Roku overdelivered for the fourth quarter of 2024, boosting revenue 22% and narrowing its net loss to top Wall Street expectations.
Roku reported 89.8 million streaming households as of the end of 2024, up 12% year over year and a gain of 4.3 million from 85.5 million the prior quarter. It’s the last time the company expects to report the metric regularly, following in the footsteps of Netflix, as Roku going forward will focus on revenue and profitability numbers in its quarterly earnings.
Overall, the streaming platform company posted Q4 revenue of $1.201 billion and a net loss of $35.5 million (versus a net loss of $78.3 million a year earlier), or 24 cents per share. Financial analysts on average expected revenue to come in at $1.15 billion with a loss of 43 cents per share, per LSEG Data & Analytics.
Shares of Roku were up more than 14% in after-hours trading Thursday on the beat.
“We delivered outstanding Platform results in Q4 — our first quarter with more than $1 billion in Platform revenue, which grew 25% YoY. We also continue to expand our penetration in the U.S., which has surpassed half of broadband households,” Roku said in its quarterly shareholder letter.
The company noted that in Q4, streaming hours on the free, ad-supported Roku Channel grew 82% year over year, and in the U.S. it reached households with approximately 145 million people. Total streaming hours across the Roku platform were 34.1 billion hours, up 18%. “We continue to make progress growing ad demand through deeper third-party platform integrations, improving the Roku Experience (which starts at our Home Screen) to expand monetization, and growing Roku-billed subscriptions,” Roku said.
In announcing the earnings, Roku said it expects to be operating-income positive for full year 2026.
For Q1 2025, Roku estimated total net revenue of $1.005 billion, up 14%, with Platform revenue growing 16% and Devices revenue largely flat “due to elevated inventory from lower holiday sales.” The company expects total gross profit of $450 million, adjusted EBITDA of $55 million and a net loss of $40 million.
For full year 2025, Roku provided guidance of net revenue of $4.610 billion, total gross profit of $2.005 billion, and adjusted EBITDA of $350 million. By segment, the company anticipates Platform revenue of $3.950 billion, which would be up 12% (and up 15% excluding political advertising, slightly above the growth in 2024) with Platform gross margin expected to be between 52%-53%. It expects Devices revenue of $660 million, up 12%, for the full-year 2025.
More to come.
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