February 21, 2019
Roku, which helped create the subscription streaming business model with Netflix, Feb. 21 announced it expects to generate $1 billion in revenue in 2019 – up 36% from revenue of $735 million in 2018.
The Los Gatos, Calif.-based streaming media device manufacturer based the projections on claims 20% of TV households in the United States use its streaming platform, and 25% of smart TVs sold in the country last year were branded Roku devices.
“We estimate total gross profit should grow at roughly the same rate as revenue, or 36% year-over-year at the midpoint, to just over $450 million,” founder/CEO Anthony Woods and CFO Steve Louden wrote in the shareholder letter.
Roku added nearly 8 million active accounts in 2018, increasing total active accounts to more than 27 million at yearend. Streaming hours increased by 9.2 billion hours to 24 billion.
The company generated $416.8 million in 2018 platform revenue – much of it through The Roku Channel – a free OTT video service accessible to registered users. That compared to $225.3 million in revenue in 2017.
Overall, Roku narrowed its fiscal year loss to $8.8 million compared to $63.5 million in 2017. Revenue reached $742.5 million from $513 million in 2017.
For the fourth quarter (ended Dec. 31, 2018), net income reached $6.8 million on revenue of $276 million. That compared to income of $6.9 million on revenue of $188 million in the previous-year period.
Device revenue for Q4 topped $124 million compared to $103 million in the previous-year period. Platform revenue exceeded $151 million compared to $85.4 million last year.