Roku, Inc. (NASDAQ:ROKU) Q3 2018 Earnings Conference Call Transcript

Nov 07, 2018 • 05:00 pm ET


Roku, Inc. (NASDAQ:ROKU) Q3 2018 Earnings Conference Call Transcript


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Good day, ladies and gentlemen, and welcome to the Third Quarter of 2018 Roku Earnings Conference Call. At this time, all lines are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will be provided at that time. (Operator Instructions) And as a reminder, this conference is being recorded.

I would now like to hand the conference over to James Samford, Head of IR. Please go ahead.

James Samford

Thank you. Good afternoon and welcome to Roku's financial results conference call for the third quarter ended September 30, 2018. I'm pleased to be joined on the call today with Anthony Wood, Roku's Founder and CEO; Steve Louden, our CFO; and Scott Rosenberg, the GM of our Platform Business, who will be available for Q&A. Please be sure to review our shareholder letter, which contains much more details than -- what we will covering in the introductory remarks.

(Forward-Looking Cautionary Statements)

Now, I'd like to turn it over to Anthony.

Anthony Wood

Thank you, James and thanks everyone for joining today's call. We had another great quarter with outstanding results. The transition to streaming is creating huge opportunities for Roku. We are executing well and the fundamentals of our business are strong.

Cord cutting continues to alter the TV landscape. We believe the trend will accelerate as more consumers understand the choice and value that streaming offers and as traditional Pay TV bundle shrink, more content will move to streaming.

The scale of our customer base now rivals large traditional US cable and satellite companies and while they are losing video subscribers, we continue to grow quickly and I'm encouraged by the high level of engagement from our nearly 24 million active accounts.

In our shareholder letter, we set out a number of ways that OTT is a superior solution for advertisers. For example, this quarter we announced our measurement partner program; our ability to demonstrate effectiveness is unlocking larger and larger budgets. Already around two thirds of the Ad Age top 200 advertisers have worked with Roku.

The Roku channel celebrated its first anniversary this quarter. We launched it only a year ago and we made huge progress growing it's reach and engagements and is now a meaningful part of our advertising growth strategy. Roku has the unique position in the industry and we continue to execute well in a competitive marketplace. The opportunity before us is large and it's a great time to be in the streaming business.

Now, I'll turn it over to Steve for brief comments on our results and outlook.

Steve Louden

Thanks Anthony. Our strong third quarter results have put us on track for another record year. Active account growth of 43% year-over-year and streaming our growth of 63% year-over-year help deliver another quarter above our outlook. Please see our shareholder letter for the full financial details from the quarter, but I'll highlight a few items and provide some color on Q4 outlook.

Total Q3 revenue increased 39% year-over-year to $173.4 million with platform revenue up 74% to