Roku Sets Terms For $204 Million IPO
Roku wants to sell 9 million shares of its Class A common stock along with 6.7 million shares from selling shareholders at a midpoint price of $13.00 per share.
The firm is transitioning from a device-centric focus to device and advertising business model.
Given its growth trajectory and progress management has made diversifying its revenue streams, my opinion on the IPO is a BUY.
This idea was discussed in more depth with members of my private investing community, IPO Edge.
Quick Take
Entertainment streaming service provider Roku (ROKU) has filed proposed terms for its $204 million IPO, seeking to sell a total of 15.67 million shares at a midpoint price of $13.00 per share.
Roku has developed a family of set-top boxes and related services that enable consumers to view television content at a time of their choosing.
Management is growing the business smartly while diversifying revenues from its historical focus on the device to now selling advertising and services as a major part of its revenue stream.
My opinion on the IPO is a BUY at the proposed price of $13.00 per share.
Company Recap
Roku was founded in 2002 to improve the television viewing service by creating a hardware and software system that enables on-demand viewing.
The firm was founded by Anthony Wood, CEO, who also founded ReplayTV where he ‘invented the first DVR.’
Below is a brief overview video of Roku’s streaming players. A more recent video would have included the recently launched ‘Ultra’ viewer, which is Roku’s flagship device:
(Source: Roku)
Roku also sells Roku TVs, which integrate the firm’s operating system into the TV.
Additionally, Roku sells advertising via ad units of differing types across its service and is focusing its future development efforts more intently on the advertising portion of its offerings, as the revenue chart breakdown shows below.
The firm is transitioning from a device-centric focus to device and advertising business model.
Given its growth trajectory and progress management has made diversifying its revenue streams, my opinion on the IPO is a BUY.
This idea was discussed in more depth with members of my private investing community, IPO Edge.
Quick Take
Entertainment streaming service provider Roku (ROKU) has filed proposed terms for its $204 million IPO, seeking to sell a total of 15.67 million shares at a midpoint price of $13.00 per share.
Roku has developed a family of set-top boxes and related services that enable consumers to view television content at a time of their choosing.
Management is growing the business smartly while diversifying revenues from its historical focus on the device to now selling advertising and services as a major part of its revenue stream.
My opinion on the IPO is a BUY at the proposed price of $13.00 per share.
Company Recap
Roku was founded in 2002 to improve the television viewing service by creating a hardware and software system that enables on-demand viewing.
The firm was founded by Anthony Wood, CEO, who also founded ReplayTV where he ‘invented the first DVR.’
Below is a brief overview video of Roku’s streaming players. A more recent video would have included the recently launched ‘Ultra’ viewer, which is Roku’s flagship device:
(Source: Roku)
Roku also sells Roku TVs, which integrate the firm’s operating system into the TV.
Additionally, Roku sells advertising via ad units of differing types across its service and is focusing its future development efforts more intently on the advertising portion of its offerings, as the revenue chart breakdown shows below.
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