Roku Hits 53.6M Active Accounts In Q1, Smashing Financial Forecasts

Roku kept rolling in the first quarter, reporting a 35% rise in active accounts, to 53.6 million, along with stronger-than-expected financial results.

Revenue grew 79% compared with the same quarter a year ago, hitting $574.2 million, far higher than the consensus forecast by Wall Street analysts for $490.6 million.

Expected by analysts to lose money in the quarter, as it did a year ago with $55.2 million in red ink, Roku instead swung to a profit, with operating income of $75.8 million. On an adjusted EBITDA soared above estimates to $125.9 million.

Total streaming on Roku devices came in at 18.3 billion hours, an increase of 49% year-over-year. Average revenue per user reached $32.14, up 32%.

Advertising continues to be a strong suit for Roku. The company said 85% of the audience reach to viewers aged 18 to 49 on the Roku Channel was unduplicated with traditional TV. The company has been making its presence increasingly felt in the ad business in recent months. Roku delivered a virtual presentation to ad buyers earlier this week at the NewFronts. In recent months, it has bought measurement assets from Nielsen and acquired original programming from Quibi and the producer of home-improvement mainstay This Old House.

While the Roku Channel is a gateway for 50 subscription streaming services, its main offerings are free and ad supported. By adding a steady supply of originals, the company sees potential to benefit from an ongoing shift of ad dollars from traditional linear TV to streaming.

The company does not break out advertising as its own category but platform revenue, which includes ads, doubled from a year ago to $466.5 million.

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