After several consecutive quarterly losses, Roku swung to a profit while it continued to grow its active user base.
Roku posted operating income losses in each the previous four quarters but managed to take in $12 million in the third quarter. Adjusted EBITDA totaled $56.2 million. The company reported total net revenue of $452 million, up 73% year over year, with platform revenues exceeding $300 million.
“Q3 was the strongest quarter in the Platform segment’s history driven by strong growth in advertising as brands embraced connected TV platforms like Roku, we expanded reach of The Roku Channel, and saw a significant increase in content distribution activities,” said Scott Rosenberg, senior vice president of the Platform Business at Roku, in a statement. “Not only are existing brands growing spend but many new advertisers are shifting into streaming as more and more cord-cutting consumers become unreachable to brands on traditional linear television.”
Roku said it now has 46 million active accounts, up 43% year over year, and the average revenue per user grew to $27. The company attributed the account growth to strong sales of players and Roku TV models in both the U.S. and international markets. Roku’s player unit sales grew 57% year over year, which the company said was its strongest year over year player revenue growth in more than seven years.
As Roku’s audience grows so does the company’s advertising business. The company said its monetized video ad impressions grew almost 90% year over year, compared to an approximate growth rate of 50% year over year in the second quarter. The Roku Channel, which includes the company’s ad-supported streaming channels, now reaches U.S. households with an estimated 54 million people.