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Roku (ROKU)

Roku pioneered streaming to the TV. We connect users to the streaming content they love, enable content publishers to build and monetize large audiences, and provide advertisers with unique capabilities to engage consumers. Roku streaming players and TV-related audio devices are available in the U.S. and in select countries through direct retail sales and licensing arrangements with service operators. Roku TV™ models are available in the U.S. and in select countries through licensing arrangements with TV OEM brands. Roku is headquartered in San Jose, Calif. U.S.A.

ROKU stock data

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

29 Jul 22
25 Sep 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 2.05B 2.05B 2.05B 2.05B 2.05B 2.05B
Cash burn (monthly) 61.53M 2.72M 36.84M 3.6M 37.25M (no burn)
Cash used (since last report) 176.69M 7.8M 105.79M 10.33M 106.97M n/a
Cash remaining 1.88B 2.04B 1.95B 2.04B 1.95B n/a
Runway (months of cash) 30.5 752.7 52.8 567.4 52.2 n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
6 Sep 22 Stephen H Kay Class A Common Stock Sell Dispose S No Yes 65.9 1,232 81.19K 78,703
2 Sep 22 Mustafa Ozgen Class A Common Stock Sell Dispose S No No 66.94 8,749 585.66K 8,540
2 Sep 22 Stephen H Kay Class A Common Stock Sell Dispose S No No 66.94 1,433 95.93K 79,935
2 Sep 22 Gilbert Fuchsberg Class A Common Stock Sell Dispose S No No 66.94 3,218 215.41K 32,385
1 Sep 22 Anthony J. Wood Employee Stock Option Class A Common Stock Grant Acquire A No No 68.3 3,417 233.38K 3,417
1 Sep 22 Mustafa Ozgen Class A Common Stock Option exercise Acquire M No No 0 17,289 0 17,289
1 Sep 22 Mustafa Ozgen RSU Class A Common Stock Option exercise Dispose M No No 0 2,542 0 7,627
1 Sep 22 Mustafa Ozgen RSU Class A Common Stock Option exercise Dispose M No No 0 4,758 0 52,345
1 Sep 22 Mustafa Ozgen RSU Class A Common Stock Option exercise Dispose M No No 0 9,989 0 19,979
1 Sep 22 Stephen H Kay Class A Common Stock Option exercise Acquire M No No 0 4,056 0 81,368
86.1% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 583 629 -7.3%
Opened positions 87 82 +6.1%
Closed positions 133 222 -40.1%
Increased positions 221 222 -0.5%
Reduced positions 166 218 -23.9%
13F shares Current Prev Q Change
Total value 10.88B 13.2B -17.6%
Total shares 103.9M 103.92M -0.0%
Total puts 9.4M 11.56M -18.7%
Total calls 7.96M 8.41M -5.4%
Total put/call ratio 1.2 1.4 -14.1%
Largest owners Shares Value Change
Vanguard 10.69M $878.14M +2.0%
ARK Investment Management 10.14M $962.72M +22.6%
FMR 9.27M $761.32M -11.6%
BLK Blackrock 6.42M $527.31M -7.6%
CMTDF Sumitomo Mitsui Trust 6M $492.44M +29.4%
Nikko Asset Management Americas 5.66M $462.25M +31.1%
Globespan Capital Partners V 4.68M $0 0.0%
Wellington Management 4.25M $348.87M +1.8%
Susquehanna Securities 3.91M $1.3B 0.0%
Baillie Gifford & Co 3.44M $282.75M -3.2%
Largest transactions Shares Bought/sold Change
ARK Investment Management 10.14M +1.87M +22.6%
CMTDF Sumitomo Mitsui Trust 6M +1.36M +29.4%
Nikko Asset Management Americas 5.66M +1.34M +31.1%
FMR 9.27M -1.21M -11.6%
BEN Franklin Resources 3.92K -1.14M -99.7%
JPM JPMorgan Chase & Co. 66.89K -1.06M -94.1%
Renaissance Technologies 1.97M -836.4K -29.8%
Dorsey Asset Management 1.42M +744.38K +109.9%
Spyglass Capital Management 696.54K +696.54K NEW
ANTIPODES PARTNERS 650.91K +650.91K NEW

Financial report summary

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Competition
AppleGenius Brands InternationalTiVo
Risks
  • Our future growth depends on the acceptance and growth of over-the-top (“OTT”) advertising and OTT advertising platforms.*
  • We may not be successful in our efforts to further monetize our streaming platform, which may harm our business.*
  • If we are unable to attract advertisers or advertising agencies to our OneView ad platform or if we are not successful in running a demand-side advertising platform, our business may be harmed.
  • Our growth will depend in part on our ability to develop, maintain, and expand relationships with TV brand partners in the United States and international markets and, to a lesser extent, service operators.
  • We depend on a small number of content publishers for a majority of our streaming hours, and if we fail to maintain these relationships, our business could be harmed.*
  • If popular or new content publishers do not publish content on our platform, we may fail to retain existing users and attract new users.
  • Most of our agreements with content publishers are not long term and can be terminated by the content publishers under certain circumstances. Any disruption in the renewal of such agreements may result in the removal of certain channels from our streaming platform and may harm our active account growth and engagement.
  • If we are unable to maintain an adequate supply of quality video ad inventory on our platform or effectively sell our available video ad inventory, our business may be harmed.
  • If our content publishers do not participate in new features that we may introduce from time to time, our business may be harmed.
  • If the advertising and media and entertainment promotional spending campaigns on our platform are not relevant or not engaging to our users, our growth in active accounts and streaming hours may be adversely impacted.
  • The Roku Channel may not continue to attract a large number of users or generate significant revenue from advertising.
  • If our users sign up for offerings and services outside of our platform or through other channels on our platform, our business may be harmed.
  • We operate in a rapidly evolving industry that will be impacted by many factors that are outside of our control, which makes it difficult to evaluate our business and prospects.
  • We and our Roku TV brand partners depend on our retail sales channels to effectively market and sell our players and Roku TV models, and if we or our partners fail to maintain and expand effective retail sales channels, we could experience lower player or Roku TV model sales.*
  • If our efforts to build a strong brand and maintain customer satisfaction and loyalty are not successful, we may not be able to attract or retain users, and our business may be harmed.
  • We are subject to payment-related risks and, if our advertisers or advertising agencies do not pay or dispute their invoices, our business may be harmed.
  • The quality of our customer support is important, and if we fail to provide adequate levels of customer support, we could lose users and TV brand partners or other licensees, which would harm our business.
  • We must successfully manage streaming device and other product introductions and transitions to remain competitive.
  • We do not have manufacturing capabilities and primarily depend upon a limited number of contract manufacturers, and our operations could be disrupted if we encounter problems with our contract manufacturers.*
  • The supply of Roku TV models to the market could be disrupted if our Roku TV brand partners encounter problems with their internal operations or contract manufacturers or suppliers.*
  • If we fail to accurately forecast our manufacturing requirements and manage our inventory with our contract manufacturers, we could incur additional costs, experience manufacturing delays, and lose revenue.*
  • Our players and other products incorporate key components from sole source suppliers, and if our contract manufacturers are unable to obtain sufficient quantities of these components on a timely basis, we will not be able to deliver our products to our retailers and distributors.
  • Our players and Roku TV models must operate with various offerings, technologies, and systems from our content publishers that we do not control. If our streaming devices do not operate effectively with those offerings, technologies, and systems, our business may be harmed.
  • Our streaming devices are technically complex and may contain undetected hardware errors or software bugs, which could manifest themselves in ways that could harm our reputation and our business.
  • Components used in our products may fail as a result of manufacturing, design, or other defects over which we have no control and render our devices permanently inoperable.
  • If we are unable to obtain necessary or desirable third-party technology licenses, our ability to develop new streaming players or platform enhancements may be impaired.
  • We have incurred operating losses in the past, and although we have achieved profitability in certain prior quarters, we expect to incur operating losses in the future and may not be able to achieve profitability again in the near term or at all.*
  • Our quarterly operating results may be volatile and are difficult to predict, and our stock price may decline if we fail to meet the expectations of securities analysts or investors.*
  • If we have difficulty managing our growth in operating expenses, our business could be harmed.
  • We may be unable to successfully expand our international operations, and our international expansion plans, if implemented, will subject us to a variety of risks that may harm our business.*
  • Our revenue and gross profit are subject to seasonality, and if our sales during the holiday season fall below our expectations, our business may be harmed.
  • If we fail to attract and retain key personnel, effectively manage succession, or hire, develop, and motivate our employees, we may not be able to execute our business strategy or continue to grow our business.*
  • We need to maintain operational and financial systems that can support our expected growth, increasingly complex business arrangements, and rules governing revenue and expense recognition, and any inability or failure to do so could adversely affect our financial reporting, billing, and payment services.
  • We may pursue acquisitions, which involve a number of risks, and if we are unable to address and resolve these risks successfully, such acquisitions could harm our business.
  • We have outstanding debt, and our credit facility provides our lender with a first-priority lien against substantially all of our assets and contains financial covenants and other restrictions on our actions that may limit our operational flexibility or otherwise adversely affect our financial condition.*
  • We may require additional capital to meet our financial obligations and support planned business growth, and this capital might not be available on acceptable terms or at all.*
  • Significant disruptions of our information technology systems or data security incidents could harm our reputation, cause us to modify our business practices, and otherwise adversely affect our business and subject us to liability.
  • We and our service providers collect, process, transmit, and store personal and confidential information, which creates legal obligations and exposes us to potential liability.
  • Any significant disruption in our computer systems or those of third parties we utilize in our operations could result in a loss or degradation of service on our platform and could harm our business.
  • Changes in how network operators manage data that travel across their networks could harm our business.
  • Litigation and claims regarding intellectual property rights could result in the loss of rights important to our devices and streaming platform, cause us to incur significant legal costs, or otherwise harm our business.*
  • If we fail to, or are unable to, protect or enforce our intellectual property or proprietary rights, our business and operating results could be harmed.
  • Our use of open source software could impose limitations on our ability to commercialize our devices and our streaming platform or could result in public disclosure of competitively sensitive trade secrets.
  • Under our agreements with many of our content publishers, licensees, distributors, retailers, contract manufacturers, and suppliers, we are required to provide indemnification in the event our technology is alleged to infringe upon the intellectual property rights of third parties.
  • The ongoing COVID-19 pandemic has impacted and continues to pose risks to our business, the nature and extent of which are highly uncertain and unpredictable.*
  • Inflationary pressures and recessionary fears may adversely affect our business and operating results.*
  • Natural disasters, geopolitical conflicts, or other natural or man-made catastrophic events could disrupt and impact our business.
  • If government regulations or laws relating to the internet, video, advertising, or other areas of our business change, we may need to alter the manner in which we conduct our business, or our business could be harmed.*
  • Changes in U.S. or foreign trade policies, geopolitical conditions, general economic conditions, and other factors beyond our control may adversely impact our business and operating results.*
  • U.S. or international rules (or the absence of rules) that permit internet access network operators to degrade users’ internet speeds or limit internet data consumption by users, including unreasonable discrimination in the provision of broadband internet access services, could harm our business.
  • If we are found liable for content that is distributed through or advertising that is served through our platform, our business could be harmed.
  • If we fail to maintain effective internal control over financial reporting, investors may lose confidence in the accuracy and completeness of our financial reports and the market price of our Class A common stock may be adversely affected.
  • Our financial results may be adversely affected by changes in accounting principles applicable to us.
  • If we fail to comply with the laws and regulations relating to the payment of income taxes and the collection of indirect taxes, we could be exposed to unexpected costs, expenses, penalties, and fees as a result of our noncompliance, which could harm our business.
  • New legislation that would change U.S. or foreign taxation of international business activities or other tax-reform policies could harm our business.
  • We have been, are currently, and may in the future be subject to regulatory inquiries, investigations, and proceedings, which could cause us to incur substantial costs or require us to change our business practices in a way that could seriously harm our business.
  • The dual class structure of our common stock concentrates voting control with those stockholders who held our stock prior to our initial public offering, including our executive officers, employees, and directors and their affiliates, and limits the ability of holders of our Class A common stock to influence corporate matters.*
  • The trading price of our Class A common stock has been, and may continue to be, volatile, and the value of our Class A common stock may decline.
  • Future sales and issuances of our capital stock or rights to purchase capital stock could result in additional dilution of the percentage ownership of our stockholders and could cause our stock price to decline.
  • Future sales of shares by existing stockholders could cause our stock price to decline.
  • If securities or industry analysts do not publish research or publish unfavorable research about our business or if they downgrade our stock, our stock price and trading volume could decline.
  • We incur costs and demands upon management as a result of complying with the laws and regulations affecting public companies in the United States, which may harm our business.
  • We do not intend to pay dividends in the foreseeable future.
  • Provisions of our charter documents and Delaware law may prevent or frustrate attempts by our stockholders to change our management or hinder efforts to acquire a controlling interest in us, and the market price of our Class A common stock may be lower as a result.
  • Our certificate of incorporation provides that the Delaware Court of Chancery and the U.S. federal district courts will be the exclusive forums for substantially all disputes between us and our stockholders, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers, or employees.
Management Discussion
  • Platform revenue increased by $1,017.2 million, or 80%, during the year ended December 31, 2021 as compared to the year ended December 31, 2020, primarily attributable to higher content distribution services, including higher revenue from media and entertainment promotional spending and Premium Subscriptions, we well as higher advertising revenue which includes revenue from our OneView ad platform.
  • Player revenue decreased by $31.0 million, or 6%, during the year ended December 31, 2021 as compared to the year ended December 31, 2020, primarily due to a decrease in both the volume of streaming players sold and average selling prices, offset by a slight increase in revenue from the sale of audio products and accessories. During the year ended December 31, 2021, the volume of streaming players sold decreased by 4% and the average selling price of players decreased by 7% as compared to the year ended December 31, 2020. The decrease in the volume of players sold is due to the slowdown in growth in the year ended December 31, 2021 as compared to the year ended December 31, 2020 when the growth was aided by the COVID-19 pandemic. The decrease in the average selling price is due to higher promotions during the year ended December 31, 2021 as compared to the year ended December 31, 2020 where the volume was aided by the COVID-19 pandemic and required fewer promotions.

Content analysis

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Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. junior Good
New words: annum, bifurcation, counterparty, deferral, discretionary, embedded, instrument, insulate, Mounting, promissory, recession, recessionary, redemption, resurgence, susceptible, unrealized, Upfront, weighted, weighting, worsening
Removed: entity, franchise, precautionary, removing, separate, Simplifying, spread