This week we see Roku reveal that 1.5 million new active accounts have been added during the second quarter, bringing the overall total to 55.1 million active users. All the same, their balance sheet shows a slight decline in growth as we emerge into the post-pandemic landscape. Entertainment attorney Los Angeles Brandon Blake looks deeper into what these numbers could mean for future growth.
Overall net revenue for Roky topped out at $645M for Q2, with $338M of that as profit. Yet we also see player gross profit fall off badly, with a 180% year-on-year decrease and a $6.7M hole in their pockets. Streaming hours also lagged behind Q1 by 1 billion hours, although when the overall total was 17.4 billion, that’s not all that bad in context.
The driving factors for the decline are also logical. Out-of-home entertainment has been a big focus for people in developed countries as vaccine programs lead to the easing of pandemic restrictions. A broader dip in streaming and overall TV hours is being seen across the board, and even the Roku CFO noted this. Overall, streaming hours on active accounts appear to be leveling out at 3.5 hours a day, similar to Roku’s own pre-COVID levels and suggesting a solid entrenchment in the market that should continue to deliver well.
More positively for their bottom line, monetized ad impressions have doubled year-on-year, indicative that mainstream marketing has finally noticed the potential of streamers. Roku itself also added the Quibi library to their own, rebranded as Roku Originals, and Roku seem very happy with the acquisition. With 8 shiny Emmy nominations for Roku Original shows, it’s hard to argue. Intriguingly, stats suggest that many of the users coming on board for the new content are first-time viewers, too, suggesting a broadened market appeal through the acquisition.
Overall, while there is some slackening on the pandemic boom, Roku’s balance sheet and future profile are looking strong.
Film and Television 