In the second quarter of the year, Roku grew its active accounts to 73.5 million globally. Sequential net adds of 1.9 million were slightly above net adds a year ago, driven primarily by the Roku TV licensing program in the United States and international markets, the company noted. By the end of 2023, the number of US households with cable TV packages is forecasted to be down 40% from a decade earlier, according to Statista.
Overall, smart TV unit sales in the United States were resilient in Q2, despite slight increases in TV panel and freight costs, which benefited Roku, along with a consumer focus on value. Also in the period, the Roku operating system (OS) was once again the number one selling TV OS in the United States. The company continued to achieve year-over-year share gains across the full range of TV screen sizes, particularly in the larger-screen segment which increased more than 70%.
Internationally, Roku grew its footprint and deepened its presence with the successful Roku TV licensing program. In Mexico, the Roku OS was the number one selling smart TV OS for the third quarter in a row, and the company announced an 8K Roku TV model with TCL. Moreover, Roku expanded its Roku TV licensing program to Central America with the launch of RCA Roku TV models in Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua.
Globally, Roku users streamed 25.1 billion hours in the second quarter of the year, representing 3.8 streaming hours per active account per day. The company said that it grew engagement while viewing hours on traditional TV continued to decline. Global streaming hours on the Roku platform grew 21% year-over-year, while viewing hours on traditional TV in the United States fell 13%, according to Nielsen.
Financially speaking, Roku reported that its total net revenue was US$847 million, up 11% year-over-year. Meanwhile, platform revenue was US$744 million, up 11% year-over-year and gross profit was US$378 million, up 7% year-over-year.
“Roku is growing viewers and hours, while traditional pay TV continues to erode. Our unrelenting focus to build a best-in-class consumer experience that is simple and delightful is driving engagement. Our platform’s promotional tools, and seamless payments enable our content partners to attract, engage, and retain audiences. Our scale, direct relationship with consumers, and innovative ad technology enable advertisers and brands to improve their ROI. The secular shift to TV streaming and our ongoing innovation, along with the eventual ad market recovery, position us to re-accelerate our revenue growth,” said Anthony Wood, Founder and CEO, and Dan Jedda, CFO of Roku.
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