Roku (ROKU) 26 Apr 232023 Q1 Earnings call transcript

Hello, and thank you for standing by, and welcome to Roku Q1 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions]

I would now like to hand the conference over to Conrad Grodd, Vice President, Investor Relations. begin. may you Sir,

Also Good President, call. welcome Anthony I'm CEO; Consumer Roku our Founder operator. are for quarter Collier, Experience. and Charlie Wood, Roku's Gidon XXXX and President, CFO. Louden, Steve earnings joined Mustafa and today's afternoon you, call to Q&A Ozgen, and Media; first Roku's on Devices; Thank today President, by Katz,

our available Investor of results website be and in are our our commentary can shareholder details Full found roku.com/investor. management on Relations at which letter, additional

Our responses financial assumptions future based management's which to uncertainties. information letter statements expectations periodic statements, call, and for current such events, our on disclaim only expectations, to comments this of forward-looking industry. results this regarding your regarding forward-looking about market the SEC our future investments, to could obligation call views and are our as these and statements impact factors and questions predictions, actual reflect conditions These update involve any outlook, statements. headwinds on today materially On and our and differ make on this projections information. as our or of we'll statements we cause on filings shareholder our refer business to from and our risks are our macroeconomic that forecasts Please and other

our letter. Reconciliations most comparable the shareholder to GAAP non-GAAP call. are We'll today's discuss measures provided on also in measures financial financial

from comparisons all comparable stated, otherwise call XXXX. be our unless this the Finally, will against period of on results

over Anthony. the call hand to like to I'd Now,

We screen systems share U.S., grew of TV achieving a more full TV particularly number operating screen and once active than segment. share which XX%, first OS the in We high range larger achieved gains of quarter three the operating again sizes, selling results the Thanks, a the next streaming TV across in combined. system is record Conrad. unit economic TV accounts in solid our the Roku environment. was challenging both one hours. Roku’s delivered

In are exclusively major Roku first launched streaming streaming. spend branded and Buy shifted media they great March, all receiving Consumers cable, time have the companies now TVs to we focus and watching TV ever reviews. than at Best more

TV more viewers With more grow, the to viewer time increasingly platform. on the looking available and of are to to watch our spending continuing for consumers before streaming to Streaming want brand watch. and entertainment these reach something amount decides what across advertisers services

partners, number in We're the and one Mexico leaning U.S., monetization and advertisers, opportunities. unique content platform growing the into our role to Canada as streaming while benefit consumers, TV simultaneously

sports this can with guide, like You continue features our see and experience, watching. live TV

M&E continue with entertain advertising, We and build content and to brand existing and increasingly watch help next. creating and operated discover and are Roku's opportunities that discovery ones for will new owned and them experiences what experiences viewers informs to These integration content expand promotion, services.

in doubled hours business. streaming ever noted screen from letter, am the Roku's that originated we our As than excited year-over-year. home I about of more future our menu

We customer areas improve as efficiencies. monetization, as of working and are well new operational create engagement to

the for with year EBITDA adjusted that. full continued positive delivering to committed improvements are after We XXXX

to over it discuss Steve turn I'll Now to our results.

smart costs. flat ended were part pre-COVID the relatively We million was in in above accounts X.X net average selling levels, were Anthony. Roku panel adds above net remained in Thanks, the unit lower driven and by freight QX, in of up TV XXXX. QX sales player prices year-over-year. and price quarter million globally. U.S. with XX.X Sequential the Overall, adds unit active TV sales

future which high reached leaving TV U.S. for half X.X household Roku hours account of users an average in quarter, viewing, the hours, is active streamed significant billion day a hours XX% increase of year-over-year. streaming of per XX.X opportunity roughly Average record the per growth.

$XXX to million. QX, to In year-over-year total million. was Platform increased down X% $XXX year-over-year revenue revenue net X%

While Roku such recognition services of XX% of $XX health ad home pressured, travel and financial and of the launch products media and platform and entertainment TVs, the verticals, verticals catch remained on increased branded spend devices arrangement as to year-over-year up revenue the in wellness including Roku improved. the service one-time and our a smart million licensing a operator. by driven with related QX

a XX%, previously profit down was compared million reflects to the scatter $XXX mentioned. away a weakness gross year-over-year along in greater This Device QX gross a ago to was benefited licensing from QX, Platform In M&E X%, X% which from $XX in points one-time margin market which sequentially. declined million. service operator X margin with ad XXXX year period. mix catch-up was

along this a gross platform year revenue would portion total with from between point X The normalizing a by item, improvement year-over-year margin revenue. X been devices have ago growth total profit X%, percentage of point difference of within lower platform total chains. one-time and of Excluding margins net driven the year-over-year net caused a supply compression rates revenue by period, negative was

EBITDA. adjusted $XX devices our and was adjusted EBITDA one-time a by excluded of expected platform catch-up restricted cash and improvements expense revenue, was approximately in with $XX profile. estate been QX $XX million, Please ended note was charge driven and related from above cash, better recognition outlook. quarter that segment, our which than cash. reductions to impairments million one-time performance primarily We in real equivalents The billion the of our $X.X negative the workforce have operating million of

EBITDA XX% of second anticipate gross quarter, $XX we and negative a to $XXX with of looking profit up Now revenue that million, adjusted margin $XXX million, year-over-year, X% net of total the million. gross of

macro consumer With much throughout in advertising remain QX health in such and travel we financial services. while Accordingly, that market as and and expect XXXX. have other the verticals We to remain certain pressured continue expect wellness, verticals as to pressured it as in M&E look and spend the ad did trends advertiser improving, spend to such same the QX.

sequential anticipate roughly with XXXX. a we revenue, net line increase in X%, total of For QX

in continued will spend in M&E expect XXXX margin This result platform level. pressure the at on segment, remaining platform near-term. QX Within the we

QX On to expect year we XX% negative the negative last to in from devices mid-teens. side, margins improve

this for year-over-year supply chains normalize. continuing outlook to Our reflects improvement

focus XX-point slowing mid-teens, are We year-over-year while against anticipate OpEx QX. our in single the by sequential We nearly deceleration QX digits a plan to improvement, and OpEx growth. high expect investments on growth continue to year-over-year priority executing growth year-over-year further projects, we to

remain Given for our improve we full EBITDA ongoing operational reaccelerate growth, adjusted work to positive and delivering efficiencies XXXX. to year the revenue committed

With that, take Operator? let's questions.

you. Our Instructions] the from Thank with comes JPMorgan. question [Operator first Carpenter of Cory line

is line open. Your

profit, the uncertainty I that some profit given that guys in the on the your the questions. one revenue. macro discussed, And profitability environment and are of in the may Hey, you thanks to for Hoping still had in On to what gives you XXXX? need path steps new growth”. get reaccelerate you on one what “creating on just most Thank revenue you mentioned a some monetization could And side? could the to that bit to then take programmatic you. think revenue, there? opportunities initiatives especially of on impactful, you expand letter on the you be in the confidence

Anthony. Corey. This Hey, Thanks. is

adjusted executing and accounts QX we had plan by and achieve EBITDA both I'd system. revenue positive our for hours. also of in active both solid growth on saying XXXX, through just operating start streaming to We're a So

little a about talk more on the can Steve bit details that.

Yes. Yeah. Hi, Cory.

space, operation we're to we've environment that us to is OpEx these we facing. through said, take challenging macro we're So the we're to the both – that continuing adjustments overall got and allowing which manage as again,

tightening OpEx to expected improve to doing We growth OpEx that been rates. we've continue the year-over-year

the in were OpEx QX, outlook, the as by as talked in of We reaffirming growth OpEx noticed single-digit growth year-over-year QX improvement. sequential well, XX-point year-over-year we improvement from have we that of part on to the you similar year-over-year about then, sort QX. growth might rate And that's a As mid-teens, before. QX saw

So year positive given committed all we we're deliver XXXX. to for path work adjusted that the full EBITDA remain to doing,

All right.

a this accelerating me with some our Charlie Anthony it position And to growth to then monetization ad bit And that. engagement. monetization revenue a turn recovers. as again. new in and will maybe about to opportunities over working that market talk the add well unmatched more those scale and And opportunities, of be we We're just are as let on is great to little Gidon

for the Charlie. This thanks Cory. Well, Great. is question,

results. go original Roku content to to by question Roku noting your the DSPs, integrations, buy about first-party always UI are place and our the at start best I enjoying so think partners data to clients From and many that focused maximize right is those helping I across we're industry still Roku. on so

revenue that of your one. managing in remains relationships obviously, are and a mine question, inherent toward demand a true of day of has that course, ours. demand incremental been And focus it incremental Now, third-party priority from incremental sources

partnerships retailers, BXB of to third have that, DSPs been transact So that not where partners best of us kinds doing toward distributors kinds. and I meet help moving they the by parties all us way, but and just advantage, all take

So diversification. Roku to we're things. Roku, this focused incremental our I strategies. on see an ensure overall demand demand first should tap two preserving while at And opportunity

of a market ongoing the distinction. Roku's one, and our specialized in focus value on data So units really ad then, overall

creating of lot monetization a of leverage opportunities. our unmatched spend and innovation scale We talking new and time about the

asked, that into we demand. are more incremental as so, you with And tap DSPs working to third-party

new those our monetization question. Thanks think had help subscription; Charlie. goal and and revenue firstly, we've content discover advertisers streams: consumers, Well, and help exchange. At authentically great the then advertising. Cory, opportunities is and revenue we to for about consumers content, with key streams engage two partners Roku, value about creating that help obviously thanks secondly, organically help when

within is per fantastic in doing what day per to relationship. started few is making and live, to that initially to been achieve hours channel at What investments us the results. consumer a mean, really I the we engagement ago. it And tools and we've been over in the invest enable years that's XXXX, the couple launched hand[indiscernible]. started in engagement count last X.X we enables investing Roku We added driven it of left Roku to years that's huge then in XXXX, by symbiotic

we year, Watch discover the to of customers contributed And to Sport the to in our great watching to launched and home our that forgotten XX% remember home continue have the massively and we Sport that overall content. Similarly, customers And we menu to a supporting watch fact what come to on they doubled What the last to lot What already year-on-year, back. content launched what live our helps Zone engagement. Within Zone. watched, customers Watch, of enabled they're have watching them screen integrate their hours research or screen

drives then value Make drives drives this And do all our our we sure advertising, on in exchange. there's of it also advertisers also enable but revenue. revenue, which discovery the home advertising subscription to is, relevant vehicles. of both within we screen, content contextual other that participate What these peering, diversity but

in that our is the services, see You times the subscriptions at which the speed of platform. X app growing premium subscription on

more areas, see continuously So content in organic drive engagement these continuing to we and our continuing continuing surface engagement, between to create levels and our this faster authentic ourselves symbiosis advertisers invest consumers. partners, and to

Anthony, again. is This

I new at sell such guess looking ways as are in summary, that incremental, we're to DSPs. So just ads

in amount depth and expanding for users the we're of are something both offerings informative looking content platform terms those way on creating services, a significantly, of something opportunities those to find the the our We seeing is into, time new ad in of that's services leaning to something spend we're and help of in watch to experiences. and of user causing watch, number entertaining experience that's consumers more the the and rose to streaming which that

some sort. examples. units too, examples and other like, advertising unique ads are that there's those I like shoppable mean, So creating

you Thank all.

standby Please you. next for Thank question. our

line Vasily the Research. Cannonball Our next from of question with comes

is line open. Your

you. licensed Steve, wanted ask Thank amortization Good afternoon. you content to and about amortization produce I costs. content

to I at that I couple can in you if a the things wanted about. disclosures of ask your So, XX-K, see look I

the is compared the due for expect expense you cost produced if you. content such XXXX to spiked or to now? reason remain cost then the in licensed is that? relatively licensed Thank in small And amortization to produced And the the of XXXX amortization drops level, expected the and volatility? First, to Can what's content driving low at significantly. -- Is you XXXX then costs amortization explain short off XXXX licensed it increase contracts amortization. way compared to really content content the

the chime for question. can Vasily. about and strategy, Charlie This Thanks just in the if is from anything. that any Steve. if overall I'll there Hey, content then has of talk I color kind missed he

growth of that grow for spend, whether the macro kind channel license trajectory with commensurate Charlie to those we interested things around focused have exclusivity and side still for exciting for a certainly, reminder and, is environment a that's our The just shown the license Roku expectations. well. So, and exclusivity it to And the approach rev fixed whether into viewers are scale channel, have content of predominant Roku the overall original of model obviously, the in new try is then piece that's the content, fees. content to the factor that shares, is as to in little bit that advertisers get Roku

the So changed on hasn't overall that. strategy

P&L of We directly, are spend license the basically the but, in more the kind at on Roku matched kind look the payouts don't again, is if producing show of we fixed up majority fee, of content licensed. will. overall balance Originals, When rev the the they're you because the sheet, hit shares

of fixed wide So license. we range a have

are really about have more then especially when our into longer contracts, we them term short that's series when being approach there. you talk and gotten And started of Some licensed. term, we TV

be it bigger, the multi-year, So especially tend well-known to TV more essentially for series.

And there's a on that mix so piece. likely effect

we've license Roku contract change mix the spend overall content the between well long as for on adjusting fixed Certainly, based macroeconomic term conditions short as that our and the so term and can both mix Originals. been

advertisers, sought viewers So, is it's content for should create the to of will rev value continue fixed share the spend but be and by and is Originals talk that right. step about sec. The exclusivity Charlie. both. Look, adding and foundation Roku I a back to Steve They content absolutely licensing, out our

So, has insurance, Mobile, Hart Kevin a progressive of with and Hart, Zoe weekend, these we more. Lister-Jones. some last lot Slip And Verizon, by premiered just starring then our of supported Die each T clients, and been the biggest

And exclusivity Roku investments our advertisers. so, we'll for users create Originals and continue to to in grow

and Gardens get to her Emerald Martha we and broad relationship had Lawn support I and Coca-Cola with Scotts So interwoven letter highlighted the from Care.

so But we'll we'll it with responsibility. So focus and that. do

a content on asked spend she's and get right. I lot Roku about overall

and payroll do Of of year, the we'll forgive growth, environment. do in I'd by the course, the a analogy. like with with of out, point biggest channel a teams from shot. every to not The not scale you'll the baseball commensurate context broader macro a growth long But the win

I can programming history targeted the and think [indiscernible] our team work history successful. is great certainly, show that I we my – with be here,

benefits the advertisers. that have team deliver streaming then I So with and the data, us differentiated put platform product passes I'd by platform. this near Roku it wars. that to said wars and not before, probably which we fueled price believe, a pride, and in being it of third Roku anywhere the is are with streaming that using our again, parties out the heart played I've all the say streaming of doesn't to great Roku on at continue The is question. wars, your

Thank you both.

content, is and be Roku by found streaming on were again. the license Roku Engagement we year-over-year a up platform. which on that discussed, Anthony channel. just grow. that XX% this. up, It’s Originals, doing channel, hours and content just the to I'll The by wrap Roku just engagement continues saying top it's well reach on five And was Roku up the channel the extremely can

you. by next for question. Thank our Please stand

line next Susquehanna. Our Patel the from with of question Shyam comes

Your line open. is

Hey, guys.

time. the how curious the are how those talk could see is and you in rates of rates but Roku term. guys where you services, And about channel And know be question, not bottoming might a for and expect the just you're opportunity viewership. was financial you the of I you then and intermediate questions. then beyond the if as you in to you're Next market about well near had terms want how about Thank M&E maybe talk improvement overall big over of just I thinking about guiding to improving over and XQ, second to thinking fill monetization, you engagement about scatter the just of job couple them the guys Can quarter. you. fill wondering, for the to kind a guys on kind as you timeframe talked areas? I have

see. Let's

with M&E, we've about scatter I'll start I that. know talked So markets.

watch. like it's to of figure trying the find level, watch. we area I providing mentioned to highest something platform, Like, that we we we're on want want branded, at advertisers, and before, what entertainment media to think spending to do seeing but the out time to an And advertisers we're our M&E M&E, services what they think into. both help leaning their increasingly, want they guide consumers more want and think before to opportunities also reach them are I kind best really advertising ways engaging. that in platform that decides also are And compete, consumer especially great really and consumers watch. be are we that our And entertaining to those on brand can ways

definitely we're opportunities position seeing us more platform will advertisers number create a in well unmatched more streaming scale the Advertising as lot a for definitely business, will for we're that it engagement, of bit in UI It's to will create low, building is but as -- a back, a opportunity So that these bounce advertisements, great monetize. bounced it's M&E. back. with create more experiences do and experiences to to lots we're one brand we're it cyclical opportunity And for of a that. as

unmatched around to and our user scale create innovation leveraging opportunities experience. monetization we're that new So,

the to... scatter market, want In terms of you Steve, did

Yeah.

[indiscernible]. talk the our probably thoughts impact the some on then and market overall of Let dive about can kind environment more scatter me that of just into

to That discretionary macro pressured remaining an likely result. the muted expect as and environment a in where remain uncertainty spend to really we quarter, through last are results their to XXXX. similar consumers is So persist

part about talked our outlook that expect QX. of to the as we we look market in ad QX to so, And similar

Charlie?

will the Roku focus Look, effectiveness households. is to that best half shift M&E and mean, on where a streaming nearly broadband engagement because question. of for drive to I I engagement a love believe flatters the environment the for clients, Roku flight advertisers American is journey way and Roku. we drive for the begins

the the that and here were the and literally see advertised, was watching it they're And Roku on well. as you if watch show ad so, to platform

couldn't they content. So closer be the to

to of highly their a and is So, share take even poised way larger as marketing as to some is effective that Roku we proving investment dollars. budgets Roku do spend a manage partners down, efficient by marketing the

because Actually, example, major I'll and to a partner on after Roku highlights is. sophisticated increase streaming was stopped Roku. Max give that specific driving to target releases. you it engagement impact And they decided really looking it streamers engaging how Roku Actually, a HBO ten-fold

so sophisticated can't partners a most by and pretty that them. be And request it's results simply proved addressed for television we

have exposed tipping control streaming streamers distinct the find another to more a group. month hours of was were similar. than to So, days help for And plus or streaming a likely XX% streaming partner. X point This another X service their session we in campaign is help plus the that We retention.

So increases visits that digits. at return app their the double likelihood for point, to

I And you give so, that example.

of and see to Roku. Roku insights question the uses you world building again complement that's efficiencies, and turns that engagement is your like about to drive our that the So business M&E will specifically platform power

obviously, the SVOD supported to is traditional seeing tiers for companies help tiers. subscription that ad the we're also across their of ARPU businesses poised And those you're grow. think I industry surpassing

yes, of has fill on a all rates and ad this, diversified your rates. and question fill to the So, get starts this business add Roku to

of and funnel. so it bottom diverse full experience. the to broad down a funnel way the is ad at of reach, because entertainment, the we're powering marketing all business funnel media performance for this -- is Top Beyond powerful

And premier. last So, me on inventory who a here, to him. our streaming. home using week him actually, for quite called he talked got the the we a drive and of in about bit his to was a showed rate. is he of end across week screen analysis, viewership [indiscernible] funnel then by ads for how approach. platforms. worried call We Roku And And post accommodate top about he I of just about his from multiple move didn't to the fill We had last studio movie. And help his just bottom weekend, but weekend

and important So that for look believe to bigger will and is come of end, Roku. I take the this to in Roku smart a the demand piece market poised money greater

Thank you, guys.

you. Please question. for stand Thank our next by

Shweta of next Our Evercore. question line comes Khajuria from the with

is line open. Your

questions. taking Thank Okay. you for my

line buckets? leverage leverage? being growth For should do year, if about we to you're OpEx positive OpEx think drivers rate, focused how on were question OpEx I EBITDA understand see the one. your the you Where items. think within most next about key but we That's

party timeline other that on we of DSPs And meaning then is how to as you opportunities But in think have and of one is you I contribution the Thank second for question too. about up opening open your monetization platforms. mean, third party you. the should the magnitude up levers. to third of terms

I'll take Steve. OpEx question. Shweta. It's Hey, the

In categories of of kind of biggest of rider, and then related have headcount of leverage, as range OpEx a headcount most our lack non-headcount we and expenses, other terms certainly expenses. is single a

the initiatives. our efforts the maps so, ROI on strategic focusing at our high and road been has really focus on And prioritization really, looking on

And both been we're perspective, at looking efficient the a can, the to so we non-headcount from growth effectively get rate, slow then headcount opportunities the on year-over-year more side. also down

saves streams are we on cost pushing So non-headcount the other work have efficiencies and that side.

and of non-headcount was in combination talked level work last of certainly, that belated other announced ongoing on the about, round the the So to of March some the kind in we those, side. we initiatives late project

categories and harder a more look on remaining so ROI of the those track highest in getting the efficient we're maps a skinny the we're really -- different us, at that that becoming is down for and looking So in leverage lot road taking that. around initiatives

year. down digits So to of that will rate the allow growth the us year-over-year single end that to by drive

pairing initiatives start, and then, other Anthony the the on when well sure top with DSP? driving we're line, want And efforts, particular. Charlie, on as mentioned make really macro monetization place that also positioning the that to the environment to party in we're in a growth happens the third business, take attract ad ourselves to the you as good at work rebound

for question. the Sure. Thanks

Roku full As and place the DSPs and inventory buy everyone, always always remain I remind will media, said And us, continue best to have We've partners, with is retail one. before, I funnel including But Roku. are really like and etcetera. so. to parties, demand I sources, we'll do important said, to actually shared obviously, to -- third as incremental been important since day

And haven't integrations and select is, in we're our so, we've party their partners shift data about markers different but any evaluating third been we of phase what's timing streaming. deepening tech each deals, many with But question preferential to had partners. made your and a interesting

we'll the And continue to them do quarter, a where made progress to and DSP has significant so, this for so. better side philosophy really We've them. they on our meet been be partner and

you, Thank Charlie. you, Thank Okay. Steve.

Please by next you. Thank stand for our question.

of from comes the with LightShed. Richard Our Greenfield question next line

Your line is open.

Hi, thanks on and importance have sort the the question. ad of it's these clear tiers. called of the think base, up the look will sort Netflix, user more for all I weeks these know of these guess, in platforms? there Maybe companies lot evolution quite your look the plays don't for like even the a And I'm all majority a ad just do on few that you've to changes mean, just but can adds about, in think about shift just they I it's I known supported specifically, of subs how so Whether role trying Disney, of in Roku thinking of how but subs streaming of pretty based who Or woken things what of and probably I HBO free. -- most the platform? at what that's more are the streaming I'm Max, ad subs. these of coming for overwhelming But, when to across you to sort net I -- are -- make Anthony advertising Charlie, when -- landscape come their or out? I that I be the something I like, while. guess, supported to businesses guess I think, to which play They're like, platforms cheaper a taking that an Max. of not ad ad mean, how need

guess and looks more like XX% the like two today it XX%, direction is, what XX%, a see which thirds supported platforms. I versus, So of I Thanks. think you Hulu, for ad these lot like other

is ad those I'll or my supported guess high and whether one -- Charlie way But I We is ads tier thoughts of is areas, And us tiers, just a will used that. Rich. tier. more tiers, which partners Hey, offering you free our the level ad watch, than not for for take really case cost a platform and as monetize [indiscernible] let business of get that, for interesting ads ad ad supported which can monetize more at subscription most think, whether lower more a is, become subscriptions subscriptions constructed. is popular -- consumer Roku’s both people over sure seeing model the I regardless tier, tiers we're time about those them products. thing growth in I'm to

ad to I And to drive interest is tiers. in expect that But believe The Charlie, our shows ability happen engagement what we supported M&E promote want think promotional you as that on more will cause consumers to don't platform outcome our drive to… so, products. more we increased to

actually but the to that the we you're commercials true because will, and a still advertiser's trend shift Yeah. is have and be what shows for just that's M&E ad that's tools, to right. on Anthony Sure. our Roku, during they great engagement, watch driving not Rich, do. great that an watching they focused subscription support Well, for flight, was and [indiscernible], and now the we're retention,

As talk a our growing a we advertisers, simultaneously helping business, lot on and the monetization platform. partner all about content the the while consumer,

advantages platform to in half the is us broadband And Anthony staggering. our engagement. I a on approaching there with with help is we're that huge again, great flight households So happening. to partners think country the nearly just mentioned, focus And engagement

is, and bottom can they So help a based grow and living an we for benefit business build from impressions see impressions ARPU it. line [indiscernible] as and their we're we partners continue will to

Charlie, as that seems losses all companies need business, to reaction well their you on from spent. point. super you knee if follow-up an based I jerk time could that it to the Obviously, you impression just of mitigate like Yet the know in move streaming.

marketing not their their their disconnect. is from like budget All yours. really their really -- doesn't like cutting which budgets. the cutting just of them marketing just programming generate real ad That they seems dollars They're -- ad help platforms a obviously can they're or are budgets,

Rich. It question. great a It's is,

First sorry. of kidding. one I'm I'm only just all, question.

If the and drive drive marketing as do. These to [Multiple advertisers And huge Speakers] and that lost programming platform. so Roku And power on and they partners has programming well. are you to anyone subscriptions think well, value engagement. of that can it's that's we while well the incredibly so not about happen we of what drive incredibly

responsible, to effectiveness even from a And we show and so, to you're will as flight subscriptions that where toward being in ROI. that absolutely flatter an environment driving they're us shift prove people have right. engagement The

that just smart money that. believe see I cycle it's a the again, won't be They'll to engagement. It's that, one, if it's both. right. be you're have We will to quickly the coming about realize So, has why Roku. they And about

the question. you Thank for

stand Please question. you. for our by next Thank

America. comes of the Ruplu question Bank Our of line Bhattacharya next from with

Your line open. is

Thanks I Hi. my of taking them. have two for questions.

that? what putting and see support thoughts your a your you open But third available party talk What you more What ad party the And Charlie, DSPs? are rates you do I if question. have are the positive So making has wanted your how possibility little think And on see platform inventory enough brain be? the the a that your in you're just to pick down? of you party CPMs follow-up do? any do about to can to where data I thoughts guardrails you trying on you making are ad want side, and fill you going have can enough relationships So coming First, about DSPs on process? tech up. your third I accessible. first about bit to of any you Are to

Thank you.

our Okay. the that innovation time Well, create monetization talking lot so new scale spend about. unmatched look, and opportunities to of you're we leveraging a

question hand we're And tap again, to current so, that, general feel from We value your ensure Because demand of party diversification DSPs on data And demand. to our the continue keep and to we that I and and think third then up and in an so market ongoing that really we're pricing. And focused demand. is see our doing opportunity can tap [indiscernible] value more add good distinction. one, will doing hand it specialized our again the two incremental more with, incremental things. and partners units

Roku being focused it are we buy been said asked I work to times, what And a but that you opportunities many successful means. best want to time so we've with customize how we of demand, incremental I've to now on the Roku. and to about partner have am couple just every place I remind how

Since broad details Charlie. OEM TV came range. were Anthony I for about XX partners Maybe Roku to inches as branded price launched. the Okay. part like the with TV spectrum. a very out of that you very mean with broad a I'd Thanks in the already there, are a inches follow-up, TVs value XX range, to the new ask

TV maybe where compete less larger OEMs. would So the focus on against why sizes space not existing just screen end you the TV and the high

market? approaching thoughts your just you. Thank you're So TV the on how

And those the to us. easily going It to licensing successful continues branded a and like, program TV, statement, our overall is grow. TVs Roku Roku for new just general as

all in It's market Now three has last States more that. very we're United very but that share, in And sells That's It's Roku party standard. products. the XX% letter the in program, OS’s that than the quarter Roku TVs also of the we mentioned combined. industry. like TVs. program a of a company pretty that large in common next proud a first a mean, that's I the licensing were and has

drive choice first to as that with devices, gives Google it more party as having Surface. us to or platform consumers it it gives well our the by the see pass on and You Pixel things partners. These like third innovation, party a really Microsoft Windows Android to devices innovation

to strongly level, both team me the believe is to to pretty incremental, let our more, drive over we But leads TV through a going time, increased branded over for is at program for high that the He Roku directly. the share TV It's Mustafa. and turn market add program. So partners licensing party it first products

Ozgen Mustafa - A

choice on Yes. is Roku also expanding TVs about innovation, R&D consumers. strong are speaking. Yes, demonstration a Hey, investment TV commitment Roku to strengthen ecosystem side. And our This Ruplu. branded with for our the the the it's of further with additional Mustafa

to don't a to then full partners. important add with value real range innovate consumers, and to we hardware. of Because, that to at full end. staying technology our the at in performance basically able high just at products as when the is we well necessarily range look being look bringing So new out mid-range adding of ecosystem the keep the as the in innovation, look best as We the innovation

so, on focus and very both the to important cost innovation innovation. And the also performance it's

definitely they And I'd for there's series, to we and mentioned wanted choice partners. a I the Roku guide, Because, of with ideas at made the we TVs up the this the to they about with that array comes come partners again, that’s Roku received we the deposit consumers if licensing from growing the Roku complement for of end new have state, Plus And like come great that letter. said reception the Tom's fact OEM fraction TV TVs and as helps said excited we price sort even are in again, new both area. [indiscernible] quote from close XK comment our Plus our which of the and up best press. the remotely our series And shareholder remarkable. in industry to are by TVs very They the innovations is this as to and

the to think key focus offering our initiative. in best summarize and that hardware consumers, in goal branded I our offering the again, TV the the Roku market performance again, that of we partners is exists today that have that TV out bringing the to is

program Anthony globally continues partners, XX% results great TV Roku -- really is which program more reached not numbers we share only is It and U.S. our actually the as TV grow. the highly to -- drives that the partners but mentioned, and overall, QX, growing with successful. market also for in in again than And Roku record high

and business. of We scale grow the results drive our continue to great

in add and TVs in was TV the to market program leading Roku consumers. market us that in more successful QX, Roku program three sold For example, Mexico, really The value in incremental our partners and one the help had the and TVs TVs that importantly benefits share. branded

it. Thanks details. Okay. the Appreciate all for

Thank you. Please stand question. our next by for

next line of question Jason Helfstein the comes from Our Oppenheimer. with

Your line is open.

Thanks, everybody.

previously kind the been to opening way slowed. demand up easiest when focused like to solve that on So we've the because third demand party you of issue seemed market DSPs the ad

understand help of announcements. made there data to You you share to out one buy. with a better number partner I’ll kind them the of did to UM call

you saw an this like of that standpoint. I And morning from the own. they think can can an was data on something overlap top presentation there see ad services and that industry have their effectively, that's XX% I

to deals, to when is want think you and opening about how of take then I the third then monetize bit Thanks. ability those just -- demand? up like guess, types simplistically more a kind Help understand it much I of party So us just that simply deeper. valuable

Anthony. This bunch data are Charlie. a ways. are and in turn I'll definitely Hey, over of say just different is value it partnerships on focused to an Jason. area this create that, I'll we

reasons. I few more. terrific agree term a The you is long couldn't nailed opportunity and

for thanks So the question, Jason.

dollars you first scale. happening connected while year-on-year, obviously, drive quarter, TV look get our As TV accountable and, advertising I if hours mean, that's in fell grew to more streaming hours XX% to traditional and more XX%. clients

the the So Roku's before, this in I'm board that I scale position given fact is important trends of terrific, about and reached and our the your majority are and as the point half Roku country bullish monetization. reaches, for households said We on the cutters. broadband

effectiveness. focus And poised take to So of and inherent as we in because bigger value on ROI. share again, your advertisers we're question, the a market prove

Roku but about health this of talk should years. fronts And been the only and diversity and seeing M&E, talked it in categories We're travel, business. all like the new stabilize video the has for which mention against than grew I of a I advertising. few fronts, faster should continue I video a because upfront, our overall in the to wellness advertising. health marketplace We're lot seeing new and about our

that year first be products, effective impact about new new new our talking each driving, the focused with in York live to and just last fact, be opportunities And team. distinct In on it opportunities, Allison new talking sharing I'm my We'll -- Tuesday be ad first ad our for including about. will more was still of Roku sharing these New and the partners. And event make forward this because data presenting and you're original looking front content. we'll

five directly average top cable to prime this there TV and talked can guarantee an money reach shift network. TV I prime that from about to and accountable have more traditional and appreciate Roku. moving from we our scale on is the Instacart with type guarantee today to of about more Roku's was, you TV you time than ones And And mention mentioning truly this ongoing Roku about time that result. didn't noticed is speaking One reach And broad might enough streaming. we're announcements. announcement you cable monetization to households our partnership. only was Advertisers the

for Roku offer, the CPG platform. of the question. are TV seeing so in advertisers streamers is your the distinct. so purchasing on is which after ad Instacart whether this, With This Roku funnel measure and this products unusual context marketing a about makes full on think So

ads. distinguishes seeing good So focus our type Anthony use our hold of we us And products buy can this said, see and that them results after Roku as in that will data their of really stead. accountability and

best accountable so doing in as look, think is to we're So summary, the happening that Streaming. are solution. traditional maximize to I biggest that to continue TV going more we TV And shift from

I but the to smart before, keeps think Roku. it said I coming money So,

you. Thank

Thank stand by for next our you. Please question.

Our next the Morgan comes Swinburne of question with Benjamin from line Stanley.

Your line open. is

I questions. Two first afternoon. guess Good Steve. you. Thank for

I Steve. for think it's

small in guys And expectation then in the ad you the but know your a the there wondering, headwinds now. get the think market there in business market might to you? underlying will lot to while or that everybody too be about is, us, the talked that business growing how trends? for the if fast year. half have platform just guys that's in just you an way make I will because accelerate a headwinds that any -- fade -- I excluded Does growth. the know, is those I piece guiding second easier about aren't M&E, other comps stronger for the when help sense Is Just M&E the that or revenue, enough masking than don't you of to I'm been becomes business just probably think

it. upfront, new whatever front, And you then I Charlie, to was the on just curious, call want

a other approaching the this Because hand How which -- markets you one prior some scatter tailwinds, the your you weak. secular and through help should calls. market been and TV You've this? in are the lot in hand have connected Roku on

terms are so, year of everybody. the in you Roku about can grow and how last billion Thanks, you thinking year strategy your X bigger to this a positioning the best And commitments? to number

we'll Hey, Steve. new etcetera. Charlie that [indiscernible] it Yes. front, I'll over first It's the couple, then for to and take Ben.

ad of the through midway you're slow-down The materially scattered really certainly market comps, correct. terms QX. In started to in

certainly as So comps that, half you've back comp things. you into of easier get got the as you

our of persist outlook – pinch is it's to next macro likely but the later coming this There's inflation is down, recession we of terms year Really also concerns consumers between in uncertainty still that In that the said and potential environment, of XXXX. the think elevated. year. kind the we throughout color

We lot remain drives the a so is of think we will spend And economy. that spend muted. discretionary which

will -- opportunities we're about So great overall, similar folks where on. we all pretty monetization talked working the incremental QX. think, market in QX the that ad ad the With -- market, look to

up. economy think are the and really we're to So hopefully know you get for of well kind better. In the uncertainty economy. but sure doing ads back to general, to at the timing, do least cyclical, start that is to need stability ad to of start they and up track incrementally market don't we But be the the do stick -- need and not you we to firm necessarily tend what

areas we think also on talked and that's travel you verticals we I that signs some in do market, health why ad like see of promise but in seeing services about the certain like wellness, things we given have to and and average financial the to are to is assets exposure operate M&E bigger -- certainly, that’s than rest we market where environment we streaming And just continuing do M&E our in the remain that pressured. have fairly overall. similar of an

can EBITDA trajectory sort growth our on positive talked make better, that top we positioned of of about In we're drive the is, that we've are house sure so back. side OpEx toward of XXXX. on line we're meantime, to that make what when for well comes think but I I'm the it but working we the things sure balance when maintain So target kind get timing sure well the also as the that not we

Charlie, I'll you. switch over to

I how Speakers] first, I’ve am appreciate noting old appreciate Thank and I been through. you. upfront Ben, for that. that. Neither thanks Well, I [Multiple how many [indiscernible].

fell terms you the XX% is, growing One That's are So look, TV streaming know about really a and ourselves talk be XX% is said what our focus to obviously partnerships our traditional reasons. the some the you for year-on-year. before to exciting I offerings. and think approach hours we'll fronts market. to Again, and when about. add new two and you that trend time introducing in And interesting of data what really of come reintroduce

XX which But, bullish is not talk particularly relationships. this. am to why bit about year These a to actually, little I new quite still Roku, want I for we're that, are

seen both time, You to opportunity grow Roku also the advertisers lot that new accounts. to add streaming first is have for still have of businesses have how effective we and and coming new a

present of position Roku because, advertising of an really I in So to our being coming interesting the base Roku the and way, also are context feel market. trends in excited is again, the really the secular

Here's that. what by mean I

-- is this term, to in platform. the reach more are and of going more and I really really television the think scale in platform near our planned first because on unmatched be

see chose partners upfront front come more wanted show and from. we and to So to how to they Again, and apps the we the all M&E hearing the wanted you're Roku actually more to same. general new advertisers, instead be much we of because they'll and people do going and marketplace help early, we value the networks are the to and people those reach them

job present doing So to I'm and really great excited the positive hearing we're feedback. with They're team. a

much. very you Thank

to you. Anthony due call remarks. turn gentlemen, of over Ladies and for back now Thank closing like time, to the the to I interest would

Thanks.

Jedda at of leadership So everyone new let and up, years. for contributions that Roku, last the for next Steve week over thank Chief remind his to Dan me we welcome I wrap eight joining On as just everyone our want to thank and will Officer. Financial behalf everyone

participation. and Ladies this your gentlemen, concludes call. you today's Thank for conference

You now may disconnect.