Roku reported that it earned a profit of $380 million on revenues of $865 million in the quarter ending December 31. Revenues were up 33 percent year-over-year (YOY).
“2021 was another strong year for Roku, as we achieved record revenue and gross profit,” a Roku letter to shareholders reads. “Roku’s founding vision remains true: all TV and all TV advertising will be streamed. Our competitive advantages—the Roku operating system, The Roku Channel, and our ad platform—position us strongly to continue leading this shift in the years ahead.”
Roku divides its revenues between hardware and platform, the latter of which refers to services like The Roku Channel and advertising. As you might expect, Roku’s platform margins are very high—they were up 60.5 percent YOY in the quarter—while its hardware margins are negative, meaning it takes a loss on its streaming player sales.
As part of its earnings, Roku revealed that its active accounts jumped 17 percent YOY to 60.1 million. Those users streamed 19.5 billion hours of content in the quarter, up 15 percent YOY.
Unfortunately, Roku’s guidance for the coming year underwhelmed investors: the firm expects $720 million in first-quarter revenues, below the consensus of $748 million. As a result, Roku’s stock price plummeted 10 percent.
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