Roku Returns to Operating Profit, Lifts Outlook on Platform Growth

Overview

• Roku posted Q3 revenue of $1.21 billion and net income of $24.8 million, topping Wall Street estimates.
• Operating income reached $9.5 million, marking the first positive quarter since 2021.
• Platform revenue rose 17% year over year to $1.065 billion, driven by video advertising and distribution of streaming services, including the impact of Frndly TV.
• The company raised its full-year outlook to $4.11 billion for Platform revenue and $395 million for adjusted EBITDA, and it repurchased $50 million of stock under a $400 million authorization.
• User engagement climbed to 36.5 billion streaming hours, up 4.5 billion year over year, while devices revenue declined to $146 million as Roku also highlighted the recent launch of its $2.99 Howdy service without sharing performance metrics.