Today Roku announced their 2nd quarter 2018 earnings. According to the report earnings and new users, both saw strong growth. According to Roku in the last 12 months, Roku added 7 million new active accounts. Now, these are not new devices added to accessing accounts these are new Roku owners creating new Roku accounts.
“We are in the early stages of the transition to streaming. We believe one day all TV content will be streamed. We build scale by licensing our platform to TV manufacturers and service providers, and by selling our popular line of streaming players. We added nearly 7 million net new active accounts in the last 12 months by focusing on our core principles of delivering easy-touse products with a wide selection of content and great value. With our platform, we are making the TV experience better for viewers, advertisers, and content owners. We see tremendous opportunity to continue to innovate on Roku TVs and players. ” Roku said in a statement on their site.
Roku also saw a 57% jump in revenue vs. the same period last year. This is Roku’s fastest revenue growth since the 4th quarter of 2013. Gross profit a key performance metric grew 107%. No matter how you look at it, Roku had an excellent revenue quarter in the 2nd quarter of 2018.
“We are investing our increasing gross profit back into key growth areas, as we aggressively pursue the huge opportunities we see in streaming. Our goal continues to be to manage the business to roughly break-even during this period of market expansion. However, given the strength of our first half and factoring in the IP licensing accrual release benefit, we are increasing our revenue and profitability outlook for the full year 2018 to reflect more rapid growth and a modest EBITDA profit.” Roku said in a statement on their site.
Roku has dramatically benefited from the growth of cord cutting with 70% of our readers saying they own and use a Roku. These strong earning numbers from Roku show just how fast cord cutting and online streaming is growing.
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