Roku Files Q2 2024 10-Q

Ticker: ROKU · Form: 10-Q · Filed: Aug 2, 2024

Sentiment: neutral

Topics: 10-Q, financials, quarterly-report

TL;DR

ROKU Q2 2024 10-Q filed. Financials out.

AI Summary

Roku, Inc. filed its 10-Q for the period ending June 30, 2024. The company reported financial results for the second quarter of 2024, detailing performance across its Platform and Devices segments. Key financial figures and operational data were disclosed as part of its ongoing reporting obligations.

Why It Matters

This filing provides investors and analysts with the latest financial performance data for Roku, Inc., crucial for understanding the company's current business health and future prospects.

Risk Assessment

Risk Level: medium — The filing contains standard financial disclosures for a public company, but the nature of the streaming and advertising industry carries inherent market and competitive risks.

Key Numbers

Key Players & Entities

FAQ

What were Roku's total revenues for the six months ended June 30, 2024?

The filing indicates financial data for the period January 1, 2024 to June 30, 2024, but specific total revenue figures are not detailed in the provided snippet.

How did the Platform segment perform in Q2 2024 compared to Q2 2023?

The filing shows data for the Platform segment for both Q2 2024 (April 1, 2024 - June 30, 2024) and Q2 2023 (April 1, 2023 - June 30, 2023), suggesting a comparative analysis is available within the full document.

What is Roku's primary business classification according to the SIC code?

Roku, Inc. is classified under SIC code 4841, which corresponds to 'CABLE & OTHER PAY TELEVISION SERVICES'.

What is the company's principal executive office address?

Roku, Inc.'s business address is 1173 COLEMAN AVENUE, SAN JOSE, CA 95110.

When was Roku, Inc. incorporated?

The company was incorporated in Delaware (DE), as indicated by the 'STATE OF INCORPORATION' field.

Filing Stats: 4,551 words · 18 min read · ~15 pages · Grade level 15.2 · Accepted 2024-08-02 16:10:32

Key Financial Figures

Filing Documents

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 17 12. Income Taxes 19 13. Net Loss Per Share 19 14. Segment Information 20 15. Restructuring 20

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 30

Controls and Procedures

Item 4. Controls and Procedures 31

OTHER INFORMATION

PART II. OTHER INFORMATION 32

Legal Proceedings

Item 1. Legal Proceedings 32

Risk Factors

Item 1A. Risk Factors 32

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 69

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 69

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 69

Other Information

Item 5. Other Information 69

Exhibits

Item 6. Exhibits 70

Signatures

Signatures 71 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 and Non-GAAP Measure, 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 th

—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 June 30, 2024 December 31, 2023 Assets Current Assets: Cash and cash equivalents $ 2,058,465 $ 2,025,891 Accounts receivable, net of allowances of $ 39,864 and $ 34,127 as of 669,136 816,337 June 30, 2024 and December 31, 2023, respectively Inventories 96,351 92,129 Prepaid expenses and other current assets 153,434 138,585 Total current assets 2,977,386 3,072,942 Property and equipment, net 240,035 264,556 Operating lease right-of-use assets 338,422 371,444 Content assets, net 240,596 257,395 Intangible assets, net 34,551 41,753 Goodwill 161,519 161,519 Other non-current assets 111,865 92,183 Total Assets $ 4,104,374 $ 4,261,792 Liabilities and Stockholders' Equity Current Liabilities: Accounts payable $ 276,118 $ 385,330 Accrued liabilities 724,467 788,040 Deferred revenue, current portion 95,974 102,157 Total current liabilities 1,096,559 1,275,527 Deferred revenue, non-current portion 23,471 24,572 Operating lease liability, non-current portion 553,375 586,174 Other long-term liabilities 40,180 49,186 Total Liabilities 1,713,585 1,935,459 Commitments and contingencies (Note 11) Stockholders' Equity: Common stock, $ 0.0001 par value 14 14 Additional paid-in capital 3,773,831 3,623,747 Accumulated other comprehensive income (loss) ( 661 ) 159 Accumulated deficit ( 1,382,395 ) ( 1,297,587 ) Total stockholders' equity 2,390,789 2,326,333 Total Liabilities and Stockholders' Equity $ 4,104,374 $ 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 Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Net Revenue: Platform $ 824,333 $ 743,835 $ 1,579,268 $ 1,378,453 Devices 143,846 103,35

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