Roku (ROKU) UBS Global Media & Communications Conference summary

Strategic priorities and financial performance

• Achieved EBITDA profitability in 2023, a year ahead of target, with $4 million in positive EBITDA.

• Cost structure was right-sized, shifting focus to monetization, especially on the platform side through ads, content distribution, and subscriptions.

• Monetization and platform growth remain top priorities for 2024 and beyond.

• Revenue is expected to grow double digits, with OPEX growth limited to mid-single digits, driving EBITDA and free cash flow leverage.

• Platform margins are expected to remain in the 52%-53% range, with efficiency improvements offsetting lower-margin growth areas.

Market positioning and competitive landscape

• Holds the number one OS position in the U.S., Mexico, and Canada, with nearly 50% broadband penetration in the U.S.

• First-mover advantage and significant investment in a CTV-specific OS provide a strong competitive moat.

• Competition is intensifying with new entrants in both the ad and OS spaces, but scale and reach are seen as key differentiators.

• Partnerships with major players like Amazon, Google, and Walmart are both competitive and collaborative.

• Confident in reaching 100 million Streaming Households within 18 months, up from 85 million.

Industry trends and growth drivers

• Secular tailwinds from the shift of ad dollars from linear TV to CTV are accelerating, though ad dollars lag behind viewership migration.

• Unique ad products and measurement capabilities are expected to catalyze further ad dollar migration.

• Sports content moving to digital platforms is a significant catalyst for advertising growth.

• International markets are at varying stages: Canada is monetizing, Mexico is ramping up, and Brazil is still building scale.

• Early entry into international markets reduces costs and positions for future monetization.