ROKU Earnings Prediction
The chart below shows how ROKU performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ROKU sees a +1.58% change in stock price 10 days leading up to the earnings, and a +3.36% change 10 days following the report. On the earnings day itself, the stock moves by +0.54%. This data can give you a slight idea of what to expect for the next quarter's release.
ROKU Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.20B
22.00%
13.07%
Gross Margin
42.68%
-5.01%
-5.58%
Operating Margin
-3.26%
-48.58%
101.23%
Net Margin
-2.96%
-62.77%
248.24%
EPS
-0.24
-56.36%
300.00%
No Data Available
ROKU Earnings Analysis
Roku Inc Corporation (ROKU.O) Earnings Conference Call
Positive
Platform Revenue Growth: Roku's platform revenue grew by 25% in Q4 2024, with a 19% growth when excluding political advertising, indicating strong demand and execution of their growth strategy.
Platform Revenue Growth Forecast: The company expects a 16% year-over-year growth in platform revenue for Q1 2025, with a full-year growth forecast of 12%, demonstrating confidence in continued momentum.
Strong Free Cash Flow: Roku achieved over $200 million in free cash flow for 2024, with expectations for free cash flow to exceed adjusted EBITDA in 2025, highlighting strong cash generation capabilities.
Roku Channel Usage Surge: The Roku Channel experienced an 82% year-over-year growth in usage, providing a significant increase in available ad inventory and showcasing the platform's attractiveness to advertisers.
Streaming Household Growth: Roku surpassed 90 million streaming households globally, adding over 4 million new households in Q4 alone, reflecting robust customer growth and market penetration.
Negative
Gross Margin Decline: Platform gross margin is expected to decline by 100 basis points from 53.5% in 2024 to 52.5% in 2025, indicating a decrease in profitability.
Holiday Season Impact: Device revenue and gross profit were negatively impacted by excess inventory and aggressive discounting during the holiday season, leading to lower margins in Q4 and expected carryover effects into Q1.
Device Profit Stagnation: The company anticipates a flat dollar amount for device gross profit in 2025 compared to 2024, suggesting stagnation in profitability despite higher device revenue.
Cash Flow Challenges Ahead: Free cash flow for 2024 was just over $200 million, with expectations for 2025 to be lower than adjusted EBITDA, indicating potential cash flow challenges ahead.
Political Ad Revenue Concerns: The political advertising revenue, which contributed 6% to Q4 revenue, may not be sustainable in future quarters, raising concerns about reliance on cyclical ad spending.
ROKU FAQs
How does ROKU typically perform around its earnings report dates?
Is Roku Inc (ROKU) Q4 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
ROKU Earning Call Sentiment
Earnings call transcript: Roku Q4 2024 beats EPS forecast, stock soars
ROKU.O
-4.77%Positive
Roku's earnings call highlights strong financial performance with significant growth in platform and device revenue. Despite slight margin decline, the company forecasts robust EBITDA improvement and free cash flow growth. The Q&A reflects positive sentiment with successful platform strategies and international expansion. Management's unclear responses on certain issues are offset by overall optimistic guidance, especially regarding platform revenue and international growth. The absence of a share buyback program and potential economic challenges are minor concerns, but the outlook remains positive, suggesting a stock price increase in the short term.
