MUMBAI: Streaming platform specialist Roku has announced robust financial results for 2024, with total net revenue reaching $4.1 billion (£3.2bn), marking an 18 per cent year-over-year increase. Platform revenue grew to $3.5 billion, up 18 per cent year-over-year, or 15 per cent excluding political advertising spend. Gross profit rose 19 per cent to $1.8 billion.

The company reported significant growth in its user base, with streaming households reaching 89.8 million, representing a net increase of 9.8 million from 2023. Streaming hours climbed by 21.1 billion to 127.1 billion hours, whilst average revenue per user reached $41.49 on a trailing 12-month basis, up 4 per cent.

In a letter to shareholders, Roku highlighted its fourth quarter achievement of surpassing $1 billion in platform revenue, a 25 per cent year-over-year increase. The company noted that its US market penetration has exceeded half of all broadband households.

Device Business Performance:  The company maintained its position as the leading TV operating system in the US, Canada and Mexico. Device revenue rose 20 per cent to $590.1 million in 2024, with fourth-quarter revenue of $165.7 million, up 7 per cent. However, increased seasonal discounts affected fourth-quarter device gross margins, which stood at negative 29 per cent.

Content Platform Growth:  The Roku Channel, the company's content platform, reached approximately 145 million people in US households during the fourth quarter, maintaining its position as the third most popular app on the platform. Streaming hours on the channel increased by 82 per cent year-over-year, with more than 80 per cent of streaming hours originating from the Roku Experience in December.

Future Outlook:  For the first quarter of 2025, Roku forecasts total net revenue of $1.005 billion, a 14 per cent increase year-over-year. The company projects platform revenue growth of 16 per cent, whilst device revenue is expected to remain flat due to elevated inventory levels following the holiday period.

For the full year 2025, Roku anticipates total net revenue of $4.61 billion, with platform revenue reaching $3.95 billion, representing 12 per cent growth. The company expects to achieve positive operating income by 2026.
The company will discontinue quarterly reporting of streaming households and average revenue per user metrics from the first quarter of 2025.