Roku: Q2 User Accounts, Streaming Minutes Increase — Driven by Original Content; Market Doesn’t Care

Roku Aug. 4 reported that total time spent streaming on The Roku Channel and other platforms increased 2.8 billion minutes, or 19%, in the second quarter (ended June 30) compared with the previous-year period with 14.6 billion minutes. The tally was 1 billion fewer minutes streamed in the first quarter, ended March 31.

Registered active user accounts increased 28% to 55.1 million, from 43 million a year ago. User accounts increased by 1.5 million from Q1 2021. Wall Street had projected user accounts topping 55.8 million.

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Roku said user account growth was driven by sales of Roku TV models and streaming media players. Roku co-launched the SVOD market with a branded Netflix player in 2008.

“Second-quarter net adds were higher than pre-COVID-19 levels in Q2 2019, but as expected, lower than the pandemic-related surge of Q2 2020,” Roku said in the shareholder letter. “We premiered our first slate of Roku Originals programming with 30 titles available for free to The Roku Channel, which drove deeper engagement.”

Platform revenue exceeded half a billion dollars for the first time in the segment’s history.

Despite the positives, Roku shares fell 8% in aftermarket trading as investors penalized the company for the 1 billion-minute sequential quarterly drop in streaming minutes.

CEO Anthony Wood, on CNBC, attributed the streaming decline to increased number of users opting for outdoor activities with the end of government-mandated at-home restrictions due to the pandemic.

“People tended to choose other activities with the post-pandemic reopening of the economy,” Wood said.

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