Roku, the streaming specialist has reported its full year 2024 results. Total net revenue stood at $4.1 billion (€3.9bn), up 18 per cent year over year (YoY) and platform revenue was $3.5 billion, up 18 per cent YoY and up 15 per cent YoY excluding political ad spend. Gross profit was $1.8 billion, up 19 per cent YoY.
Streaming Households were 89.8 million, a net increase of 9.8 million from 2023. Streaming Hours were 127.1 billion, up 21.1 billion hours YoY, and Average Revenue Per User (ARPU) was $41.49 (trailing 12-month basis), up 4 per cent YoY.
In a letter to shareholders, the company said: “We delivered outstanding Platform results in Q4 – our first quarter with more than $1 billion in Platform revenue, which grew 25 per cent YoY. We also continue to expand our penetration in the US, which has surpassed half of broadband households. In Q4, Streaming Hours on The Roku Channel grew 82 per cent YoY, and in the US it reached households with approximately 145 million people. We continue to make progress growing ad demand through deeper third-party platform integrations, improving the Roku Experience (which starts at our Home Screen) to expand monetisation, and growing Roku-billed subscriptions. As we look ahead, we see clear paths to growing our KPMs of Streaming Hours, Platform revenue, Adjusted EBITDA, and Free Cash Flow. In addition,we expect to be operating income positive for full year 2026.”
Devices
Roku’s Devices segment performed strongly in 2024, maintaining leadership as the #1 selling TV OS in the US, Canada and Mexico.
Devices revenue was $590.1 million in 2024, up 20 per cent YoY, and $165.7 million in Q4, up 7 per cent YoY. Q4 Devices revenue and gross profit were impacted by increased seasonal discounts that took place across the industry, including Roku. While Q4 Devices gross margin was (29) per cent, full year Devices gross margin was (14) per cent.
In the US, the Roku TV OS has been the #1 selling TV OS for six consecutive years. In Q4 and 2024, sales of TV units powered by the Roku TV OS were once again greater than those of the #2 and #3 selling TV operating systems combined.
Globally, Roku ended 2024 with 89.8 million Streaming Households, surpassing 90 million in the first week of January 2025. Q4 2024 net adds were 4.3 million, and full year 2024 net adds were 9.8 million. As reported in its Q3 2024 Shareholder Letter, Roku will no longer report quarterly updates on Streaming Households and, by extension, ARPU, beginning with our Q1 2025 earnings results.
The Roku Channel
In Q4, The Roku Channel reached US households with approximately 145 million people and remained the #3 app on our platform by both reach and engagement, with Streaming Hours up 82 per cent YoY. Roku attributed the growth to its ability to recommend relevant content throughout the Roku Experience, as well as its broad content offering. In December 2024, more than 80 per cent of Streaming Hours on The Roku Channel originated from the Roku Experience (not a Roku Channel app tile), a 15-point increase from a year ago.
Outlook
For Q1 2025, Roku estimates Total net revenue of $1.005 billion, up 14 per cent YoY. The company said it anticipates Platform revenue growing 16 per cent YoY and Devices revenue largely flat YoY due to elevated inventory from lower holiday sales. Q1 Total gross profit is forecast to stand at $450 million with Adjusted EBITDA at $55 million.
For full year 2025, Roku expects Total net revenue of $4.61 billion, Total gross profit of $2.005 billion, and Adjusted EBITDA of $350 million. Roku anticipates Platform revenue of $3.95 billion, growing 12 per cent YoY. Excluding political, this represents YoY growth of 15 per cent, slightly above the growth in 2024. Devices revenue is forecast to be $660 million, growing 12 per cent YoY. Platform gross margin is expected to be between 52 per cent to 53 per cent.