The American company Roku has released its first-quarter results ending on March 31, 2024. For the first quarter, the company reported sales of $881.47 million compared to $740.99 million a year ago. Revenues were $881.47 million compared to $740.99 million a year ago.Let's take a look at the other key points of their report.
Firstly, let's discuss the market-leading scale. During Q1, Roku expanded its streaming households globally to 81.6 million. Sequential net additions of 1.6 million were consistent with Q1 2023 and were propelled by both TVs and streaming players. Roku continued to capitalize on consumers' emphasis on value. The Roku operating system (OS) maintained its position as the top-selling TV OS in the U.S. and Mexico, accounting for approximately 40% of TVs sold in each country in Q1.
In January, the company announced the Roku Pro Series, expanding its range of Roku-branded TVs (designed, manufactured, and sold by Roku). The new higher-performing TVs feature advanced functionalities, including Roku Smart Picture Max, which utilizes AI to optimize brightness and colors automatically and select the best picture mode for viewers; Roku Soundstage Audio, which delivers sound around the viewer through new side-firing speakers; Backdrops, which showcases artwork or photos, transforming the TV into a piece of art; and a new Voice Remote Pro with touch-activated backlit buttons. The Roku Pro Series is now available in 55”, 65”, and 75” models at Best Buy both in-store and online, Amazon.com, and Walmart.com. These innovative features, along with others, are also accessible through our latest software update to all supported Roku streaming devices in the U.S.
Secondly, let's focus on driving engagement. Globally, users streamed 30.8 billion hours in Q1, with streaming hours growing by 23% year over year as viewers continue to shift to TV streaming. During the same period, hours on traditional TV in the U.S. fell by 13% year over year (Nielsen). Additionally, engagement per household increased globally, with streaming hours per streaming household per day reaching 4.2 hours in Q1 2024, up from 3.9 hours in Q1 2023.
Meanwhile, Sports remains one of the most important content categories for audiences and advertisers, and the company is well-positioned to benefit from its shift to streaming. Highlights of the viewer experience include events like the Super Bowl and NBA. To enhance accessibility for viewers during Super Bowl LVIII, Roku promoted it in the NFL Zone and throughout its platform. The NFL Zone, located within the Roku Sports experience, offers football fans a centralized location to find live and upcoming games, weekly previews, and league highlights. Super Bowl LVIII was also promoted through Roku City, Roku-sold sponsorships, and Roku Pay subscription sign-ups. According to Nielsen, Super Bowl LVIII attracted the largest U.S.
In April, Roku launched the NBA Zone, a comprehensive destination for NBA games, highlights, documentaries, original series, league news, and more. The NBA Zone includes the NBA App and NBA League Pass, the NBA’s premium live out-of-market game subscription service, which is available to purchase with Roku Pay. Additionally, the company partnered with the NBA to introduce the first-ever NBA FAST channel exclusively on The Roku Channel.
Finally, it's important to mention the significant role of the Roku Channel, which became the #3 app on the platform in Q1 in terms of both reach and engagement, with streaming hours increasing by 66% year over year. Providing a wide range of content for viewers, The Roku Channel offers AVOD, Live TV (FAST4), and Premium Subscriptions through viewing experiences across the platform. Roku utilizes genre-specific viewer experiences, such as Sports, to enhance related programming.
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