Roku Reports Increased Q4 Subscribers, Streaming Hours as Device Sales Plummet

Subscription streaming video pioneer Roku Feb. 15 said it generated a 16% increase in active user accounts to 70 million in the fourth quarter (ended Dec. 31, 2022), from 60 million at the end of 2021. Streaming hours increased 23% to 23.9 billion hours, from 19.5 billion in the previous-year period.

San Jose, Calif.-based Roku also disclosed that its legacy consumer electronics business revenue dropped 18% to $135.8 million, from $166.4 million in the previous-year period. The devices division’s operating loss remained constant at $43.6 million, compared with an operating loss of $44 million during the previous-year period.

Average revenue per platform user grew to $41.68, up 2% from ARPU of $40.86, which is based in part on third-party SVOD revenue.

The company’s flagship free ad-supported streaming TV/AVOD platform The Roku Channel ended 2022 with 100 million U.S. households. In June, Roku launched Spanish-language programming in the U.S. with Espacio Latino, followed by Kids & Family en Español. In Q4, Roku bowed The Roku Channel to Mexico, where it has become the channel’s largest international market.

For the quarter, revenue was flat at $867 million, while the net loss ballooned to nearly $250 million, from a profit of $21.4 million in the previous-year period.

“While cyclical economic pressures are affecting our business, two things
remain true: the secular trend supporting our business remains intact, and the combination of our scale, engagement, and innovation position Roku exceptionally well to benefit when the market rebounds,” founder/CEO Anthony Wood and CFO Steve Louden wrote in the shareholder letter.

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