Today the investment group Macquarie upgraded Roku as it anticipates the company to outperform expectations and triple its sales over the next three years. Macquarie went on to say that it expects Roku to have 72 million customers by 2022, up from the current 31 million customers Roku reported at the end of the 2nd quarter or 2019. This news comes as Roku recently announced plans to expand into new markets around the world.
“Roku has built a leading position in the U.S., and we believe its devices will find a ready market abroad,” said Macquarie analyst Timothy Nollen. Mr. Nollen went on to say he thinks the most significant growth opportunity may be Roku’s Smart TVs made by companies like TCL, RCA, Hisense, and more.
This news comes as Roku reported that its 2nd quarter of 2019 revenues were $250.1 million up 59% year over year. Gross profits also went up 47% year over year to $114.2 million. Roku also announced that monetized video ad impressions doubled from the same period in 2018.
Roku saw revenue from ads and subscriptions jump 86% to 167.7 million compared to just $90.3 million in the same period in 2018. This is compared to revenue from streaming player sales that was only $82.4 million up just 24% year over year. Roku player sales did jump 36%, making it the highest growth in the last nine quarters.
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