Platform monetisation performance sees Roku record revenue growth | Major Businesses | Business | News | Rapid TV News
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Claiming to be a key enabler of the long-term secular trend of global audiences, content and advertisers continuing their shift to TV streaming, Roku has revealed a second quarter where it more than doubled monetised video ad impressions year-on-year and claimed exceptional platform monetisation.
Roku Q2 5 AUg 2021
For its second quarter ended 30 June 2021, Roku reported net revenue of $645 million, an increase of 81% year-on-year (YoY) while platform revenue soared 117% YoY to $532 million. Gross profit was up 130% on an annual basis to $338 million.

Driving the Q2 revenue surge was Roku growing its active accounts by 1.5 million, ending the quarter with 55.1 million, led by sales of Roku TV models and streaming players. Q2 2021 net adds were higher than pre-covid levels in Q2 2019, but lower than the pandemic-related surge of Q2 2020.

Player unit sales in Q2 2021 were relatively flat year-on-year following the demand spike in Q2 2020. Average revenue per user (ARPU) grew to $36.46 (trailing 12-month basis), up 46% YoY. In Q2, Platform revenue exceeded half a billion dollars for the first time in the Platform segment’s history. It said the revenue increases in this business line was driven by significant contributions from both content distribution and advertising activities. ARPU was $36.46 (trailing 12-month basis), up 46% year-over-year.

Roku revealed that what it called “tight” component supply conditions and shipping constraints continued to increase costs faster than expected across all consumer electronics categories. Through an act that it said “insulated” consumers from increased costs for Roku players, Player gross margin turned negative in the quarter.

Drilling deeper into content, Roku totalled Q2 streaming hours of 17.4 billion hours, a decrease of 1.0 billion hours compared with its solid Q1 2021. The company said that iin the quarter, consumers sought increased out-of-home entertainment activities (such as dining and travel) in Q2 as a result of pent-up demand and the loosening of Covid-19 restrictions, which it said led to a broader secular decline in overall TV viewing hours. The company stressed that on a year-on-year basis, it had “significantly outperformed the industry”, citing Nielsen figure to show that its streaming hours increasing nearly 19% globally, compared with what it said was a near-19% decline in traditional TV consumption and a near 2% decline in TV streaming across all platforms, for persons 2+ years of age in the US.

Going forward, Roku said that in its Q2 results its approach to outlook will be similar to Q2, with formal outlook for Q3 and additional colour looking further ahead. It added that its Q3 outlook was for “robust growth” with total net revenue of $680 million at the midpoint (up 51% YOY) and total gross profit of $320 million at the midpoint (up 49% YOY). It also anticipated quarterly sequential increases in operating expenses in the second half of 2021 from our investments in headcount, product development, and sales and marketing. As a result, we expect adjusted EBITDA to be $65 million at the midpoint in Q3.