Roku‘s financial engines are cranking in overdrive ahead of the streaming platform company’s takeover by Fox Corp. next year.
\n\nFor the third quarter, Roku handily topped Wall Street earnings expectations, with top-line growth of 24% to $1.50 billion in revenue. Total gross profit was $649 million, up 24%, and Roku generated net income of $183 million — up more than seven-fold from the year-prior quarter.
\n\nIn Q3, Roku’s Platform segment revenue grew 23% year over year to $1.3 billion, with both advertising and subscriptions sales growing 23%.
\n\nAccording to Roku, similar to Q2, political advertising on its platform in Q3 exceeded the comparable quarter from the 2024 U.S. presidential election cycle. Advertising in the company’s media and entertainment category also outperformed: Roku said the most recent quarter was the highest year-over-year revenue growth for M&E in four years “as media companies invested on the Roku platform to promote their content and services.”
\n\nTotal streaming hours consumed across Roku in Q3 were 39.9 billion, up 9% year over year. Revenue in Roku’s Devices jumped 33%, $194 million. The company operates the Devices business as a loss-leader with a negative margin; in Q3, the operating loss for the segment was $48.6 million…
Original source: https://variety.com/v/tv/