Roku reported a 55% surge in first quarter revenue to $320.8 million, with usage of the platform surging amid stay-at-home pandemic mandates.
Active Roku user accounts increased by 2.9 million in the first quarter, reaching 39.8 million. Hours spent streaming on the Roku platform increased by 49% year over year to 13.2 billion—a dynamic punctuated in April, when streaming hours surged 80%.
Revenue for Roku’s ad-driven “platform” business increased 73% year over year to $232.6 million. Revenue for the hardware side of the business spiked 22% to $88.2 million.
“The pandemic associated stay-at-home orders and increased unemployment appear to have accelerated the shift from linear TV viewing to streaming during the past few weeks,” Roku founder/CEO Anthony Wood and CFO Steve Louden wrote in a letter to shareholders.
But like every other business supported by ad sales, Roku is anticipating headwinds. The company warned investors that full-year profits will likely miss forecasts.
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Daniel Frankel is the managing editor of Next TV, an internet publishing vertical focused on the business of video streaming. A Los Angeles-based writer and editor who has covered the media and technology industries for more than two decades, Daniel has worked on staff for publications including E! Online, Electronic Media, Mediaweek, Variety, paidContent and GigaOm. You can start living a healthier life with greater wealth and prosperity by following Daniel on Twitter today!