Roku racks up ‘exceptional’ first quarter | Major Businesses | Business | News | Rapid TV News
By continuing to use this site you consent to the use of cookies on your device as described in our privacy policy unless you have disabled them. You can change your cookie settings at any time but parts of our site will not function correctly without them. [Close]
Even as it was coming to terms with the blow of losing YouTube from its grid, streaming service provider Roku has announced a record star to 2021 with record revenue and gross profit growth, as well as record Adjusted EBITDA.
Roku TRC UK 7April2020 2
The company said that during the quarter ended 31 March 2021, the company’s net revenue grew 79% year-on-year (YoY) to $574.2 million with streaming platform revenue more than doubling on an annual basis to $466.5 million. Streaming player revenue was $107.7 million, up 22% YoY.

Gross profit was up 132% compared with Q1 2020 to $326.8 million. This broke down to $311.9 related to the streaming platform, growing 139% on an annual basis, and $14.8 million from streaming players, up 42%. Roku’s average revenue per user (ARPU) grew to $32.14, up 32% year-on-year.

Looking at drivers for the strong growth, Roku said that it had benefited from strong growth in advertising and the expansion of content distribution partnerships as well as more broadly, the overall secular shift to streaming. Indeed, during Q1 Roku added 2.4 million incremental active accounts in Q1 2021 to reach 53.6 million with streaming hours increased by 1.4 billion hours over the last quarter to 18.3 billion.

Going forward, Roku believes that the aforementioned secular trends combined with the investments it was making will drive long term growth. Given the different rates of recovery worldwide from Covid-19, combined with persistent supply chain constraints, Roku conceded that even though it was difficult to predict an economic return to normalcy, its approach to outlook would be similar to Q1.

It nonetheless, the quarterly results statement predicted a Q2 with “robust” growth with total net revenue of $615 million at the midpoint, what would be up 73% year-on-year, and total gross profit of $300 million at the midpoint, up 104% year-over-year. Strong gross profit growth was expected to outpace operating expense (OPEX) growth, resulting in Q2 Adjusted EBITDA of $65 million at the midpoint.