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Cheat Sheet: Roku’s revenue, audience grew in the second quarter but streaming watch time dropped by 1 billion hours

Cheat Sheet: Roku’s revenue, audience grew in the second quarter but streaming watch time dropped by 1 billion hours
August 8, 2021 ObadeYemi

Last 365 days’s streaming surge has slowed as of us absorb begun to return to some semblance of no longer contemporary life publish-quarantine. In accordance to streaming decelerations at Netflix and Disney in the first half of of 2021, Roku saw viewership on its linked TV platform slip sequentially in the 2nd quarter. Despite that dip, the company grew the scale of its user abominable besides its income, based on its most up-to-date quarterly earnings document released on Aug. 4.

  • $645.1 million in total income, up 81% 365 days over 365 days
  • $532.3 million in platform income, up 117% 365 days over 365 days
  • $112.8 million in participant income, up 1% 365 days over 365 days
  • 55.1 million stuffed with life accounts, up 28% 365 days over 365 days
  • 17.4 billion hours’ price of video streamed thru Roku, up 19% 365 days over 365 days
  • Average income per user of $36.46, up 46% 365 days over 365 days

Watch time has waned

The amount of time of us spent streaming video on Roku’s CTV platform has grown over the last 365 days, but it subsided by 1 billion hours between the first and 2nd quarters of 2021. 

For the length of a call with reporters on Aug. 4, Roku svp and gm of its platform industry Scott Rosenberg stated “there’s just a few seasonality” at play in the quarter-over-quarter look time decline. In 2018, 2019 and 2020, Roku recorded will increase in streaming hours from the first quarter to the 2nd quarter.

Asked if the company had seen any variations in look time between novel and present Roku accounts or between viewership of advert-supported products and companies versus advert-free, subscription-based products and companies, he stated that the sequential streaming hours drop used to be “no longer attributable to any divulge industry model or protest accomplice.”

In a letter to shareholders printed on Aug. 4, Roku acknowledged “a broader secular decline in overall TV viewing hours” in some unspecified time in the future of the 2nd quarter as pandemic-connected restrictions loosened and of us began to exhaust more time originate air of their properties.

Roku is no longer the single company in the broader TV exchange to glance a slowdown in the first half of of 2021. Both Netflix and Disney’s Disney+ attracted fewer streaming subscribers than expected in the first quarter, and Netflix in actual fact shed subscribers in the U.S. and Canada in the 2nd quarter. Meanwhile, TV community owners collectively with Discovery and NBCUniversal reported 365 days-over-365 days faded TV viewers declines in their Q2 2021 earnings reports.

For the length of the call with reporters, Roku CFO Steve Louden pointed to the 365 days-over-365 days expand in streaming hours on Roku’s platform and cited figures from Nielsen that measured a 19% 365 days-over-365 days decline in faded TV utilization.

A better viewers and a better industry

The sequential streaming hours decline is the cruise in the champagne for a quarter that otherwise saw Roku develop all the device in which thru the board.

The scale of Roku’s viewers now tops 55.1 million stuffed with life accounts. By comparability, Amazon’s rival CTV platform, Fireside TV, counted 50 million monthly stuffed with life customers globally, as of December 2020. And neat TV maker Vizio reported on Aug. 4 that its SmartCast CTV platform had 14 million stuffed with life accounts.

Moreover attracting more of us to its CTV platform, Roku is making further cash per story. Its average income per use elevated by 46% 365 days over 365 days to $36.46. That expand coincides with the company’s swelling platform industry, which spans the sale of ads and streaming subscriptions all the device in which thru its platform.

“We’re factual seeing exact passion in advertisers initiate to practice their viewers to streaming,” stated Roku CEO Anthony Wood in some unspecified time in the future of the company’s quarterly earnings with investor analysts call on Aug. 4. In its most most up-to-date upfront negotiations, 42% of the advertisers the signed commitments with Roku were advertisers that had no longer signed upfront offers with the company final 365 days. Wood also cited the initiating of most up-to-date streaming products and companies as a ingredient, despite the indisputable truth that didn’t call out any by name or category kind.

Three years after Roku’s platform industry overtook its tool industry in the case of income, the money the company makes from the apps available on its linked TV platform is now practically five times the amount it generates from Roku-powered neat TVs and streaming dongles.

The Roku Channel

Roku’s have free, advert-supported streaming service, The Roku Channel, grew in some unspecified time in the future of the 2nd quarter, however the company did no longer present many specifics. Within the first quarter of 2021, Roku stated The Roku Channel reached 70 million of us in the U.S., however the company did no longer offer an updated figure for the 2nd quarter in its earnings document and declined to enact so in some unspecified time in the future of the analyst call. As an different, Roku stated in the shareholder letter that “a narrative series of bizarre accounts” streamed The Roku Channel in some unspecified time in the future of the duration.

For the length of the call with investor analysts, Roku executives declined to specify how noteworthy income The Roku Channel contributed to the industry overall.

Roku has started stocking The Roku Channel with queer programming this 365 days. In March, the streamer debuted its first queer series, and in some unspecified time in the future of the 2nd quarter, it began premiering its first long-established reveals following its acquisition of defunct Quibi’s programming library in January. More than a third of the of us that extinct The Roku Channel in some unspecified time in the future of the 2nd quarter streamed a Roku Popular demonstrate, based on the company.

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