In the SEC filing, the business records that it had 15.1 million existing accounts as of June 30th, 2017 and that these users have “run more than 6.7 billion hours on the Roku apps,” during the first half of 2017. Critically, Roku shows out that 2.9 billion of those hours was programming sponsored by advertisers.
There’s a warning, however: the organization says that it has worked at losses in the history and that it suspects “to incur determining losses in the future and may never reach or maintain profitability.” It’s expression that’s similar to what other organizations have made while registering for their own IPOs, such as Snap, which is also seeing the growth of advertising revenue as a road to profitability. Roku announces that as of June, it had an “expanded deficit of $244 million,” and that its answer here is to bring new users to grow its advertisement revenue.
That promotion money is increasing in importance for Roku. The organization says that in the first six months of 2017, income from selling players delivered up most of the company’s finances: 59 percent, down two percent of the last half of 2016. At the very time, advertising revenue grew by 91 percent to factor 41 percent of the company’s base line. By contrast, player funds made up 74 percent of Roku’s investments in the same period last year, while ads made up the outstanding 26 percent. Roku says that its goal driving forward is to grow its user base, which will render into new advertiser gains.
The organization is in a good place to draw those users, working not as a decent-up streaming service, but as a platform that CEO Anthony Wood says “combines the entire TV ecosystem.” The organization is leading other business giants such as Amazon, Google, and Apple when it comes to existing users in the connected television market, and in new months, Roku has revealed a range of cheaper products, such as a $30 streaming box, a television that works just $250, to some more pricey, but still very good video box offerings.
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