Platform Gains Boost Roku Results

Gains in video advertising helped power Roku’s strong second-quarter results, with platform revenues rising by 18 percent year-on-year to reach $975.5 million.

Total revenues at the CTV giant—whose The Roku Channel garnered 5.4 percent of all U.S. streaming time in June—were up 15 percent to $1.1 billion, with platform revenue gains offsetting a 6 percent decline in devices revenues to $135.6 million. The company reported an adjusted EBITDA of $78.2 million.

Beyond increased video advertising revenues, the company recorded gains in premium subscription sign-ups to third-party services.

For the year, the company raised its platform revenue projection to $4.1 billion, an expected 16 percent increase, while device revenues are expected to slip, largely due to tariffs.

“We remain confident in our strategy,” said CEO Anthony Wood and CFO and COO Dan Jedda in a letter to shareholders. “Our investments and execution are delivering results by continuing to grow broadband household penetration, ad demand and subscriptions. Our monetization initiatives position Roku to sustain double-digit platform revenue growth while increasing profitability.”