Latest news with #Roku-billed
Yahoo
09-07-2025
- Business
- Yahoo
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 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 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 Discretionary sector's return of 11.5%. Image Source: Zacks Investment Research 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. 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, Inc. price-consensus-chart | Roku, Inc. Quote Roku currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. 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 Roku, Inc. (ROKU) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
Business Wire
02-05-2025
- Business
- Business Wire
Roku To Acquire Streaming Service Provider Frndly TV
SAN JOSE, Calif.--(BUSINESS WIRE)--Roku, Inc. (NASDAQ: ROKU), the #1 TV streaming platform in the U.S.*, announced today that it has entered into an agreement to acquire Frndly TV, a subscription streaming service that offers live TV, on-demand video, and cloud-based DVR for an affordable price. Based in Denver, CO, Frndly TV was founded in 2019. It offers subscribers access to more than 50 top-rated live TV channels, including A&E, Hallmark Channel, The History Channel, Lifetime, and more, as well as thousands of hours of on-demand content, starting at $6.99/mo. Subscribers also can record their favorite shows using Frndly TV's unlimited cloud-based DVR, as well as access any show or movie that has aired in the past 72 hours on live channels. 'Frndly TV's impressive growth and expertise in direct-to-consumer subscription services make it a compelling addition to Roku,' said Anthony Wood, Founder and CEO of Roku, Inc. '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 its experienced leaders, 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,' said Andy Karofsky, Frndly TV CEO and Co-Founder. '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.' In addition to Roku, Frndly TV will continue to be available on all platforms and devices where it's available today, including Amazon Fire TV, Android TV, Google TV, Apple TV, Samsung, Vizio, the web (and via Chromecast), and mobile (Android, iOS). The acquisition is expected to be completed in the second quarter, pending customary closing conditions. The total purchase price is $185 million in cash, which includes $75 million held back that is tied to meeting performance goals and milestones over the next two years. *By hours streamed (Hypothesis Group: Dec 2024) About Roku Roku pioneered streaming on TV. We connect users to the content they love, enable content publishers to build and monetize large audiences, and provide advertisers with unique capabilities to engage consumers. Roku TV™ models, Roku streaming players, and TV-related audio devices are available in various countries around the world through direct retail sales and/or licensing arrangements with TV OEM brands. Roku-branded TVs and Roku Smart Home products are sold exclusively in the United States. Roku also operates The Roku Channel, the home of free and premium entertainment with exclusive access to Roku Originals, and the #2 app on our platform in the U.S. by streaming hours. The Roku Channel is available in the United States, Canada, Mexico, and the United Kingdom. Roku is headquartered in San Jose, Calif., U.S.A. About Frndly TV Frndly TV is the most affordable live TV streaming service in America. Starting at only $6.99/mo., Frndly TV offers 50+ top-rated live TV channels including A+E®, Hallmark Channel, The History Channel™, MeTV, Lifetime®, Hallmark Mystery, Game Show Network, Great American Family, The Weather Channel and more. Customers can also access thousands of hours of on-demand content, at no extra cost. Frndly TV delivers feel-good programming at an affordable price. For more information, visit This press release contains 'forward-looking' statements that are based on our beliefs and assumptions and on information currently available to us on the date of this press release. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance, or achievements to be materially different from those expressed or implied by the forward-looking statements. These statements include but are not limited to those related to the benefits of Roku's announced acquisition of Frndly TV, including the ability to drive subscription growth; the timing of the acquisition; and the features, benefits, and availability of the Frndly TV service and the Roku platform. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. Important factors that could cause our actual results to differ materially are detailed from time to time in the reports Roku, Inc. files with the Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly reports on Form 10-Q. Copies of reports filed with the SEC are posted on Roku's website and are available from Roku without charge. Roku is a registered trademark, and Roku TV is a trademark of Roku, Inc. in the U.S. and in other countries.
CNA
01-05-2025
- Business
- CNA
Roku trims annual revenue forecast as economic uncertainty weighs
Roku trimmed its annual revenue expectations and forecast second-quarter revenue below Wall Street estimates on Thursday, due to economic uncertainty and tariff-related concerns, sending its shares down 4.9 per cent in after-hours trading. Roku faces tough competition from tech giants such as Amazon and Apple, which offer similar streaming devices: the Amazon Fire TV Stick and Apple TV, respectively. This intensified competition continues to pressure Roku to defend its market share. The company's devices segment — which includes Roku-branded TVs and streaming players — is projected to see a revenue decline of about 10 per cent year-over-year. Roku also said it is challenging to forecast tariff-related impacts in its devices segment. "While there is more macro uncertainty than normal, we are providing our best outlook based on our current visibility and what we are observing in our business," the company said in a letter to shareholders. The company expects net revenue of $4.55 billion for the full year, compared to its previous forecast of $4.61 billion. Analysts, on average, expect $4.57 billion, according to data compiled by LSEG. However, quarterly revenue from Roku's platform segment — its largest business, which generates income from advertising sales and subscriptions — grew 17 per cent to $881 million. "Despite global headwinds, we expect Roku to achieve positive operating income by 2026, supported by its strong market position," said Kenneth Leon, director of equity research at CFRA. Separately, Roku said on Thursday it has agreed to acquire Frndly TV — a subscription streaming service offering live TV, on-demand video and cloud-based DVR — for $185 million in cash. "This acquisition supports our focus on growing platform revenue and Roku-billed subscriptions," said Roku CEO Anthony Wood. It expects revenue of $1.07 billion for the second quarter, compared with analysts' average estimate of $1.09 billion. However, Roku's first-quarter revenue of $1.02 billion was slightly above estimates of $1.01 billion.
Yahoo
01-05-2025
- Business
- Yahoo
Roku Buying Subscription Streaming Service Frndly TV for $185M
Roku is making a significant acquisition that will propel it further in the content space. The streaming platform says that it is acquiring the subscription streaming service Frndly TV in a deal valued at $185 million. The deal, which should be completed in Q2, will give Roku a foothold in the subscription streaming market and vMVPD sector, complementing its free Roku Channel. More from The Hollywood Reporter Roku Hits $1B in Revenue, Beating Expectations Roku Nabs 'Bria Mack Gets a Life' for U.S. (Exclusive) Roku, Hello Sunshine, Rich Eisen Productions to Launch Women's Sports Studio Show (Exclusive) Frndly blends aspects of virtual multichannel video providers like YouTube TV with on-demand entertainment programming, with a focus on family-friendly fare. It streams channels that include Hallmark, History, Lifetime and A&E. Its plans start at $6.99 per month. 'Frndly TV's impressive growth and expertise in direct-to-consumer subscription services make it a compelling addition to Roku,' said Anthony Wood, Roku's Founder and CEO. '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.' '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,' adds Andy Karofsky, Frndly TV CEO and co-founder. '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.' The $185 million deal includes $75 million which is being held back for an earn-out over the next two years. The deal was connected to Roku's Q1 earnings report, which saw revenue rise by 16 percent to $1.02 billion, and a net loss of $27.4 million. Best of The Hollywood Reporter How the Warner Brothers Got Their Film Business Started Meet the World Builders: Hollywood's Top Physical Production Executives of 2023 Men in Blazers, Hollywood's Favorite Soccer Podcast, Aims for a Global Empire Sign in to access your portfolio
Yahoo
15-02-2025
- Business
- Yahoo
Roku forecasts annual revenue above estimates on strong ad sales; shares jump
By Priyanka G (Reuters) -stock rose 13% in pre-market trading Friday after forecasting annual revenue above Wall Street estimates and topping fourth-quarter expectations, driven by strong ad sales as more customers shift to streaming. Shares jumped 14% in extended trading on Thursday. The surge in political ad spending and the launch of streaming channels like Peacock, Disney+ and HBO Max have boosted Roku's subscriber base, ad revenue and overall growth. "We continue to make progress growing ad demand through deeper third-party platform integrations, improving the Roku Experience (which starts at our Home Screen) to expand monetization, and growing Roku-billed subscriptions," the company said in a letter to shareholders. Roku has expanded its advertising offerings to small- and medium-sized businesses, leveraging its home screen to diversify revenue streams across sectors. Brands from retail, automotive and telecom feature their ads on the platform, enhancing visibility and boosting user engagement. This move allows businesses to tap into Roku's extensive user base. The company's platform segment, which derives revenue from ad sales and subscriptions, grew 25% to $1.04 billion due to advertising activities, particularly from the political vertical. Ahead of the results, Barton Crockett from Rosenblatt said: "Political advertising on connected TV (CTV) stepped up meaningfully this cycle versus the last cycle, in part because of a big push into the medium by Kamala Harris." The Trump administration has recently imposed tariffs on electronics, particularly those imported from China. In a post-earnings call, Roku executives mentioned that while these tariffs could broadly impact the industry, they are not expected to have a material effect on the company's platform business. The company reported revenue of $1.20 billion in the fourth quarter, compared to the analysts' average estimate of $1.15 billion, according to data compiled by LSEG. For the full year, Roku expects net revenue of $4.61 billion, compared to analysts' consensus estimate of $4.59 billion. Sign in to access your portfolio
