Roku rounded out 2019 nearly 10 million active accounts ahead of where it ended 2018 as the company continues its momentum in the streaming space.
The company added another 4.6 million monthly active accounts during the fourth quarter and 9.8 million during 2019, bringing its total to 36.9 million, up 36% year over year.
The expanding user base for Roku is driving higher levels of engagement on the platform. The company said users streamed 11.7 billion hours in the quarter, an increase of 60% year over year. The company also said it set a record with 40.3 billion streaming hours during 2019, a 68% year over year increase.
Average revenue per user also grew, hitting $23.14 (on a trailing twelve months basis), up 29% year over year. Roku attributed the ARPU uptick to more video advertising impressions across the platform, including on The Roku Channel. The company said video advertising impressions more than doubled year over year.
Both platform and player revenue saw significant increases during the holiday quarter. Platform revenue rose 71% year over year to about $260 million and player revenue rose 22% year over year to approximately $151 million, resulting in $411 million (up 49% annually) in consolidated revenue for the quarter.
Total gross profit grew to $161.6 million despite declining gross margins for both the platform and player businesses. However, despite the growth across multiple categories, Roku still lost $17.4 million during the fourth quarter.
The red figures for Roku have something to do with expanding operating expenses, which rose 68% to $179 million in the fourth quarter. The company outlines its ongoing investment priorities for 2020, with plans to sink its incremental gross profit back into its OTT advertising platform, the Roku Channel, Roku TV and international growth.