Latest news with #FrndlyTV
TechCrunch
05-08-2025
- Business
- TechCrunch
Roku launches Howdy, a $2.99 ad-free streaming service
Roku is launching an ad-free, subscription streaming service called Howdy. The service costs $2.99 per month and features a library of nearly 10,000 hours of content from its partners, including Lionsgate, Warner Bros. Discovery, and FilmRise, alongside select Roku Original titles. The company says subscribers will be able to watch titles like 'Mad Max: Fury Road,' 'The Blind Side,' 'Weeds,' and 'Kids in the Hall,' as well as rom-coms, medical dramas, '90s comedy, and the like. 'Howdy is ad-free and designed to complement, not compete with, premium services,' said Roku founder and CEO, Anthony Wood, in a press release. The move comes two months after Roku paid $185 million to acquire Frndly TV, a streaming service that offers live TV, on demand video and cloud-based DVR. Howdy joins the company's Roku Channel, its free, ad-supported (FAST) streaming service. A recent report found that The Roku Channel is the most popular FAST service, ahead of competitors Tubi and Pluto TV. More than 125 million people use the platform every day, Roku says. A key growth driver for Howdy will be Roku's organic reach — the company said earlier this year that it had surpassed 90 million streaming households. Roku last week reported its second-quarter financials, turning in better-than-expected revenue growth of 15%, as streaming hours on the platform came in at 35.4 billion, up 5.2 billion hours from a year earlier.
Globe and Mail
04-08-2025
- Business
- Globe and Mail
ROKU Q2 Earnings Beat Estimates, Revenues Rise Y/Y, Stock Down
Roku ROKU reported second-quarter 2025 earnings of 7 cents per share, in contrast with the Zacks Consensus Estimate of a loss of 16 cents. The company had incurred a loss of 24 cents per share in the year-ago quarter. Revenues increased 15% from the year-ago quarter's level to $1.11 billion and beat the consensus mark by 3.58%. Since its earnings release, Roku's shares have plunged 15.1%. Roku's high-growth platform business' gross margin eroded by 230 basis points in the second quarter, which weighed on investor sentiments. Additionally, Trump's tariffs are expected to hit Roku's hardware sales, which does not bode well for the company. Strength in The Roku Channel Aids the Top Line In the second quarter, The Roku Channel continued to be the #2 app on its platform in the United States and maintained its #3 position globally by both reach and engagement. This growth is a result of Roku's integration of content discovery features throughout the Roku Experience. The features helped guide users to new recommendations and old favorites, which increased the reach and engagement of Roku's partners. In the second quarter, Roku's streaming services distribution activities kept growing, which was driven by an increase in Premium sign-ups, last year's increase in prices and its closing of Frndly TV's acquisition. Also, Roku partnered with Disney DIS to build a custom fan experience on its Home Screen. This helped drive both viewers and sign-ups for Disney's Disney+. Disney and Roku's partnership featured the second season of Andor. In the second quarter, advertising activities grew faster than overall Platform revenues and the U.S. OTT and digital ad markets. In June, it announced its partnership with Amazon AMZN by integrating Amazon DSP to connect Amazon advertisers with users on the Roku platform. These efforts built on previous partnerships with The Trade Desk TTD, Yahoo, iSpot, and others. The Trade Desk, Yahoo and other partnerships helped Roku to make it possible for advertisers to achieve increasing reach and drive performance. In addition to The Trade Desk and other partnerships, Roku's innovative ad products and user base of more than half of all U.S. broadband households helped. This Zacks Rank #1 (Strong Buy) company continues to make progress, growing ad demand through deeper third-party platform integrations, improving the Roku Experience to expand monetization, and growing Roku-billed subscriptions. The Roku Experience begins with the Home Screen (which is the interface of viewers' streaming experience), the lead-in to TV for U.S. households. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. In the second quarter of 2025, Roku maintained its leadership as the #1 selling TV operating system (OS) in the United States, Canada, and Mexico. In the United States, sales of TV units powered by the Roku TV OS were greater than those of the #2 and #3 selling TV operating systems combined. Quarter Details of ROKU Platform revenues (87.8% of revenues) increased 18% year over year to $975.5 million. Devices revenues (12.2% of revenues) declined 6% from the year-ago quarter's level to $135.6 million. ROKU Operating Details Gross margin, as a percentage of total revenues, expanded 90 basis points from the year-ago quarter's level to 44.8%. Operating expenses increased 5% year over year to $521 million. As a percentage of total revenues, the metric contracted to 46.89% from 51.21% reported in the year-ago quarter. Research & development and sales & marketing expenses rose 1% and 10% on a year-over-year basis to $178 million and $243.3 million, respectively. General & administrative expenses increased 1% to $99.7 million. In the second quarter, adjusted EBITDA was $78.2 million, up 79% year over year. Operating loss was $23.3 million in the reported quarter compared with an operating loss of $71.2 million in the year-ago quarter. Balance Sheet of Roku As of June 30, 2025, cash and cash equivalents were $2.3 billion compared with $2.26 billion as of March 31, 2025. As of June 30, 2025, Roku had no long-term debt. Roku Provides Guidance for Q3 and 2025 For the third quarter, Roku estimates total net revenues of approximately $1.2 billion, up 13% year over year. Platform revenues are expected to grow 16% year over year, with a gross margin of roughly 51%. Devices revenues are expected to decline 3% year over year with a gross margin in the negative mid-teens. Roku expects third-quarter total gross profit of $520 million and adjusted EBITDA of approximately $110 million. For 2025, Roku expects Platform revenues of $4.075 billion and adjusted EBITDA of $375 million. Platform gross margin is expected to be 52% due to evolving dynamics in the company's advertising activities and streaming services distribution. Devices revenues and gross margin are expected to remain consistent with 2024 levels. Zacks Names #1 Semiconductor Stock This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN): Free Stock Analysis Report The Walt Disney Company (DIS): Free Stock Analysis Report The Trade Desk (TTD): Free Stock Analysis Report Roku, Inc. (ROKU): Free Stock Analysis Report
Globe and Mail
09-07-2025
- Business
- Globe and Mail
Can Roku's Subscription Push Power Its Revenue Growth in 2025?
Roku ROKU is sharpening its focus on subscription growth with initiatives to improve user acquisition and retention. A key part of this strategy is personalized merchandising through the Roku Experience. Features like the AI-powered content row on the Home Screen that surfaces premium titles and free trials, its billing service and viewers' increased interest in streaming are encouraging more sign-ups. Roku acquired Frndly TV in the first quarter of 2025 to expand affordable live and on-demand subscription offerings. It also partnered with Apple TV+, offering Roku users free access to Season 1 of Severance and a three-month trial of Apple TV+, aimed at driving conversions within the Roku platform. Roku has built 'tens of millions' of Roku-billed subscriptions each month and reported growing user participation in subscription offers. Personalized promotions and a frictionless billing system contributed to broader adoption. The company noted strong future growth potential, with more initiatives to be announced throughout the rest of the year. Platform revenues in the first quarter of 2025 reached $881 million, up 17% year over year, representing 86.3% of total revenues. Roku attributed this growth primarily to increased monetization from subscriptions. Premium Subscriptions through The Roku Channel also contributed to deferred revenue growth in the quarter, which was $141 million, reflecting a sequential increase of 7.8%. The Zacks Consensus Estimate for Roku's second-quarter 2025 revenues of the Platform segment is pegged at $942 million, reflecting year-over-year growth of 14.3%. Roku's Competition in the Subscription Business Roku faces strong competition in the subscription business from Amazon AMZN and Disney DIS. Amazon's Prime Video Channels lets users subscribe to more than 100 services like Max and Paramount+ with seamless billing, free trials and easy cancellation, all from within the Prime Video app. Disney offers bundled access to Disney+, Hulu and ESPN+ through different plan options. Additionally, Hulu allows subscribers to add on premium networks like HBO and Showtime for an extra fee. Both Amazon and Disney use integrated billing and content ecosystems to boost retention and monetization, challenging Roku's efforts to grow its Roku-billed subscriptions. ROKU's Share Price Performance, Valuation and Estimates ROKU shares have risen 18.6% year to date, underperforming the Zacks Broadcast Radio and Television industry's growth of 32.3% but outperforming the Zacks Consumer Discretionar y sector's return of 11.5%. ROKU's YTD Price Performance From a valuation standpoint, Roku stock is currently trading at a Price/Cash Flow ratio of 41.56X compared with the industry's 34.65X. ROKU has a Value Score of D. ROKU Valuation Image Source: Zacks Investment Research The Zacks Consensus Estimate for second-quarter 2025 loss is pegged at 17 cents per share, which has remained unchanged over the past 60 days, indicating 29.17% year-over-year growth. Roku currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Walt Disney Company (DIS): Free Stock Analysis Report Roku, Inc. (ROKU): Free Stock Analysis Report
Globe and Mail
28-05-2025
- Business
- Globe and Mail
Roku Stock Plunges 10% in 3 Months: Should You Buy the Dip or Wait?
Roku ROKU shares have lost 10.3% in the trailing three months, underperforming the Zacks Consumer Discretionary sector and the Zacks Broadcast Radio and Television industry's growth of 2.6% and 14.4%, respectively. The dip in Roku's shares can be attributed to investor concerns around potential tariff impacts on the company's Devices segment. Although Roku's TV unit sales might decline slightly as a possible outcome of tariffs, it is unlikely to hurt the company's market share. Roku has a diversified manufacturing strategy. It manufactures in multiple countries, which provides the company with agility and flexibility to help mitigate the effects of tariffs. Additionally, the company has already implemented some minor price adjustments and it does not expect any significant change to its gross profit in the Devices segment. If TV prices rise due to tariffs and consumer demand dips, Roku's streaming players offer an easy, affordable way for users to upgrade and extend the life of their existing TVs without needing to invest in a new one. ROKU's 3 Month Price Performance Roku Benefits From Frndly TV Acquisition On May 2, Roku announced that it had entered into an agreement to acquire Frndly TV. This acquisition is a strategic step to expand its subscription offerings and deepen user engagement on its platform. Frndly TV is a fast-growing 'skinny bundle' service with a loyal viewer base. It offers popular linear channels like Hallmark, Lifetime and A&E, which are genres that strongly resonate with traditional TV audiences, making the shift to streaming. Roku sees Frndly TV not just as a content addition but as a growth asset. The acquisition is expected to be EBITDA-margin accretive in its first full year, signaling financial upside alongside strategic value. What makes the deal particularly synergistic is Roku's ability to scale Frndly TV across its ecosystem. By embedding it into its platform, Roku will enhance both its content bundle and advertising proposition. Roku's Ad Business Grows Amid Fierce Competition Roku operates in a highly competitive advertising industry and competes for revenues with other companies that have launched ad-supported streaming. Some of these companies include Netflix NFLX, Warner Bros. Discovery WBD and Disney DIS. Since its launch, Netflix's ad-supported tier reached 70 million global monthly users as of late 2024, while Warner Bros. Discovery expanded its ad-supported tier on Max to more than 45 countries in the past 15 months. As of January this year, Disney had approximately 157 million global monthly active users watching ad-supported content across its streaming platforms. Shares of Netflix have returned 24.4% in the trailing three months, while Warner Bros. Discovery and Disney have lost 13.3% and 0.3%, respectively. Despite this pressure, Roku's ad-supported streaming business continued to deliver strong momentum in the first quarter of 2025, driven by its expanding platform scale and innovative advertising strategies. Platform revenues grew 17% year over year to $881 million, supported by both video advertising and streaming services distribution. Roku's reach now exceeds half of all U.S. broadband households, with its Home Screen serving as the lead-in for TV for more than 125 million people daily. The Roku Channel became the #2 app on the platform by engagement, with streaming hours up 84% year over year and more than 85% of viewing occurring through Roku's curated interface. Ad activities outside the Media & Entertainment vertical outperformed the U.S. OTT ad market, aided by integrations with Adobe and INCRMNTAL. With tools like Roku Ads Manager and flexible buying options, Roku continues to solidify its standing in the ad-supported streaming space. Roku Reaffirms Guidance for 2025 For 2025, Roku reaffirmed its guidance for Platform revenues of $3.95 billion and adjusted EBITDA of $350 million. Platform gross margin is expected to be approximately 52%. Devices revenues and gross profit are expected to remain consistent with 2024 levels. The Zacks Consensus Estimate for 2025 total revenues is pegged at $4.55 billion, suggesting year-over-year growth of 10.54%. The consensus mark for 2025 loss is pinned at 17 cents per share, which has narrowed by 39.3% over the past 30 days, indicating growth of 80.9% from the figure reported in the year-ago quarter. Roku's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 51.15%. Although the company's price-to-cash flow ratio of 33.94X is slightly ahead of the Zacks Broadcast Radio and Television industry average of 32.98X, this premium valuation reflects investor confidence in the company's growth potential for the rest of 2025. ROKU's Price/Cash Flow Ratio Here's Why You Should Buy ROKU Stock Despite the recent share price pressure, Roku's long-term outlook remains strong. The company continues to grow its platform revenues, expand user engagement and innovate across advertising and content. Its acquisition of Frndly TV adds strategic depth to its subscription offerings, while its diversified manufacturing strategy helps mitigate tariff risks. With a promising 2025 guidance, rising ad momentum and strong performance from The Roku Channel, Roku is well-positioned to thrive in a competitive streaming landscape. As it scales its platform and improves monetization, Roku offers solid growth potential for investors looking beyond market headwinds. ROKU currently carries a Zacks Rank #2 (Buy) and has a Growth Score of A, a favorable combination that offers a strong investment opportunity, per the Zacks proprietary methodology. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. 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Yahoo
12-05-2025
- Business
- Yahoo
Roku Acquires Streaming Bundle Service Frndly TV For $185M
Roku is paying $185 million to acquire Frndly TV, a provider of low-cost TV bundles delivered via streaming. The all-cash deal includes $75 million in holdbacks tied to certain performance targets and milestones over the next two years. More from Deadline Lionsgate's 50 Cent Action Becomes No. 1 Action Channel On Roku & LG Channels Taiwanese Drama 'The World Between Us: After the Flames' Sets Premiere Date On Prime Video Joe Pyfer Doc 'Journey To The UFC' Finds U.S. Sparring Partner In Roku; Canal+ & AMC Networks Also Buy Big Media Title Roku announced the deal at the same time it reported first-quarter earnings, with revenue rising 16% to $1.02 billion. The deal, which is expected to close during the current April-to-June quarter, brings another scaled tech player into the world of internet-delivered pay-TV. The sector is currently dominated by YouTube TV, which has 8 million subscribers. Disney is also making moves in the space, having agreed to acquire Fubo earlier this year, giving it 6 million subscribers between Fubo and Hulu + Live TV. Denver-based Frndly operates at the lower end of the price spectrum, with plans offering dozens of general-entertainment channels for $7 to $13 a month. After launching in 2019, the company said it had reached 700,000 subscribers by 2022, with a lineup including A&E, Hallmark Channel, The History Channel and Lifetime, plus thousands of hours of on-demand content. In avoiding pricey sports programming, the service positioned itself similarly to Philo TV, which has cracked the 1 million subscriber mark after a longer run in the marketplace. 'Frndly TV's impressive growth and expertise in direct-to-consumer subscription services make it a compelling addition to Roku,' Roku founder and CEO Anthony Wood said. 'This acquisition supports our focus on growing platform revenue and Roku-billed subscriptions, with a live content offering our users love at an industry-leading price point.' Frndly TV's team, including co-founder and CEO Andy Karofsky, will stay on after the transaction closes. 'We're incredibly excited to join Roku and continue our mission to provide customers feel-good, quality entertainment as the most affordable live TV subscription streaming service in America,' Karofsky said. 'Roku's pioneering role in streaming and its longstanding commitment to customers aligns perfectly with our strategic vision. We believe this combination will help us accelerate subscription growth, given the alignment in core customer demographics and Roku's leadership position in the connected TV ecosystem.' Best of Deadline Brad Pitt's Apple 'F1' Movie: Everything We Know So Far Everything We Know About 'Nine Perfect Strangers' Season 2 So Far 2025-26 Awards Season Calendar: Dates For Tonys, Emmys, Oscars & More Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
