Roku’s Q2 2024 results surpassed Wall Street expectations, driven by a substantial 39% increase in device revenue and a 2% reduction in operating expenses.
The company reported second-quarter revenue of $968.2 million, a 14% increase from the previous year and a net loss of $33.95 million, or 24 cents per share, a significant improvement from the $107.6 million loss reported a year ago. However, analysts had forecasted revenue of $937.9 million and a net loss of 44 cents per share. Additionally, Gross profit rose by 12% year over year to $425 million, while operating expenses decreased by 2% to $495.9 million.
Furthermore, reflecting a net gain of 2.0 million from the previous quarter and a 14% increase year over year Roku announced that its streaming households reached 83.6 million. The platform also saw streaming hours climb to 30.1 billion, an increase of 5.0 billion hours compared to the previous year.
Roku chief Anthony Wood and CFO Dan Jedda wrote in the letter to shareholders, “We delivered solid results in Q2. The Roku Home Screen, which is the beginning of our viewers’ streaming experience, reaches U.S. households with over 120 million people every day. The execs noted the company hit its fourth consecutive quarter of positive adjusted EBITDA and free cash flow as a result of top-line growth and “ongoing operational efficiencies.”
Roku’s Platform segment saw an 11% rise in revenue to $824.3 million including advertising sales, content sales, and subscription revenue sharing. According to the company, its streaming services distribution business outpaced overall Platform revenue growth, largely due to increased subscription prices for apps on the Roku platform. Additionally, revenue from devices surged by 39% to $143.8 million.
For the third quarter, Roku projects total net revenue of $1.01 billion, marking an 11% increase. The company anticipates Platform revenue will rise by 9%, while Devices revenue is expected to grow by 24% with a gross profit of $440 million and an adjusted EBITDA of $45 million for the quarter.
Wood and Jedda wrote, “We remain confident in our ability to accelerate Platform revenue in 2025 and beyond as we maximize ad demand, lean into our Home Screen as the lead-in for TV, and grow Roku-billed subscriptions.”
Notably, Roku secured exclusive multiyear rights this spring to Major League Baseball’s Sunday Leadoff live games to enhance its Roku Channel offering with more free, ad-supported content. This package, previously held by NBCUniversal’s Peacock, will now be featured on Roku’s platform.