LOS GATOS, Calif. – Streamer and stream-enabler Roku announced in its second quarter 2020 results a wave of growth metrics.
Total net revenue grew 42%, compared to Q2 2019 to US$356.1 million (all USD), gross profit was up 29% to $146.8 million, 3.2 million incremental active accounts were added in the quarter to reach 43 million, streaming hours increased by 2.3 billion hours to 14.6 billion, compared to Q1, and average revenue per user of $24.92 is an 18% increase over the same quarter last year.
“Engagement levels on our platform accelerated in Q2 compared to the growth rate in Q1 as Roku users streamed 14.6 billion hours, an increase of 65% year-over-year. Streaming hours per active account have moderated since peaking in early Q2, but remains elevated from pre-Covid-19 levels,” reads the company’s letter to shareholders.
Sales of Roku players (which turn any TV into a smart TV capable of streaming) in Canada have more than doubled year-over-year and “Roku TV sales account for more than one in four smart TVs sold in Canada,” reads the letter.
However, the company also noted some pause time was inadvertently included in the streaming hours calculation. “These errors had no impact on our previously reported financial results, and do not require us to revise any of our previously reported key operating metrics other than streaming hours. We take all reporting very seriously and upon discovering these logging errors, we promptly conducted a thorough review and analysis,” reads the letter.
“We have developed and validated a software update to address the pause time logging errors and expect to fully deploy this update by the end of this month. After adjusting for logging errors, we estimate that our streaming hours were, on average, approximately 0.5% lower than previously reported for the period January 2017 through September 2018, and approximately 5.8% lower for the period October 2018 through March 2020. After adjustment, our estimated year-over-year streaming hour growth rates for FY18 v FY17, FY19 v FY18 and Q1 20 v Q1 19 were 61%, 59% and 47%, respectively.”
For more on Roku’s results, please click here.
