Roku reported stronger-than-expected results for the fourth quarter, with record revenue, gross profit and adjusted EBITDA as people and the TV industry continued their shift to streaming. The company had 51.2 million active accounts in early January, adding 14.3 million in the year and 5 million in the quarter. And despite the pandemic-related slowdown in the US, monetized video ad impressions more than doubled year-on-year, as advertisers followed viewers to streaming from traditional pay TV. Content publishers also reoriented to streaming in the quarter, Roku said, further expanding content selection for its users. Streaming increased by 20.9 billion hours in the year to a record 58.7 billion.
For the quarter, revenues advanced 58 percent from the year before to USD 649.9 million, with platform revenue rising 81 percent to USD 471.2 million and player revenue going 18 percent higher to USD 178.7 million. The gross profit jumped 89 percent to USD 305.5 million, the adjusted EBITDA shot up 650 percent to USD 113.5 million from 15.1 million the year before, while the operating result moved to a profit of USD 65.2 million from a loss of 17.4 million. ARPU for the quarter went to USD 28.76 from 23.14.
Revenues for 2020 leaped 58 percent to USD 1.778 billion, with platform revenue soaring 71 percent to USD 1.268 billion. The gross profit went 63 percent higher to USD 808 million. ARPU increased by USD 5.62 in the year to USD 28.76. About 38 percent of all smart TVs sold in the US last year were Roku TV models. Payer unit sales grew 28 percent, with Player revenue up 32 percent. Player sales were especially strong in Q2 and Q3 as people spent more time at home amid coronavirus-induced lockdowns. The Player revenue growth rate in Q4 was more aligned with the period before the pandemic.
For the first quarter of this year, the company’s seasonally softest quarter from a revenue perspective, Roku is guiding for more modest results, with revenues seen at USD 478-493 million, the gross profit at 234-241 million, the net loss at USD 23-16 million and the adjusted EBITDA at USD 27-34 million.
Roku said it is optimistic about the year ahead and confident enough to give a guidance for Q1 but noted that the longer term was still clouded by unknowns, such as vaccine rollouts, emergence of new virus variants, and economic consequences of the pandemic. Year-on-year comparisons in 2021 will be volatile, it added, with strong financial comparisons in the first half and tougher ones after thanks to exceptional performances in Q3 in particular. The company said it will continue to invest in new features, technology and content to grow its platform, sales and marketing efforts and its G&A infrastructure.
