Today Roku announced their 4th quarter 2018 earnings. Part of that report was the fact that one in four smart TVs sold in the United States was a Roku TV. Not only that but Roku beat expectations and has a very bright outlook for 2019.
In a statement in their earnings letter, Roku Said: “2018 was an excellent year for Roku, with record results and solid progress towards our long-term vision of powering every TV in the world. As more than 3 million U.S. households cut the cord, Roku added nearly 8 million active accounts in 2018, increasing our total active accounts to more than 27 million at year end. We estimate that nearly 1 in 5 U.S. TV households now use the Roku platform to stream at least a portion of their TV viewing. While our growth has been impressive, we believe we are still only beginning to capitalize on the large opportunity streaming presents. We expect to reach $1 billion in revenue in 2019, by focusing on these key areas: increasing monetization per user and scaling the number of households using the Roku platform. With our fundamental strategic advantages and continued strong execution, we believe we are well positioned to deliver another excellent year.”
A few 2018 highlights for Roku’s 2018 year in review:
• Total net revenue grew 45% YoY to $742.5 million;
• Platform revenue increased 85% YoY to $416.9 million;
• Gross profit was up 66% YoY to $332.1 million;
• Roku added 7.8 million incremental active accounts in 2018 to reach 27.1 million at year end;
• Streaming hours increased by 9.2 billion hours to 24.0 billion;
• Average Revenue Per User (ARPU) increased $4.17 to $17.95 (trailing 12-month basis);
• Roku monetized video ad impressions more than doubled in 2018;
• More than one in four smart TVs sold in the U.S. were Roku TVs.
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