Is This Growth Stock the Future of TV Advertising?
In this video I will be talking about the advertisement side of the Roku (NASDAQ: ROKU) business. Because Roku is so much more than just a streaming play. It will need to compete with all the other streaming players out there, but you should be thinking of Roku as a gateway for streaming content on your TV and as an advertising play.
The company reported Q1 total net revenue of $574.2 million, up 79% year over year. Gross profit was up 132% YOY to $326.8 million. Roku added 2.4 million incremental active accounts in Q1 2021 to reach 53.6 million. Streaming hours increased by 1.4 billion over the last quarter to 18.3 billion. Average revenue per user (ARPU) grew to $32.14 (on a trailing-12-month basis), up 32% YOY.
For Q2 Roku expects operating expense to be roughly 15% higher than in Q1, in part due to organic headcount growth and the inclusion of expenses related to recent acquisitions. But gross profit is expected to outpace it.
Source Fool.com
