Roku’s Platform Services Are a Key Revenue Driver


Jun. 24 2019, Updated 1:42 p.m. ET

Platform service sales rose 79.0% in the first quarter

Roku has two business segments, the platform and player verticals. The platform segment consists of fees from advertisers and content publishers, and from licensing its technology and proprietary operating system. The player segment comprises revenue from streaming media players and accessories through retailers and distributors.

In the first quarter, Roku’s sales rose 51.0% YoY (year-over-year). Its platform revenue rose 79.0% YoY to $134.2 million, accounting for 65.0% of total sales. Roku reports that its platform sales were primarily driven by strong demand for the subscription and transactional video-on-demand verticals.

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Roku has 29.1 million active accounts

During its first-quarter earnings call, Roku stated that over 33.0% of smart TVs sold in domestic markets came with Roku technology. Roku is now eyeing partnerships with international players, which could grow its sales significantly. In the first quarter, Roku’s active user count grew by 2.1 million users to reach 29.1 million, while Amazon’s (AMZN) Fire TV had 34 million users. Amazon has a far bigger reach.


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