Today, Roku shared their 4th quarter 2019 earnings results. In the release, Roku announced that revenue for 2019 exceeded $1.1 billion, with growth of 52% in Q4.
The company is continuing to sell devices to new customers, along with bringing in advertising revenue. Average Revenue Per User (ARPU) increased $5.19 year over year to $23.14. Roku noted that advertising played a big part in that increase, with monetizable video ad impressions outpacing growth in streaming time. Key advertising for the quarter included Disney+ sponsoring ads on the Roku home screen and Energizer running ads offering discount movie codes for Roku users.
In their earnings report, Roku also shared that they ended the year with 36.9 million active accounts, after adding 9.8 million in Q4. Streaming hours on Roku devices also increased by 16.3 billion hours year over year to a record 40.3 billion.
During this quarter, Roku had Black Friday and holiday sales on their new range of devices, which helped to drive sales to finish out 2019. Roku’s premium streaming device, the Roku Ultra, was priced as low as $48 just in time for holiday shopping.
A key partnership with Walmart expanded the Roku ecosystem. Roku added Walmart’s house brand, onn. beginning with the first onn. TV in the fall, sold exclusively in Walmart U.S. stores over the Black Friday weekend. Roku says that partnership has been integral to showing the value Roku brings to retail partners and consumers.
Going forward, Roku expects to exceed $1.6 billion in revenue in 2020, or 42% year over year growth. The company expects gross profit to reach about $730 million, 47% year-over-year growth at the midpoint. Roku will continue investing in strategic opportunities to “drive growth, industry leadership and competitive differentiation.”
We’ll learn more about Roku’s quarter 4 results and strategies moving forward during the earnings call later this afternoon.
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