Roku Reports Q2 Growth and Adopts UID2 for Enhanced Ad Targeting

Roku, the streaming specialist, has released its Q2 results, reporting total net revenue of $968 million (€895.4m), a 14% year-over-year increase.

In a letter to shareholders, the company stated: “We delivered solid results in Q2. Roku grew Streaming Households 14 per cent YoY, Streaming Hours 20 per cent YoY, and Platform revenue 11 per cent YoY. The Roku Home Screen, which is the beginning of our viewers’ streaming experience, reaches US households with over 120 million people every day. We achieved our fourth consecutive quarter of positive Adjusted EBITDA and Free Cash Flow (TTM) as a result of top-line growth and ongoing operational efficiencies. Importantly, Roku is executing well against initiatives to accelerate Platform revenue growth, which include maximizing ad demand for Roku, leveraging our Home Screen as the lead-in for TV, and growing Roku-billed subscriptions.”

Key Q2 2024 results include:
- Platform revenue at $824 million, up 11% YoY
- Gross profit at $425 million, up 12% YoY
- Streaming Households reaching 83.6 million, a net increase of 2 million from Q1 2024
- Streaming Hours at 30.1 billion, up 5 billion hours YoY
- Average Revenue Per User (ARPU) at $40.68 on a trailing 12-month basis (TTM), flat YoY
- Fourth consecutive quarter of positive Adjusted EBITDA and Free Cash Flow (TTM)

The letter also highlighted: “We are pleased with our continued growth in scale and engagement, along with the execution of our monetisation initiatives that position us strongly in the ongoing shift to streaming. Looking to the second half of 2024, we expect these initiatives to help accelerate revenue from advertising activities. For Q3, we estimate Total net revenue of $1.010 billion growing 11 per cent YoY, with Platform revenue growing 9 per cent YoY and Devices revenue growing 24 per cent YoY. We expect Q3 total gross profit of $440 million and Adjusted EBITDA of $45 million, reflecting our ongoing operational discipline. For Q4, we anticipate the YoY growth rate of Platform revenue will accelerate sequentially. We remain confident in our ability to accelerate Platform revenue in 2025 and beyond as we maximise ad demand, lean into our Home Screen as the lead-in for TV, and grow Roku-billed subscriptions.”

Roku has also announced its adoption of Unified ID 2.0 (UID2), an identity solution, across its streaming inventory. This allows advertisers to implement more precise targeting and secure data collaboration through Roku Exchange. Developed by The Trade Desk, UID2 is pioneering a new identity fabric for the open internet.

With robust first-party data from its 83.6 million Streaming Households, Roku is enhancing advertisers' ability to deliver personalized ad experiences at scale. The UID2 integration makes Roku Media interoperable across the programmatic ecosystem.

“The adoption of Unified ID 2.0 represents another step forward in Roku’s strategic programmatic path, rooted in our goal to revolutionise the ad ecosystem,” said Jay Askinasi, SVP, Head of Global Media Revenue and Growth, Roku. “By further partnering with The Trade Desk, we aim to enhance targeting capabilities, improve ad performance and efficacy to drive growth, and maintain our leadership position in the TV streaming space.”

“As consumers continue to spend more and more time in streaming, advertisers are looking for ways to reach these viewers at scale,” said Will Doherty, VP of Inventory Development, The Trade Desk. “By adopting Unified ID 2.0, Roku is showing the value the premium internet has to offer advertisers, while prioritizing privacy for their highly valued audiences.”

Roku’s adoption of UID2 enables advertisers to deliver more personalized ad experiences across platforms, enhancing targeting precision, increasing demand and revenue potential, and fostering a more cohesive and efficient advertising ecosystem.