Today Roku announced its 2nd quarter 2019 earnings and Roku’s ad/subscription revenue has continued to climb to a new record outpacing revenues from Roku player sales. In the 2nd quarter of 2019 Roku’s revenues was $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 2018. This is compared to revenue from streaming player sales that was just $82.4 million up just 24% year over year. Roku player sales did jump 36% making it the highest growth in the last 9 quarters.
Roku also reported that they now have 30 million active accounts.
When asked about how much money Roku makes off its hardware Roku’s CEO last year said: “We don’t really make money… we certainly don’t make enough money to support our engineering organization and our operations and the cost of money to run the Roku service,” Roku’s CEO Anthony Wood said last year. “That’s not paid for by the hardware. That’s paid for by our ad and content business.”
Roku seems to have found a sweet spot for their company by selling cheap streaming devices and making money from the ads and subscriptions. At this rate of growth Roku may soon be making twice as much off of ads and subscriptions than physical devices sold.
Are you happy paying less for a Roku streaming player if it makes money from the ads you see? Leave us a comment and let us know.
Roku will hold its 2nd quarter 2019 earnings call later today. We will have full coverage of everything Roku announces during the call.
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