Roku, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Roku, Inc. has filed its quarterly report (10-Q) for the period ending March 31, 2024, detailing financial performance and operational segments.</b>

AI Summary

ROKU, INC (ROKU) filed a Quarterly Report (10-Q) with the SEC on April 26, 2024. Roku, Inc. filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of fiscal year 2024. Key financial data points and segment information are included in the report. The company's fiscal year ends on December 31. The report was filed on April 26, 2024.

Why It Matters

For investors and stakeholders tracking ROKU, INC, this filing contains several important signals. This 10-Q filing provides investors with the latest financial and operational data for Roku, Inc. for the first quarter of 2024, enabling informed investment decisions. The detailed segment information within the report allows for an understanding of revenue drivers and performance across Roku's Platform and Devices segments.

Risk Assessment

Risk Level: medium — ROKU, INC shows moderate risk based on this filing. The filing is a standard quarterly report, which by nature contains forward-looking statements and financial details that require careful analysis to assess the company's current health and future prospects. Specific risks are detailed within the full report.

Analyst Insight

Review the detailed financial statements and segment performance in the 10-Q to assess Roku's revenue growth, profitability, and strategic execution in Q1 2024.

Revenue Breakdown

Key Numbers

• 2024-03-31 — Period End Date (Quarterly report period)
• 2024-04-26 — Filing Date (Date the 10-Q was filed)
• 1231 — Fiscal Year End (Company's fiscal year end)
• 4841 — SIC Code (Standard Industrial Classification)

Key Players & Entities

• ROKU, INC (company) — Filer name
• 2024-03-31 (date) — Period of report
• 2024-04-26 (date) — Filing date
• 1173 COLEMAN AVENUE (address) — Business address street 1
• SAN JOSE (city) — Business address city
• CA (state) — Business address state
• 95110 (zip_code) — Business address zip
• 408-556-9040 (phone) — Business phone

FAQ

Industry Context

Roku operates in the streaming and connected TV industry, providing a platform for content distribution and advertising.

Regulatory Implications

The filing is a standard SEC Form 10-Q, adhering to U.S. Generally Accepted Accounting Principles (GAAP) and Securities Exchange Act of 1934 regulations.

What Investors Should Do

1. Analyze the revenue breakdown by segment (Platform vs. Devices) to understand growth drivers.
2. Examine the balance sheet and cash flow statement for liquidity and financial health.
3. Review any disclosed risk factors and management's discussion and analysis for potential challenges and opportunities.

Key Dates

• 2024-03-31: Quarter End — End of the reporting period for the 10-Q.
• 2024-04-26: Filing Date — Date Roku, Inc. submitted its 10-Q filing.

Year-Over-Year Comparison

This is the Q1 2024 10-Q filing, providing updated financial information compared to previous filings.

Key Financial Figures

• $0.0001 — hich Registered: Class A Common Stock, $0.0001 par value ROKU The Nasdaq Global Select

Filing Documents

• roku-20240331.htm (10-Q) — 1449KB
• a03exhibit311q12024.htm (EX-31.1) — 12KB
• a04exhibit312q12024.htm (EX-31.2) — 12KB
• a05exhibit321q12024.htm (EX-32.1) — 6KB
• a06exhibit322q12024.htm (EX-32.2) — 6KB
• 0001428439-24-000019.txt (&nbsp;) — 7605KB
• roku-20240331.xsd (EX-101.SCH) — 59KB
• roku-20240331_cal.xml (EX-101.CAL) — 85KB
• roku-20240331_def.xml (EX-101.DEF) — 262KB
• roku-20240331_lab.xml (EX-101.LAB) — 639KB
• roku-20240331_pre.xml (EX-101.PRE) — 487KB
• roku-20240331_htm.xml (XML) — 1041KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 1

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 1 Condensed Consolidated Balance Sheets 1 Condensed Consolidated Statements of Operations 2 Condensed Consolidated Statements of Comprehensive Income (Loss) 3 Condensed Consolidated Statements of Stockholders' Equity 4 Condensed Consolidated Statements of Cash Flows 5 Notes to Condensed Consolidated Financial Statements 7 1. The Company 7 2. Significant Accounting Policies and Basis of Presentation 7 3. Revenue 9 4. Goodwill and Intangible Assets 10 5. Balance Sheet Components 11 6. Content Assets 12 7. Strategic Investment 13 8. Fair Value Disclosure 13 9. Leases 14 10. Stockholders' Equity 16 11. Commitments and Contingencies 18 12. Income Taxes 19 13. Net Loss Per Share 19 14. Segment Information 20 15. Restructuring 21

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 22

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 29

Controls and Procedures

Item 4. Controls and Procedures 30

OTHER INFORMATION

PART II. OTHER INFORMATION 31

Legal Proceedings

Item 1. Legal Proceedings 31

Risk Factors

Item 1A. Risk Factors 31

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 68

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 68

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 68

Other Information

Item 5. Other Information 68

Exhibits

Item 6. Exhibits 69

Signatures

Signatures 70 i Table of Contents GLOSSARY OF SELECTED TERMS As used in this Quarterly Report on Form 10-Q ("Quarterly Report"), unless the context otherwise requires, references to the following terms have the respective meaning as defined below. Active Accounts: See Streaming Households. Ad-supported Video on Demand (AVOD): Streaming content supported by advertising that does not charge a fee to the viewer. 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 Streaming Households at the end of the current period and the end of the corresponding period in the prior year. See Part I, Item 2, Management's Discussion and Analysis of Financial Condition and Results of Operations, Key Performance Metrics, in this Quarterly 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. Roku-branded TVs: TVs powered by the Roku OS that are designed, made, and sold by Roku. Roku-branded TVs include the Roku Select, Roku Plus, and Roku Pro Series TVs. Roku Home Screen: The first screen the viewer sees when they begin streaming wi

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements ROKU, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par value data) (unaudited) As of March 31, 2024 December 31, 2023 Assets Current Assets: Cash and cash equivalents $ 2,055,728 $ 2,025,891 Accounts receivable, net of allowances of $ 26,161 and $ 34,127 as of 716,727 816,337 March 31, 2024 and December 31, 2023, respectively Inventories 94,531 92,129 Prepaid expenses and other current assets 129,144 138,585 Total current assets 2,996,130 3,072,942 Property and equipment, net 251,487 264,556 Operating lease right-of-use assets 358,105 371,444 Content assets, net 249,526 257,395 Intangible assets, net 38,076 41,753 Goodwill 161,519 161,519 Other non-current assets 96,912 92,183 Total Assets $ 4,151,755 $ 4,261,792 Liabilities and Stockholders' Equity Current Liabilities: Accounts payable $ 385,656 $ 385,330 Accrued liabilities 672,440 788,040 Deferred revenue, current portion 101,650 102,157 Total current liabilities 1,159,746 1,275,527 Deferred revenue, non-current portion 23,491 24,572 Operating lease liability, non-current portion 568,627 586,174 Other long-term liabilities 44,062 49,186 Total Liabilities 1,795,926 1,935,459 Commitments and contingencies (Note 11) Stockholders' Equity: Common stock, $ 0.0001 par value 14 14 Additional paid-in capital 3,704,435 3,623,747 Accumulated other comprehensive income (loss) ( 178 ) 159 Accumulated deficit ( 1,348,442 ) ( 1,297,587 ) Total stockholders' equity 2,355,829 2,326,333 Total Liabilities and Stockholders' Equity $ 4,151,755 $ 4,261,792 See accompanying Notes to Condensed Consolidated Financial Statements. 1 Table of Contents ROKU, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) Three Months Ended March 31, 2024 March 31, 2023 Net Revenue: Platform $ 754,935 $ 634,618 Devices 126,534 106,372 Total net revenue 881,469 740,990 Cost of Revenue: Platform