Roku, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Roku, Inc. has filed its 2023 10-K report detailing financial performance and segment data.</b>

AI Summary

ROKU, INC (ROKU) filed a Annual Report (10-K) with the SEC on February 16, 2024. Roku, Inc. filed its 2023 Form 10-K on February 16, 2024, reporting on its fiscal year ended December 31, 2023. The filing covers the company's financial performance and business operations for the fiscal year 2023. Key financial data and segment information for the Platform and Device segments are included. The report details stock information, including Class A and Class B common stock, as of December 31, 2023. Shareholder equity components such as Common Stock, Additional Paid-In Capital, Accumulated Other Comprehensive Income, and Retained Earnings are presented for multiple fiscal years.

Why It Matters

For investors and stakeholders tracking ROKU, INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Roku's financial health and operational results for the 2023 fiscal year, crucial for investors assessing the company's performance. The detailed segment reporting for Platform and Device segments allows stakeholders to understand revenue drivers and profitability across different business areas.

Risk Assessment

Risk Level: — ROKU, INC shows moderate risk based on this filing. The filing is a standard annual report, but the company operates in a dynamic and competitive streaming market, which inherently carries medium risk.

Analyst Insight

Investors should review the detailed financial statements and segment performance in the 10-K to understand Roku's growth trajectory and competitive positioning.

Revenue Breakdown

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-02-16 — Filing Date (Date filed)
• 4841 — SIC Code (Standard Industrial Classification)

Key Players & Entities

• ROKU, INC (company) — Filer name
• 2023 (date) — Fiscal year end
• February 16, 2024 (date) — Filing date
• San Jose, CA (location) — Business address

FAQ

Industry Context

Roku operates in the rapidly evolving digital advertising and streaming media industry, facing competition from tech giants and traditional media companies.

Regulatory Implications

As a publicly traded company, Roku is subject to the reporting requirements of the Securities and Exchange Commission (SEC) under the Securities Exchange Act of 1934.

What Investors Should Do

1. Analyze Roku's revenue growth and profitability by segment (Platform vs. Device).
2. Review the company's balance sheet and cash flow statement for financial health indicators.
3. Assess any disclosed risk factors related to competition, regulation, or market trends.

Key Dates

• 2023-12-31: Fiscal Year End — Reporting period for the 10-K.
• 2024-02-16: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This filing is the 2023 annual report (10-K), following previous filings such as quarterly reports (10-Q) and the prior year's annual report (2022 10-K).

Key Financial Figures

• $0.0001 — which registered Class A Common Stock, $0.0001 par value ROKU The Nasdaq Global Select

Filing Documents

• roku-20231231.htm (10-K) — 2000KB
• a11ex106xexecutivesuppleme.htm (EX-10.6) — 80KB
• a0910-kex211xsubsidiaries.htm (EX-21.1) — 3KB
• a1010-kex231xauditorconsent.htm (EX-23.1) — 3KB
• a0510-kexhibit311.htm (EX-31.1) — 11KB
• a0610-kexhibit312.htm (EX-31.2) — 11KB
• a0710-kexhibit321.htm (EX-32.1) — 5KB
• a0810-kexhibit322.htm (EX-32.2) — 5KB
• a12ex971rokuxpolicyforreco.htm (EX-97.1) — 25KB
• image_0.jpg (GRAPHIC) — 40KB
• roku-20231231_g1.jpg (GRAPHIC) — 418KB
• 0001428439-24-000011.txt (&nbsp;) — 11560KB
• roku-20231231.xsd (EX-101.SCH) — 75KB
• roku-20231231_cal.xml (EX-101.CAL) — 118KB
• roku-20231231_def.xml (EX-101.DEF) — 363KB
• roku-20231231_lab.xml (EX-101.LAB) — 944KB
• roku-20231231_pre.xml (EX-101.PRE) — 647KB
• roku-20231231_htm.xml (XML) — 1512KB

Business

Business 5 Item 1A

Risk Factors

Risk Factors 13 Item 1B Unresolved Staff Comments 49 I tem 1C C yber secu rity 49 Item 2

Properties

Properties 50 Item 3

Legal Proceedings

Legal Proceedings 50 Item 4 Mine Safety Disclosures 50 PART II Item 5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 51 Item 6 Reserved 52 Item 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 53 Item 7A

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 63 Item 8

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 64 Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 97 Item 9A

Controls and Procedures

Controls and Procedures 97 Item 9B Other Information 99 Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 99 PART III Item 10 Directors, Executive Officers and Corporate Governance 100 Item 11

Executive Compensation

Executive Compensation 100 Item 12

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 100 Item 13 Certain Relationships and Related Transactions, and Director Independence 100 Item 14 Principal Accounting Fees and Services 100 PART IV Item 15 Exhibits and Financial Statement Schedules 101 Item 16 Form 10-K Summary 102

Signatures

Signatures 103 2 Table of Contents GLOSSARY OF SELECTED TERMS As used in this Annual Report on Form 10-K ("Annual Report"), unless the context otherwise requires, references to the following terms have the respective meaning as defined below. Active Accounts: The number of distinct user accounts that have streamed content on our platform within the last 30 days of the period. See Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, Key Performance Metrics, elsewhere in this Annual Report for additional detail. Ad-supported Video on Demand (AVOD) : Streaming content supported by advertising that does not charge a fee. Apps : Primarily refers to the direct-to-consumer streaming applications on the Roku platform (e.g., The Roku Channel or Netflix). We also use "apps" to refer to mobile applications (such as our Roku Smart Home app). Average Revenue per User (ARPU): Platform revenue for the trailing four quarters divided by the average of the number of Active Accounts at the end of the current period and the end of the corresponding period in the prior year. See Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, Key Performance Metrics, elsewhere in this Annual Report for additional detail. DSP: A demand-side platform (such as Roku's OneView ad-buying platform), which allows buyers of digital advertising inventory to manage multiple ad exchange and data exchange accounts across multiple platforms through one interface. FAST: Free, ad-supported linear streaming TV, which does not include on-demand content. Licensed Roku TV partners: TV original equipment manufacturers ("OEMs") that license the Roku OS and leverage our smart TV reference designs to build TVs. Linear TV: A TV format that provides programming at specifically scheduled times. Premium Subscriptions: Subscription-based streaming services from content partners (e.g., Paramount) offered through The Roku Channel

: Business

Item 1: Business Overview Roku, Inc. ("Roku," the "Company," "we," or "us") is the leading TV streaming platform in the United States by hours streamed. We pioneered streaming to the TV. We believe that all TV will be streamed. The shift of the TV ecosystem to streaming continues and is expanding TV's capabilities for viewers, content partners, advertisers, and other industry participants. Nearly every major media company not only has a streaming service, but has also expanded beyond pure subscription streaming models to new ad-supported streaming options. Advertisers use TV streaming to reach viewers who are increasingly unreachable on traditional TV while also benefiting from the digital advertising capabilities that TV streaming platforms can deliver. Our Mission Our mission is to be the global TV streaming platform that connects and benefits the entire TV ecosystem of viewers, content partners, and advertisers. Through our TV streaming platform, we connect viewers to the entertainment they love; enable content partners to build, engage, and monetize large audiences; and provide advertisers with unique capabilities to reach viewers. Our Strategy and Business Model The foundation of our platform is the Roku operating system (the "Roku OS"), which is purpose built for TV streaming, and powers Roku streaming devices. The Roku OS is designed to run on low-cost hardware, which enables Roku streaming devices to be sold to customers at competitive prices. The Roku OS connects viewers to our streaming platform via a broadband network, giving them access to a wide selection of content through a streaming experience that is both delightful and easy to use. We provide updates via the Roku OS to continuously deliver an exceptional TV streaming experience. We dedicate significant resources to build, maintain, and advance the Roku OS; to provide an industry-leading streaming platform for our viewers, content partners, and advertisers; to obtain content for our streamin