Roku reported first-quarter net revenue of $1.25 billion, up 22 percent year over year and above its guidance of $1.2 billion, and net income of $85.7 million, above its guidance of $50 million.
These totals were also higher than analysts’ expectations of revenue of $1.2 billion and higher than expected earnings of $0.34 per share.
The platform’s revenue grew 28 percent year over year to $1.13 billion. Advertising was the main contributor, reaching $613 million, up 27 percent year-over-year, with subscription revenue reaching $519 million, up 30 percent year-over-year. The first quarter was the company’s highest quarter to date for premium subscriptions.
“We believe this outperformance reflects the growing recognition among advertisers that Roku’s unique combination of scale, first-party data and innovative ad technology delivers measurable results that help companies grow,” the shareholder letter said.
Broadcast hours reached 38.7 billion, up eight percent year-on-year.
These numbers also come on the heels of two major announcements from the company. On April 16, Roku announced that it had reached more than 100 million online households worldwide. This week, research firm Antenna also estimated that Roku’s $2.99-a-month service Howdy now has more than 1 million subscribers after launching in August.
The company also achieved an all-time high in free cash flow, reaching $538.8 million.
“These results confirm our path to sustaining double-digit platform revenue growth, expanding margins, and growing our Nordic metric of free cash flow per share,” the company said in its shareholder letter.
For the second quarter, Roku said it expects platform revenue to grow 20 percent year over year and hardware revenue to decline by high single digits. This will result in total net revenues of $1.3 billion, up 17 percent year over year, and gross profits of $580 million. Roku also raised its full-year outlook, forecasting platform revenue to grow nearly 21 percent to $5 billion, and hardware revenue by about $535 million, for a total net revenue of $5.5 billion.
