Roku reports 71.6m active accounts; Instacart deal
April 27, 2023
Roku, the streaming platform specialist, has reported that Q1 2023 total net revenue was $741 million (€671m), up 1 per cent year over year (YoY). Total active accounts were at 71.6 million, a net increase of 1.6 million from Q4 2022.
Globally, Roku users streamed 25.1 billion hours in Q1, representing a record high of 3.9 streaming hours per
active account per day.
In a letter to shareholders, the company said: “We delivered solid first quarter results in a challenging macro environment, growing both Active Accounts and Streaming Hours year over year. Roku continues to delight viewers and partner with some of the biggest brands and global entertainment companies. With unmatched scale and engagement, we are creating new monetisation opportunities to reaccelerate revenue growth as the ad market recovers. At the same time, we are managing investments and costs and executing on our plan to deliver positive Adjusted EBITDA for full year 2024.”
Futher Q1 2023 highlights include:
• Platform revenue was $635 million, down 1 per cent YoY
• Gross profit was $338 million, down 7 per cent YoY
• Streaming Hours were 25.1 billion, up 4.2 billion hours YoY
• Average Revenue Per User (ARPU) was $40.67 (trailing 12–month basis), down 5 per cent YoY
•The Roku operating system was the #1 selling smart TV OS in the US with 43 per cent TV unit share
Meanwhile, Roku has announced a partnership with Instacart to help consumer-packaged goods (CPG) advertisers make TV advertising more relevant and performance-driven across the entire streamer’s journey.
The partnership brings together viewership data from Roku and insights from Instacart, the grocery technology company in North America, for marketers to measure whether streamers are purchasing products on Instacart after seeing an ad on the Roku platform. By matching this data with Roku’s first-party data, marketers can quantify the impact of TV streaming advertising on product sales – while keeping customer data from Instacart and Roku secure.
“Our goal is to help marketers get more of what they love in TV,” said Alison Levin, Vice President of Ad Revenue and Marketing Solutions, Roku. “Our partnership with Instacart makes it easier to measure actual return on advertising spend in e-commerce and meet consumers where they are – streaming TV.”
The new capability represents Instacart’s first TV streaming measurement partnership and will offer advertisers consumer purchase insights from its Marketplace, which includes more than 1,100 retail banners and more than 80,000 stores in North America. With Instacart Ads, thousands of CPG brands – from category leaders to emerging brands – partner with the company to connect directly with consumers online, right at the point of purchase.
“With Instacart Ads, we’re committed to providing CPG brands with the ad products, automation, insights, and measurement they need to help them meet their objectives and prove the impact of their investment,” said Ali Miller, Vice President of Ads Product at Instacart. “We’re proud to partner with America’s #1 TV streaming platform, Roku, to give CPG brands even more insights to help them enhance and optimise their campaigns across streaming TV. As we look ahead, we’ll continue investing in integrations and insights across every touchpoint of the consumer journey to help CPGs drive and measure results.”