Added 40 Shares of ROKU @$120

Roku beat their outlook for revenue, gross profit, and adjusted EBITDA and increased revenue and gross profit outlook for 2019 (they also raised guidance last quarter).

The stock is down about 15% since the report, but I don’t see anything wrong with the report or their business. The world is clearly moving away from linear TV and to Connected or OTT viewing. Roku and TTD stand to be major benefactors of that.

With Apple TV and Disney + also coming online, it should continue to bring more people onto their platform

Q3 Highlights

• Total net revenue of $260.9 million, up 50% Year-over-Year (YoY);

• Platform revenue of $179.3 million, up 79% YoY;

• Active Accounts of 32.3 million, a net addition of 1.7 million over last quarter;

• Streaming Hours increased 0.9 billion hours over last quarter, to 10.3 billion;

• Average Revenue Per User (ARPU) of $22.58 (Trailing Twelve Months), up 30% YoY;

• Gross Profit of $118.5 million, up 50% YoY; and

• Roku monetized video ad impressions again more than doubled YoY

Q3 Shareholder Letter