Roku’s stock keeps rising, and one analyst said that the company’s recent growth is outpacing the rate at which Netflix was growing earlier in its history.
William Blair analyst Ralph Schackart said that Roku will begin seeing similar phased international growth like Netflix did earlier on its international expansion. He predicted that Roku, which recently claimed more than 30 million active accounts, will reach 80 million active accounts by 2025.
Schackart said it's enough to put Roku on a faster growth trajectory than Netflix.
“Looking at Roku’s most recent nine quarters against those of Netflix in the beginning stages of Phase II, Roku, on average, achieved 9% quarter-over-quarter growth, compared with Netflix’s average of 8%,” Schackart said.
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William Blair also expects Roku’s platform revenue will grow significantly and reach $4.5 billion by 2025, amounting to a compound annual growth rate of 16% over that time period. The firm expects that 89% of Roku’s platform revenue will come from the U.S.
During its most recent earnings call, Roku said it passed two important milestones recently. First, the company’s 30.5 million total active accounts were up 39% year over year from the 22 million the company counted during the year-ago quarter. The growth is being helped along by Roku’s aggressive smart TV platform strategy, which has landed the company’s operating system in more than one out of every three smart TVs sold in the U.S. during the first half of the year.
The other milestone Roku mentioned was average revenue per user, which surpassed $20 to reach $21.06. That’s up 27% from $16.60 from one year ago. Roku’s total net revenue reached $250.1 million, up 59% year over year, driven by continued fast growth for the company’s platform business.