Roku, Inc. Files Q3 2024 10-Q Report

Ticker: ROKU · Form: 10-Q · Filed: Oct 31, 2024

Sentiment: neutral

Topics: 10-Q, financials, quarterly-report

TL;DR

ROKU Q3 2024 10-Q filed. Financials updated.

AI Summary

Roku, Inc. filed its 10-Q for the period ending September 30, 2024. The filing covers the third quarter of 2024 and provides financial details for the company's operations. Key financial data and segment performance are detailed within this report.

Why It Matters

This filing provides investors with the latest financial performance and operational details for Roku, Inc. during the third quarter of 2024, influencing investment decisions.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing with no immediate red flags.

Key Players & Entities

FAQ

What is the reporting period for this 10-Q filing?

The 10-Q filing is for the period ending September 30, 2024.

When was this 10-Q filed with the SEC?

This 10-Q was filed on October 31, 2024.

What are the main business segments reported by Roku, Inc.?

Roku, Inc. reports performance for its Platform segment and Devices segment.

What fiscal year end does Roku, Inc. have?

Roku, Inc.'s fiscal year ends on December 31.

What is Roku, Inc.'s SEC file number?

Roku, Inc.'s SEC file number is 001-38211.

Filing Stats: 4,524 words · 18 min read · ~15 pages · Grade level 15.3 · Accepted 2024-10-31 16:01:59

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 Investments 13 8. Fair Value Disclosure 13 9. Leases 15 10. Debt 16 11. Stockholders' Equity 17 12. Commitments and Contingencies 19 13. Income Taxes 20 14. Net Loss Per Share 20 15. Segment Information 21 16. 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 24

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 33

Controls and Procedures

Item 4. Controls and Procedures 33

OTHER INFORMATION

PART II. OTHER INFORMATION 34

Legal Proceedings

Item 1. Legal Proceedings 34

Risk Factors

Item 1A. Risk Factors 34

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 71

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 71

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 71

Other Information

Item 5. Other Information 71

Exhibits

Item 6. Exhibits 72

Signatures

Signatures 73 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 September 30, 2024 December 31, 2023 Assets Current Assets: Cash and cash equivalents $ 2,126,974 $ 2,025,891 Accounts receivable, net of allowances of $ 38,143 and $ 34,127 as of 729,911 816,337 September 30, 2024 and December 31, 2023, respectively Inventories 191,213 92,129 Prepaid expenses and other current assets 138,332 138,585 Total current assets 3,186,430 3,072,942 Property and equipment, net 222,999 264,556 Operating lease right-of-use assets 314,326 371,444 Content assets, net 247,379 257,395 Intangible assets, net 31,026 41,753 Goodwill 161,519 161,519 Other non-current assets 139,737 92,183 Total Assets $ 4,303,416 $ 4,261,792 Liabilities and Stockholders' Equity Current Liabilities: Accounts payable $ 327,038 $ 385,330 Accrued liabilities 820,165 788,040 Deferred revenue, current portion 93,405 102,157 Total current liabilities 1,240,608 1,275,527 Deferred revenue, non-current portion 23,267 24,572 Operating lease liability, non-current portion 535,378 586,174 Other long-term liabilities 43,653 49,186 Total Liabilities 1,842,906 1,935,459 Commitments and contingencies (Note 12) Stockholders' Equity: Common stock, $ 0.0001 par value 15 14 Additional paid-in capital 3,851,967 3,623,747 Accumulated other comprehensive income (loss) ( 47 ) 159 Accumulated deficit ( 1,391,425 ) ( 1,297,587 ) Total stockholders' equity 2,460,510 2,326,333 Total Liabilities and Stockholders' Equity $ 4,303,416 $ 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 Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Net Revenue: Platform $ 908,175 $ 786,785 $ 2,487,443 $ 2,

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