Roku Starts 2018 With A Bang
Roku had a great quarter, beating its quarterly guidance and raising the full-year guidance.
The company is rapidly expanding its user base (+47% y/y) while also making more platform revenue for each user (+50% y/y).
Platform revenue is highly profitable, with gross margins over 70%.
Roku remains unprofitable, but could turn the corner to profitability in the second half of 2018.
This idea was discussed in more depth with members of my private investing community, The Growth Operation.
ChartROKU data by YCharts
On May 9th, Roku (ROKU) released results from 1Q18. Those results were impressive, with Roku showing continued growth in all major metrics from active accounts to revenue. Roku beat its earlier outlook for the first quarter in revenue, gross profit, net income, and adjusted EBITDA, and raised the full-year guidance for each category.
Beat and Raise
1Q18 Guidance 1Q18 Results
Total Net Revenue $120 to $130 million $136.6 million
Total Gross Profit $52 to $58 million $63.1 million
Net Income (Loss) ($21) to ($15) million ($6.6) million
Adjusted EBITDA ($16) to ($10) million ($0.8) million
Back in February, Roku forecast net revenue of $120 million to $130 million. Seeking Alpha news suggests the Street expected revenue of ~$127 million. Instead, Roku delivered revenue of $136.6 million, easily beating the Street's expectation and the high end of Roku's guidance.
FY18 Guidance (Feb 2018) FY18 Guidance (May 2018)
Total Net Revenue $660 to $690 million $685 to $705 million
Total Gross Profit $275 to $295 million $290 to $305 million
Net Income (Loss) ($55) to ($40) million ($40) to ($25) million
Adjusted EBITDA ($25) to ($10) million ($10) to $5 million
Similarly, Roku improved its full-year 2018 guidance in all four categories as well, showing improved strength in the business.
source : https://seekingalpha.com/article/4172120-roku-starts-2018-bang
The company is rapidly expanding its user base (+47% y/y) while also making more platform revenue for each user (+50% y/y).
Platform revenue is highly profitable, with gross margins over 70%.
Roku remains unprofitable, but could turn the corner to profitability in the second half of 2018.
This idea was discussed in more depth with members of my private investing community, The Growth Operation.
ChartROKU data by YCharts
On May 9th, Roku (ROKU) released results from 1Q18. Those results were impressive, with Roku showing continued growth in all major metrics from active accounts to revenue. Roku beat its earlier outlook for the first quarter in revenue, gross profit, net income, and adjusted EBITDA, and raised the full-year guidance for each category.
Beat and Raise
1Q18 Guidance 1Q18 Results
Total Net Revenue $120 to $130 million $136.6 million
Total Gross Profit $52 to $58 million $63.1 million
Net Income (Loss) ($21) to ($15) million ($6.6) million
Adjusted EBITDA ($16) to ($10) million ($0.8) million
Back in February, Roku forecast net revenue of $120 million to $130 million. Seeking Alpha news suggests the Street expected revenue of ~$127 million. Instead, Roku delivered revenue of $136.6 million, easily beating the Street's expectation and the high end of Roku's guidance.
FY18 Guidance (Feb 2018) FY18 Guidance (May 2018)
Total Net Revenue $660 to $690 million $685 to $705 million
Total Gross Profit $275 to $295 million $290 to $305 million
Net Income (Loss) ($55) to ($40) million ($40) to ($25) million
Adjusted EBITDA ($25) to ($10) million ($10) to $5 million
Similarly, Roku improved its full-year 2018 guidance in all four categories as well, showing improved strength in the business.
source : https://seekingalpha.com/article/4172120-roku-starts-2018-bang
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