Tyler123
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Roku's business got a solid boost in the first quarter of 2020 as millions of consumers stayed home and demand for video viewing increased due to the outbreak. Roku's 'active' accounts grew 37% to 39.8 million, up 2.9 million over the same period, according to the data.
In the first quarter, online play time on the Roku player and integrated Roku TV rose 49% from a year earlier to a record 13.2 billion hours. Roku said the biggest growth in streaming since home orders began came from ad-supported and subscription-based programming. But it noted that the growth of virtual multi-channel video distributors was "more modest" in the absence of live televised sporting events.
Roku's total revenue rose 55% to $321 million in the first quarter, with platform revenue up 73% to $223 million and player revenue up 22% to $88.2 million. Roku has withdrawn its full-year forecast, citing market uncertainty.
Roku said SVoD trial and subscription, as well as transaction VoD purchases, were up in the quarter. At the same time, the company warned of a higher-than-normal cancellation rate in its advertising business due to a decline in its overall advertising budget. Roku expects its advertising business to "achieve significant year-over-year revenue growth," but at a slower rate than initially expected.
In a letter to investors, Roku said sales of Roku players and Roku TVS remained strong in the quarter and have since returned to "close to normal capacity", despite the emergence of some temporary supply chains and retail terminals in China. "We continue to rebuild inventory levels to meet growing demand, which requires more use of higher cost air freight than originally planned. We expect air freight costs to continue to rise in the short term."
In the first quarter, online play time on the Roku player and integrated Roku TV rose 49% from a year earlier to a record 13.2 billion hours. Roku said the biggest growth in streaming since home orders began came from ad-supported and subscription-based programming. But it noted that the growth of virtual multi-channel video distributors was "more modest" in the absence of live televised sporting events.
Roku's total revenue rose 55% to $321 million in the first quarter, with platform revenue up 73% to $223 million and player revenue up 22% to $88.2 million. Roku has withdrawn its full-year forecast, citing market uncertainty.
Roku said SVoD trial and subscription, as well as transaction VoD purchases, were up in the quarter. At the same time, the company warned of a higher-than-normal cancellation rate in its advertising business due to a decline in its overall advertising budget. Roku expects its advertising business to "achieve significant year-over-year revenue growth," but at a slower rate than initially expected.
In a letter to investors, Roku said sales of Roku players and Roku TVS remained strong in the quarter and have since returned to "close to normal capacity", despite the emergence of some temporary supply chains and retail terminals in China. "We continue to rebuild inventory levels to meet growing demand, which requires more use of higher cost air freight than originally planned. We expect air freight costs to continue to rise in the short term."
