roku 1.1 million active users were added in Q1 2022, slightly increasing the total number of active users to 61.3 million.
The company said its active customer growth of 14 percent from a year ago is due to an end to “moderate” government incentive payments, which it said helped boost spending in the first quarter of 2021. continues to decline in television. Unit sales.
Roku saw a further increase in the number of users from the previous quarters, when it grew from 56.4 million users in Q3 2021 to 60.1 million active users in Q4.
Going into the earnings report, analysts were worried about competition in the space, which is only expected to pick up after Wednesday. Negotiate In between comcast s Letter, in which the two companies merged to offer a platform and related streaming devices. And also broader concerns On Flag Raising Between Streamers, So Netflix It announced a loss of 200,000 subscribers in its latest earnings report.
When asked about the new Comcast and Charter venture, Roku CFO Steve Louden told reporters that the company is confident in its competitive advantages, including a platform designed for low-cost hardware and a special licensing system.
“We have successfully battled well-known competitors for many years,” said Loden. “We feel good about Rocu’s competitiveness.”
Calling for a win, the executives doubled down on that message, saying that increased competition was creating space on the broadcast. The golden age of television and helped create a better environment for viewers. A growing number of streaming channels will also help create platform offerings and increase advertising opportunities.
Streaming hours increased by 1.4 billion hours from the previous quarter and reached 20.9 billion. Total revenue reached $734 million, up 28% from the previous year and surpassing the company’s $720 million. Earnings per share came in at -$0.19, below Wall Street’s expectations of -$0.18.
Roku has been putting more effort into its original content lately. Acquired by the Roku Channel kwibi 2021 content library and painted film production contract With Lionsgate on April 26, which gives Roku Channel exclusive rights to the Slate Lionsgate movie, shortly after its theatrical run on Starz, as well as a more flexible second release window. In a letter to shareholders, the company said that Roku Channel was the top five channels on its platform in terms of user access and hourly stream engagement.
Scott Rosenberg, Outgoing Senior Vice President And the general manager of business for the Roku platform did not comment on how much the company plans to spend on content in 2022, but told reporters that the segment is “critical” in helping the platform attract first-time users and create exclusivity and scarcity. However, Rosenberg noted that most of Roku’s content comes from third parties, with over 250 providers on the platform.
“We remain primarily a platform company,” Rosenberg said.
Roku renewed his deal with the amazon In April, the Roku Channel Store will continue to showcase the Amazon Prime Video app and content from IMDb TV (now Amazon Freevee). This will be followed by Roku battle well wonWhich will protect YouTube TV and YouTube apps on the platform as part of a multi-year contract.
At the same time, more New content is expected as Roku has revealed the titles that will be featured at its upcoming promotional event: honest repairsA home improvement series directed by Jessica Alba and Lizzie Mathis; For love in Paris: Rom Com, Produced in partnership with Reese Witherspoon Hello Sunshine and Zoe Saldaña with Cinestar Pictures; s Stranger: The Story of “Strange Al” Yankovich, With Daniel Radcliffe.
While Roku is a Wall Street darling and the top streaming platform in the US, Canada and Mexico, its stock has dropped 40% in the past three months. And the company faces a difficult road ahead, as it has warned of “delays” including inflation, geopolitical conflicts and supply chain problems.
“For the foreseeable future, we expect that these delays will continue to put pressure on our total player margin and TV unit sales across the industry and have the potential to reduce or defer advertising costs for certain verticals,” the company said.
These issues are also likely to continue to weigh on consumer growth for the foreseeable future. In the second quarter, Roku presented a total revenue outlook of $805 million and a net loss of $109 million, while increasing over the long term.
“We believe that these short-term contradictions will be reduced by longer-term opportunities for the secular transition to broadcast television and the consolidation of the television operating system,” the letter read.
Source: Hollywood Reporter
Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.
