Roku, Inc. (NASDAQ:ROKU) Q2 2019 Earnings Conference Call Transcript

Aug 07, 2019 • 05:00 pm ET

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Roku, Inc. (NASDAQ:ROKU) Q2 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to the Roku's Second Quarter 2019 Financial Results Conference Call. [Operator Instructions] Later we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] I'd now like to introduce your host for today's conference, Tricia Mifsud, Vice President of Communications. Mam, please go ahead.

Executive
Tricia Mifsud

Thank you. Good afternoon and welcome to Roku's financial results conference call for the second quarter ended June 30, 2019. 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, GM of our Platform Business, who will be available for Q&A. Full details of our results and additional management commentary are available in our shareholder letter, which can be found on the Investor Relations section of our website at ir.roku.com.

The following discussion including responses to your questions. Reflect management's views as of today, August 7th, 2019 only and we do not undertake any obligation to update or revise this information. Some of the statements made on today's call are forward-looking and are based on our current expectations, forecasts and assumptions and involve risks and uncertainties. These statements include but are not limited to statements regarding the future performance of Roku including expected financial results for the third quarter and full year of 2019 and the future growth in our business. Our actual results may differ materially from those discussed on this call for a variety of reasons. Please refer to today's shareholder letter and the Company's periodic filings with the SEC for information about factors which could cause our actual results to differ materially from these forward-looking statements. You will find reconciliations of non-GAAP measures to the most comparable measures discussed today in our shareholder letter, which is posted on our Investor Relations website at ir.roku.com. And I encourage you to periodically visit our IR website for important content. Finally, unless otherwise stated all comparisons on this call will be against our results for the comparable period of 2018. Now I'd like to hand the call over to Anthony.

Executive
Anthony Wood

Thank you, Tricia. And thanks everyone for joining today's call. Our second quarter and first half results show the great progress we are making. I am particularly pleased the passed two significant milestones. The first is that active accounts exceeded $30 million. We reach one in five US households on our domestic scale rivals the biggest MVPDs. The second is that ARPU was above $20 on a trailing 12 month basis. ARPU has expanded 88% in the two years since we went public. Achievements like these show our strategy is working and our execution is strong.

Q2 financial results also exceeded our expectations. We had the highest Q2 growth rate since going public and we are raising our outlook for the full year. Strong performance allows us to continue to reinvest incremental gross profit in ways that extend our strategic advantages and build even greater preference for Roku among consumers, content publishers, OEMs