In Q2, there was a significant slowdown in TV advertising spend due to the macro-economic environment, which pressured our platform revenue growth. Consumers began to moderate discretionary spend, and advertisers significantly curtailed spend in the ad scatter market (TV ads bought during the quarter). We expect these challenges to continue in the near term as economic concerns pressure markets worldwide. In response, we took steps in Q2 to significantly slow both operating expense and headcount growth. While our revenue and gross profit growth have slowed, we continue to win advertising share and grow active accounts. We remain confident in our industry leadership in TV streaming, the size of the opportunity in front of us, and our unique assets, including the Roku TV OS, The Roku Channel, and our ad platform.
Q2 2022 Key Results
• Total net revenue grew 18% year over year (YoY) to $764 million
• Platform revenue increased 26% YoY to $673 million
• Gross profit was up 5% YoY to $355 million
• Roku added 1.8 million incremental active accounts to reach 63.1 million
• Streaming hours were 20.7 billion hours, a decrease of 0.2 billion hours from last quarter
• Average Revenue Per User (ARPU) grew to $44.10 (trailing 12-month basis), up 21% YoY
• We surpassed a milestone with $1 billion in Upfront commitments1
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