Roku Earnings: Growth Again Outpaces the Weak U.S. Ad Market

Despite a challenging advertising backdrop, Roku handily beat its guidance for second-quarter revenue and EBITDA. Revenue of $874 million easily surpassed management’s $770 million forecast, but more importantly, growth rebounded to 11% after two very weak quarters. Management offered third-quarter revenue guidance of $870 million, projecting that growth will deteriorate slightly to 7% but remain strong. As we expected, adjusted EBITDA losses look to continue in the third quarter, but management remains confident that Roku will generate to positive adjusted EBITDA for 2024.