“Roku plans to be a billion-dollar company in 2019, the company said on Thursday as part of its announcement of strong earnings. The company beat analyst estimates and reported strong growth in active users and streaming hours with earnings of $0.05 per share, compared with the $0.03 analysts had estimated, and revenues of $276 million, compared with the expected $262 million.
Roku also reported 40 percent year-over-year active user growth, with 27.1 million active users by year-end, and a 69 percent year-over-year increase in streaming hours, which reached 7.3 billion.
The company said it plans this year to invest in international expansion, its ad-supported service The Roku Channel, advertising and its Roku TV platform.
While cord cutting is driving some of Roku’s growth, only around half of Roku’s customers fit this description, CEO Anthony Wood pointed out. The other half are more like “cord shavers” — those who are still pay TV subscribers, but are shifting more of their TV viewing to streaming services.
Roku’s ability to also attract pay TV customers combined with the fact that one in four smart TVs sold in the U.S. now runs its software is helping the company’s market share grow.
Roku estimates that one in five U.S. TV households now uses the Roku platform for at least a portion of their TV viewing. In the year ahead, Roku aims to better capitalize on its traction by increasing the monetization per user and scaling the number of households using Roku………………………………………………………….”