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## Roku Reports Strong Q3 Revenue, Boosted by Advertising Business Growth


Shares of Roku surged 12 percent in after-hours trading on Wednesday following the company’s better-than-expected revenue performance and improvements in its advertising business. The company reported a total net revenue of $912 million for Q3, representing a 20 percent year-over-year growth. This growth can be attributed to the increasing demand for advertising on the Roku platform, which generated $787 million in platform revenue, up 18% from last year. This growth was driven by diversifying demand sources from advertisers and the expansion of partnerships with major companies including Spotify and Walmart.

During Q3, the overall U.S. advertising market faced challenges due to the macro environment, while ad spend on traditional linear TV declined by 12% YoY. However, Roku witnessed a comeback in video advertising growth, outperforming both the overall ad market and the linear TV ad market in the U.S. In terms of financials, Roku reported a net loss of $349.8 million, wider than previous years, mainly due to restructuring moves and impairment charges related to removing certain licensed and produced content from its streaming platform.

The number of active accounts for Roku in Q3 reached 75.8 million, showing an increase of 2.3 million accounts from the previous quarter. Additionally, total streaming hours reached 26.7 billion, surpassing the previous two quarters. In Q3 alone, Roku added several new sports FAST channels, including FIFA+, DraftKings Network, and CBS Sports HQ, as well as local news channels from Fox and CBS. The platform also gained channels from NBCUniversal for popular shows like “Saved By the Bell” and “Murder, She Wrote.” YouTube MrBeast also launched their first FAST channel during this quarter.

Despite the positive performance, Roku remains cautious about the future due to a volatile macro environment and an uncertain ad market recovery. However, the company expects a similar growth rate for video ads in Q4, projecting a total net revenue of approximately $955 million, a total gross profit of around $405 million, and an adjusted EBITDA of $10 million. Roku aims to achieve positive adjusted EBITDA for the full year 2024.

To help navigate the complexities of the legal jargon and contracts in the advertising industry, AI legalese decoder can be an invaluable tool for Roku. This AI-powered platform specializes in decoding and simplifying legal language, making it easier to understand the terms and conditions of various advertising agreements and contracts. By using AI legalese decoder, Roku can ensure a clearer understanding of contractual obligations and rights, enabling them to make more informed decisions and negotiate more effectively with partners, advertisers, and content providers. This tool acts as a valuable resource in streamlining the legal processes, protecting Roku’s interests, and supporting their continued growth in the advertising sector.

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