- Roku Inc (NASDAQ:ROKU) reported first-quarter FY22 revenue growth of 28% year-over-year to $733.7 million, beating the consensus of $718.31 million.
- Platform revenue increased 39% Y/Y to $647 million.
- In Q1, Roku added 1.1 million incremental Active Accounts to reach 61.3 million; Streaming Hours increased by 1.4 billion hours over the last quarter to 20.9 billion.
- Average Revenue Per User (ARPU) grew to $42.91 (trailing 12-month basis), up 34% Y/Y.
- EPS was $(0.19), in line with the consensus of $(0.19).
- The gross margin fell by 720 bps to 49.7%.
- Adjusted EBITDA declined by 54% Y/Y to $57.6 million, and margin contracted to 7.8% from 21.9% in 1Q21.
- Roku’s net cash from operating activities in Q1 totaled $101.8 million, compared to $95.8 million in 1Q21.
- In Q1, The Roku Channel was a top 5 channel on our platform in the U.S. by Active Account reach and, for the first time, by Streaming Hour engagement.
- In the near term, Roku expects a challenging operating environment, macro headwinds, including inflationary pressures, geopolitical conflict, and supply chain to continue to pressure player gross margin and industry-wide TV unit sales and have the potential to reduce or delay ad spend in certain verticals.
- 2Q22 Outlook: Roku expects net revenue of $805 million vs. a consensus of $815.7 million, gross profit of $395 million, a net loss of $(109) million, and breakeven adjusted EBITDA.
- For FY22, Roku expects total net revenue growth of 35% Y/Y.
- Price Action: ROKU shares are trading higher by 8.26% at $99.20 during the post-market session on Thursday.
- Photo via Wikimedia Commons
