Roku (ROKU) 1 Aug 242024 Q2 Earnings call transcript

Company Profile

Participants

Conrad Grodd	executive
Anthony Wood	executive
Dan Jedda	executive
Shyam Patil	analyst
Charlie Collier	executive
Jason Helfstein	analyst
Laura Martin	analyst
Vasily Karasyov	analyst
Peter Supino	analyst
Michael Morris	analyst
Tim Nollen	analyst
Cory Carpenter	analyst
David Joyce	analyst

Call transcript

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Second Quarter 2024 Roku Earnings Conference Call. [Operator Instructions]. Please be advised that today's conference is being recorded.

I would like now to turn the conference over to Conrad Grodd, Vice President of Investor Relations. ahead. go Please

Conrad Grodd

Second are Roku's Jedda, Earnings On Media. Call. CFO; Welcome Wood, Quarter Roku's call Roku President, Anthony Charlie Dan Founder today's and to Collier, XXXX and our CEO;

factors additional full statements. our letter Please make could refer and materially on at that forward-looking management Our which website for periodic and commentary available SEC subject shareholder these IR call, in this from On results shareholder uncertainties. are our to and to are filings roku.com/investor. statements, our letter our we'll risk cause risks results to differ forward-looking

We'll be non-GAAP GAAP non-GAAP financial present our comparable the against stated, shareholder measures. comparable measures provided are Reconciliations otherwise in our results for also of GAAP period. and measures letter. XXXX most will to comparisons the Unless financial all

hand I'll Now Anthony. call to the over

Anthony Wood

Conrad. Thanks,

This of foundation on discipline. on quarter, remaining unmatched scale build continued focused Roku engagement while operational our to and

on platform lean streaming is is to than continue This we operations U.S. into be began household million Roku representing assets, of the confident fact, experience. accelerate makes journey day, TV our people beginning XXXX. We development various XXX their home and the Roku screen, along pipeline Every to unique which more our home able will revenue me the in our with screen. the

is both double both lead-in is revenue by and In demonstrates our Channel reach than OS building the QX, is and TV. the engagement. largest we our grew Roku shared This XX% that #X share was great achievement each system. year-over-year, app XX% screen, the year-over-year. and TV operating platform next In a streaming Roku streaming is year-over-year households by The XX% and to Roku and of #X the more hours our U.S., TV

positive positive EBITDA set our year full proud for target is of year XXXX. More cash EBITDA positive delivering adjusted straight are adjusted and a we a ago, result Another we of free quarter generating flow. fourth of than the

cost delivered this As a structure year and ambitious full was the as did then, we our on rightsizing target of work early.

strong as as our will Looking screen Roku, ad Roku this and the growing lead-in home maximizing build TV monetization ahead, leveraging for demand descriptions. maintain record focus we the we for of initiatives, on Roku track including execution

me let Dan. Now over turn it to

Dan Jedda

Anthony. of Thanks, ended $X QX streaming by net households, year-over-year both sequential We TVs adds with driven XX% players. streaming million million XX.X and with up

streaming We continue to with drive year-over-year. growth strong hours XX% engagement in up

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

billion quarter and by performance we In households points ended QX, trailing was in up segment. million, of revenue driven M&E X and relatively advertising was benefiting Platform year-over-year $XXX stages. negative an distribution the XX-month vertical. focused is QX, revenue, our year-over-year on in in are international faster services net gross year-over-year. outlook. total QX flow cash driven EBITDA share increased XX%, million cash a $XXX which and grew a our by million, $XX platform was Platform gross activities with by to gross efforts devices in on year-over-year. TVs. ARPU while $X.X XX% up from margin The with Roku-branded line was trailing down revenue year-over-year a scale year-over-year. QX QX and was $X.XX million. XX%, streaming streaming both monetization Free services growing slightly of was flat better-than-expected by of subscription grew in cash Streaming than part price we activities increasing expansion offset driven the currently overall in was distribution XX% challenged of adjusted was increases. retail margin markets Platform distribution XX-month reflects we revenue XX% while engagement on early margin of This was above year-over-year, where total the equivalents. which XX% basis, basis Devices $XXX

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

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

for total increase. an revenue outlook Our year-over-year anticipates XX% net

year-over-year within platform elevated positive grow services revenue X% distribution, to streaming along year. account adjustments growth expect This challenging XXX in QX comparison into year-over-year. takes of We last a with rate QX

the in growth line accelerate activities M&E margin we QX with QX. expect remain challenged, year-over-year While to at Platform of in advertising to roughly anticipate be we will XX%.

XX% On expect We're benefiting in and grow with investment Roku double to QX to in margins digits, we be QX to when our continued we improvements OpEx operational result, expansion single program. side, charges. expect from continue of line past branded in the rates made negative year, and course the and to a the growth over reflecting revenue we TV the in low and excluding be digits impairment XXXX as device restructuring the low

We the revenue demand begin on home are this monetization maximize to of in confident screen of TV. leverage result will year initiatives as as lead-in the accelerate year-over-year and our sequentially for QX ad executing growth rate to a of platform our

take Operator? let's questions. that, With

Operator

Instructions]. [Operator

Group. with The first Shyam question International Susquehanna comes Patil from

Shyam Patil

questions. Congrats a couple results. I on of the had nice

a you about of there's this talk M&E you if and currently just and your expectations seeing then First, wondering on lot I could CPMs. what are been recently pressure PC maybe about downward question, just commentary you're and And with there? in inventory what guys about can you was talk market of supply seeing? the second excess

Anthony Wood

is to question. happy take Shyam, Hi, Yes, be that this Anthony. I'll

platform, to Roku streaming that So diversified of a because of streams. benefits streaming is think just we, we And a impacted Roku, as what a say in about is solely changes if the this a same streaming not the one And as not that We're revenue like are first, set be. by that other means, market-driven platform, service. seem you I'll pricing streaming that platform. services way is have

diversified distribution are consists business well platform our advertising, also Our as as are diversified. of streaming which which activities, services

So like as service And on diversified, activities, streaming subscriptions. well you also we platform premium built traditional distribution, about video our in we're which if then are you have areas Roku traditional across ads obviously, advertising investing at think subscriptions platform. look our streaming as as

the streaming are these we service, unlike that a ad normal throughout and we of integrate the platform, products sponsorships viewer But we possible unique set have only own because experience. and

have revenue streams, diversified revenue streams. we So platform a level

our factors even components by and growth back take business? step business. then about are that like platform business driven platform growth Our of that of I drive And the think what the is a the if primary different

We So strong recently. added million for in example, the of quarter streaming X growth maintain we households. net adds continue to

Now it's XX streaming almost XX households. million million

of So to engagement we a then, invest building hour that creating strong, continue lot strong effort R&D to streaming and continues of experience. across add global households. viewer our is products engagement new They're also we And for and streaming a us. monetizable lot into that very continue the course, of monetization

So that our growth. drive these the things are primary

our, point, The apps one into our just said it reason really super Roku have decide is, to guess, reaches our a experience start promoting what critical lot pick we don't advertisers after Roku team our another streaming platform to but fragment home the time streaming our million properties. into important. viewer people I'd scale mention operated U.S. of It's to then watch. well those at And before, it's probably they And their spent that's a for like different and know watch, to as home screen and asset. valuable And day, Every I the screen trying ads. for experience home I lead they decide more and XXX to app why they screen. households they But important some years streaming as owned most what TV. than they with advertisers, apps. our is of And before don't

our And our they're and see. so in the ad promotions screen only of is to going many home for advertising viewers,

something screen us. growing So is that's the very strategy for for well our working of home part our important monetization, a

now then But ad weakness within have and if we think positioned vertical. times, business, accelerate are is challenges few just well platform I a our And actual like great mentioned business we're what M&E ad our the continued to is, the primary a right about to we business.

share So to with I'll Charlie some that, details. over more to it turn

Charlie Collier

Thanks, Great. supply I of for the thanks question, the in appreciate Shyam. Anthony, a is and it. lot market. there

NFL demand. actively good actually, ad They products destinations think Roku You're addressed advantages. in customizable We're city zone, they in both are all home sponsorships our experience also we on video our across content it our right. and X updated as advertising our screen I speak at new don't serve might drive the these across the platform We're creating our directly. our at UI the is sources revenue which metal screen, the speak ads I booming looking fulfill examples few UI. Roku. new on now, your And buildings be And purposes. cars, count. Olympic you and building A Anthony like time about demand, Why differentiating

competitively to much open market. clients your targeting meeting ad collaborations we priced. competitively and have channel And and And I've priced, pivoted about if and there'd demand it transact. products partner chain And you question are unique points all includes that help Shyam, important. built clients way and across in important how to goals. then quarters, with we've the be And it, we strategically and where our partner our all-things think use remain few partners each we home about and things wish really food third-party talk relationships, multiple is they and areas. all meet their very interoperable And others. on we That's that's been last we've we to them how and lot measurement capabilities because third-party the sorts to a of focused DSPs, come Inherent our different mentioned over we and at

you of it, year-on-year, bunch Anthony Roku Channel really fluctuations is And that experience. mentioned possible across Roku our One because the to mentioned a And the the that's have for handle of over well XX% growth it's supply. is platform the reasons. also and increasing market entire the up we because of flexibility

on which reiterate is as we So led streaming have streaming platform. over do the Anthony what advantages with, compete platform a distinct services that our I'll

be ramp and by be half than unique back less revenue assets supply those all adapt So optimistic to that others into allow for I'm market really to seem dynamics. of reasons, XXXX. impacted And the our we'll

Anthony Wood

you. Thank

about asked You also M&A.

seeing. So the in that M&E the vertical let talk we're second. we vertical. and seeing in calls, M&E we that for a despite that's me these what challenges, we're just to prior our XXXX, expected about But mentioned challenged challenges be the In

grow platform activities second We half, on expect we advertising to accelerate to revenue. to the in our continue and expect platform

share I'll Dan but that. let So Charlie and detail more on

Charlie Collier

this is diversified He's overall Charlie. We've business the ad right. Well, well.

and into get I I'm at note, must-have Before really partners. of our we've for of and way number ad that, proud this, that I increased M&A diversified we've is One we're we're the should a M&E good viewer advertisers and/or be used categories brands units inventory up for ad it's worked performance opened almost new the that inventory experience. exclusively has M&E that in diversification and advertisers. to We've And well. reserved to

unit the brands video announced one month unit Our at participation limited ad in invite-only premier what the and this automotive we example. and hope opened screen video first in Depot ad on Home the that Mini. exactly new we Disney, see out it's We sold the And actually beta and the is from for to like a was home new upfront. marquee

across So broad in the M&E market softness regardless marketplace. of short-term

is subscriptions to manage churn. partners and help attract platform and to retain build to the our place Our best still viewers,

Dan Jedda

of platform to many efforts me And examples add years. the M&E due ad a the and business versus demand just the last now stated, products Charlie our let is overall our smaller initiatives, diversify significantly percent and one to all just to ad that. that several point growth our

to for relying while growth. So vertical into future not and a any position on we're market, any rebound in new from the benefit we're good the entrants M&E M&E

Operator

Our comes next Oppenheimer. Helfstein Jason from with question

Jason Helfstein

of you or point? I this can do ask demand of take pricing that in lift It's what similar to demand supporting ramp long will expecting it integration from kind And DVXXX And you're really a some at you how now Charlie, are kind expect exciting partnership? with from you UID. cradle.

Anthony Wood

Anthony. Jason, this is

off, and just turn over kick Charlie. me I'll this then Let to it

of revenue accelerating our platform have very as and we and a mentioned, that last executing on variety as are focused increase have we're platform monetization we We to revenue, against. mentioned, initiatives grow

in today about One around good that. strategy. of like that relationships to those think one strategy. our announcement But we're can platforms, initiatives making Charlie third-party with it. against UID I is and talk is grow I more all step making the integration progress And we're progress that on feel

Charlie Collier

Jason. all and efficient about Well, noting It's clients. performant more for for it, making thanks really Roku our

but Desk only Trade been our with we're is relationship been of a great couple On and the the well has specifically, received growing. to work really months partnership them and in, with

So think to the but drive answer this days, we're your to time We early pleased and demand. to we progress, look it's question, ahead. and continued continue innovations forward will with

X.X UIDX ID or an And collaboration. us, more developed data Trade Unified by solution is it enhanced to precise will for identity Desk. others really, targeting allow the and achieve

in talk So ecosystem, iSpot enhanced not grown being just going to We've to and just Magnite the It's more. benefit word interoperable you others. help entire I Roku about advertisers. from demand and about addition like believe differentiate PubMatic, relationships and our lot are a team folks measurement mentioned, to open Desk. flexibility asked programmatic actually open the Trade and approach because I we benefits and partnerships across The including the partnerships and

So performance clients it asked, and drives Roku Media. demand, for as for you

I streaming in the largest U.S. of triple our hours next TV the leadership streaming. position as seriously, take the We're really leader platform the

the like premium at Roku I've open these, described, put And center the right and of ecosystem. partners so just ones partnerships CTV our the

Operator

next question Needham. Laura with comes the And Martin from

Laura Martin

I one the definitely Anthony. for So first is think

X Pay last note your concept around said the in new now distribution the the you the the like Roku steps thing content have your to the about subscription-based put also with So special quarter, is think I you love. execution and everybody which you, facilitating And with you I reporting your activities I in row, did Olympics. you integrations, NBC

revenue a from what's about My piece this question ads you north get revenue the call let's to a of here? XX-XX star think clean paper, and Is to is, you stream? mix subscription year trying year now, to when that Roku. should Are driving a to that's me products about there expect now we want next you We at revenue clients streams talk see are subscription asking to the from because introduce for them? what and the the year

Anthony Wood

we Laura, lot thanks of to we're way big for as year that, invested to area of time more and for lot year like little just to of there. platform goal a in expanding advertising. Yes. Well, increase our the mostly that. obviously, on It's a I that, demand we're for on our mean, There's question. just goal And the an great past, spend that next making other We've that to our bit us is reaccelerate opportunity one. although this attention side. I is the demand a our a now our monetization. talked we've for course, apps. And about initiatives. There's on drive for progress partnerships feel turning third-party of our a opportunity

grow our supply of we got ability to You've of a lot the supply. that have and

So to demand way that. we're partnerships highly one focused on are and growing do third-party

unique sponsored building Simple to they is unique as that. which is other example buy companies links products very products product, added Roku the City, we bundle City that popular, ad do into we people, way that and a And love is product. we when other ad that UI. with Roku The our

So increasing demand.

I mentioned subscriptions.

there's lot a can So on we do subscriptions.

a I there's the to scale but have grow engagement, believe opportunity given large We of subscription business, subscriptions. our

up signing also on new those do churn. of a that, variety that things of reducing we There's can fronts. of subscribers, So initiatives And involves have both there. we but both

areas focus big our again, screen. over is key we huge lot just on. they have spent areas to business. viewers actually. not have many we less, our the that is is focused home love choose. over and weren't And iconic do make the done There's home we've years me to use It's a we And for we screen focus the because something It's important not a on we're There's build asset years, time asset. then a evolving how much But us. really last best but it, for of a

make subscriptions, so a monetization, home opportunity more into amount so just useful there's engagement, iconic viewers built products also more keep drive and screen. driving the it for of ad and And it but sponsorship to more huge driving more also

think is iceberg I I year our to really for X home I of we from just has think wrote content that's now, so So we've see if a mean, we'll that of top, well can which far, tip all the think screen. do. I working of evolution what continue done us, but the the been really

the that things are of on. those we're So working kinds

Laura Martin

Fantastic. they front revenue My show used able Wall streaming do lead up and to streaming smaller when movie at will indicators. I'm come platforms? what's lot -- like Barbie But X to this box feels at be. as Street office, as an M&E Deadpool movies come to a they take X and the ad that big that or page? happening it me other the up eventually M&E. extrapolate and then is the into into we It really as Oppenheimer, box show office in these point than films is your one later to on loves quarters therefore, M&E the on Wall I your look Are those and Street

Anthony Wood

pretty Well, that, it I'll broad-based. very not me over really take then Charlie, our It's to a who understands let just. well. and M&E turn at business M&E shot is

of all I those through a media a our new -- the think, partners and subscribers services wants term transactions. or distributed. just on these is also on sign can't like I it's endemic to things increase It's basically It's extrapolate it's entertainment. use internal M&E or our platform And use and M&E to refer that sell to engagement we from releases happen that you an that. means really and we look mean term. at term

throughout it good engagement. of things ad. a transactions, other course, There's, we're of it those partners, distributed platform. ways That's is way. way subscriptions, at But there's we a for our primary that the drive Marquee lot One

And so I integrated it's share? into the do want complicated. deeply it's mean But platform. do you we to Charlie, --

Charlie Collier

really M&E I driving here. click on streaming you on. Laura, Literally, the also an at way watch spot is us here we That's is and a And people because about business. ad Sure. good so it it for think are category

in to there you that. movies, is positioned So But well When well. as we does of the why and reach unique in always that's point us well to category television. broad and as your think a we're entrants, about strategy that as And right it's is do that are break new out. our lead-in all it we're the to establish big

households seats And with sides people, with at in XXX Bowl Super really an reach really million put and we drive theaters. every people day, can which is movie impact so

So more and more do you because reach screen to that value the that strategies spend as the are as have and and and they we fake broad about, can't we talks people need scale. who to have overlap improvements we'll more those home Anthony scale,

So at seen you've stuff run. is will just they've reach strategy, screen like which broader Disney what we're our Anthony of, the from broad advertising, few nice had weeks, said, drive a and reach the home beginning last over

efficient I'll a of more is of making of you about we're terms Roku us and also tell talking different types allowing partnerships. more lot what in also partnerships, our advertisers, for performant

just for proving that with we that them, we all can seats. So not and we that's are but a into get effective about just Fandango, people did deal

driving like enamored, I broader our but they're seeing you're of reasons the studios. not then proving we of came just in the we're for performance KPIs partners the that it reach, is so and outcomes we're very acknowledging partnerships of just driving I'm with funnel the here top with will the and one And so the at it, and good,

Anthony Wood

well. was going we But Thanks, impact for mean, of to comment, at reason Laura. because is that's business factor their marketing streaming good M&E which on having and challenged one are Anthony. market I better on the This the us very it's as are lot simple and and just last services that's us. at driving we're is just the a getting is it's some back comment that -- it, a it's good key I budgets, pulling that, and pretty

Operator

And the next Research. Cannonball question with comes from Karasyov Vasily

Vasily Karasyov

revenue. I wanted ask distribution to about

XXX year. quarter, Does at it of was, the the was mind if in that you that adjustments there the big grow was? continues us to should next distribution it are would First big looking growing that telling And acceleration. last comping the fairly all, how rate year then revenue there revenue accelerate at now seems against be or because assume to we XXX adjustments

appreciate I any So help this. would on

Dan Jedda

QX. when -- due that was that one. we it I'll similar to had prices XXX our to We have Yes. primarily partners adjustment a did quarter, increasing It the and in subscriptions the adjustment take was last our it have because for just But can XXX increase not benefit prices, into forecast that QX. yes, adjustments to revenue, XXX don't lead we one from that, takes we our in adjustment. the forecast but did account. We

terms acceleration on SSD and to into year streaming In predict it's subscription that of question we distribution the I to prepared about having because of of also HX see my businesses those very HX price was remarks, advertising. In about all the in acceleration saw price talked about this year, in QX hard acceleration, the and talked from to difficult specific increases, That expect in QX talked we we the last the advertising. QX, comps increase. that your business or of for we as

also so subscriptions. all from what Anthony we driving doing work benefit see that we'll parters. talked We'll partners, we're more that. That be compares more and the see the business similar about a And moderating to SVOD the just our I the on But call again, benefit how we is of acceleration price that if that from it with advertising increases does standpoint, across would lot from earlier increases an the led on going forward. by really SSD the SVOD expect and difficult depend the that price acceleration comp, from going on based is

Operator

with Supino comes Research. Peter from And Wolf the next question

Peter Supino

sales we third-party apps wanted cost getting and another inventory. Particularly I Two On getting sells, on why [ now DSPs questions, on Channel and as there's partnership. ad prior a now? estate. Roku the con sell you and ] screened to one to decision. sell strategy you over third-party that to decision more or to disinflationary long to real everybody and think run, relative using third-party wants pro Should the and the about ask a but why that for ad on your volume, Obviously,

I'd commercial love a your for streaming hear how So many the And terms had advantageous over the to changes that. over market on you've very on TV relationships. manufacturers wonder thoughts with then with And app costs, those I owners time time. and in also

Anthony Wood

view, third-party it's Anthony. the -- say why is This I'll a lot work. we've ad from and his I'll and But give of Charlie not platform sales created streaming a thoughts. years, it's of my now. point just let over

of different You've have you got choose. you stuff. of to money to sort of different make there's and And lot to do There's ways a of a a places lot can focus. lot

those. past, to in have on. things those. we've obviously, going that well We're continue stopping we're And us doing do the to And really so focus for chosen worked to not

the on made. that that options. the our Integrating just on is got we It's with impact key it's we've we've the a time you These choice new. next we're were can spend something different without And push other one time, in we that big is one was over that opportunities we we've thought where done that, as mean in on. where it I better a believe we've we the initiative rank And At through going a chosen. focused it going this It's lot time. way never just a to really that third-party have is moment turns to partners year. past. the at really not that moment of going options in it's

platforms. industry, related the it's evolution a street, fact often And sold sourced often these programmatically but increasingly And take. through of demand though that's still of on little it's the clear platforms from also being future also that delivered advertising increasingly even it's the the how programmatic going people it of it's initiation through bit to days, long to the going of those the demand is question the is and

And so right it's our time. judgment the it's now

know, the answer. to I that's basically don't have to anything So that? do Charlie, add you

Charlie Collier

agree interoperable performance something all world certainly that I or There's in that. across being the not interoperable an will platform us. often with And about look, empowering is differentiate media very ecosystem. for Yes, us open a

called solution, So announced and something to the TV market. tech way a streaming Exchange. we tech differentiated ad It's Roku we first it's Roku's stack bring

best of advertising So benefited to from now to our with to point, from bringing to be an take allows your that to date. stack way us pragmatic layer allows DSP add a that market we're And for we've data-driven it in tech all intelligence matched across the capabilities product our our the and media ecosystem.

us the people that we funny CTV largest the Trade and a That data you unmatched also So the match in have Peter, talk million XXX every like lot, means to offer, think about Desk, in with about having the someone homes with market. we we scale separate this scale that set it's day. will

to confident that in we're right, the right building people is the Anthony to and us into timing way be future. right the with grow allows So it right, is the

Anthony Wood

basically quite I And our wasn't but on second think sure dynamics there yes. around then your I question, mentioned -- perhaps was, change in platform. understood, And I apps you it any the is

would to engagement want I people service in ] say, mean, to to in platforms. a United you're build if we're all XXX [ launch compared a change, a just Roku's broadband main chart service. the approaching I TV. XXX a streaming the of you put the if we're shareholder other going the day letter or scale that think the turn with continued million households just massive scale. States, mean must-have is on platform a showed streaming market every our households I Roku I We in So half a of growth

main that I important scale platforms. certainly, us change. our streaming mean, us. both But making scale the services. to really That's for is streaming so a relationships is large services with there's And impacting probably our obviously, beneficial of relationship mutually

Operator

question comes with Securities. next Guggenheim Our Michael from Morris

Michael Morris

or had you the reported understand right? quarter. curious platform. increases expecting comping Plus, ask several that much Max, revenue then bit X. in to the in least helped Paramount guide impact I the think XXX And XQ XXX, next at with to more wanted Is bit going just at just I about price little a but versus remember Peacock, I'm Dan, bigger little have announced, correctly. Q been deceleration also a to if that X% quarter the I the XQ? I this So you're XX% the from

that taken Or third bigger picture to on quarter have hear is that thoughts then into would a love I'd is account that that be So but first. one, your your incremental? And I guide? something in

Dan Jedda

question. Yes, I'll take that

So XXX to similar and year XXX the of year QX QX for of of this last year. of the last QX was impact

happened there this to there you comp increases that XXX impact not points. price lot happened because basis the this streaming And other sequential is a a year. the in piece, roughly in lay it the HX year from comping to are we out are more relative on last gets last HX which So increases SSD services of is could prepared that challenging what comp, And happened But to year. decline. that that see we year, the we the distribution price call tried but just level remarks yes, year, simply some last around lot the of

are difficult course, guided a a that of doesn't QX. said advertising QX then, quarter, to QX during XX% on And from my to sequential we to mentioned. that prepared that also comp, I that So from XXX remarks does expecting which just the to in basis have play during more I we SSD accelerate much the X% decel QX business into just the

Michael Morris

you That's helpful. that. my Anthony math question a the Okay. But on referenced very think, put say OS is at that XX%. then really data market, as and much, second about of number. My your And of share your just much than XX%, I than is U.S. part less share, almost impressive would revenue CTV in the CTV right, smaller

can company you big the as toward. with XX% of marketplace? do you question is, your you striving as can how that the investors thinking be my we about be number should So can that in feel share that see be CTV reconcile share How a market

Anthony Wood

I'll that. understood to question. just I I sure is answer, I Anthony. take want This before the But make

were what share you the... comparing So Our of it to?

Michael Morris

CTV. The

showing half revenue understand I or point are leads you different to you that launch starting think, that, sources. understand see I as the roughly as but say, I the to So investors chart, pad. like the, there of

much marketplace of performance? the that XX% how financial time? be to translate CTV Could So can over you of

Anthony Wood

continue mean both scale, growing active that -- streaming mean, of scale internationally. in hours that there's to but Yes. I think in U.S. -- our accounts, account. Both expect I we I the and and per also terms

our into that is and ways, basis the our growth opportunity for scale account going increase we're that's new that. to own integrate per us creating one or to which the we and create variety does the That continue of So operate monetization products basis, based to including on that platform. in of continue drive a we to

to And of room so there's continue yes, to a grow. lot

the like Channel to the ours think you in on. completely on ours that platform, about monetization we hours on If range Roku that we from our monetize less make they hours XXX% streaming

So where it's going hard for to say. me to land, it's

Operator

Nollen question with Macquarie. And from comes next Tim the

Tim Nollen

the wonder side, we like against comp It that teeth okay how might expect of you remember. coming retailing can't to own distribution you switch much And for growth as QX. and some QX in had kind if just as how out about is the actually we impact speak Can but could strategy forecast do QX various we Walmart. strong your QX, I going. please? your question when for And in such was just really curious, well. about There I'm devices some retailers via your looks quarter. growth I

Anthony Wood

take brand. in product a the have love product. Tim. doing Like business, is the on X a households strong general, net it million spent XX we own years a turn added It's right. really mean momentum signing to that we then market. Anthony. the All I'll is the in I focused TVs. and Thanks, It's accounts side our In it. This of is which last It's Dan quarter. Consumers streaming maybe I'll building. active that to talk device against comping I we about growing new accounts, great said, got up our well. over great

active from X us, or We but good pillar piece, The is new licensed it's accounts we growing that's there's comes to Roku sort of business, pillars think We actually OEMs. TVs, players. still players. growing. to our OEMs. of other ways nicely, the It's That's licensing is Roku like streaming Roku-branded that. from go. to a license other ramping biggest side devices to first-party but biggest that got And we relatively of selling a lot streaming it's as a selling program also for the -- where And big TVs quite platform TVs program, the sell then

Roku in QX, we in Roku Costco, distribution Roku-branded TVs. this in QX, some quarter, expanding In other we're mentioned TV we added we we Walmart.com. TVs, Roku Target we then added so first-party added And of expanded we that and -- sorry, before -- terms And that Amazon, to distribution. then retailers, include mentioned specialty

market. Roku new Roku-branded receiving hit strong the well. Pro higher-performing Series TVs, Series the our April, really selling The In Pro of sort reviews, is

Yahoo! Pro their Tech, TV example, For Series of the named XXXX. favorite

U.S., I we is grow globally, big room the strong say, us. course, And business would but general, continue very we for doing in part for think also then there's actually of of And future, well. to focus that in grow we expect market both to it foreseeable the to where our a have share, So is there. still

but there's is it that, a early branded to a I days think fairly the TV, said, The And -- I'll to that. Dan. up. on I good. to continue for But I over like lot mean then of turn room lot it's still to scale of it's room grow ramp starting

Dan Jedda

I'll Yes. and now a year just in adding and labeled were Visa. year of as we Best starting some year. this in QX distribution QX reminder, the of But as have last year, this we and of all off partners Buy add QX specialty last that just and all we in Anthony exclusive with launched Target for well with

So 'XX FY we're FY 'XX. in versus very distributed well

in Roku from we it. to We're We're as So it. we ramp, partners continue our with with and do to our reported guide see we're that happy happy the and results expect branded go TV our in you'll forward. and to results seeing -- great distribution

it's big So for us. a win

Tim Nollen

on When up to guessing we branded get higher you're I'm follow-up. TVs, profit? when now, owned a to closer coming And out think expect price can closer the get can ramping to gross quick that on profit? more we -- helps sets to maybe If gross breakeven breakeven on the

Dan Jedda

Yes, I'll as that one take well.

double Roku-branded were in margin in a to digit, we low negative at business. XX% the TV. So we is level our device double QX, negative guided digits on which And similar low

scale, that scale. as well. Anthony speak down. mentioned, on will component get as to I scale. very to go can't as we pricing. should costs ramp we're to to in do And our costs But believe early component So come closely We market down continue our the we that watch

an managers. several the to see where quarters, with We we So I in the just from is competency quarters think next players a scale the get BOM cost. and expect a see component getting the it start the scaling at many and It does as just range this core benefit managing Again, going exceptionally over Roku be in time saw device But good job we're down. will I come of that improvements margin. good takes costs to this to because of to company. very you for

Operator

The Carpenter JPMorgan. with from next comes Cory question

Cory Carpenter

I X or Anthony. advertising questions had for Charlie

to provide you're your given half mix seeing and news are the market, you about the anything the Roku specific? maybe of the impact from an could then on and thinking in year And you the the broader what secondly, second front, advertising update First, how political announced partnership.

Anthony Wood

of take actually. will Charlie questions. the for thanks those both Cory, Hi,

Charlie Collier

is answer lot modern around video and board digital our we've ads participation. is been transition for market our ecosystem. front, is positive generally us. of a and to marquee The the and been more sports across it's ways on digital-first hearing momentum absolutely while news good working seeing And unquestionably continuing share the a we're news the and clients. new Good benefits like excitement embrace new products the our we're Roku of growing Cory, what

question all next your and we've Major Baseball. the Olympics mentioned in League You done in

And visible lot as to easier measure. a those, we've and buy to partnerships as also make quite and Roku this invested invested, isn't we've in

purchase and and hearing we've measure easier wanted, been we're I the their more is Media to onboard which you're then be that getting clients Roku we and that making more. performance. So it feedback to new And think going

we're the And while So share, than building buying ready we're expect it's a different to is we video marketplace revenue during still the be. and purchased that upfront, used it also across in a direct flexibility sorts and of because with long executed be all channels question. mentioned market of to your in of the both dynamic year bunch programmatic all built you

the conversations for, a I and closing our confident We're beyond we're the share great and client well it's feel And on establishing ready So the about with position. momentum, building Poise. change we're we're upfront and both with upfront having the really upfront. KPIs

to part have strategic advertising sales, tools a our other down with On we election that November political as for make they're ad it like in business. happy the Roku What one holds the advertisers. noticing diverse growing our cycle. the we while just And political count position categories is a of political. Look, and we're really tech 'XX terrific us and and of is platform completion

desirable ability getting think So is they're taking our and target geographies that something of really advantage terrific. our another improving, where audiences scale This every Anthony to cycle. said repeating. and better is I bears are is earlier and We Roku category which

The Olympics, excited I'm really about.

into lot, differentiation, both. talk Olympics is And to time the our market on of experience. and understand a we did about that with Roku's strategy saw We the engagement. of and France we're just Olympics. so NBC and the You working. you advertisers from the upfront. to we helping at getting drive position our say great And on to talked lead a I clearly if lead in really screen it's customize folks that Peacock We working And closely we're unique television. we're text in before all be example the their to fire all keep

also great experience are innovate events. with like and a custom them ability build integrations, something and totally right to ad-supported about of I television. our ability has around to really what this of So partnership at series bespoke tentpole all it Olympics what major was, that but was And Roku our not NBC just across we can it, to it's for do a and It's partners Peacock, working sorts at. for win events

That's our So home have focus we viewers coming and every have television. scale to scale through a lead with nearly front that into be we XXX fake and before, the I you fake you door. said can't day the can't differentiator. million

making Olympic easier. the I'll So It's good and and It's They're for for viewers. obviously, great great is news who are end experience our content partners owners benefits Olympics it. about our it advertisers. is the this, using here

Olympics the with NBC and co-hold experience. lead-in we fact, In that whole

launched the we going That's So Olympic zone. well.

and We our League and lot our NFL a improves again, partnership more are experience. our And doing of through impact Baseball a and total things it for to ahead. Major differentiator capabilities similar see and you're it's going

Operator

come will David with Joyce from question the And Research. last Seaport

David Joyce

on the there? evolving color programmatic industry how more are activity Could you partnerships please rates add supply tech some increasing are interplaying increased and fill how and and ad buying

Charlie Collier

It's a David. Charlie. piece. all is of This

it's is and fact, The And Channel is XX% growing entire impressive. so year-over-year. growing. So Roku over in the platform Anthony led with,

layering can and stead of imagine then sorts data, third-party and you supply. handle to we're these our just our Desk, scale our in Trade ability great holds partnerships that partnerships, over advanced And handle but both. not Pricing fluctuations in demand to So us all third-party market the fluctuations.

you're So and steady year. back steady to think of our a fill of into success. demand what the rates a are revenues of I see of ramp ad one the half metric is But going ramp

we're and think talking on opportunities drive this we've about call. it together type the to of positioned moves I all uniquely So been pretty

Operator

to back I would now over closing time, call like this turn for the At remarks. Anthony to

Anthony Wood

everyone, joining, Thank partners and to employees, you, All our for customers, and right. advertisers. thanks

Operator

for Thank call. you participating. This concludes today's conference

now disconnect. may You

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