Roku Inc (ROKU): Investor Discussion
Roku Inc - Ordinary Shares - Class A
TMT
02/21/2024
Presented
| Date | 02/16/2024 |
| Price | $72.00 |
| Market Cap | $10.26B |
| Ent Value | $11.70B |
| P/E Ratio | N/A |
| Book Value | $16.21 |
| Div Yield | 0% |
| Shares O/S | 142.50M |
| Ave Daily Vol | 6,316,154 |
| Short Int | 9.47% |
Current
| Price | $78.93 |
| Market Cap | $11.42B |
| Roku, Inc. engages in the provision of a streaming platform for television. It operates through the Platform and Devices segments. The Platform segment includes digital advertising and related services including the demand-side platform and content distribution services such as subscription and transaction revenue shares, media and entertainment promotional spending, the sale of premium subscriptions, and the sale of branded channel buttons on remote controls. The Devices segment is involved in the sale of streaming players, audio products, smart home products, and accessories that are sold through retailers and distributors, as well as directly to customers through the company’s website. The company was founded by Anthony J. Wood in October 2002 and is headquartered in San Jose, CA. |
On February 16, 2024, DeMatteo Research hosted a discussion on ROKU and the CTV landscape with six investors following ROKU’s recent earnings and WMT’s potential acquisition of VZIO. The group shared thoughts on these topics, as well as the positions of ROKU’s hardware & platform businesses (quality, account growth, competition, market evolution, secular headwinds & tailwinds, access to premium advertising inventory, etc.), the impact of political advertising in 2024, costs & margins, outlooks & valuations, and thoughts on other major platforms (NFLX, TTD).
Publicly traded companies mentioned herein: Alphabet Inc (GOOGL), Amazon.com Inc (AMZN), Best Buy Co Inc (BBY), Charter Communications Inc (CHTR), Comcast Corp (CMCSA), Netflix Inc (NFLX), Roku Inc (ROKU), Target Corp (TGT), Trade Desk Inc/The (TTD), Vizio Holding Corp (VZIO), Walmart Inc (WMT), Walt Disney Co/The (DIS)
Devices Business
A bearish investor started discussing ROKU’s hardware business by sharing his belief that ROKU’s operating system isn’t appreciated by the TV OEMs. Competition between CTV devices and TV OEMs has intensified, and he has heard this is especially the case with Android internationally, which could limit the ex-US growth opportunity often touted by ROKU bulls. More recently, WMT’s potential acquisition of VZIO could impact hardware market shares in an important distribution channel for ROKU. Based on these dynamics, there are seemingly meaningful headwinds to ROKU’s “top of the funnel” business.
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