities, including features like the Roku Sports Zone and NFL Zone.
Advertising Growth: The company is expanding its advertising offerings and deepening integrations with third-party platforms to attract a wider range of advertisers.
Roku-Billed Subscriptions: Roku is focused on growing its subscription business by making it easier for users to subscribe to streaming services through Roku Pay.
Key Performance Metrics Update:
Starting in Q1 2025, Roku will update its key performance metrics to better reflect its focus on platform revenue and profitability. The company will no longer report quarterly updates on Streaming Households and ARPU, instead prioritizing Streaming Hours, Platform revenue, Adjusted EBITDA, and Free Cash Flow.