The earnings call for Roku's Q4 2024 was largely positive, highlighting strong growth in platform revenue, successful advertising strategies including political ad revenue, and significant international expansion. While there are some concerns about device margins and potential impacts from Walmart's acquisition of VIZIO, the overall outlook remains optimistic with expectations of continued growth in 2025.

Company Guidance

During the Roku Fourth Quarter 2024 Earnings Call, management highlighted strong performance and provided guidance for 2025. Roku achieved a 25% growth in platform revenue in Q4, with expectations of 16% year-over-year growth in Q1 2025 and 12% for the full year. Excluding political contributions, growth is anticipated at 15% for 2025, outpacing 2024. Platform gross margins are projected at 52.5% for 2025, slightly down from 53.5% in 2024 due to 606 adjustments, which are not expected to recur. Adjusted EBITDA is guided at $350 million, implying a 130 basis point improvement in margins. Free cash flow is anticipated to exceed adjusted EBITDA in 2025, with an end-of-2024 mark of over $100 million. Key growth drivers include increased ad demand, third-party DSP partnerships, and subscription revenue, with a focus on leveraging Roku's home screen for monetization. Despite device margin pressure from holiday discounting, Roku expects flat device gross profit for 2025 on higher revenue, with improving margins throughout the year.

Strong Q4 Performance and Platform Revenue Growth

Roku reported a strong fourth quarter with a 25% growth in platform revenue. Excluding political advertising, the growth was 19%.

Advertising Success

Advertising performed exceptionally well, with strategies to create unique ad units and reach targeting contributing to the success. Political advertising was notably strong, contributing 6% to the quarter's revenue.

International Expansion

Roku is the number one streaming platform in Canada and Mexico and is experiencing growth in Latin America and the UK. The company expects to reach 100 million streaming households globally in the next 12 to 18 months.

Free Cash Flow Improvement

Roku reported over $100 million in free cash flow for 2024 and expects this to grow faster than adjusted EBITDA in 2025.

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Roku (ROKU) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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ROKU Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Apr 24, 2025	2025 (Q1)	-0.25 / -	-0.35	―	―	―
Feb 13, 2025	2024 (Q4)	-0.41 / -0.24	-0.55	56.36% (+0.31)	―
Oct 30, 2024	2024 (Q3)	-0.32 / -0.06	-2.33	97.42% (+2.27)	―
Aug 01, 2024	2024 (Q2)	-0.42 / -0.24	-0.76	68.42% (+0.52)	―
Apr 25, 2024	2024 (Q1)	-0.61 / -0.35	-1.38	74.64% (+1.03)	―
Feb 15, 2024	2023 (Q4)	-0.55 / -0.55	-1.7	67.65% (+1.15)	―
Nov 01, 2023	2023 (Q3)	-2.05 / -2.33	-0.88	-164.77% (-1.45)	―
Jul 27, 2023	2023 (Q2)	-1.27 / -0.76	-0.82	7.32% (+0.06)	―
Apr 26, 2023	2023 (Q1)	-1.47 / -1.38	-0.19	-626.32% (-1.19)	―
Feb 15, 2023	2022 (Q4)	-1.72 / -1.70	0.17	-1100.00% (-1.87)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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ROKU Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Feb 13, 2025	$86.80	$99.07	+14.14%
Oct 30, 2024	$77.51	$64.08	-17.33%
Aug 01, 2024	$55.33	$53.14	-3.96%
Apr 25, 2024	$62.81	$56.35	-10.28%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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