This Important Roku Metric Continues to Climb
Roku's (NASDAQ: ROKU) third-quarter earnings report didn't live up to the extremely high expectations set by the market -- the tech stock was trading about 40% higher from its September low. But long-term investors should have a lot to like about Roku's earnings report.
Roku provides a few important user metrics at the top of its letters to shareholders: active accounts, total hours streamed, and average revenue per user. All three numbers saw strong growth last quarter. But combining those numbers provides some important insights.
Dividing streaming hours by active accounts is a good metric to see how engagement is improving on Roku's platform. The more engaged Roku's users become, the greater the opportunity for the company. Last quarter, users spent, on average, more than 318 hours streaming content on their Roku devices. That's up 22% from an average of around 260 hours in the third quarter last year. Comparing that to average revenue per user (ARPU) growth of 30% last quarter shows Roku is monetizing time spent on the platform more efficiently.
Source Fool.com
