According to The Hollywood Reporter, Wall Street’s expectations for Roku’s third quarter have been exceeded. Additionally, the firm declared that starting in Q1 2025, it will no longer provide quarterly updates on the number of streaming households and average income per user.
“Since our IPO in 2017, the streaming industry has evolved meaningfully, with Americans now spending significantly more TV time streaming than watching cable,” the company said via The Hollywood Reporter. “Our business has also grown and evolved, and we are now primarily focused on growing platform revenue and profitability.”
This action is similar to Netflix’s, which also established the same deadline this year. In the past few years, there have been many different reports.
The Hollywood Reporter details Roku’s total net revenue reached $1.062 billion, up 16% year-over-year, a first for the company. The company also recorded a gross profit of $480 million and a net loss of 6 cents per share for the third quarter. Analysts had hypothesized revenue of around $1.02 billion and a loss per share of 32 cents.
According to The Hollywood Reporter, Roku’s platform revenue increased by 15% year-over-year to $908 million in the third quarter. Due to increases in subscription prices, streaming service distribution grew faster than platform revenue as a whole. Roku credited this success to improvements in the functionality of the home screen, a growth in Roku-billed subscriptions and a greater demand for advertising due to deeper third-party integrations.
According to The Hollywood Reporter, executives claim the Roku Channel ranks third among the platform’s apps in terms of both devices and reach. Anthony Wood, the CEO of Roku, has pondered extending the Roku Channel to other devices to increase user engagement but stressed that it offers greater benefits when used on its platform.
“If you just look at the economics of that business, it’s much more economical, and much more profitable when it’s on our platform versus the third-party platform,” Wood stated via The Hollywood Reporter.