Roku Inc. (NASDAQ: ROKU) stock declined by 6.57% at last close whereas the ROKU stock price rises by 9.02% in the after-hours trading, at last check after ROKU announced its Q1 financial results. Roku was the first to bring streaming to the television. ROKU connects customers to their favorite streaming content, enables content creators to create and monetize wide audiences, and provides marketers with innovative customer engagement capabilities.
On May 6, 2021, ROKU released its first-quarter 2021 financial results. Given below is the summary:
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- For the first quarter 2021, the net revenue generated was $574.2 million which is a rise of 79% year-over-year.
- For the Q1 2021 the Platform revenue hiked by 101% YoY to $466.5 million.
- ROKU’s gross profit for the first quarter was $326.8 million, an increase of 132%.
- Roku launched 2.4 million new Active Accounts in Q1 2021, bringing the total to 53.6 million.
- Streaming Hours jumped by 1.4 billion hours to 18.3 billion in the last year.
- Average Revenue per User for the first quarter 2021 increased by 32% over last year to $32.14 (trailing 12-month basis).
- ROKU managed to raise $1 billion in an At-The-Market (ATM) stock offering.
Anthony Wood, Founder and CEO, and Steve Louden, CFO commented:
Roku’s outstanding results in the first quarter of 2021 shows how their market model benefits customers, copyright owners, and marketers in the TV ecosystem. Despite the fact that there would be tough COVID-19 parallels in 2021, ROKU argues that the transition to streaming is unavoidable. It will be multinational in scope and will revolutionize how content is delivered and monetized. ROKU is looking forward to the journey ahead as the No. 1 TV streaming site in the United States (based on hours streamed).
ROKU expects strong growth in the second quarter, with overall net sales of $615 million (rise of 73% year over year) and total net income of $300 million at the middle point (up 104% year-over-year). ROKU expects strong gross profit growth to outpace operating expense (OPEX) growth, leading to Q2 Adjusted EBITDA of $65 million at the midpoint.