Roku Stick 2017 2

Roku Ended 2017 on A Strong Note

Yesterday Roku announced their fourth quarter 2017 earnings, and to the surprise of many reported total revenues of $188.3M.

Overall revenues are up 28%, driven by platform revenue growth of 129%, which made up for a single-digit decline in player revenue. Gross profit rose 64% to $73.5M in the fourth quarter of 2017. Average revenue per user was up 48% to $13.79.

Roku’s revenue broke down as $2.8M from players (sales of physical players) and $85.4M from the platform (ad and subscription revenue). Roku also saw active accounts rise 44% year over year.

This quarterly report clearly points to how Roku is slowly building their company as a platform-first company. You see this in Roku’s efforts to give away their software to TV manufacturers in exchange for the revenue from ads and subscriptions.

While Roku reported a profit in the fourth quarter of 2017, they project a loss in early 2017 in the range of -$55M to -$40M. This likely comes as Roku gets ready for the late 2018 launch of their new Roku Connect-powered smart speakers and sound bars.

The good news is it looks like Roku had a great fourth quarter 2017, and the company is now moving into new markets like smart speakers to continue to expand.

Please follow us on Facebook and Twitter for more news, tips, and reviews.

Need cord cutting tech support? Join our Cord Cutting Tech Support Facebook Group for help.

Comments are closed.