Roku Inc (NASDAQ:ROKU) issued a shareholders letter stated that the company posted a remarkable third quarter, the company’s first reporting period as a public firm. It now projects full year revenues to exceed or reach $500 million in 2017, up from almost $400 million last year.
Roku management reported that their higher margin platform division is the major driver of their gross margin and growth expansion, and their advertising segment has over doubled in size in 2017. They continue to witness strong momentum with Roku TV program. One of company’s Roku TV associates, TCL, attained the #2 position for U.S. smart TV sales in this September and #4 spot in this year so far, up from #19 in 2014. Roku is leading the way in a fast growing TV streaming ecosystem and will focus its measures on delighting company’s customers and creating value for associates.
In Q3 2017, the company posted total net revenue came at $124.8 million, a jump of 40% YoY led by platform revenue jump of 137% YoY to $57.5 million. Gross Profit surged 92% YoY to $49.9 million. Active Accounts surged 48% YoY to 16.7 million at the close of third quarter. Streaming Hours surged 58% YoY to 3.8 billion hours.
Total net revenue for Q3 2017 increased 40%, with faster growing and higher margin platform revenue exhibiting 46% of total revenue. Gross profit grew considerably faster than revenues, up 92% YoY to $49.9 million led by a growing mix of higher margin platform revenue which showcased 89% of total gross profit in Q3 2017, up from 67% in Q3 2016. Gross margin surged 11% points to 40% in Q3 2017, with platform gross margin coming at 77%, up from 72% in the comparable period last year.
In the last trading session, the stock price of Roku declined 0.19% to close the day at $46.43.