ROKU - Earnings call transcript Q1 2024

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Operator

Good day, everyone, and thank you for standing by. Welcome to the Roku's First Quarter 2024 Earnings Call. [Operator Instructions] And please be advised that today's conference is being recorded.

I would now like to hand the conference over to Conrad Grodd. Please go ahead.

Conrad Grodd

operator. you, Thank First Roku's Earnings Call. Welcome Quarter to XXXX Roku's today's Collier; Dan CEO; are President Wood, call Anthony Founder Devices. Jedda, President, Media; Mustafa and and On Roku Ozgen, our CFO, Charlie

which additional of details available shareholder on roku.com/investor. website our Investor and can Full management found be results on are a Relations at our letter,

Please forecasts other future from events uncertainties. based this make statements, to forward-looking risks about On refer These which are involve current cause statements. differ letter statements SEC expectations, and actual shareholder call, we'll predictions, assumptions. statements materially projections factors results to forward-looking and or for filings our on our that and these periodic could risk

most shareholder and provided call, present GAAP comparable financial letter. today's financial the we'll non-GAAP in measures are Reconciliations of our measures. On GAAP non-GAAP of measures

on Finally, of period the otherwise all unless stated, call results of comparable this XXXX. comparisons

like I'd Anthony. Now hand to to over call the

Anthony Wood

solid XX% year-over-year. XX% QX, Conrad. in growing We you, households platform delivered and streaming Thank hours results revenue streaming year-over-year, XX%

I As attention and QX growth we year, platform to of this innovation. directing call, more are our on mentioned the

EBITDA growing platform and demand accelerate home key for as growth Roku cash for maximizing free focusing subscriptions on will We X in XXXX opportunities: lead-in the screen Roku the flow build TV, by and Roku. growing

the also while of I experience see opportunity. for Roku households with to significant lot a the nearly monetization reaches user day, home Every U.S. Roku. This many screen creates XXX million reach people. growing improve ways

other easier to content. viewers fragmentation it for sport from screen, the home experience, making For of games to example, find right the shift a addressed Roku can and viewers click view which sports-related and Sports as with streaming,

during this Bowl, critical first time Zone the brand And zone. was by massive year. of the reach year's on was sponsored lead sponsor The delivering TurboTax NFL the Super to it our for

partnership launched NBA with Zone in recently the We April. NBA in the

the service purchase. partners your payment users sign-up transact Pay, start due of see as a subscribers Roku build Roku can lose subscriptions. at friction quickly billing grow also unnecessary and content so We they don't to simplifies our and process and to point the big opportunity streaming for

we advertisers third-party platform to on deepening for expanding Roku our programmatically platforms. the by it with and are Additionally, execute relationships making easier campaigns

continued we spend video Roku ad of QX, to grow In a platform. percentage ad on as programmatic spend total the

With our XXXX household engagement, in more streaming we XX accelerate and well to platform first-party advantages, positioned relationships are beyond. deep user million revenue are platform than growth and

over turn results. discuss to Now to I'll our Dan it

Dan Jedda

were driven net QX ended Thanks, X.X Anthony. TVs million sequential line players. and million of households, We in XXXX with QX streaming adds with and XX.X by both streaming

continue year-over-year We and engagement and in billion a growth for single strong first XX% up streaming with the hours time XX surpassing to quarter. drive

of household day We X.X engagement per with in globally from per XXXX, XXXX. also grew hours streaming X.X streaming per up hours in QX hours QX account

In and XX% Platform $XXX by QX, we grew distribution activities. both year-over-year advertising service million. driven to million, $XXX revenue streaming total also net revenue was

in vision distribution overall grew services faster revenue, our Streaming part than price platform increases. benefiting activities

lower was lapping ad-supported rate growth services increases offerings. due growth mix streaming year-over-year distribution XXXX the higher QX in than entry-priced to towards XXXX QX the and However, shift of price year-over-year in rate past

TVs. in of XX% of distribution QX, by the retail driven year-over-year increased revenue expansion Roku-branded Devices

focused international and engagement. was are increasing share ARPU $XX.XX on streaming currently reflects year-over-year. of in we basis, on an markets QX where scale This growing trailing in XX-month a flat households

X%, margin was Platform QX while negative devices down total gross which stable year-over-year. slightly X of margin margin was points year-over-year. gross down was was XX% XX%, year-over-year, gross

margin Excluding flat have would XXXX, year-over-year. the benefit onetime QX million roughly $XX service licensing in catch-up gross operator been device

to our million, performance Platform was profile. along better-than-expected driven by with $XX QX which improvements EBITDA was segment of our operating The was outlook above adjusted breakeven. expense our

million a cash $XXX quarter equivalents. was and flow with cash of XX-month Free and ended trailing basis, $X.X cash we billion the on

me to and of the adjusted $XXX $XX net million. second EBITDA for of $XXX million, anticipate XX% revenue quarter. gross gross total We our million outlook with of turn margin Let profit of

total increase. This anticipates year-over-year revenue an takes rate year-over-year with a year. distribution, elevated last adjustment streaming challenging Our outlook services into of for QX XXX XX% in along net growth account comparisons

We year expect XX%. of similar to last roughly Platform margin QX to be at

in margin On negative the negative from QX QX continued devices side, teens expansion decline TV to which low in program. to in and we X% our reflects Roku-branded and expect

rate be digits. forecast We growth of having benefit the negative past multiple implemented year-over-year QX as improvements from to course our to result, to down operational over expect and a in OpEx the single year, low

second devices which the sales to first or slightly the adjusted half we normal marketing of expect moderate into half in will the year, relative and the of to spend Looking second half EBITDA year. cause seasonal

XXXX. year, XXXX in restructuring Looking be excluding rate single to the when at OpEx the growth full in impairment and we expect year-over-year digits charges low

third to model quarter of adjusted our see cash continue free in straight and our operating flow. leverage with We EBITDA positive

to our We And confident to growth efficiency. operational revenue continue in remain will and the of Anthony ability beyond. accelerate we mentioned, platform drive as in XXXX

Operator? let's questions. that, With take

Operator

[Operator from the first of JPMorgan. line question our Cory with And Instructions] Carpenter

Cory Carpenter

in for And you hoping seeing follow-up that a in expand confidence then, you the the you. happening? platform Dan, XXXX quick this drivers we and on what I'm excel, of gives expecting could you're you're

could XQ embedded you what's guide in Platform the revenue for the elaborate on segment? Just

Anthony Wood

Anthony. be is happy talk that. this to about I'll Cory,

I highlight before towards I And opportunity revenue this that I platform that our there's revenue correcting some increasing a that accelerating XXXX. last softer of just to key in my I'll But focused our lot start X And areas attention more my operational we where do a more I'm we Last just growth their directing just is team where of see of year, year, I'll -- directing attention lot context of year, of platform. focus. opportunity by grew start, are said, we $X noting billion. also, course, we're to efficiencies. for like So on on

I on their And of TV screen. the find screen, home URCs UI, home just, to use course, turn home they the of Roku mean of but experience the watch. and the stream, they something user when actual to kind not the by is First

So capabilities a and the subscriptions. area, build ad is Roku also home screen programmatic big

talk day, screen. means screen household home day, So TV they turn the Roku Roku the little home of screen. the every That bit streaming on start Every journey XXX U.S. home people XXX million a experience, and people. Roku their more households their reaches on their about nearly million viewing of

that home something find screen is And sees use before screen that And a to viewer they so select to home app. what an they watch.

it. advertising to they before they'll They have app to home see select promotions, an screen advertising. an And that on exposed our During that process, adds exposed they're select app. actually be they're doesn't in might

ability we advertising. So the platform, not everyone to not to the the on people, just just the have reach apps with select viewers

on you of traditionally on there's looking things Marquee of We're we and called static home video at the some examples video home But kinds the add has going screen been today, a that ad. the we're that ad. the give to screen, the premier app to to

the we So will video to in for us. home that big ad change That that be first a will screen. the be add

looking be units, to screen testing video video the also we ad would we advertising. can We're home where types other more can at that of other experiences innovate add

So at. that's something we're looking

to to the the way advertising both us sports a to for experience, content. the integrate platform. sports viewers way Zone to content, a sports experience for us It's our Roku we in that launched Another example, NBA grow and way a SVOD is for quarter, and across find It's this AVOD also experience. the

home Another example, out screen. just the a rolled on we we content launched, row just personalized

the be is first us obviously it both add content promote of AI-driven and will home directly a screen. on terms home screen, the content recommendations change It's recommendations but for will subscriptions row. that AVOD this that So in our we time and big it in

the working home viewers lots valuable the there's it the to home also screen more of but ways to So on make we're monetization enhancing increase stream. on

that's So home the screen.

is looking more time I'm we're ad on, and capabilities. spending area Another our increasing programmatic at on focus

relationships We're in-house on DSDs, the we third-party advertising. and recently strategy advertisers. splits increasing be expanding From with expertise switched we relationships. have also building offer we house including programmatic and focused platforms, what programmatic the talent So more platforms expanding can in our third-party the out our to

lot in that. Channel Roku QX, up of look opportunities the but after and Roku ad in between the app #X on #X And example this be is you platform. will if the Channel, useful the and Roku to [indiscernible] how app Roku way. a the the took We there's was close mean engagement I on at of That's think to the are Netflix intend capabilities Channel, that's gap engagement one the and QX in impressive. I channel XX% programmatic the Channel year-over-year, do is pretty after Roku

opportunities And and there's third that an to build continue then subscriptions. monetization to area of another of third the regard area, example lots

subscriptions. that Roku list resources ways subscription. focus various up priorities they've had Now We've on reallocated teams We've a already one subscriptions. That the more talked on past about we of now me. throughout We've come And working our team them directly we towards monetization reorganized team. into to reports with on good in can and increase

it's Roku popular. having without area great course, to viewers. but allows the Pay Roku customer it a credit our them in of signing business It's it subscription them at, for partners up number, service. our be for even which a first very that to is great is and allows looking for friction up to is card and more Pay, building way we're can because enter is when a popular, reduce One frictionless subscription. It payments sign

of increasing subscriptions. X and home monetizing on programmatic examples we're So -- are our those screen and how working monetization

viewers And have, you a we the we I look love. just have advantages just if platform brand overall, at that think

more relationships screening of households. We have first-party with XX than million

user platform then, do in And you continue beyond. that? engagement, well we're to Dan, to deep have and XXXX reaccelerate positioned revenue take to and want We growth

Dan Jedda

that take the second the I'll Thanks, of part question. for Cory, question. Yes.

change let in the So the question about I QX. QX in revenue talk answer platform me to QX on briefly before

year X% weak platform it relatively easy growth of had on QX revenue QX year-over-year to in was year, market, a rate XX% due plus a last basis. last as growth year ad So comp QX so Platform XX%. a negative was this grew

prices. plus growth Advertising was due to subscriptions rate and year, last streaming So in X% revenue was QX and improved growth but both to primary that to driver. in QX, in subscription increases SSD distribution QX services QX went from primarily also increasing relative the we in negative growth from

really so year. challenging in in we for SSD that and of the comp rest the And QX faced

year, We also the revenue in platform and last had a positive to adding difficult QX XXX QX comp. adjustment for

revenue points basis for So XXX XXX QX QX for that if year, total this of growth by outlook rate you our nearly of increase in adjustment last exclude year. would

of QX QX comp growth year, year-over-year So year what did positive rate a advertising similar growth at. rate QX and assumes in we our versus last in the easier see advertising again, exited in the versus we guide

the is we're So seeing for growth But to QX there. comp from the momentum in rate sequential decline QX. the reason

And inclusive be single-digit in growth exclude to to guided think question double-digit low of answer XXX, growth XX% very rate of in your adjustment for to as platform high if XXX. the revenue. growth platform QX, QX growth you would XXX I that last were specifically, year, we for would rates, And the of we

Operator

did Cory your answer I question?

Cory Carpenter

Yes.

Operator

it with Cannonball the line Karasyov of from Research. Vasily comes And

Vasily Karasyov

it growth we Thank comments on expenses operating remember annualizing rate. made expenses you you expected. a up like quarter than to lower then if your and applying the you, on like about in Dan. And last came And QX, would on this comment quarter I the call, looks follow OpEx.

So of understand terms in about think should us quarterly remainder progression. for this can we the of you how the exactly year help math

going reasonable point progress you So specify from for what say mid-single-digit this this full at net is what year be estimate this rates, it's should And the range be when would estimate what growth how the to you? be? and should XXX quarter, you please should

Dan Jedda

Yes. Thanks, take that. will I Vasily.

a in throughout So we prepared my and 'XX, digits the OpEx in we from that XXXX. that the And done had expense you to be exited full in OpEx. profile FY the 'XX. QX FY year year we as with operating in mentioned in we And the our place single the based good restructuring and work had in low see year expect remarks, all I our charges impairment on excluding

on just that. me let So clear be

$X.X in OpEx So our GAAP billion. was XXXX

been If a you billion FY bit have little above OpEx $X.X would impairment our in billion, exclude restructuring, $X.X just 'XX. and

way the just single -- OpEx, billion and look as expect off number. be GAAP basis. about low is mid-single So off restructuring to think low in not That to it but of about we that clear, $X full digits double likely be down a grow think single as XXXX, very digits for it $X XXXX. off I'll off happens what our will But at digits digits, year that billion it is excluding we'd

HX. and marketing to expect in that's remarks. do OpEx that due HX that we We And prepared seasonality be in sales normal the to I higher for than devices. see mentioned

Vasily Karasyov

And possible? then QX, if QX,

Dan Jedda

that. once of off update I've very a update we sales specific of but want why not view I'm in again, close and add, and good lot But billion. A you that year. how it to overall low have that $X marketing OpEx. QX. ramps QX like is and into very depends in do full a QX holiday single QX providing for guidance QX, timing on we'll -- of we that Again, which think for guidance, a just digits, clear given We'll lot I on

Vasily Karasyov

sense. makes Okay,

Operator

our Comes line from next the Wells Steven Fargo. One moment of question. with for Cahall

Steven Cahall

margins. there of from So that could device channel a low takes the margin in to if some spend you're partners the good being device to from is you change QX? anything half the little second pretty the Is on wondering half reflected higher is QX? I the first in anything QX that QX it of just else talking sequential the in And that teens marketing was mix in back with also or down in weaker X elaborate on about or that relatedly? seasonally weaker year,

like Roku big for Pay, secondly, seems it's then focus growth. Anthony, And just of really monetization a on it

it's said of use streaming we you've sense uplift how ARPU got think households Pay? about is percentage any really what you what And popular, your think of the that? I Roku when

Dan Jedda

the I'll device Yes. take gross margin.

of from it if negative the X%, ramp-up So catch-up was $XX positive. again, terms the again, and to was you which a in is like QX, year, margin devices. Roku-branded QX flat In in change last QX device positive that's of reflective our near term gross QX million licensing service the exclude And really operator of they

We're in We on continuing forward. to now. positive. It -- the that But sure distributed are in would we margins we're to as that be ramp And those XXXX. going see QX expect is a talk we can I'm up. that. far more Mustafa ballpark

Again, to as ramp-up stage But and grow scale TV. better. in our where we devices, we and are now. margins we program, cost we will get structure again, improve Roku-branded relative those are the this within will of

program And QX. near up, as term, to see for similar the ramp would I that so margins we expect to

Anthony Wood

Yes.

the content Roku the of things of a on out with engine. it. that In Pay, use terms percentage of Roku service I to subscriptions recommendation don't through think sign households that we of Pay. just a integrating ease say up is our Pay platform dealers adoption way it's Roku primary having the broken plan the throughout we lot drive the using subscription to on had improved I'll And platform and SVOD we've the is like more streaming we

we're example, content a include meaning of recommendation content our rolled that the SVOD a of the have as recommendations row will of like out reduce which a subscription adding you well both unentitled SVOD content screen engagement, of for content. So -- top content, just as that at for, SVOD and entitled I which content wrote will a recommended will increase just SVOD churn home mentioned,

sign you which for then using would get and Pay. have a don't subscription a up up, You trial free a sign Roku

Roku the just sign focus platform, numbers but experience Pay. the technicality in a also like the cancellations, to we of running lot operational how up But it a of also SVOD Roku large-scale throughout user integrating on things there's platform the so -- easy more, improving Pay with is also

it's it's there's And it. a and of business lots continuing opportunities -- to big improve and still so

Operator

And we William line come Blair. from Schackart the of with Ralph

Ralph Schackart

question did a on ARPU. Just It increase sequentially.

a just of levels just kind kind that about about these some of the curious thinking flow, -- couple And and efforts going could perspective I'm picture, profitability. higher EBITDA particularly highlighted? that about you should of or you're maybe philosophically just we forward, then with trend now Anthony as if free cash of think sustained give bigger of a So levels of of just how quarters some how maybe monetization follow-up, line thinking

Dan Jedda

Yes.

Okay.

So We than out course, question on where flat the I'll in we're ARPU, more is that's, take ARPU first. engaged U.S. and of year-on-year were to scale and international mixing our phase.

a lot We U.K. are like areas lower have ARPU. of growth to does starting monetize to in and monetize essentially, But international Mexico a key Canada Germany. and like our

do we mix So out.

course, I of I company. say we basis, U.S. in at And isolation, it is XX-month at look up a for ARPU will U.S. total And to international, on it if we what just which positive, year-on-year. we, trailing flat becomes multiple look see, in do ways. is when mix was one, in were

we basis. is for a on So a improving that us ARPU are positive XX-month that trailing

we basis, quarterly the which the at a U.S. positive a most on quarter, looking So is also look at positive. what's but in recent it also

trends of I The which a again to in only adjusted the thing tend just the on we So see to for ARPU, terms a continue but mix internationally. like that flat, good in engagement given scale growth International, be I things ARPU is and does grow we're out. Actives seeing as mix basis

will monetize we international. Ultimately,

over pieces that but it, monetizing continue time. should we'll monetize to it, of international are We and ARPU improve

Anthony Wood

is This growth international progress we're just I'll Anthony. that seeing plans. comment our great with

for Channel Mexico example, now monetization. we're internationally, great like I we up Mexico, example, share starting progress Roku a things to For of Roku are is, but achieved XX% make And now ramp it's in for launching is mean Mexico, in days TVs. which are XX% we've market in achievement. to that. early sold TVs, still TVs the starting also

Unknown Executive

cash and of take part second Ralph, flow. just question, And on that the free I'll EBITDA

-- We very had for quarter guided positive our have about a good million basically we adjusted of EBITDA. EBITDA, So we and we've of positive QX. adjusted EBITDA third $XX straight to feel

inclusive growth light FY So growing -- of on as EBITDA said focus in said in feel 'XX, the grow and the I've letter we I the Anthony good and have About the free very cash we CapEx, continue that capital I EBITDA as cash guide. happy for give we're continue CapEx-light. EBITDA flow really, light, the will a good. at that really X times, flow. and CapEx be least EBITDA we will and Platform quarters free for it say how of will we'll repeated adjusted cash I'm many flow. we CapEx -- proxy with are next rate forward, free being we going to year. to focusing

proxy So free will adjusted EBITDA for cash a flow. great be

So adjusted we growing along see with that EBITDA.

share I QX our say that a stock issued of with do when some in one net called units thing restricted something shares we was that our settlement will we offset share settlement. we via where did net did in

we and this cash issued. about issuances.. of to of X/X in do essentially taxes to flow our issuing way which dilution cash. So on the continue focus that just do That's share, had the the as free free shares of cash should of future offset I by per year, one cash reducing paying of flow positive and impact to continue less have rest us that the impact. dilution expect offset for And we that will a we X/X of dilution shares utilize impact

Operator

Rich Greenfield with line the It Partners. comes of LightShed from

Richard Greenfield

fee you've the at top out that in of you earlier this of rolled touched on the Roku. idea Anthony, personalized call, this

hear. the a might think And was apps big it because revenue how like or what Roku you It drives take apps really to pretty you on the and power or always ads shift as for clicking you where to the Roku evolves interplay fundamental Roku to seems about and this a watch sort to in shift think about want the sell made interesting Channel, to. that of about purely how what at For it fundamentally as feed, this how be going sort subscribe is sort versus curious that apps, seems revenue. forward? drive long about about time, surfaced? you could Roku to to a And just traffic you personalized content think I'm And directing obviously, between you next think how how would of user balance trying of

Anthony Wood

Rich, yes.

experience. streams. about home a system and iconic building content I I view the has when One have So operating competitors. has And a that custom and that's a success an built different things been our think our than think is a different there's of differentiated simple screen think few for row television doing recognizably we about viewer I that on home delightful

we we're and to And don't obviously that. to going so we want lose not want don't to -- lose that,

view a apps. at It lot But out evolution also, on of what if the that of platform like spread growth people's a there. to you a lot just be of look used pains different

-- content. It's you Now and content, an have app, ways that content for have, said AVOD it to UI, we the one. content really not in licensed is than it it's app. throughout it's number also with it we've more is we the app to that. that deals pre-used app we watch that you on also more user the I to is our course, It's experience. to that integrate content fast but say, #X Channel, the can of way example, Roku subscription Channel content just access the distribution an it's access but we access platform Roku but is to I One can directly our direct that mean,

integrating ways. our to lots is much of different disciplined parts to of with about viewers for we business how it's just engagement model And UI. and can content, You drive while there's of spend and fundamental being one do that the content our content we can, by expose

our business So to for our model important It's that expose expose content. to it's content. important viewers for

just It's of opportunity really it me in focusing a it big time. make the driving and year I'm efficiency. on focused still great, a made last on of what's but then, This hasn't was there's year tons also changed. to viewers And year, keep of year, the useful of home -- one There's operational ways our it's iconic, So this platform drive ones, lot revenue of for it and the course, for screen. It's revenue. but long growth.

So of kind different the of that's sort aspects.

Richard Greenfield

Maybe a and app becomes do it feed term? you long not content way, another think an asked feed like ultimately,

Anthony Wood

strategy screen home But for that just Well, but my usefulness source the not a call. screen like maintaining is it's it's goal its viewers bring things will we the across experiences, earnings home sports and that I for content, don't which the and -- experience because up find some with want an increasing big of home example, -- for part on it's to call while while design platform. And lot screen viewers. the iconic the content is evolve its helping a differentiation monetization this experience, increasing our what to it's just it about of good also that is a

types And use to of things to promotion build so I of useful with to think do one ways more as and we them home for screen these experiences is integrate sponsorship well. and more those make of the and the to viewers advertising plan

of kind content will recommendations. long thing become our I So ever don't But into see that integrated you more of think -- it home might term. no, just screen that

Operator

And of America. of it line Ruplu with the comes from Bank Bhattacharya

Ruplu Bhattacharya

from the international any share do yourself markets? to growth, on growth see On Walmart do with I Or potentially do respect account have And deal, growth growth in at two, impact one you active avenues. on that, U.S.? gaining and in you program the more account VIZIO one you maybe see think other that retailers? do see you and the active more

seen are to the respect DSPs? up And on question I opening second on impact rates fill meaningful to with Charlie, in programmatic, in CPMs. uptick the ask then what And other we wanted you to have any innings you and a

Anthony Wood

this So see, is I Anthony. three in I questions question. And that actually think,

growth outside watch So U.S. outside I'll U.S. talk making to the more outside account I for obviously, mean, over we're active more U.S., the accounts humans in terms I tons mean there's the part. about I'll talk -- than which inside there's a seeing from growth at VIZIO active future of but because we're and with about And turn And Mustafa than the count households continue lot U.S. there's the tons it plenty to of certainly, broadband growth, just Walmart, DSPs. I U.S. the to this of first growth room out take a to stronger grow to TV the continue we're while. progress inside point grow there. seeing good room still, inside the U.S. U.S. of to active course, believe, to

I has been established countries those add on to specific number mean and outside we of the countries. -- small in countries a U.S. focus then scale more

the So countries the well. outside and countries primarily we'll at And the are Americas, point, we're historically as And of add we've great U.K. been other Brazil,, then in Mexico, primarily U.S., countries the countries. Americas, in like focused on seeing Canada, some then progress all those

-- don't I have international add Mustafa anything [indiscernible] on or if to know I if don't you So

Mustafa Ozgen

think I [indiscernible] you No, internationally.

Anthony Wood

On VIZIO.

Unknown Executive

for our XX love We the #X brand. Roku, have building multiple spent ask work in homes. the years TV America's users and streaming And devices last platform many and their and

consume they content. We their where are platform the becoming

know we innovating. always want, customers and we our So are what

launching but Our the the of down existing just is features, cost about innovation for new not bringing us. features also

strong here. So we have a very setup

We are streaming with players, where streaming Walmart, all great continue confident we grow in space TVs partners, in households. our including smart have retail categories. our a home ability to in are of to we and shelf Obviously, our relationship

U.S. -- and deepen with of a distribution outside have in select partners. it also the and wide we retail Additionally, because

program robust Roku our So last launched TV have we households and a Roku-branded with includes our to to players, TVs year. overall, our streaming continue grow strategy licensed our streaming we that devices that

the recent amazon.com Costco, now with are the complement and expanding are Buy, distribution, also Roku we existing Series, [indiscernible]. walmart.com. TVs, the Roku-branded at its available on expanding Best introduction we're Over line TVs of with they select higher-performance Pro product And which up

confidence that's that So these low-cost and track settings and purpose-built streaming hardware, we our on households. capacity strong quality TV our keep distribution our will factors operating such record AI-based growing focus with and along innovate us system enabled announced singular streaming in gives to as recently

Anthony Wood

And Anthony this again. is

there's pretty growth the growth, back your I'll So highlighted think one the of but just revenue over it that lot with growth. on to -- our some in successes, third-party But much Charlie, focus, changed DSPs. to part be increase more I'll a good -- before, platform where for at our was there that in want partners. strategy 'XX I lot of to there's we've like you sort making to DSPs more had third and progress. I grow. of on of working And that. focused say Charlie, X And don't I terms pillars. you. us that, we've of And level just are said strategy, adoption know, say early we're early question That's new a do would I turn just it's high of in a drive to to accelerate potential bit the and room of if I areas

Charlie Collier

I agree. sure. innings question. early Thanks, for the for It's

continues of it's us of be a of to think important priority opportunity us. and ton getting our There with heart third-party an I to all we're for lineup. the DSPs, for

third-party really strategic and the last focusing Anthony the over we talked on about, changes more year DSPs. we've made or incorporating know, you been As so,

you might immediately the talked list notable have not going others, way, and mind. expanded about but I it just auto access think partners, Instacart Cox the Now all the that of platform XX you also of, not names includes our have well, the now last We all partners, but is to top by on and the call. our over

I our expansion our part this large a this ecosystem, an So be central open which to ecosystems. versus differentiator for commitment And growth will is us key to is think strategy. of

before, shared they been this I've and we're prefer to transact. has paying real strategic to As advertisers And where meeting pivot committed flexibility dividends.

first as offering. to programmatic of spend quarter, for appeal In investment the underscores of increase our see we total continued that strength in the ad me percentage video our platform, and and on a

about Our these easier platform and it execute them isn't expanding just about deepening It's making for easier for things use right to us strategy relationships, with on. programmatically the Roku inventory. we're to also advertisers so

to us Roku, just, our deploy continue we're as the you at is action So I programmatic innings. expect prove as strategies, said, seeing we continue and early really really this that to

Ruplu Bhattacharya

the on quarter. Congrats

Anthony Wood

Thank you.

Operator

of Bazinet from And it comes the with Citi. line

Jason Bazinet

sort I Roku sense My question just it? surprised inventory a when unique of sort there's much is a is I you understand new space more of to video-centric In of of sort always to buy? is that that could home the on marketers take just about a something quick think piece of this quite on do is, time? my to monetize there key since video do it's to enabler unlock sort more other turned I'm static that pretty you Or a of this it question your or is key shift words, how think had there. screen. sort white don't

Anthony Wood

Anthony. is This Yes.

think that viewers terms as well integrating for, but experiences UI lot both engaging and in I opportunity. increase of of like, our integrating our time our that lots is say frank, I of our to it's deeply a of of you spend as home big going makes adding. There's there, iconic to we the that identified the part we're lot of viewers. to our of just home areas as for I and more potential okay, and with just in work work would untapped the just areas resources that some to there's different promotion the on. white the resources be has advertising change areas in one well. recommendation lots recognizable like on. is we're part as of marketers our But served screen brand. us But on And prioritize road opportunity ways there's some of mean just it, space screen There what content a you asked

to the, Many Like so them video video adding million it's households very no, I daily have all my people prediction be I adds enter at will going a don't it And advertising. think XXX advertisers. with app. be apps with very before of popular well, they in is popular, said, those

is screen? of like home And also popular. integrate stream, So And looking market the the only the understand we're at you other our think into I will thing said, at. your we're Charlie, but on value video looking not advertising to ways I it be video do the think home

Charlie Collier

when a got example, And Jason. and Thanks you there's We it's streaming do Look, and million said, they for purchase much about itself. do distinction. people, really viewers nearly do. ad-free the for as I well. whole question, Anthony class But distinction today of so in huge of subscriptions, XXX who that's so.

So elegantly Roku's they viewers you and so in environment. as ads, worth see know, their uncluttered screen, ads, it's fewer see when home turn on is TV placed and one are an noting and the all they ad our thing

privilege lot if viewers apps. choose splinter a we they the watch it engaging for So the problem before have And about what of marketers, literally is think into a fragmentation. to tension you audiences of where

huge a screen really differentiates. So because our it home opportunity is

Operator

Rosenblatt. of it with And Barton Crockett line the comes from

Barton Crockett

was reports been sports could mean, buying lot. been looking theme curious perhaps directly. which you've in a at sports, at And Roku there's some touching be particular, about media on I a rights I some has been

lead there League scale, that small think recently done off something I you formulary. I in Baseball think was Peacock. guys Major Sunday And something the on about it have was was

to kind directly Is imagine. a just make kind level? with sense sports questionable, would seem of just I anyone buying sports want wondering It through of given streaming a is be meaningful to deal to have Does rights Roku? I'm you would that at for you, go that structurally.

for if through So you third-party to see intermediaries. kind rights or sports can of you in of talk direct Roku the how deals kind role

Anthony Wood

I about on that speculation, question, mean, so is like primary -- the a -- say I how services streaming I Many sports. we I the would comment can't don't your on of primary just that distribute have I Anthony. of is way comment rumors, first different think on particular of there's this sports. we that rumor. Yes, bigger sort about that so all, But platform think platform. our sports them think many we do we're thing,

particular, favorite -- they help to fragmented opportunity find just been them viewers a no find the viewers is our to have watch in idea event primary for sporting to and how us go help they sports, team to place or and so to their have watch. want So to be the

that -- we now content also that license doesn't And have we mean directly.

rev share content. We have

We have content. direct license

originals. have We Roku

we've mentioned that have the budget for, about we like for way think done more exclusive content Roku is or a around. of I you Originals and either content -- -- mean, produce relationships So we budget

there's and So Rich like Roku, integrate which things the -- we is zone. Show, Eisen The into the sports

zone. We sports also look the for sponsorships at

where find really We content. experience also think of is it's helping get video us, ads. I the place well, for about, a mean, viewers the so we that

in directly so do that we what experience sport license go-to viewer the of could the but to to a when that out to also whole produce and that watching to primary figure content the monetize the they And for watch. licensed we content find also well. is zone, We end be just goal place watch as that monetize they to and at then have want something that what

Barton Crockett

if great. been in in this headwind point. That's of other. Okay. you're what at endemic that historically, There's then of And give a I if could just you an us curious kind the was partners businesses. media I squeeze one on could update marketing but seeing terms

cutting issues kind cost streaming normally at services. of of the with ways structural through media the Some companies going and the some still some

in market seeing So kind for guys? right now of what you are you that

Anthony Wood

take will Charlie Yes. that.

Charlie Collier

large have And audiences. really good a marketers place is it. the M&E at Thanks, Look, And is we for business. best Great. we're really Barton. Roku good build news to

content we businesses. simply So companies, build put,

market it the been to word. be. right has versus the think used used I you what Obviously, normalizing

screen our efforts by all as been diversify exclusively monetize so nearly described, focused we have verticals to M&E on way that advertisers. Anthony sell home and in inventory and now we're utilized the continue to successfully our previously was And

also on we're by and monetization growing home creating engagement So experiences screen. new the

Eisen Show. The Anthony Rich mentioned Actually,

Rich as within home which sponsorship Show, notable marquee Roku of custom our a So example ad screen well as included BMW advertising for Eisen on City. The sharing his

course, way, live sponsored this draft he's Of live BMW And do is a us our partnership the week his then show. there. and for from at the growing. they By with shows

home enhancing brand visibility beyond for screen deployed engagement. and is and our M&E So being client the

Operator

comes Mahaney ISI. And Evercore the Mark line with it from

Unknown Analyst

This Peterson on is for Ian Mark.

the second the question, us in help of that? a engagement some streaming walk Roku Can Where or from? strong content hours seeing accelerated through the row. within areas Channel what trends First you Channel quarter are Roku of of the drivers you

maybe the how And mix coming from third-party question, going up about video forward? trajectory think demand programmatic to the should and revenue programmatic ad of we follow earlier on

up-front initiatives out you've the last attracting the out Roku progress advertiser on on seeing And advertising front maybe call in trends question some laid on the can on advertising. to Anything into season, them you're macro you quarter-to-date SMB platform? heading the of

Anthony Wood

the all for I see. Thanks Anthony. is this Ian, questions.

we'll start I think Charlie. with

Charlie Collier

Ian. it. got Thanks, You

TRC. throughout. offers about And premium types subscriptions. them TV, live asked Channel and AVOD, integrated experiences via X deliver of viewing You that The Roku content, primarily, we are

most example, on-demand Channel Roku of reach the hours for opening on title most the As it type and our made mentioned Roku the choices past of we earlier, made its reach we the strong chronicles some in In weekend. #X with program as platform the highest I the open Channel history Roku we've the programming this the growth. watched for engagement. It's both And first weekend, and title made streamed app Channel. strategic for it any quarter, by in

platform. power audiences Roku there's to opportunity tremendous shows it engage So a the with new

clips home including and content, Other content, this reach Live engagement. launching popular shows Night servicing screen, And able we've like by sports. from our we're added generate throughout also briefly content to the and platform, Saturday short-form NBC Roku additional

I live TV. mentioned

the expand channels. Channel, TV to live exclusively have more fast up and continue Roku the launch MBA recently on of the We now XX than sports-focused We our channel, with line and NBA partnered first-ever we to fast channels. that's

in while about a us party. I delight that. coming to the in they the to it little new break third Roku I the talked XX mix, huge lot with going last before. mentioned focused revenue examples audiences expanded There and that point I re-acceleration to of opportunity of to will play to and ; ESPs. look DSP our all now content look, part I'm the more at and partners. So focus opportunities don't a week, the we out for on what's I'm of head into the love. front really bit platform the we for our over is Well, these And relationships sharing a And us serve forward Channel.

Anthony Wood

I well. I think the more And want attract advertisers diversity happen mean, question will will as things platform don't X. with SMB DSPs that as that for increased of on DSP Yes, to help is the I one of number advertisers. focused more third probably

Charlie Collier

yes. No,

it's in medium-sized, you quarters early few the innings. about quarters. a I've row. demand we small, several the earlier for And really partners. in platform for I 'XX something beyond, we're that work answered revenue small- medium-sized into a with both and to think our the the expanding we're so and and the growth been on So businesses, asked doing of about diversification focused talked you're existing see it and many also going is of reacceleration of is I the

Operator

we for Q&A that, with And back to final conclude comments. our session. will it Wood you. Anthony I Thank turn

Anthony Wood

Well, everyone and our thanks employees, for joining, customers thanks to advertisers. to partners and and

Operator

gentlemen, you that, And and ladies thank participating. with for

Roku (ROKU) 25 Apr 242024 Q1 Earnings call transcript