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Roku Inc Class A ROKU

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Roku Posts Strong Q2 as Ad Revenue Expands; Customer Growth Appears to Be Slowing Down

Neil Macker, CFA Senior Equity Analyst

Analyst Note

| Neil Macker, CFA |

Roku handily beat expectations during the second quarter of 2021. Total revenue increased 81% versus a year ago to $645 million, topping the high-end of expected range management provided last quarter and the FactSet consensus projection. Customer metrics during the quarter, coupled with management’s third quarter outlook and somewhat muted commentary concerning the second half of 2021, point to slowing growth ahead. We didn’t hear anything that materially changes our long-term view on the firm, especially given the noise the pandemic has introduced.

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Company Profile

Business Description

Roku is the leading streaming platform in the U.S. by hours watched with over 40 billion hours of content streamed in 2019. The firm's eponymous operating system is used not only in Roku's own hardware but in co-branded TVs and soundbars from manufacturers like TCL, Onn, and Hisense. Roku generates revenue from advertising, distribution fees, hardware sales, OS licensing, and subscription sales.

Contact
1155 Coleman Avenue
San Jose, CA, 95110
T +1 408 556-9040
Sector Communication Services
Industry Entertainment
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type Speculative Growth
Employees 1,925

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