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Shares of Roku surged over 10% in-after hours trading on Thursday as the company’s total revenue for 2024 grew 18% to $4.1 billion. The increase was driven by a 22% jump in revenue for its fourth quarter to $1.2 billion, representing its first-ever quarter of more than $1 billion in platform revenue.
The company also continued to make progress towards profitability, narrowing its net loss to $35.5 million for the quarter and $129.3 million for the year.
Here are the top-line results:
Net loss: $35.5 million, compared to a net loss of $78.3 million a year ago. For the full year, Roku’s net loss was $129.3 million, down from $709.6 million in 2023.
Earnings per share: A loss of 24 cents per share, compared to a loss of 44 cents per share estimated by analysts surveyed by Zacks Investment Research.
Revenue: $1.2 billion, up 22% year over year, compared to $1.15 billion estimated by Zacks. For the full year, revenue climbed 18% to $4.1 billion.
Operating loss: $39.1 million, down 62% year over year. For the full year, Roku’s operating loss was $218.2 million, down from $792.3 million for 2023.
Streaming Households: Added 4.3 million streaming households in Q4 and 9.8 million in 2024 for a total of 89.8 million.
Streaming Hours: 34.1 billion total streaming hours during the quarter, up 18% year over year. For the full year, total streaming hours were 127.1 billion, an increase of 21.1 billion hours year over year.
“We continue to make progress growing ad demand through deeper third-party platform integrations, improving the Roku Experience (which starts at our Home
Screen) to expand monetization, and growing Roku-billed subscriptions,” the company wrote in its quarterly shareholder letter. “As we look ahead, we see clear paths to growing our [key performance metrics] of Streaming Hours, Platform revenue, Adjusted EBITDA, and Free Cash Flow.”
Platform revenue, which is largely based on advertising sales and subscription revenues split with partners, grew 25% year over year to $1.04 billion for the quarter and 18% year over to $3.5 billion for 2024, primarily driven by political ad spend.
Meanwhile, devices revenue grew 7% year over year to $165 million for the quarter and 20% to $590.1 million in 2024. Devices revenue in the quarter was impacted by increased seasonal discounts that took place across the industry, including Roku. The company sold more than 1 million units of Roku-branded TVs in 2024.
Roku’s streaming service distribution activities grew faster than overall platform revenue in 2024, due to price increases from SVOD services available on its platform. The company recently added Max, Crunchyroll and ad-supported BET+ to its offering.
“We are using the Roku Experience to drive growth in sign-ups, and our increased focus on subscriptions is driving clear results. Q4 was the highest quarter of Premium Subscription net adds since its launch in 2019,” the company said. “We will continue to innovate and use our scale, technology, and data-driven insights as the TV streaming platform with the highest engagement in the U.S. to help content partners acquire, engage, retain, and win back subscribers.”
The Roku Channel reached U.S. households with approximately 145 million people, with streaming hours up 82% year over year during the fourth quarter.
Adjusted EBITDA grew 62% to $77.5 million for the fourth quarter, while free cash flow grew 16% to $203.2 million. Total gross profit grew 17% to $512.6 million for the quarter and 19% to $1.8 billion for the year. Average revenue per user grew 4% year over year to $41.49.
Looking ahead, Roku expects to continue growing its streaming households in all locations, including the U.S., where its penetration has surpassed half of broadband households. The company will no longer report streaming households or average revenue per user metrics starting in the first quarter of 2025 as it shifts focus to growing platform revenue and profitability.
Roku anticipates net revenue growth of 14% year over year to of $1.01 billion, platform revenue growth of 16% year over year and flat devices revenue growth due to elevated inventory from lower holiday sales in the first quarter of 2025. It also expects gross profit of $450 million, a net loss of $40 million and adjusted EBITDA of $55 million for the quarter.
For full year 2025, Roku expects $4.61 billion in net revenue, total gross profit of $2.01 billion, adjusted EBITDA of $35o million, a net loss of $40 million, platform revenue growth of 12% year over year to $3.95 billion and device revenue growth of 12% to $660 million. The company told investors it expects to be operating income positive for full year 2026.
When asked about the potential toll of tariffs on its business, Roku executives told analysts they expect a “minimal” impact, with devices president Mustafa Ozgen citing manufacturing of its products being “well diversified” around the world. Chief financial officer Dan Jedda added that the impact from tariffs would be “immaterial” on its gross margins and that there’s no expected effect on the platform revenue side of the business.
