Roku Inc. (NASDAQ: ROKU) has reported impressive financial results for the fourth quarter of 2024, leading to a notable 14% surge in its stock price, reaching a new 52-week high. The company revealed that it added over four million new streaming households during the quarter, bringing its total to approximately 90 million. This growth reinforces Roku’s position as a leading player in the streaming market, with CEO Anthony Wood stating that more than half of U.S. broadband households now utilize Roku for their viewing needs.
In the fourth quarter of 2024, Roku’s earnings significantly outperformed Wall Street’s expectations. The company’s loss per share was $0.24, which was better than the anticipated loss of $0.40. Revenue reached $1.2 billion, exceeding the forecasted $1.15 billion. This revenue was driven by growth in subscribers and advertising revenue. Roku’s platform revenue saw a 25% increase, totaling $1.04 billion, while player revenue increased by 6.5% to $165.7 million. The company expects to achieve profitability in 2026.
This performance marks a substantial improvement from the previous year’s fourth quarter, where Roku reported a net loss of $78.3 million or $0.55 per share. The latest figures indicate a net loss of $35.5 million for the same period in 2024, showcasing the company’s ability to halve its losses year-over-year.
Roku’s total revenue for 2024 reached $4.11 billion, reflecting an 18% increase from the prior year. The platform segment alone contributed $3.52 billion, accounting for 86% of total revenue and growing by 25% year-over-year in Q4.
Roku’s strategy to enhance user experience has played a crucial role in driving its growth. The company has focused on promoting content directly on its home screen, which has led to increased engagement and higher streaming hours, up by 18% year-over-year in Q4. As of January 2025, Roku surpassed the milestone of 90 million streaming households, demonstrating a robust demand for its services.
The Roku Channel has also seen significant traction, reaching about 145 million people in U.S. households and experiencing an 82% increase in streaming hours year-over-year. This growth is attributed to Roku’s effective content recommendations and broad content offerings.
Advertising remains a critical component of Roku’s business model. Wood emphasized the company’s commitment to expanding ad demand through deeper integrations with third-party platforms. As advertising revenue grows, Roku aims to enhance monetization across its services.
Looking ahead, Roku forecasts net revenue of approximately $1 billion and gross profit of $450 million for the first quarter of 2025. The company expects continued growth in both platform and device revenues over the next few years, with projections indicating a compound annual growth rate of around 10%.
Roku’s recent performance highlights its resilience and strategic focus on enhancing user experience while expanding its market reach. With a strong financial outlook and an increasing number of streaming households, Roku is positioned to capitalize on the growing demand for streaming services in an increasingly competitive landscape.
Roku’s ability to maintain its growth trajectory will in part likely depend on the Company ability to achieve its goal of reaching 100 million streaming households within the next year.
