What They Say
Roku had a good Q4 and good year in 2020 overall. The company went past 50 million active acounts, via players and Roku TVs and the company claimed 38% share of SmartTVs sold.
For the year, revenue was up 58% to $1.778 billion and ARPU grew from $23.14 to $28.76 from Q4 2019 to Q4 2020. The firm moved from a loss of $17.4 million in Q4 2019 to a profit of $65.2 million in Q4 2020, although there was an overall loss for the year.
For Q1, the firm is forecasting $478-$493 million (slightly up from $471.2 million in Q4).
You can get the full pdf of the shareholder letter here.
What We Think
The company certainly seems to have turned a corner with revenues rising faster than costs, although they have risen over the last year. This has been helped by a move from player revenues to platform revenues As the streaming and broadcast market gets more and more complex, there may be more of a challenge to maintain the simplicity and ease of use of the Roku interfaces. (BR)
