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CFRA Research media and entertainment analyst Tuna Amobie discusses how streaming competition affects consumer costs.
Anthony Wood, CEO of Roku, called his company’s purchase of short video content Quibi “profitable,” hinting in a quarterly earnings call Thursday that Roku would consider other acquisitions at reasonable prices.
In January, Roku agreed to acquire multi-year exclusive rights to content from Quibi Holdings, a former subscription-funded streaming service for abridged programming, for less than $ 100 million.
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Roku will integrate the 75 Quibi series he acquired into The Roku Channel, his app for ad-supported movies and TV shows, Wood said. “We will continue to look more broadly at all the different types of content that we can acquire, and we will ensure that the purchase price of the content matches – whether it’s a license or a purchase or whatever. whatever the financial details. -integrate into our AVOD [ad-supported video on demand] business model, ”adds Wood.
Woods’ comments came as Roku hit a profit in the December quarter and gave better-than-expected projections for the first quarter, driven by the ongoing momentum during the coronavirus pandemic. Here’s what you need to know:
PROFIT: Roku rose to a profit of $ 67.3 million, down from a loss of $ 15.7 million a year earlier. Per share, earnings were 49 cents per share. Analysts polled by FactSet had expected a loss of 5 cents a share.
| Teleprinter | security | Latest | Change | Change% |
|---|---|---|---|---|
| YEAR | YEAR INC | 452.99 | -3.98 | -0.87% |
RETURNED: Net sales for the quarter increased to $ 649.9 million, from $ 411.2 million, from $ 619 million projected by analysts.
YEAR: Roku ended the year with a loss of $ 17.5 million and revenue of $ 1.78 billion, compared with a loss of $ 59.9 million and revenue of 1.13 billion dollars a year ago.
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ACCOUNTS: Roku ended the year with 51.2 million active accounts.
OUTLOOK: This quarter, Roku projected a loss of $ 16 million to $ 23 million and $ 478 million to $ 493 million in revenue, compared to analysts’ projected losses of around $ 52 million and $ 463 million. , $ 2 million in revenue.
For the year, the company said year-over-year revenue growth would fall below levels it would expect to see in the first and second quarters of 2021 and said the margin gross 2021 would probably be around 40% as a platform. the margins remain fairly stable and it operates the Player segment with near zero gross margin to continue driving device sales and growing active accounts. He said he plans to return to “a strong one-year OPEX year [opeating expenses] organic growth rates similar to 2019 (compared to most of 2020 where we limited headcount growth). “
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PANDEMIC: Roku has seen higher rates of account activations and hours of streaming during the pandemic. It added more than 14 million active accounts in 2020. Strong demand for TV streaming products, company officials said, along with strong growth in advertising and expanded content distribution partnerships are helping l ‘business.
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