Roku (ROKU) 15 Feb 242023 Q4 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Fourth Quarter 2023 Roku Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to the Vice President of Investor Relations, Conrad Grodd.

Thank you, operator. to Quarter welcome XXXX Year and Call. Earnings afternoon, Roku's and Fourth Ended Good by Roku's Anthony and today joined I'm Wood, our Dan Founder CFO. Jedda, CEO; and Media; are Also Collier, for today's Ozgen, Q&A on President, Devices. call Roku and Mustafa President, Charlie and our be in can management commentary on roku.com/investor. our Investor Full our results are Letter, Shareholder details additional of at which found available Relations website

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

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

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

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

Conrad. Thanks,

proud operational flow we XXXX, our We adjusted improvements execution. I'm which revenue at of ahead by platform growth, digits. year grew a cash Looking of focusing and and back free delivered positive double schedule EBITDA on

I to use reduction internal attention much this lots be team's strategy my of we active our year, spent ad A growth screen to operational large where home as We core We distribution XX was accounts improvements. opportunity. see ad correlates to and and programmer grow redirecting for as of to million and scale our This OpEx XXXX in our record to engagement. of take innovation growth advantage our also revenue, drove reach, on position streaming attention which platform us better of globally. of for management in is service our well will A the the grow as activities. share

is like City iconic delightful for Golden well it as Arches Roku way are and seamlessly promotions that example, integrates for brand popular in the McDonald's For movies TV show imagery ways viewers. as

early experience, events examples the content engage efforts location. streaming universe examples, culinary and Things focused on These All new are some best garden in improving Food also Home and viewers in experiences as All experiences, and or well drive and our Newer and to Roku content find across single early them Things on we that help are monetization. viewer which central a sporting aggregate the which home aggregates Roku sports ways as platform; include the the these

state for I industry, of the particularly trends Thinking is content. see X about the of volume enormous us. are One streaming the that important

they a to opportunity As navigate I helping our find easily just want for viewers watch and is big what Roku. mentioned,

means focus has overall critical services TV businesses. streaming of dollars ad streaming its increased shift expertise ad-supported accelerate will grow on more sustainable than traditional an has industry environment. now is streaming. the the ever help tools more engagement, further thriving Second, This and to from tiers, Roku to in and which building service ad-supported the which

as streaming ad-supported strong Roku expect demand price on seek We many tiers value for options. users

engagement, and advantages, deep our million XX well-positioned user active revenue first-party future in With accounts loved with platform growth to are we accelerate brand, years. relationships

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

levels, and international record XXXX accounts were U.S. XXXX hours. year-over-year. streaming primarily our hours in by active XXXX billion account hours of and were QX from driven continue Full active engagement. billion in us XXX on above Average the per QX to significant with XXXX XX% similar also QX, XX XXXX. by viewing X.X is In XX.X streaming X.X streaming XXXX, X.X with time X.X QX hours Average million. ending and Anthony. grew million full adds to million, markets. Roku XX year QX growing grow Thanks, grew day we up hours year-over-year engagement per providing platform hours year opportunity hours both a in We hours the on We're for up the XXXX program our X.X traditional and in TV per day in to TV U.S., to net

Platform XX% from grew revenue M&E. net SVOD driven year-over-year, from revenue, services sign-ups price by advertising million. offset streaming Streaming services partners. than activities, both with $XXX recent total million, grew activities year-over-year $XXX video was platform distribution overall benefiting increases to QX, revenue faster distribution In along subscription increased by up XX% and

QX. rate in year-over-year comps the due QX the in streaming growth However, growth tougher distribution rate than to of year-over-year services was QX lower in

Devices margin platform driven was revenue year-over-year scale and to $XX XX% international Roku-branded a year-over-year ARPU which a of XX%, select improved was engagement. reflecting XX-month QX where Channel. we related gross was up XX on markets limited down active in sequentially on in restructuring basis, the margin currently XXXX. was costs points year-over-year, of from content in X% stable increasing as launched supply of and QX when million in negative accounts and the was increased result the focused roughly an license March produced devices year-over-year discounts. removal are and excluding Roku chain QX, margin TVs, QX charge XX% promotional total of XX%. trailing by growing which QX QX in gross $XX.XX share

billion Please performance charge was million was outlook. with QX above $XX trailing million million, was profile. driven cash and basis, we equivalents. that adjusted impairments workforce to operating expense $X to note quarter adjusted was million XX-month a in ended our and a EBITDA was better-than-expected and $XX along cash cash EBITDA. The $XX on lease our to flow onetime the by related reductions of back added with segment, platform primarily over Free our which $XXX improvements

total outlook the gross quarter. adjusted first of net $XXX our with anticipate We million, me turn gross EBITDA. million, breakeven $XXX and for to XX.X%, profit of Let of margin revenue

While market we profitability to time. the recovery, we of remain environment free uneven over deep macro and revenue plan flow mindful a ad and increase challenging cash and

net revenue, total decline For line QX percentage in a we anticipate seasonal XXXX. with

for rate year. streaming We face of difficult a distribution year-over-year this services in will environment rest M&E growth challenging and the comparison

QX We year-over-year of rate maintain platform expect to XX% our QX. growth XXXX in

term. activities, away expect continued We shift which in platform compress mix M&E from margins will the a near

be to QX margin year last to QX, of XX%. of roughly platform For similar we expect

Devices expect On to digits from improve QX the margins negative side, mid-single we to in negative QX. in XX%

lighter period retail in Our this QX. for reflects sequential outlook a promotional improvement

a continue Turning in of growth rate We'll We QX year QX 'XX. with achieving further low approximately OpEx. from operate we anticipate discipline to our to for year-over-year XXXX. negative growth significant business focus After for XX% XXXX, increasingly to expect positive mid-teens, over EBITDA year-over-year to a OpEx to improvement year with positive driving on deliver full free adjusted flow cash time. improvements full

previously, our scale, with stated balance expand reinvestment and continue to As engagement monetization. commitment we've to this we'll

Operator? questions. take that, With let's

[Operator Group. Susquehanna Instructions] Shyam Patil first International from line with Our the question of comes

the couple I had on Nice job a of questions. execution.

the launch? how year, what And this Anthony? The AVOD are could follow-up Maybe on first thinking little if Amazon, a about guys one, Roku then the this just for Is about that Prime threat? you are this a biggest an a Is you opportunity? priorities talk bit.

improving remarks, my for Well, EBITDA we I a our the we prepared This full last year, year operational a in our rightsizing just mentioned made like is focused achieving efficiencies, for progress year, Shyam, a in area, on management OpEx, lot ahead team, very of target. of effectiveness Anthony. that. that XXXX, as thanks and positive were

So But to more we're a we're very focus mean, and drive be that. this year improving on over year more -- team we'll lot term. as a this some operational continue growth, with to push driving time innovation a to of long just growth things happy our have efficiencies. management adding of platform to on obviously, going the and is my lot time where that's will that the spending I or and I'll

is growth. us big XXXX So and in that's focus a for innovation

and just could one doing there, kinds of for subscription Roku business. it. well of to a who one changes -- Channel things things recently. just as And on give driving flavor business, a our we're the this a opportunity I you example strategic organizational the partners. executives me driving subscription examples there's of that couple premium large to for made our I we of service of -- lot reports a that changes our tasked maybe And streaming so have building in is of of a lot most both as subscriptions And focus I subscriptions one to But I some give mean there's area. is

to could it's lot larger for but it's us. and big So opportunity a something that's new not us, that be something is a

make we're on. just so something I leader think there. we activities it's increase We're one consolidating of the And lot reports to progress resources And who under good a all going to that me. can

So that's one example.

of strategies example the XX is start with Roku. core on TV households million fact our Another million -- and is that their to one -- experience households streaming turn take XX our approximately their in advantage of monetization

do is the place and when start where thing watch. screen, first their decide see what watch to The they the are what they want -- to they on they to TV they turn Roku it's home going

already is we in them are watch. do TV and want that that viewers can we've the -- shows to -- one experiences things that for they run, so see launched viewer do where to build entertaining what decide there that want And to just, this. app we of And are you example, which help features engage to things they to

for figure to particularly where very that it's sports game we an league, so fragmented. viewers it based playing, to is example, of changes for changes area it day the that's zone. have because It's on watch just complex. they for want the them challenging by is the week; hard Sports it's So out

more more platform. Zone watch. the to That's on recently, platform, across viewers out food find we've figure which so which All what Things Food, we they're learn one content where -- games, our helps our helps about best where sports launched And Things curate example. Sports playing, the

for for to in of home are a us. decide viewing strategy key viewers operated strategy a kinds and that it's experiences So with trying basically we're watch on. in what our they're to the it's to It's these big but and apps. engage call our also use to We both core third-party focus. a owned of area our and drive this us And programming screen, working while apps,

same what the is trying across which At have, problem it the decide content it So monetization. all streaming time, in to the viewers watch solve big drives universe. helps to

examples, and but X just a big are innovation So our year. management focus for team those this on growth

then think second I AVOD question about And your was launches.

kind So maybe level. there, it taking just say what a of I'll up

trends the that's is happening industry in that One is streaming of world streaming the now the maturing. right

So if almost at were any for I you take a on focused ago, AVOD, of couple all subscribers years just the very streaming driving services cost. mean example,

industry services. television. The something mainstream the entry-level thriving Now -- the sustainable tools has used focused beginning support of industry tiers is that's ad solution on ad is one the for the And streaming businesses. very supported since that is done building being to

not think, industry. is really to it's and, that it's industry me, a new. So I mature the But sign for streaming the starting

channels seeing is if fragmented, sports, sports. evidence that very streaming to now get all all having industry used That's not launched. pay-TV. to on streaming it, if Unless really I figure without changed. It sport it's to where traditional there that think, been available. there's And and access I for I to new an couldn't are -- us. another be opportunity hard mature watch you but sports viewers content it's we're starting you is example for the mean subscription that's it's to Almost sports, out think to of, a services

that of streaming, in we're AVOD both I and of to that maturing. and So to even the what more examples, streaming. And particular, are moving streaming of rise to more going the viewers moving examples to means I dollars tiers more see these think industry streaming, think ad is sports coming

XX% business are TV about is of dollars So mean ad are on viewership large and spend. versus gap billion, XX% Approximately -- approximately connected the there's of pay-TV, -- only still for ad streaming $XX U.S. TV hours of but example in sorry, I the between this traditional viewing streaming on TV. over but the alone, XX% really ad

a that's industry that, So the to gap start matures, huge close. as will

So that's -- and I guess one.

cord cutting, dollars streaming. And industry. of think moving think will it the of accelerate will ad AVOD this shift it I maturing one of I aspect is to accelerate don't the

it And of XX say to platform. we And to our I drive that the regularly million promote engagement. also we position The the And accounts, have home our our third-party other we good you we're to reliant correlated and very support ad across services particular, for mentioned, revenue programmer and are would drive in across can but ad-supported services use do active across I and also is well-positioned ads. if help do at help we're screen guess, to platform. operated highly to -- as like I great -- promote platform. our is in owned services Engagement a engagement we thing, on

business us So and we growing do for that. a expect be it to to continue good to

a that's So examples. just couple of

Justin with the line from KeyBanc. is next Our of question Patterson

Two, I Great. can. if

you forward? you've retail hoping initial on partnerships tech side we the the the over networks how integrations? part third-party media could just have just bigger And on it those with What a you learned about was I the Anthony, that? made of going elaborate some business and should year. past Is progress from of ad First, think

the appreciate reinvesting the overall what year. growth? at how Dan, really course -- innovation future some over just your be expansion But how should what EBITDA puts of that for strength perhaps then think being I on profitable platform And margin potentially might we be takes the drives of and and you you and might back driving commentary the about

take Justin, that. question. the partnership Charlie let for I'll third-party thanks

on our the I think which demand huge When a priority for to diversification, for our Justin, embrace underlying question. are our both of us, about thanks, focused be and and expanding on relationships, Anthony, focus Thanks, third-party continues upon of best and them execute in build to are we to that do clients their continue value for campaign. ways ways marketing We're and ways we'll opening of many unique up prove the Roku, businesses. new to whichever advertising our the

real third-party including other make did and we progress expanding networks, with retail 'XX, our relationships DSPs partners. in So media platforms, Justin, strategic

spend And roster on ad continues ad to result, our increased as we've a Programmatic grew. advertisers. grow platform and of investment the

Third-party DSP is well. growing also

many the Roku. from tap allowed relationships really and actually tech Our to make grow access have the for easier medium-sized and platform. strategies do into are Roku also diversifying number advertisers it of us. but ever for these growing to and small the on businesses, advertisers have built small, than new easier large they that And existing to into while before, us We potential enhanced of budgets advertisers

for So to you. name some names

of like year, and with the variety new mentioned past partners we SSPs, Comscore. you third Cox Actually, partnering retail expanded relationships Over had a major formed we're now We've We DSPs really Best with all DSP Buy. parties. third-party measurement with platforms. to participate and Instacart, iSpot also partnerships and broad and DoorDash, the

and Roku for partners them. to So capabilities overall, providing performance improve more and continue on we we Justin, that are the measurement and really serving is And expand advertisers.

very growth. I'm overall, with terms both -- in and progress third-party pleased partnerships, of our our a on So our third-party

the next question. I'll take

for question. Thanks the Dan. it's Justin,

continue to challenges year. we challenged 'XX the the in second grow on and expect and me to both a areas markets EBITDA continue bit performed strong streaming did the growth just those comment FY some advertising And -- with the we puts video that about in full very as very XXXX. We 'XX, and well half in year-over-year to year. be little and faced talk takes, and the question of services well M&E expect rebounded M&E that earlier, And on on XXXX, mentioned really let this the QX On rates. to distribution of we FY in your we

year-over-year on the and impact and us. across in difficult the and growth both will on the on side, comp a of the it SSD challenging -- this we if SVOD the see platform, in have side because will strong engagement positive positive ultimately platform for and and our levels, subscribers And if margins So it current a environment. AVOD will we its the M&E impact EM&E on grow from result we'll that have a accelerate EBITDA,

to margin our platform but margin similar levels to would platform revenue guided going side, have QX we volume side, gross QX our slightly in sequential we in improvement the costs improve on the guidance which margins. margin to And some XX%, from of forward. as not would I do platform some of forward, margin up us expect gross in growth, year. to that was QX the fixed I providing going see We're last On anticipate

And then lastly, charge. at a in last this the impairment little on -- restructuring QX similar about quarter, We our this million the $XXX OpEx, in over adjust OpEx side. to and bit just you QX ended for if quarter. it's talked on We

a see that XXXX thinking for rate, as in XXXX. do If EBITDA. in annualize apply I'm we've adjusted stated further And way the and previously, mid-single-digit OpEx you out, we of growth that's to improvements expect

strong cash XXXX. We had in a flow very year free

We the expect on where this XXXX. the And touched reinvestment, free cash be in you in see Anthony to question. lastly flow to positive on earlier

have the monetization we'll look specifically reinvest lot have in, as our continue forward that product we that other subscriptions years business reinvest And side We and initiatives the look to we to the areas to to monetization we of accelerate as on and side ad on we'll accelerating come. a that. that growth multiple in on expand

Evercore next Shweta is Our ISI. question from Khajuria with

just QX or on as could ad brand Let -- advertisers. to market on scatter how among be QX you how specifically, impact you and in the the quick year That's comment and of for just you? we among X, question lack into that or political me And caution about verticals overall should of this far. demand the or you please. try the on thinking And one. trends follow-up sentiment relates is a it improvement health just key the One are that so saw certain --

thanks. questions. take This but Shweta, will is Charlie Anthony, those

Shweta. for Good you, the to from questions. Thank Thanks hear you.

We offsetting continue way what has to video advertising the advertising rebound in general, I'm marketplace. been pleased in in has see video a actually the fourth a really and M&E really with quarter. solid remains challenging strengthened

Roku's said we engagement partners. our Roku, effective important and for remains a engagement our are Now really unique a success. all M&E, and partners' businesses always that driving And driving be core building platform for to for and category about will it

well. we'll So when grow that grows,

high However, And them by shift spending partners all ad-supported with even with. their accounts, focus help is them Again, suited best the at greater unsustainably figure of working to our out we're now success. M&E through levels. period went a category more to help to and engagement something is Roku a

a transition. that's So good

verticals Now expect few quarter and and growth in question quickly. since be ups name like video the do wellness There are categories, quarter. advertising what of not well, market, specific to insurance financial the growing and in To and asked. overall, telecom recovering are about services to as rate you I the your categories: health by executing downs are CPG, and in Categories we a similar nicely. we're first saw to fourth year-on-year

our to ad So Shweta, build overall, I upon We'll continue continue scale all and continuing advantages fronts, diversifying offerings, to market-leading heading 'XX. and new tech the we'll ad-supported feel and businesses. on to elevate with really Roku's the platform a and scale focus powerful in products good demand into our upfront

will a as CTV, Roku a about for political. platform our but big by ad Political we'll and grow, out looking us. And for shifts our those for way, political 'XX, opportunity tech as big know both that will whole others, well-positioned. second It's point a linear category, contributor targeting your was a our political and growing I a we market. advertising, also likely for question small it's diverse percentage to of make those, in specificity. strategic think obviously; like scale the business. and this We is political remain expect it be from I tools really relatively to

as and that refinements other budgets our product as We that more make the updates well updates into in more tap some platform those making We're help forward. have we'll will moving us future. these to

we expect Shweta, grow over time. to overall, political So

it of modest For remain mix ad grow, it overall but will relatively a Roku. now, will part the at

This comment on is add Anthony. I'll M&E. a just

I lot This in say be to area at for pressured, of about It's it. being we've it's over will that year, Although continue -- back a will us. a time the expect growth I M&E over opportunity good to We're something still bounce is time. pressured, it'll talked the big probably of we're very give new opening one for M&E, we using it for project. lot that now to that used of advertisers. exclusively we we're to inventory. inventory taking advertisers and the and But the brand we're other increasing access inventory thing creating we will doing -- a sell We're we're that number

Roku A started for extremely for good City, It well I like used buildings sources. McDonald's be example and which taps new to of content, revenue we and gone to entirely that, is promotions us. selling that, it. but think, companies into love that's Viewers

just to used that to brand home we're use diversify using that going M&E. to for going the in as screen advertisers well. exclusively for start So continue to advertising our We're we

Our Laura comes line with Martin the question from next Needham. of

question I Great TVs. guys. My complex. know Congratulations. Roku-branded the been numbers, about is worried really we've you that on channel first

Costco the what saying forward exclusively; the Roku-branded strategy? in look in Can going and expanding? about announcing Amazon. into TVs you're you to tell And So on this us us Buy your you product? were what's have of you you channel help future you you're OEMs these Are Can outlet? are ultimate now going Best XX every

will talk revenues. it's Mustafa let Mustafa about Laura, I'll talk Anthony. about --

we use the Roku-branded we product only TV software Laura, focused innovate Look, then, we TV announced a combination. program. to hardware a TVs as software Roku context. explained and program you the to TV way the existing for a Roku are basically in thank question. the in Roku on complementary And our as Historically,

much using then licensing And sharing innovations XX-plus consumers. about we our able of more we innovation then that and and open that build better be the fed initial with we And program the products the are are being our to software well Roku are do that the as partners. developed some part we Now ecosystem. that. of hardware also, very to already into as TV launch given can the improvements -- of as have already we And is

already from Our benefiting partners those improvements. are

of lower hardware. cost the Some are the further of cost them improvements, able to being

are Some improvements. performance of them

type both have this a so. And these program, improvements for So to of definitely make are love therefore, do we'll a operate the then distribution, of in to partners, customers little with shared been and scale successful as our it expanding more. terms program distribution and we us of And continue to we need our because to bit product.

We great capabilities, their able get ecosystem and offer customers then reviews share will to with again, and further that are products to new Roku partners. to these day. receiving us for every and our as then with we'll we way used want improve be, a And feedback add be TV

than there's know it's really about question Super interface, focuses really Could the X. CTV could we more your to ironic -- -- Can when consumers you think of for my going you this in kind we the no put home your know from think you -- of just you're in homepage thing. and on see of carousel, still the if going like And That's get only use second I tactical video like more. of but of then you to word in page. one homepage stuff a had the Anthony you not talk a could it 'XX. one think city? last Page you instead engaging, the brands feels I'm helpful. But sort you as other user from I some more the I on on Are talk more other cross-promoting stamps business, focusing love Roku to I have anything 'XX? image, about video said adding and And city the is -- also money things whole postage

Things Laura, our that us. Anthony. All has our -- Absolutely. been We mentioned big is reception area zone: for gotten of a it's I mean focus Food. from I great viewers. a food this has mean

display it building promotion, be out example, just doing. as as promotes static this video screen kinds small that the example both -- access well our integrates that it's it's things from we're an a of home of And as experience Just as an promotion going well. to

we that it's monetization there's is -- but experiences ways lots drive, will we that platform. the of that our Roku can not opportunities engage provide engagement create will more viewers that So City platform and across can across will example, one drive

screen. the concern include video A engage they're There's delineate this viewers and platform love big our about but in directly home say, So video that do those carefully. putting the you video, something it's it. not around lot -- ideas that something course, -- I might approach made we're on the it's screen, and not of of home terms about experiences is some something a always but decisions And of area we've list entertain how thought on. we that of to the can -- have home that I'll the that on it's we viewer on thinking any viewers, guess, is, testing, it's picture an but it there's that some just long of create screen but

it's testing. something to we'll keep do So there's just But engagement. looking long things that can drive stance our great and add we to at overall, own list a of

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

discussion of your relative Charlie, you you is it AVOD where are pricing. TV. ask CPMs us do terms space, your the your in to your triangulate there you. maybe in are same? we the it with here Because I to competitors. scatter about done linear mean understand how how wanted the entrants And price Is your relative have the press how a to talk about reports will to help it's lot I question relative industry what into happen upfront new pricing you to inventory, There a logic to for competition. your of

prices So raise make us and so us of that. drop that? And about you scatter goes think to factors help inventory? And price your what what kind how into you your can your directionally you Just understand will thinking on? how tell prices,

Actually, for also look Vasily, come yesterday, thing make linear first your so television advertisers and commitments in something see large want in thank was much looking you true question. upfront said, I the as you you to at, at holds the who which early CTV, early. is you and in

You see sure that's what pricing is want in be and less actually occurring to than scatter, happening. that enough

beloved Our those scatter Food be to some Roku been and continue talk there's today very my and Things integrations. a of I have know and so. been about of lot rates solid And City All

remarkable about fact these in also immersive that broad What's engaging scarce. they're the reach is that so integrations they're besides and their

at what on but the the see, the answer that entire scarcity last we drive to about throughout look we stream, pricing home opportunities just streamer's does journey. and So Anthony's not

of many used be as advertisers. are we to said, now and that, M&E both only M&E sponsorships the non-endemic So

And what's pricing. terrific about and driving does new to open it's but scarcity up it bidding new that, also that advertisers, not only

-- is changes I look be coming rewarded up mentioned, responding who at, as are in toward have say us would to in those been So the scatter committed Anthony growing opening upfront to seem early sponsorships tandem pricing we with and that. the and our to have and those the

so working that's be both and like to feel we fourth seems now. and continuing So in it

important Do that pricing you opportunities? say, decide streaming they between, and the factor is an other for channel feel let's advertisers, when Roku

need at look, price look is obviously, they purchase. something they when to Well, that

We're also has performance Our a value been platform. great.

the and scale, be million about we funnel it the compare bottom the to they opportunity performing. very both accounts. unmatched direct of is but of are people and great so active and [ priced, obviously, we see that look being things What's opportunity with the at the have also get relationships us price, of funnel One competitively XX the we top of ] we're on us

we fact the of funnel coming we certain them of broad back. so has what in the a is we're the and for way. think when well priced these at as we truly and it, And then effective, this can sponsorships top that which solution build And I creative We're in reach are well. also people top lead categories on

in growing that some have opportunities pricing demand We're So right. priced, actually of that's as matters, therefore, Pricing and, well. we course. but competitively unique also are

of question next with Our Stephens. from comes Nicholas the Zangler line

quarter. the on Congrats

curious any us Walmart, in just Given and to in risk this TV? current overall placement distribution could relationship the with the foreseeable arising, in of material future? relationship then if retail there's and new changes within the regard And I'm the headlines what your any tell about you on-brand competition both

Nick, this few article obviously, is to Anthony. Journal. general. rumor. I say will assume the just But can The you're -- on mean I can't That's a referring we that. a comments comment Wall in I in Street

of streaming we're one -- the all, reasons with industry we're XX active platforms one and accounts the of leader, viewers is of that things leader And growing. the in love primary million the Roku And First our viewers of products. light multiple have our love They love home. results the our of of of the and system. brand. our one devices their is operating in simplicity They that many the

course, of of So States. well. United TV we've international as lot X #X past been and all And we the in a in households half the selling years, in installed we're for the broadband OS have those of penetration U.S. the

We retail strong have relationships.

a great have relationship with Walmart. We

We have have And relationships inside both relationship outside and lots great strong we of -- the United with retailers. distribution with States. a

multiple They have They ask house. They base. engaged products, have in their large products We multiple a brand. our customer our love for Roku brand.

you focus can on think that industry, You our costs. hardware lower our our the streaming, in take about our leading and technology, innovation singular

costs hardware lower any I'm TV manufacturer other than of. have aware We

accounts as going of this active All last our year, keep We added to lot more of that me and this to gives a active we're a well. XX net we're confidence lot year going accounts distribution. growing add million

see Got for to half to pressured 'XX, meaningfully full there? as out that's and just be improve continuing your releases wondering for you'd the duration second slate 'XX. maybe the the an calling maybe least pressured. the about for vertical if about appreciate you light, at could to year? remain second And then throughout second in M&A maybe that just duration I easier that. willingness question, half comps. the to some on period, just spend expect M&E that just too answer market. the talked do commentary I'm you're you it. But that potentially of why potential your for new of M&E be come you the pressured in you a parse But to the of year. view, time think maybe Obviously, inflection Or think just release by in being is lapping would you'd I

take that. will Charlie

M&E we really shift helping to so. really people interesting engagement. is focus focus toward get I and have And right got Nick. of question, so commercials to we a to not as I want them their think in the best to really watch now do watch us. their for the platform. them to half is they to they the the in the It's Look, -- their Thanks And important category that have as do people they need helping even year as are for me on you probably on what partner tell second that subscribe, but just watch shows

in we're make the lot ready up offerings other categories, opened to we've to they're other advertisers said, places have can sure then work but make when say just of been ad for sure would it we're for where our doing just So but them. I advertise of things to way doing the for back, opportunities diversify to one not that categories. Anthony a are the offering we're M&E M&E

to lot pivot Also, us, to to ready for those we'll a able successful offer think engagement them that different I opportunities return. for So be and we'll categories. be when they of will be

it since be of it with despite to on And continue I'll of a was But growth in we lot as streaming our interest year-over-year platform outperformed pressured video comments, the grew pressured, in a to obviously, I for while. guess, QX, as, XX%. a the couple M&E. industry will well then just platform both just said, revenue that our like there that, I'll TV ads overall -- seems the add the say industry. be traditional

for on I straightforward. with M&E is pretty spend. great M&E mean We're platform going a what's

the tools most the have advanced industry. in We

helping M&E engagement. go-go it. on And money at at We're good COVID spend of good in years they very the are lot pandemic. a We the streaming increase services build of subscribers and

It's us. they're bit, will normalized continue normalized. little back pick And sustainable that to over it's down and business, on a up. but has a focusing retrenching spending be to time, that a it growth for going business Now

question next Citi. Bazinet is Jason line with from Our of the

had just Anthony. quick I a for question

that you other been our Given aspiration? you disclosed? you do your focus about on on say talked in the to is top and growth do what sort In think aspiration what given you effort of metrics most words, focus important less on your to the costs, what successful get you reinvigorate where reasonable all is a and would we've think growth? And line metric

focused that of first mean just think We I I obviously We're I lot cost saying So cost. -- all, a very of not not cost. discipline we a company, sorry, I as seriously. mean I'm -- big issue. on so year. last quarter is we're last -- made not mean, take just progress a on operational

many there's terms made so monetization so to and we for platform me anyway, we've growth. big put those year, opportunities focus one this it growth growth big a a of drive, to for that effort particular, but of on is our and us, monetization worked in other And work have just time huge historically, And some more amount on initiatives, in never initiatives. of we've across

a year. renewed we're area it's focus. reaccelerating rates growth area -- success platform seeing to us for beyond a this what it's renewed so means of And And me

dollars, of that any in hour. Just you more there dollars metric important? sort think is per Is

add just me that. on Let to

at look on on going current rate business. free that growth both we cash we when the very are platform year of out-years, absolute get to the flow, and and through acceleration focused So we're

the how experience component impact So how course, the we on ourselves and in this. when investments, evaluate of look we does ROI second -- what's ask invest what in. at is again, this, really That way we we how streaming a positive

share started. again, lot we've opportunity XX we a tremendous but getting just XXXX opportunity as million job. monetize a see So these good our there's really strong, platform. when to We're But was doing actives. We're of about -- cash an grown flow very per and percent that think much on absolute don't not we're EBITDA, again, it, margin we or free it's cash over focus up a on we free driving time. and so flow focused

the just of features like the growth. strategy also is that increased the platform just product, are drive focus fundamental are drivers, will what my the fundamentally what's revenue the And areas what and

is the of from line Our next Barton question Rosenblatt. Crockett with

the contribution growth any growth? majority? fourth the you've steady? been U.S.? other the the in of this second in years I as TV question terms is million you in about that over or number there and for understand U.S. leading your a OS Or has your of the But share there growth. curious any net of ranking it that to change idea also of us TV was and then can your just smart first or into in your OS is over market down international of active account active of a share, the to account And kept XX share, the That's kind I X in you Can #X year? the to a absolute international the give sense question. quarter the some a in you of the markets. of minority market U.S. Is sense the up market as increase has us of drill contribution million any Or give platform, smart been

take -- kind start of high-level Dan the Barton, I'll the then thoughts has international -- some with this thoughts. is Anthony and the on I'll some -- with

Just well #X doing great progress Brazil. all in We're in U.S.; as making Canada. in well of well in Latin with We're general, think overall, the We're doing pleased our I in extremely internationally. we're Mexico America. as the progress

U.K. region, out We're active making break this are a also don't the good but we So international lot at progress. accounts in by well them point. of our doing We're

something to you Dan, international? So about add want did

that on that and to million we given as Yes, about note as of we in growing of maturity we I'll our part that, course, we it's just markets, we to are of grow adds to just -- are both comment. million And to I talk important And significant our new international. those actives, growing expect continues actives. very accounts. just U.S. while continue international the part think both markets U.S. faster. The international, XX the of that, the net XX the And have. us grow a and both U.S. well for on

don't it's we actually year-over-year comment, X% but was contraction just so ARPU. our that's U.S., stated it ARPU are the to in that -- mixed. that down as that to fact are in flat the break true. and really the we international and growing slight relates We growth ARPU, in we due is that One it ARPU, is It's But platform to rates And up. we ARPU seeing mix out, revenue talked seeing fast. all causing

both in So we're the it monetization in and about phase the different of accounts. and will But scale in that shows that We're then rate that But at you depending phase, monetization U.S. stage, obviously, international international the markets. over a -- engagement and on good the international. just we time. our of those monetize feel very growth phase

again. Anthony And this is

about or question in steady up Well, it's and that your been on take Just down or market share I'll just question. U.S.

are growth rate. In launched growth also, We've U.S., say, mature the us, XX seen trends around upward outside steady U.S. U.S., of that since increases the Roku more launch, you've for So steady share bounced TV ago. seen and And globally, we at Canada, let's seen share strong and outside regions market market you quarter-to-quarter. years which rates. it the in look if we've

on Roku there market it think the States Sometimes our to average, down. up, we to actually even United bit it And continue sometimes it of steadily because But goes quite a general, still up in be launched going TV. goes been since consolidation. grow I there's in will share, room has

head sold to be of and a with of small going I've experience user OS. a in said we're big number economies of bigger have OS TV start just still just a terms consolidation scale. OS. beneficiary we licensed and that TV They to to proprietary believe of And TVs a leading that. expect They on of have lot see strongly TV run a always licensed There's that

bounce I quarter-to-quarter. our although expect that continue think the they time for are trends to market around States, I the in the I So over United climb, share to like TVs sort favor. in rate of said, In do growth

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

DSPs you So revenue there's would DVXXX Trade it that. platforms, participation been see Desk from about expect major start X questions note, Do color obviously quarter? second questions. on as questions And the But what or take again and such in media XP there? entertainment some on your the growing a gave ad to to in comments, and the increase material in then and ecosystem you

this Jason, is Anthony.

can So Do I want you will question? question, take about Dan and to Charlie then think DSPs. talk that next go first with the

half we'll QX And what diversification. in likely, of But think What expecting we anticipating. we specific you And actually But that forward. overall on. on advertising Charlie we're all that work Sure. it's business And and activity year-over-year, it we'll We that we but about growth that and M&E less the focused -- talked and challenged think could it platform and than of a in -- grow going what going do business. we're out do not more second that's about rates not out our our get M&E. break to on was talked be he the don't most in into is HX. M&E as we're is the 'XX to that's update doing growing we challenge we're what be break not we're I'm going

way have the more question. we say I we one Jason, like

questions. have And That's the second on So I'll one good. DSPs. X take you

accounts whom bigger lot execute those demand up become SSPs. DSPs smaller of at for demand transactions is we We done relationships that it grown and good the And And a relationships direct there over thousands DSPs. we've with a in And to the we prioritized this, wish in are and have, diversification. balancing the all now accounts the went major their bigger is smaller look on then of really job some I and way the the will because us, of we're actually time. opening and to has

and dollars solid active And I and about medium- the result accounts. think But feel good a you'll strategy the those it's and the is think businesses. we've So medium-sized hope, large-sized executing we become, relationships. good built that I I growth, small- really then both well. see and in and we're business,

conclude I for Anthony to session. And turn gentlemen, ladies comments. Wood that, with final we Q&A the back and it will

joining. you, exciting content and Thank advertisers. for to everyone, partners TV employees, to thanks our year And forward customers, of streaming. look an I

participating. you thank for all And