While Apple and Amazon battle for market share in the Connected TV space, Roku is quietly growing into a billion-dollar company. Roku announced that they expect to hit the milestone sometime in 2019. From their impressive stock performance to international growth strategy, here are some Roku growth highlights.
Roku User Growth & Revenue
Roku stock is off to a strong start already this year. The company is beating Wall Street estimates and showing steady user growth, content consumption and profits.
Roku’s year-over-year (YoY) growth in active users between 2017 and 2018 is up 40%. Streaming hours are up 69%. And most importantly, Roku revenue growth is projected to be $262M, 14 million higher than Wall Street’s estimates.
Roku’s Advertising Revenue
Roku estimates that 1 in 5 US households now own a Roku device. Furthermore, Roku’s streaming TV market share is now bigger then Apple TV and Amazon Fire TV combined. And as more users embrace streaming TV, Roku has found a profitable way to drive channel discovery. Roku enables brands to purchase ads in the Roku user interface at a $40 CPM. These ads help brands promote their Roku channels. As a result, Roku has quadrupled its platform revenue from $100M in 2016 to $400M in 2018.
Roku Growth: International Opportunities
With a very strong foothold in the United States, Roku is now looking for international growth opportunities. The US market is getting very crowded, very fast. NBC, Disney, AT&T, and Viacom among others are all planning to launch streaming products in the United States. To help reduce their risk and increase Roku subscriber growth opportunities, the company is investing internationally. Since launching its international growth efforts in 2018, the company now has 27M active accounts outside the US.