Q1 2024 Roku Inc Earnings Call

April 25, 2024

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Narrator: This is business, baby. You are actually turning your side hustle into your main hustle. Thanks for watching! This town is full of stories. Welcome to Spiderwick. This house is full of secrets and surprises. My father catalogued every creature of the invisible world.

This town's post stories.

Conrad Grodd: This town is full of stories.

Anthony Wood: Welcome to Spiderwick. This house is full of secrets and surprises. My father cataloged every creature of the invisible world.

Welcome the Spider webs.

With housing policy continues to trend.

Narrator: Arthur Spiderwick's field guide will soon be ours. Ogre rat's a deceiver, a shapeshifter. I'm an ogre. You have to help save everyone. I'm just a kid. That's why you can succeed. You were all chosen because you are enough. You've made it. We are inviting athletes to become the next WWE superstars. Coming from Cuba, my dad risked his life for me to have these opportunities.

My father had inbox every creature of D&C to from last year.

Conrad Grodd: Arthur Spiderwick's Field Guide will soon be ours.

Despite a mixed phenotype soon.

Anthony Wood: Ogretta Deceiver, a shape shifter!

The placebo.

Shifting I'm an older you have to face every day.

Conrad Grodd: I'm an ogre.

Anthony Wood: You have to help save everyone.

Conrad Grodd: I'm just a kid.

Anthony Wood: That's why you can succeed.

That's why you can succeed.

Yes.

Speaker Change: Youre all chosen because you are enough you made it.

Barton Crockett: You were all chosen 'cause you are enough. You made it.

Dan Jedda: We are inviting athletes to become the next WWE Superstar.

Speaker Change: Gasoline as you reach out in the next WWE superstar.

Conrad Grodd: Coming from Cuba, my dad risked his life for me to having these opportunities. I'm Brayden Ray, aka Sexy BJ Ray. Who do you think you are?

Coming from Cuba, my dad risked his life for me to having these opportunities. I'm Brayden Ray, aka Sexy BJ Ray. Who do you think you are?

From Cuba, My Dad, Roosted labor meet these opportunities on brain right.

Speaker Change: It's actually Vijay Thank you what I see so much raw potential this is Joe.

Dan Jedda: I see so much raw potential.

I see so much raw potential.

Conrad Grodd: This is your moment. Woo! Woo.

This is your moment. Woo! Woo.

Dan Jedda: Woo! It's life-changing. There is nothing else like being a WWE Superstar.

Woo! It's life-changing. There is nothing else like being a WWE Superstar.

Speaker Change: It's life changing there is nothing else slides being of WWE superstars.

Speaker Change: Hum.

Speaker Change: [music].

Speaker Change: Sure.

Speaker Change: If you close your eyes and think about your future. What do you really want we have invited them commenting female founder in the country the temperature.

Charlie Collier: If you close your eyes and think about your future, what do you really want?

If you close your eyes and think about your future, what do you really want?

Conrad Grodd: We have invited the most promising female founders in the country to come pitch to us today.

We have invited the most promising female founders in the country to come pitch to us today.

Speaker Change: So I have to decide if we're going to invest in your company and you have to decide if youre going to quit your day job.

Charlie Collier: So Ashley and I have to decide if we're gonna invest in your company.

So Ashley and I have to decide if we're gonna invest in your company.

Conrad Grodd: You have to decide if you're going to quit your day job.

You have to decide if you're going to quit your day job.

Speaker Change: Yes.

Conrad Grodd: Everything is on the line. I just can't let it die.

Everything is on the line. I just can't let it die.

Speaker Change: Everything is on the line I just can't handle that.

Speaker Change: I'm now going to fail by Keith This is business David.

Conrad Grodd: I'm not gonna feel bad, kid. This is business, baby.

I'm not gonna feel bad, kid. This is business, baby.

Charlie Collier: You are actually turning your side hustle into your main hustle.

You are actually turning your side hustle into your main hustle.

Speaker Change: So any time you saw it also in June.

Speaker Change: Right.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Hi.

Speaker Change: Okay.

Speaker Change: Thank you.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Sure.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Yes.

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Speaker Change: [music].

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Speaker Change: [music].

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Speaker Change: Yes.

Speaker Change: Sure.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: This town's post stories.

Conrad Grodd: This town is full of stories.

This town is full of stories.

Anthony Wood: Welcome to Spiderwick. This house is full of secrets and surprises. My father cataloged every creature of the invisible world.

Welcome to Spiderwick. This house is full of secrets and surprises. My father cataloged every creature of the invisible world.

Operator: I'm brave. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Conrad Grodd. Please go ahead.

Speaker Change: Welcome the Spider webs.

Speaker Change: With housing policy continues to trend.

Speaker Change: My father had inbox every creature of D&C triple.

Conrad Grodd: Arthur Spiderwick's Field Guide will soon be ours.

Arthur Spiderwick's Field Guide will soon be ours.

Speaker Change: Harper Spider ratio guide assume payout.

Ruplu Bhattacharya: ... Ogrett's a deceiver, a shape-shifter.

... Ogrett's a deceiver, a shape-shifter.

Speaker Change: The placebo.

Speaker Change: Shifting I'm an older you have outpaced everything.

Conrad Grodd: I'm an ogre.

I'm an ogre.

Ruplu Bhattacharya: You have to help save everyone.

You have to help save everyone.

Conrad Grodd: I'm just a kid.

Ruplu Bhattacharya: That's why you can succeed.

Speaker Change: That's why you can succeed.

Speaker Change: Yes.

Speaker Change: Yeah.

Speaker Change: Youre all chosen because you are enough you made it.

Anthony Wood: You were all chosen because you are enough. You made it.

Dan Jedda: We invite the athletes to become the next WWE superstar.

Speaker Change: The gasoline <unk> will become the next WWE superstars.

Conrad Grodd: Coming from Cuba, my dad risked his life for me, having these opportunities.

Speaker Change: From Cuba, My Dad, Roosted labor meet these opportunities umbrella.

Vasily Karasyov: I'm-

Speaker Change: Okay.

Speaker Change: Good day, everyone and thank you for standing by welcome to the Rockies first quarter 2024 earnings call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question.

Operator: Good day, everyone, and thank you for standing by. Welcome to Roku's Q1 2024 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during this session, you will need to press star one one on your telephone. You will then hear a message advising your hand is raised. To withdraw your question, press star one one again, and please be advised that today's conference is being recorded. I would now like to hand the conference over to Conrad Grodd. Please go ahead.

Conrad Grodd: Thank you, Operator. Welcome to Roku's first quarter 2024 earnings call. On today's call are Anthony Wood, Roku's founder and CEO, Dan Jedda, our CFO, Charlie Collier, President, Roku Media, and Mustafa Ozgen, President, Devices. Full details of the results and additional management commentary are available in our shareable letter, which can be found on our investor relations website at roku.com forward slash investor. On this call, we'll make four looking statements, which are predictions, projections, or other statements about future events based on current expectations, forecasts, and assumptions.

Conrad Grodd: These statements involve risks and uncertainty. Please refer to our shareable letter and periodic STC filings for risk factors that could cause our actual results to differ materially from these forward-looking statements. On today's call, we'll present GAAP and non-GAAP financial measures. Reconciliations of non-GAAP measures to the most comparable GAAP financial measures are provided in our shareholder letter. Finally, unless otherwise stated, all comparisons on this call will be against the results of the comparable period of 2023. Now, I'd like to hand the call to Anthony.

Speaker Change: During this session you will need to press star one on your telephone you will Dan here and message advising your hand. This raced to withdraw your question Press Star One again and please be advised that today's conference is being recorded I would now like to hand, the conference over to Conrad Grodd. Please go ahead.

Anthony J. Wood: Thank you, Conrad. We delivered solid results in Q1, growing streaming households 14% year-over-year, streaming hours 23% year-over-year, and platform revenue 19% year-over-year. As I mentioned on the Q4 call, this year we are directing more of our attention to platform growth and innovation. We will accelerate platform revenue, adjusted EBITDA, and free cash flow growth in 2025 by focusing on three key opportunities, maximizing the Roku home screen as the lead-in for TV.

Anthony J. Wood: Growing Roku Builds Description, and growing demand for Roku. Every day, the Roku home screen reaches US households with nearly 120 million. This significant reach creates a lot of art. I see many ways to improve the user experience while also growing monetization for Roku. For example, the Roku sports experience, which viewers can click into right from the home. This presentation addresses the fragmentation of sports as it shifts to streaming, making it easier for viewers to find games and other sports-related content. The NFL Zone was our first league-sponsored zone, and for this year's Super Bowl, it was sponsored by TurboTax, delivering massive reach to the brand during a critical time of year.

Conrad Grodd: Thank you, operator. Welcome to Roku's Q1 2024 Earnings Call. On today's call are Anthony Wood, Roku's Founder and CEO, Dan Jedda, our CFO, Charlie Collier, President, Roku Media, and Mustafa Ozgen, President, Devices. Full details of the results and additional management commentary are available in our shareholder letter, which can be found on our investor relations website at roku.com/investor. On this call, we'll make forward-looking statements, which are predictions, projections, or other statements about future events based on current expectations, forecasts, and assumptions. These statements involve risks and uncertainties. Please refer to our shareholder letter and periodic SEC filings for risk factors that could cause our actual results to differ materially from these forward-looking statements. On today's call, we'll present GAAP and non-GAAP financial measures. Reconciliations of non-GAAP measures to the most comparable GAAP financial measures are provided in our shareholder letter.

Conrad Grodd: Thank you operator, welcome to <unk> first quarter 2024 earnings call.

Anthony J. Wood: We recently launched the MBA Zone in partnership with the MBA Initiative. We also see a big opportunity to grow Roku bill subscriptions. Roku Pay, our payment and billing service, simplifies the sign-up process for users so they can quickly transact and start streaming, and ensures content partners don't lose subscribers due to unnecessary friction at the point of purchase. Additionally, we are making it easier for advertisers to execute campaigns programmatically on the Roku platform by expanding and deepening our relationships with third-party platforms.

Conrad Grodd: Today's call.

Conrad Grodd: Brokerage founder and CEO and Jeff <unk>, our CFO Charlie.

Conrad Grodd: President Rich media and Mustafa <unk>.

Conrad Grodd: <unk> devices.

Conrad Grodd: Details of our results and additional management commentary are available in our shareholder letter, which can be found on our investor relations website at <unk> Dot com forward Slash investor.

Conrad Grodd: On this call we will make forward looking statements, which are predictions projections or other statements about future events.

Conrad Grodd: Just on current expectations forecasts and assumptions these statements involve risks and uncertainties.

Speaker Change: Please refer to our shareholder letter and periodic SEC filings for risk factors that could cause our actual results to differ materially from these forward looking statements.

Speaker Change: Today's call will present, GAAP and non-GAAP financial measures reconciliations of non-GAAP measures. The most comparable GAAP financial measures are provided in our shareholder letter.

Conrad Grodd: Finally, unless otherwise stated, all comparisons on this call will be against the results of the comparable period of 2023. Now, I'd like to hand the call over to Anthony. Thank you, Conrad. We delivered solid results in Q1, growing streaming households 14% year-over-year, streaming hours 23% year-over-year, and platform revenue 19% year-over-year. As I mentioned on the Q4 call, this year, we are directing more of our attention to platform growth and innovation. We will accelerate platform revenue, adjusted EBITDA, and free cash flow growth in 2025 by focusing on three key opportunities: maximizing the Roku home screen as the lead-in for TV, growing Roku-billed subscriptions, and growing ad demand for Roku. Every day, the Roku home screen reaches US households with nearly 120 million people. This significant reach creates a lot of opportunity.

Conrad Grodd: Finally, unless otherwise stated, all comparisons on this call will be against the results of the comparable period of 2023. Now, I'd like to hand the call over to Anthony.

Speaker Change: Finally, unless otherwise stated all comparisons on this call will be against our results for the comparable period of 2023.

Anthony J. Wood: In Q1, we continued to grow programmatic ad spend, that's a percentage of total video ad spend, on the Roku platform. With our platform advantages, first-party relationships, and more than 80 million streaming households and deep user engagement, we are well positioned to accelerate platform revenue growth in 2025 and beyond. Now, I'll turn it over to Dan to discuss our results. Thanks, Anthony.

Speaker Change: Now I'd like to hand, the call over to Anthony.

Anthony Wood: Thank you, Conrad. We delivered solid results in Q1, growing streaming households 14% year-over-year, streaming hours 23% year-over-year, and platform revenue 19% year-over-year. As I mentioned on the Q4 call, this year, we are directing more of our attention to platform growth and innovation. We will accelerate platform revenue, adjusted EBITDA, and free cash flow growth in 2025 by focusing on three key opportunities: maximizing the Roku home screen as the lead-in for TV, growing Roku-billed subscriptions, and growing ad demand for Roku. Every day, the Roku home screen reaches US households with nearly 120 million people. This significant reach creates a lot of opportunity.

Anthony: Thank you Conrad we delivered solid results in Q1 growing extremely households, 14% year over year streaming hours, 23% year over year.

Dan Jedda: We ended Q1 with 81.6 million streaming households. Sequential net ads of $1.6 million were in line with Q1 2023 and driven by both TVs and streaming players. We continue to drive strong growth and engagement with streaming hours of 23% year-over-year and surpassing $30 billion for the first time in a single quarter. We also grew engagement per account globally, with streaming hours per streaming household per day of 4.2 hours in Q1 2024, up from 3.9 hours in Q1 2023. In Q1, we grew total net revenue 19% year over year to $882 million.

Dan Jedda: Platform revenue was $755 million, also up 19% year over year, driven by both streaming service distribution and advertising activity. Streaming service distribution activities grew faster than overall platform revenue, benefiting in part from subscription price increases. However, the year-over-year growth rate of streaming services distribution in Q1 2024 was lower than the year-over-year growth rate in Q4 2023 due to lapping past price increases and a higher mix shift towards entry-priced ad-supported offerings. However, devices revenue increased 19% year over year in Q1, driven by the expansion of retail distribution of Roku branded TVs.

Anthony: <unk> revenue and 19% year over year.

Anthony: As I mentioned on the Q4 call. This year, we are directing more of our intention to top line growth and innovation.

Speaker Change: We will accelerate platform revenue adjusted EBITDA and free cash flow growth in 2025 by focusing on three key opportunities.

Speaker Change: Maximizing the Roku home screen at Allegiant for TV.

Speaker Change: Growing roku builds prescriptions.

Speaker Change: Growing demand for ammonia.

Speaker Change: Every day, the Roku home screen weeks U S households, with nearly 120 million people.

Speaker Change: Significant reach creates a lot of opportunity.

Conrad Grodd: I see many ways to improve the user experience, while also growing monetization for Roku. For example, the Roku sports experience, which viewers can click into right from the home screen, addresses the fragmentation of sport as it shifts to streaming, making it easier for viewers to find games and other sports-related content. The NFL Zone was our first league-sponsored zone, and for this year's Super Bowl, it was sponsored by TurboTax, delivering massive reach to the brand during a critical time of year. We recently launched the NBA Zone in partnership with the NBA in April. We also see a big opportunity to grow Roku-billed subscriptions. Roku Pay, our payment and billing service, simplifies the sign-up process for users so they can quickly transact and start streaming, and ensures content partners don't lose subscribers due to unnecessary friction at the point of purchase.

Anthony Wood: I see many ways to improve the user experience, while also growing monetization for Roku. For example, the Roku sports experience, which viewers can click into right from the home screen, addresses the fragmentation of sport as it shifts to streaming, making it easier for viewers to find games and other sports-related content. The NFL Zone was our first league-sponsored zone, and for this year's Super Bowl, it was sponsored by TurboTax, delivering massive reach to the brand during a critical time of year. We recently launched the NBA Zone in partnership with the NBA in April. We also see a big opportunity to grow Roku-billed subscriptions. Roku Pay, our payment and billing service, simplifies the sign-up process for users so they can quickly transact and start streaming, and ensures content partners don't lose subscribers due to unnecessary friction at the point of purchase.

Speaker Change: I see many ways to improve the user experience, while also growing monetization growth.

Speaker Change: For example, the revenue sports.

Speaker Change: <unk>, which viewers can click into right from the home screen.

Speaker Change: The rest of the fragmentation in sports as it shifts to screening, making it easier for viewers to find games and other sports related content.

Speaker Change: And I told them was our first lien sponsor zone and for this year's Super Bowl. It was sponsored by Turbotax delivering massive reach to the brand during a critical time of year.

Speaker Change: We recently launched the MBA zone in partnership with the NBA in April.

Speaker Change: We also see a big opportunity to grow broker builds prescriptions roku pay our payment and billing service simplifies the sign up process for users. So they can quickly transact are screaming and ensures content partners don't lose subscribers.

Speaker Change: Friction at the point of purchase.

Speaker Change: Additionally, we are making it easier for advertisers to execute campaigns programmatically on the Roku platform.

Conrad Grodd: Additionally, we are making it easier for advertisers to execute campaigns programmatically on the Roku platform by expanding and deepening our relationships with third-party platforms. In Q1, we continued to grow programmatic ad spend as a percentage of total video ad spend on the Roku platform. With our platform advantages, first-party relationships, and more than 80 million streaming households, and deep user engagement, we are well positioned to accelerate platform revenue growth in 2025 and beyond. Now I'll turn it over to Dan to discuss our results.

Anthony Wood: Additionally, we are making it easier for advertisers to execute campaigns programmatically on the Roku platform by expanding and deepening our relationships with third-party platforms. In Q1, we continued to grow programmatic ad spend as a percentage of total video ad spend on the Roku platform. With our platform advantages, first-party relationships, and more than 80 million streaming households, and deep user engagement, we are well positioned to accelerate platform revenue growth in 2025 and beyond. Now I'll turn it over to Dan to discuss our results.

Speaker Change: By expanding and deepening our relationships with third party platforms.

Speaker Change: In Q1, we continued to grow programmatic AD spend as a percentage of total video AD spend on the Roku platform.

Speaker Change: With our platform advantages first party relationships and more than 80 million screening household and deep user engagement, we're well positioned to accelerate platform revenue growth in 2025 and beyond.

Speaker Change: Now I will turn it over to Dan to discuss our results.

Anthony Wood: Thanks, Anthony. We ended Q1 with 81.6 million streaming households. Sequential net adds of 1.6 million were in line with Q1 2023 and driven by both TVs and streaming players. We continue to drive strong growth and engagement, with streaming hours up 23% year-over-year and surpassing 30 billion for the first time in a single quarter. We also grew engagement per account globally, with streaming hours per streaming household per day of 4.2 hours in Q1 2024, up from 3.9 hours in Q1 2023. In Q1, we grew total net revenue 19% year-over-year to $882 million. Platform revenue was $755 million, also up 19% year-over-year, driven by both streaming service distribution and advertising activities.

Dan Jedda: Thanks, Anthony. We ended Q1 with 81.6 million streaming households. Sequential net adds of 1.6 million were in line with Q1 2023 and driven by both TVs and streaming players. We continue to drive strong growth and engagement, with streaming hours up 23% year-over-year and surpassing 30 billion for the first time in a single quarter. We also grew engagement per account globally, with streaming hours per streaming household per day of 4.2 hours in Q1 2024, up from 3.9 hours in Q1 2023. In Q1, we grew total net revenue 19% year-over-year to $882 million. Platform revenue was $755 million, also up 19% year-over-year, driven by both streaming service distribution and advertising activities.

Dan: Thanks Anthony.

Dan: We ended Q1 with $81 6 million streaming households sequential net adds of $1 6 million were in line with Q1, 2023, and driven by both Tvs and streaming players.

Dan: We continued to drive strong growth and engagement with streaming hours up 23% year over year, and surpassing 30 billion for the first time in a single quarter.

Speaker Change: We also grew engagement per account globally with the streaming hours per streaming household per day, a $4 two hours in Q1 2024 up from $3 nine hours in Q1 2023.

Speaker Change: In Q1, we grew total net revenue, 19% year over year to $882 million.

Speaker Change: Platform revenue was $755 million also up 19% year over year, driven by both streaming service distribution and advertising activities.

Speaker Change: Streaming services distribution activities grew faster than overall platform revenue benefiting in part from subscription price increases.

Anthony Wood: Streaming services distribution activities grew faster than overall platform revenue, benefiting in part from subscription price increases. However, the year-over-year growth rate of streaming services distribution in Q1 2024 was lower than the year-over-year growth rate in Q4 2023, due to lapping past price increases and higher mix shift towards entry price ad-supported offerings. Devices revenue increased 19% year-over-year in Q1, driven by the expansion of retail distribution of Roku-branded TVs. ARPU was $40.65 in Q1 on a trailing twelve-month basis, flat year-over-year. This reflects an increasing share of streaming households in international markets, where we are currently focused on growing scale and engagement. Q1 total gross margin was 44%, down slightly year-over-year. Platform gross margin of 52% was stable year-over-year, while devices gross margin was -5%, which was down 8 points year-over-year.

Dan Jedda: Streaming services distribution activities grew faster than overall platform revenue, benefiting in part from subscription price increases. However, the year-over-year growth rate of streaming services distribution in Q1 2024 was lower than the year-over-year growth rate in Q4 2023, due to lapping past price increases and higher mix shift towards entry price ad-supported offerings. Devices revenue increased 19% year-over-year in Q1, driven by the expansion of retail distribution of Roku-branded TVs. ARPU was $40.65 in Q1 on a trailing twelve-month basis, flat year-over-year. This reflects an increasing share of streaming households in international markets, where we are currently focused on growing scale and engagement. Q1 total gross margin was 44%, down slightly year-over-year. Platform gross margin of 52% was stable year-over-year, while devices gross margin was -5%, which was down 8 points year-over-year.

Speaker Change: However, the year over year growth rate of streaming services distribution in Q1, 2024 was lower than that year over year growth rate in Q4, 2023, due to lapping past price increases and higher mix shift towards entry priced AD supported offerings.

Speaker Change: Devices revenue increased 19% year over year in Q1, driven by the expansion of retail distribution of Roku branded Tvs.

Dan Jedda: Harpoo was $40.65 in Q1 on a trailing 12 month basis, flat year over year. This reflects an increasing share of streaming households in international markets where we are currently focused on growing scale and engagement. Q1 total gross margin was 44%, down slightly year over year.

Speaker Change: <unk> was $40 65 in Q1 on a trailing 12 month basis flat year over year.

Speaker Change: This reflects an increasing share of streaming household in international markets, where we are currently focused on growing scale and engagement.

Speaker Change: Q1, total gross margin was 44% down slightly year over year.

Dan Jedda: Platform Gross Margin of 52% was stable year-over-year, while Devices Gross Margin was negative 5%, which was down 8 points year-over-year. Excluding the one time 10 million service operator licensing catch up benefit in Q1 2023, device gross margin would have been roughly flat year over year. Q1 adjusted EBITDA was $41 million, which was above our outlook of breakeven. The better than expected performance was driven by our platform segment along with improvements to our operating expense profile. Free cash flow was $427 million on a trailing 12-month basis, and we ended the quarter with $2.1 billion of cash and cash equivalents.

Speaker Change: Platform gross margin of 52% with stable year over year, while devices gross margin was negative, 5%, which was down eight points year over year.

Speaker Change: Excluding the one time 10 million service operator licensing catch up benefit in Q1 2023 device gross margin would have been roughly flat year over year.

Anthony Wood: Excluding the one-time $10 million service operator licensing catch-up benefit in Q1 2023, device gross margin would have been roughly flat year-over-year. Q1 Adjusted EBITDA was $41 million, which was above our outlook of breakeven. The better-than-expected performance was driven by our platform segment, along with improvements to our operating expense profile. Free cash flow was $427 million on a trailing twelve-month basis, and we ended the quarter with $2.1 billion of cash and cash equivalents. Let me turn to our outlook for the second quarter. We anticipate total net revenue of $935 million, gross profit of $410 million, with gross margin of 44%, and Adjusted EBITDA of $30 million. Our outlook for total net revenue anticipates a 10% year-over-year increase.

Dan Jedda: Excluding the one-time $10 million service operator licensing catch-up benefit in Q1 2023, device gross margin would have been roughly flat year-over-year. Q1 Adjusted EBITDA was $41 million, which was above our outlook of breakeven. The better-than-expected performance was driven by our platform segment, along with improvements to our operating expense profile. Free cash flow was $427 million on a trailing twelve-month basis, and we ended the quarter with $2.1 billion of cash and cash equivalents. Let me turn to our outlook for the second quarter. We anticipate total net revenue of $935 million, gross profit of $410 million, with gross margin of 44%, and Adjusted EBITDA of $30 million. Our outlook for total net revenue anticipates a 10% year-over-year increase.

Speaker Change: Q1, adjusted EBITDA was $41 million, which was above our outlook breakeven.

Speaker Change: The better than expected performance was driven by our platform segment, along with improvements to our operating expense profile.

Speaker Change: Free cash flow was $427 million on a trailing 12 month basis, and we ended the quarter with $2 1 billion of cash and cash equivalents.

Dan Jedda: Let me turn to our outlook for the second quarter. We anticipate total net revenue of $935 million. Gross profit of $410 million, with gross margin of 44%, and a trusted EBITDA of $30 million. Our outlook for total net revenue anticipates a 10% year-over-year increase. This takes into account challenging year-over-year growth rate comparisons with streaming service distribution, along with an elevated 606 adjustment in Q2 of last year. We expect platform margin to be similar to Q2 of last year at roughly 53%.

Speaker Change: Let me turn to our outlook for the second quarter.

Speaker Change: We anticipate total net revenue of $935 million.

Speaker Change: Gross profit of $410 million with gross margin of 44%.

Speaker Change: And adjusted EBITDA of $30 million.

Speaker Change: Our outlook for total net revenue anticipates, a 10% year over year increase.

Anthony Wood: This takes into account challenging year-over-year growth rate comparisons with streaming service distribution, along with an elevated Six of Six adjustment in Q2 of last year. We expect platform margin to be similar to Q2 of last year at roughly 53%. On the devices side, we expect margin to decline from -5% in Q1 to negative low teens in Q2, which reflects continued expansion and investment in our Roku-branded TV program. We expect to benefit from having implemented multiple operational improvements over the course of the past year, and as a result, forecast our year-over-year OpEx growth rate in Q2 to be down to negative low single digits. Looking into the second half of the year, we expect normal seasonal spend in sales and marketing or devices, which will cause second half Adjusted EBITDA to slightly moderate relative to the first half of the year.

Dan Jedda: This takes into account challenging year-over-year growth rate comparisons with streaming service distribution, along with an elevated Six of Six adjustment in Q2 of last year. We expect platform margin to be similar to Q2 of last year at roughly 53%. On the devices side, we expect margin to decline from -5% in Q1 to negative low teens in Q2, which reflects continued expansion and investment in our Roku-branded TV program. We expect to benefit from having implemented multiple operational improvements over the course of the past year, and as a result, forecast our year-over-year OpEx growth rate in Q2 to be down to negative low single digits. Looking into the second half of the year, we expect normal seasonal spend in sales and marketing or devices, which will cause second half Adjusted EBITDA to slightly moderate relative to the first half of the year.

Speaker Change: This takes into account challenging year over year growth rate comparisons with streaming service distribution, along with an elevated 606 adjustments in Q2 of last year.

Speaker Change: We expect platform margin to be similar to Q2 of last year at roughly 53%.

Dan Jedda: On the devices side, we expect margin to decline from negative 5% in Q1 to negative low teens in Q2, which reflects continued expansion and investment in our Roku-branded TV program. We expect to benefit from having implemented multiple operational improvements over the course of the past year, and as a result, forecast our year-over-year OPEX growth rate in Q2 to be down to negative low single digits. Looking into the second half of the year, we expect normal seasonal spend in sales and marketing or devices, which will cause second half adjusted EBITDA to slightly moderate relative to the first half. Looking at the full year, we expect 2024 European OpEx growth to be in the low single digits when excluding impairment and restructuring charges in 2023.

Speaker Change: On the devices side, we expect margin to decline from negative 5% in Q1 to negative low teens in Q2, which reflects continued expansion and investment in our Roku branded television program.

Speaker Change: We expect to benefit from having implemented multiple operational improvements over the course of the past year and as a result forecast our year over year Opex growth rate in Q2 to be down to negative low single digits.

Speaker Change: Looking into the second half of the year, we expect normal seasonal spend in sales and marketing or devices, which will cause second half adjusted EBITDA to slightly moderate relative to the first half of the year.

Speaker Change: Looking at the full year, we expect 2024 year over year opex growth rate to be in the low single digits, when excluding impairment and restructuring charges in 2023.

Anthony Wood: Looking at the full year, we expect 2024 year-over-year OpEx growth rate to be in the low single digits when excluding impairment and restructuring charges in 2023. We continue to see leverage in our operating model with our third straight quarter of positive Adjusted EBITDA and free cash flow. We will continue to drive operational efficiency. And as Anthony mentioned, we remain confident in our ability to accelerate the growth of platform revenue in 2025 and beyond. With that, let's take questions. Operator?

Dan Jedda: Looking at the full year, we expect 2024 year-over-year OpEx growth rate to be in the low single digits when excluding impairment and restructuring charges in 2023. We continue to see leverage in our operating model with our third straight quarter of positive Adjusted EBITDA and free cash flow. We will continue to drive operational efficiency. And as Anthony mentioned, we remain confident in our ability to accelerate the growth of platform revenue in 2025 and beyond. With that, let's take questions. Operator?

Operator: We continue to see leverage in our operating model with our third straight quarter of positive adjusted EBITDA and free cash flow. We will continue to drive operational efficiency. And as Anthony mentioned, we remain confident in our ability to accelerate the growth of platform revenue in 2025 and beyond. With that, we'll take questions. Operator. Thank you. And as a reminder, to ask a question, simply press star 11 on your telephone and wait for your name to be called. To remove your questions, simply press star 118.

Speaker Change: We continue to see leverage in our operating model with our third straight quarter of positive adjusted EBITDA and free cash flow.

Speaker Change: We will continue to drive operational efficiency.

Speaker Change: And as Anthony mentioned, we remain confident in our ability to accelerate the growth of platform revenue in 2025 and beyond.

Speaker Change: With that let's take questions operator.

Operator: Thank you. As a reminder, to ask a question, simply press star one one on your telephone and wait for your name to be announced. To remove your question, simply press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Corey Carpenter with JP Morgan. Please proceed.

Speaker Change: Thank you Anna Sorry reminder, to ask a question simply press Star one one on your telephone and wait for your name to be announced to remove your question simply press Star One again please.

Speaker Change: Please standby, while we compile the Q&A roster.

Operator: Please stand by while we compile the Q&R office. And our first question comes from the line of Cory Carpenter with J.P. Morgan. Please proceed.

Speaker Change: And our first question comes from the line of Cory Carpenter with Jpmorgan. Please proceed.

Cory Alan Carpenter: Great. Thank you I am hoping you could expand on the drivers of the platform EXL Youre expecting.

Cory Alan Carpenter: Great, thank you. I'm hoping you could expand on the drivers of the platform reExcel you're expecting in 2025 and what you're seeing that gives you confidence. And then, Dan, a quick follow-up for you, just could you elaborate on what's embedded in the two-key revenue guide for the platform segment? Thank you. Hey Cory, this is Anthony.

Cory Carpenter: Great. Thank you. I'm hoping you could expand on the drivers of the platform re-accel you're expecting in 2025, and what you're seeing that gives you confidence in this happening. And then, Dan, a quick follow-up for you. Just could you elaborate on what's embedded in the Q2 revenue guide for the platform segment? Thank you.

Cory Alan Carpenter: And what are you seeing that gives you confidence in the happening.

Cory Alan Carpenter: Dan a quick follow up for you just could you elaborate on what's embedded in the <unk> revenue guide.

Speaker Change: Platform segment. Thank you.

Speaker Change: Hey, Corey this is Anthony.

Anthony Wood: Hey, Corey, this is Anthony. I'll be happy to talk about that. So, for some context, before I start, I'll just start by noting that last year we grew platform revenue to $3 billion. Last year, also, of course, we focused on operational efficiencies. And like I just said, this year, we're directing... I'm directing more of my attention, and my team is directing more of their attention towards accelerating platform revenue growth in 2025. And, there's a lot of opportunity to do that on our platform, but I'll just highlight three key areas, where I see a lot of opportunity, where we are increasing our focus. First is the Roku home screen.

Anthony J. Wood: I'll be happy to talk about that. But for some context, before I start, I'll just start by noting that last year we grew platform revenue to $3 billion. Last year, also, of course, we focused on operational efficiency. And like I just said, this year, I'm directing more of my attention than my team is directing more of their attention towards accelerating platform revenue growth in 2025, and there's a lot of opportunity to do that on our platform. But I'll, I'll just highlight three key areas where I see a lot of opportunity where we are increasing our focus.

Anthony: I'll be happy to talk about that so.

Anthony: So for some context before I start I'll just start by noting that last year, we grew platform revenue to $3 billion.

Anthony: Last year also of course, we are focused on operational efficiencies and like I said this year, we're directing I'm directing more of my attention that my team is correct more of their attention towards accelerating upfront revenue growth in 2025.

Speaker Change: And there's a lot of opportunity to do that on our platform.

Speaker Change: But I will.

Speaker Change: I'll just highlight three key areas.

Speaker Change: Where I see a lot of opportunity where we are.

Speaker Change: Increasing our focus first is the roku home screen.

Anthony J. Wood: First is the Roku home screen. And, you know, by the home screen, I mean, not just, of course, the actual home screen, but the UI, the user experience of your seats when they turn on their TV, and they use it to kind of find something to watch. So the home screen is a big area.

Anthony Wood: You know, by the home screen, I mean, not just, of course, the actual home screen, but the UI, the user experience a viewer sees when they turn on their TV and they use to kind of find something to watch. So the home screen is a big area. Programmatic ad capabilities and also Roku-billed subscriptions. So talk a little bit more about the Roku home screen. You know, every day, the Roku home screen reaches US households with nearly 120 million people. That means every day, households with 120 million people turn on their TV, and they start their viewing experience, their streaming journey on the Roku home screen. And so that home screen, you know, is what a viewer sees before they select an app, and they use that home screen to find something to watch.

Speaker Change: And by the Homescreen I mean, not just of course, the actual Huntsville, but the UI the user experience of your seats when they turn on their TV.

Speaker Change: Used to kind of find something to watch for the home screen.

Speaker Change: It's a big area programmatic AD capabilities and also broken Bill subscriptions.

Anthony J. Wood: Programmatic ad capabilities and also Roku built-in subscriptions. So talk a little bit more about the Roku home screen. You know, every day.

Speaker Change: So talk a little bit more about the roku home screen.

Speaker Change: Every day.

Anthony J. Wood: The Roku home screen reaches U.S. households when there are 120 million people. That means every day, households with 120 million people turn on their TV, and they start their viewing experience their streaming journey on the Roku homescreen. And so that home screen, you know, is what a viewer sees before they select an app, and they use that home screen to find something to watch.

Speaker Change: Broken homescreen reaches U S households, with nearly 120 million people that means everyday households, with 120 million people turn on their TV and they start there.

Speaker Change: Ewing experienced there screaming journey on the rescue homescreen.

Unknown Executive: During that process, they're exposed to promotions, they're exposed to advertising, and they'll see advertising on our home screen. Unknown Executive, Vikram Kesavabhotla, Ross Walthall, Roku Inc. But to give you some examples of the kinds of things we're looking at on the home screen, you know, on the home screen today, there's the premier video ad we call the Marquee Ad. And that ad, traditionally, has been a static ad. We're going to add video to that ad.

Speaker Change: So thats homescreen.

Speaker Change: What have you received before they select a net.

Speaker Change: And they use at home seem to find something to watch during that process. They are exposed to the promotional advertising and also the advertising on our home screen before they select nap and they might they might be selecting an app that doesn't have ads in it. So we have the ability to reach everyone on the platform not just the people not just the viewers.

Anthony Wood: During that process, they're exposed to promotions, they're exposed to advertising, and they'll see advertising on our home screen before they select an app. They might be selecting an app that doesn't actually have ads in it. You know, we have the ability to reach everyone on the platform, not just the people, not just the viewers to select apps with advertising.

Speaker Change: Perhaps with advertising.

Anthony J. Wood: So that'll be the first video ad unit we add to the home. That'll be a big change for us. We're also testing other types of video ad units, looking at other experiences we can add to the home screen. That would be where we could integrate more video advertising. So that's something we're looking at. Another example, this quarter, we launched the NBA Zone in the Roku sports experience. And, you know, the sports experience is a way for viewers to find sports across the platform.

Conrad Grodd: ... but to give you some examples of the kinds of things we're looking at on the home screen. You know, on the home screen today, there's a, the premier video ad we call the Marquee Ad, and that ad traditionally has been a static ad. We're going to add video to that ad, so that'll be the first video ad unit we add to the home screen. That'll be a big change for us. We're also testing other types of video ad units, looking at other experiences we can add to the home screen that would be, where we could integrate more video advertising. So that's something we're looking at. Another example, this quarter, we launched the NBA Zone in the Roku sports experience.

Anthony Wood: ... but to give you some examples of the kinds of things we're looking at on the home screen. You know, on the home screen today, there's a, the premier video ad we call the Marquee Ad, and that ad traditionally has been a static ad. We're going to add video to that ad, so that'll be the first video ad unit we add to the home screen. That'll be a big change for us. We're also testing other types of video ad units, looking at other experiences we can add to the home screen that would be, where we could integrate more video advertising. So that's something we're looking at. Another example, this quarter, we launched the NBA Zone in the Roku sports experience.

Speaker Change: But to give you some examples of.

Speaker Change: The kinds of things, we're looking at on the home screen.

Speaker Change: On the upstream today, there is a premier video abbvie call the market yet.

Speaker Change: <unk> traditionally has been a static ad.

Speaker Change: We're going to add video to that Ed.

Speaker Change: So that will be the first video AD that we add to the home screen and that'll be a big change for us.

Speaker Change: Also testing other types of video AD units looking at other experiences we can add to the home screen.

Speaker Change: We can innovate more video advertising so that's something we're looking at.

Speaker Change: Another example, this quarter, we launched the MBA zone, and the Roku sports experience.

Conrad Grodd: And, you know, when the sports experience is a way for viewers to find sports across the platform, it's a way for us to grow content, both AVOD and SVOD content. It's also a way for us to integrate advertising into that experience. Another example, we just launched, we just rolled out a personalized content row on the home screen. So this is the first time we've ever added content recommendations directly on our home screen. It's a big change for us in terms of the home screen, and, you know, it'll be obviously AI-driven recommendations, but it'll promote both subscriptions and AVOD content in that row. So, you know, there's lots of ways we're working on enhancing the home screen to make it more valuable to viewers, but also increase the monetization on the home screen. So that's the home screen.

Anthony Wood: And, you know, when the sports experience is a way for viewers to find sports across the platform, it's a way for us to grow content, both AVOD and SVOD content. It's also a way for us to integrate advertising into that experience. Another example, we just launched, we just rolled out a personalized content row on the home screen. So this is the first time we've ever added content recommendations directly on our home screen. It's a big change for us in terms of the home screen, and, you know, it'll be obviously AI-driven recommendations, but it'll promote both subscriptions and AVOD content in that row. So, you know, there's lots of ways we're working on enhancing the home screen to make it more valuable to viewers, but also increase the monetization on the home screen. So that's the home screen.

Speaker Change: The sports experience is away from viewers defined sports across the platform as a way for us to grow content, both Avon at as bond content.

Anthony J. Wood: It's a way for us to promote content, both AVOD and SVOD content. It's also a way for us to integrate advertising into that experience. Another example, we just launched, we just rolled out a personalized content row on the home screen. So this is the first time we've ever added content recommendations directly to our home screen.

Speaker Change: No way for us to integrate advertising into that experience.

Speaker Change: Another example, we just launched we just rolled out.

Speaker Change: Personalized content ROE on the home screen.

Speaker Change: So this is the first time that over AD content recommendations directly on our home screen.

Anthony J. Wood: It's a big change for us in terms of the home screen, and it'll be obviously AI-driven recommendations, but it'll promote both subscriptions and ABOT content in that row. So, you know, there are lots of ways we're working on enhancing the home screen to make it more valuable to viewers, but also increase the monetization on them. So that's the home screen.

Speaker Change: It's a big change for us in terms of their homes and Anne.

Speaker Change: Well it'll be obviously, AI driven recommendations, but it will promote both subscription and <unk> content in that row.

Speaker Change: So there's lots of ways, we are working on enhancing the hodgkin's make it more valuable to viewers, but also increased the months based on the home screen.

Speaker Change: So thats the homescreen another area, we're looking at.

Anthony J. Wood: Another area we're looking at increasing our focus on, and I'm spending more time on its programmatic ad capability. So we recently switched our programmatic strategy to be more focused on third-party platforms and expanding our relationships with third-party platforms, including DSPs, expanding what we can offer advertisers. We're building out the relationships.

Conrad Grodd: Another area we're looking at increasing our focus on, and I'm spending more time on, is programmatic ad capabilities. So we recently switched our programmatic strategy to be more focused on third-party platforms and expanding our relationships with third-party platforms, including DSPs, expanding what we can offer advertisers. We're building out the relationships. We're also increasing the expertise in-house and the talent we have in-house related to programmatic advertising. And I think one example of how this will be useful is if you look at The Roku Channel. The Roku Channel in Q1 was the number three app on the Roku platform. You know, I mean, that's pretty impressive. That's the number three app after Netflix and after YouTube. And engagement in The Roku Channel is up 66% year-over-year.

Anthony Wood: Another area we're looking at increasing our focus on, and I'm spending more time on, is programmatic ad capabilities. So we recently switched our programmatic strategy to be more focused on third-party platforms and expanding our relationships with third-party platforms, including DSPs, expanding what we can offer advertisers. We're building out the relationships. We're also increasing the expertise in-house and the talent we have in-house related to programmatic advertising. And I think one example of how this will be useful is if you look at The Roku Channel. The Roku Channel in Q1 was the number three app on the Roku platform. You know, I mean, that's pretty impressive. That's the number three app after Netflix and after YouTube. And engagement in The Roku Channel is up 66% year-over-year.

Speaker Change: Leasing our focus on.

Speaker Change: And I'm spending more time on is programmatic AD capabilities. So we recently switched our programmatic strategy to be more focused on third party platforms and expanding our relationships with third party platforms, including Dst's spanning what we can offer advertisers.

Speaker Change: From building out the relationships. We're also increasing the expertise in house and the talent we have in house programmatic advertising.

Anthony J. Wood: We're also increasing the expertise in-house and the talent we have in-house with programmatic advertising. And I think one example of how this will be useful is if you look at the Roku channel. The Roku channel in Q1 was the number three app on the Roku platform. You know, I mean, that's pretty impressive.

Speaker Change: And I think one example of how this will be useful is if you look at the Roku channel Roku channel in Q1 was the number three app on the Roku platform.

Anthony J. Wood: That's the number-three app after Netflix and after YouTube, and engagement in the Roku channel is up 66% year over year, but there's a lot of opportunity to close the gap between engagement in the Roku channel and the tool race in the Roku channel. Programmatic ad capabilities are one of the ways we intend to do that. And then the third area, another example of an area that we have lots of opportunity to continue to build monetization, is subscription. Now, we've talked about in the past that we had various teams throughout Roku working on subscriptions. We've reorganized them into one team.

Speaker Change: I mean, thats pretty impressed the best number three app after Netflix and after Youtube and.

Speaker Change: And engagement in the Roku channel is up 66% year over year.

Conrad Grodd: But there's a lot of opportunity to close the gap between engagement in The Roku Channel and the fill rates in The Roku Channel, and programmatic ad capabilities are one of the ways we intend to do that. And then the third area... Another third example of an area that we have lots of opportunity to continue to build monetization is subscriptions. I know we've talked about in the past that we had various teams throughout Roku working on subscriptions. We've reorganized them into one team. We've reallocated more resources towards subscriptions. That team now reports directly to me. And they've already come up with a good list of priorities, of ways we can increase our focus on monetization on subscriptions. One area that we're looking at, of course, is Roku Pay, which is our payments and billing service.

Anthony Wood: But there's a lot of opportunity to close the gap between engagement in The Roku Channel and the fill rates in The Roku Channel, and programmatic ad capabilities are one of the ways we intend to do that. And then the third area... Another third example of an area that we have lots of opportunity to continue to build monetization is subscriptions. I know we've talked about in the past that we had various teams throughout Roku working on subscriptions. We've reorganized them into one team. We've reallocated more resources towards subscriptions. That team now reports directly to me. And they've already come up with a good list of priorities, of ways we can increase our focus on monetization on subscriptions. One area that we're looking at, of course, is Roku Pay, which is our payments and billing service.

Speaker Change: Theres a lot of opportunity to close the gap and engagement in the Roku channel and the fill rates and Roku channel programmatic AD capabilities for one of the ways you tend to do that.

Speaker Change: And then the third area another.

Speaker Change: Third example of an area that we are lots of opportunities to continue to build on today's news subscriptions.

Speaker Change: Now we've talked about in the past that we had various teams throughout roku working on subscriptions, we reorganize them into one team.

Anthony J. Wood: We've reallocated more resources towards subscriptions. That team now reports directly to me, and they've already come up with a good list of priorities. Roku Pay, which is our payments and billing service. Roku is very popular, but it can be even more popular.

Speaker Change: We allocated more resources towards subscription that team that reports directly to me.

Speaker Change: And they've already come up with a good list of priorities.

Speaker Change: Increasing our focus on monetization on subscriptions one area that we're looking at of course is broken pay which is our payments and billing service.

Conrad Grodd: Roku Pay is very popular, but it can be even more popular. It's great for viewers. It allows them to sign up for a subscription in a frictionless way, you know, without having to enter their credit card number. And it's great for our business partners because it allows them to reduce friction when a customer is signing up for a subscription. So those are three examples of how we're working on increasing monetization of our platform and monetizing our home screen, programmatic, and subscriptions. And I just think overall, if you just look at the platform advantages we have, we have a brand that viewers love. We have first-party relationships with more than 80 million streaming households. We have deep user engagement, and we're well positioned to continue to reaccelerate platform revenue growth in 2025 and beyond.

Anthony Wood: Roku Pay is very popular, but it can be even more popular. It's great for viewers. It allows them to sign up for a subscription in a frictionless way, you know, without having to enter their credit card number. And it's great for our business partners because it allows them to reduce friction when a customer is signing up for a subscription. So those are three examples of how we're working on increasing monetization of our platform and monetizing our home screen, programmatic, and subscriptions. And I just think overall, if you just look at the platform advantages we have, we have a brand that viewers love. We have first-party relationships with more than 80 million streaming households. We have deep user engagement, and we're well positioned to continue to reaccelerate platform revenue growth in 2025 and beyond.

Speaker Change: <unk> is very popular but it can be even more popular this great for viewers that allows them.

Anthony J. Wood: It's great for viewers. It allows them to reduce friction when a customer is signing up for a subscription. So those are three examples of how we're working on increasing monetization and monetizing our home screen, programmatic, and subscription. And I just think overall, if you just look at the platform advantages we have, we have a brand the viewers love, we have first-party relationships with more than 80 million streaming households, and we have deep user engagement. And we're well positioned to continue to reaccelerate platform revenue growth in 2025 and beyond. So, I'll take the second part of that question.

Speaker Change: To sign up for a subscription in a frictionless way.

Speaker Change: Without having to enter their credit card number and it's great for our business partners because it allows them.

Speaker Change: To reduce friction and let our customers signing up for a subscription.

Speaker Change: So those are three examples of how we're working on increasing monetization of our.

Speaker Change: And monetizing our home screen programmatic and subscriptions.

Speaker Change: And I just think overall if you just look at the platform advantages, we have and the brand the viewers love.

Speaker Change: First party relationships ships with more than $80 million screening households, with deep user engagement.

Speaker Change: And we're well positioned.

Speaker Change: Continue to Reaccelerate platform revenue growth of 25 and beyond.

Speaker Change: And then.

Conrad Grodd: And then, Dan, did you wanna take the-

Anthony Wood: And then, Dan, did you wanna take the-

Speaker Change: And then you want to take the I'll take the second part of that question. Thanks Cory for the question. So let me talk briefly about the change in Q1 to Q2 oriented question on platform revenue in Q2 last year Q1 platform.

Anthony Wood: Yeah, I'll take the second part of that question. Thanks, Corey, for the question. So let me talk briefly about the change in Q1 to Q2 before I answer the question on platform revenue in Q2. So last year, Q1 platform revenue growth rate was -1% due to a weak ad market. So Q1 of this year grew 19%, as it had a relatively easy comp on a year-over-year basis. Platform growth in Q2 last year was +11%, so we went from -1% in Q1 to +11% in Q2, and that was due to streaming services distribution growth rate increasing primarily from increases in both subscriptions and subscription prices. Advertising revenue growth also improved in Q2 relative to Q1 last year, but SSD was the primary growth driver.

Dan Jedda: Yeah, I'll take the second part of that question. Thanks, Corey, for the question. So let me talk briefly about the change in Q1 to Q2 before I answer the question on platform revenue in Q2. So last year, Q1 platform revenue growth rate was -1% due to a weak ad market. So Q1 of this year grew 19%, as it had a relatively easy comp on a year-over-year basis. Platform growth in Q2 last year was +11%, so we went from -1% in Q1 to +11% in Q2, and that was due to streaming services distribution growth rate increasing primarily from increases in both subscriptions and subscription prices. Advertising revenue growth also improved in Q2 relative to Q1 last year, but SSD was the primary growth driver.

Dan Jedda: Thanks, Cory, for the question. So let me talk briefly about the change from Q1 to Q2 before I answer the question on platform revenue in Q2. So last year, Q1 platform revenue growth was negative 1% due to a weak ad market. So Q1 of this year grew 19% as it had a relatively easy comp on a year over year basis. Platform growth in Q2 last year was plus 11%. So we went from negative 1% in Q1 to plus 11% in Q2.

Speaker Change: <unk> growth rate was negative 1% due to a weak weak ad market.

Speaker Change: So Q1 of this year grew 19%.

Speaker Change: As it had a relatively easy comp on a year over year basis.

Speaker Change: Platform growth in Q2 last year was plus 11%. So we went from negative 1% in Q1 to plus 11% in Q2 and that was due to streaming services distribution growth rate, increasing primarily from increases in both subscriptions and subscription prices.

Dan Jedda: And that was due to the streaming services distribution growth rate increasing primarily from increases in both subscriptions and subscription prices. Advertising revenue growth also improved in Q2 relative to Q1 last year, but SSD was the primary growth driver. And so we faced that challenging comp in SSD in Q2 and really for the rest of the year.

Speaker Change: Advertising revenue growth also improved in Q2 relative to Q1 last year, but SSD was the primary growth driver and so we faced a challenging comp in SSD in Q2, and really for the rest of the year.

Anthony Wood: And so we faced that challenging comp in SSD in Q2 and really for the rest of the year. We also had a positive Six of Six Adjustment in Q2 and Q3 for platform revenue last year, adding to the difficult comp. So if you exclude that Six of Six Adjustment in Q2 of last year, our outlook for total revenue growth rate would increase by nearly 200 basis points for Q2 of this year. So again, we did see positive growth rate in advertising in Q1 versus the easier comp of Q1 last year, and our Q2 guide assumes a similar year-over-year growth rate in advertising versus what we exited the year at. So we're seeing momentum there, but the comp is the reason for the sequential decline in growth rate from Q1 to Q2.

Dan Jedda: And so we faced that challenging comp in SSD in Q2 and really for the rest of the year. We also had a positive Six of Six Adjustment in Q2 and Q3 for platform revenue last year, adding to the difficult comp. So if you exclude that Six of Six Adjustment in Q2 of last year, our outlook for total revenue growth rate would increase by nearly 200 basis points for Q2 of this year. So again, we did see positive growth rate in advertising in Q1 versus the easier comp of Q1 last year, and our Q2 guide assumes a similar year-over-year growth rate in advertising versus what we exited the year at. So we're seeing momentum there, but the comp is the reason for the sequential decline in growth rate from Q1 to Q2.

Dan Jedda: We also had a positive 606 adjustment in Q2 and Q3 for platform revenue last year, adding to the difficult comp. So if you exclude that 606 adjustment in Q2 of last year, our outlook for total revenue growth would increase by nearly 200 basis points for Q2 of this year.

Speaker Change: We also had a positive $6 six adjustment in Q2 and Q3.

Speaker Change: Platform revenue last year, adding to the difficult comp. So if you exclude that $6 six adjustment in Q2 of last year, our outlook for total revenue growth rate would increase by nearly 200 basis points.

Speaker Change: For Q2 of this year. So again, we did see positive growth rate in advertising in Q1 versus the easier comp Q1 last year and our Q2 guide assumes a similar year over year growth rate in advertising versus what we exited the year at so were seeing momentum there, but the comp is the reason for the sequential decline in growth rate.

Dan Jedda: So again, we did see positive growth rates in advertising in Q1 versus the easier comp of Q1 last year. And our Q2 guide assumes a similar year over year growth rate in advertising versus what we exited the year at. So we're seeing momentum there, but the comp is the reason for the sequential decline in growth rate from Q1 to Q2.

Speaker Change: From Q1 to Q2 and to answer your question specifically of the 10% growth that we guided to for Q2 I would think our platform growth as very high single digit growth rate inclusive of 606, and if you were to exclude 660 606 adjustments in Q2 last year, we would be in low double digit growth rate.

Dan Jedda: And to answer your question specifically, of the 10% growth that we guided to for Q2, I would think of platform growth as a very high single-digit growth rate, inclusive of 606. And if you were to exclude 606, the 606 adjustment in Q2 last year, we would be in low double-digit growth rate for platform revenue. Cory, does that answer your question? Yes, thank you both. Thank you so much.

Anthony Wood: To answer your question specifically, of the 10% growth that we guided to for Q2, I would think of platform growth as very high single-digit growth rate, inclusive of Six of Six. If you were to exclude Six of Six, the Six of Six adjustment in Q2 of last year, we would be in low double-digit growth rate for Platform Revenue.

Dan Jedda: To answer your question specifically, of the 10% growth that we guided to for Q2, I would think of platform growth as very high single-digit growth rate, inclusive of Six of Six. If you were to exclude Six of Six, the Six of Six adjustment in Q2 of last year, we would be in low double-digit growth rate for Platform Revenue.

Speaker Change: <unk> revenue.

Conrad Grodd: Corey, does that answer your question?

Operator: Corey, does that answer your question?

Speaker Change: Does that answer your question.

Speaker Change: Yes, Thank you Luke.

Vasily Karasyov: Yes. Thank you both.

Cory Carpenter: Yes. Thank you both.

Conrad Grodd: Thank you so much. One moment for our next question, please.

Operator: Thank you so much. One moment for our next question, please. And it comes from the line of Vasily Karasyov with Cannonball Research. Please proceed.

Speaker Change: Thank you so much.

Speaker Change: One moment for our next question please.

Speaker Change: Okay.

Vasily Karasyov: One moment for our next question, and this comes from Vasily Karasyov with Cannonball Research. Please proceed. Thank you. Dan, I would like to follow up on your comments on OPEX. And if you remember, on the last quarterly call, you made the comment about annualizing Q4 operating expenses and applying a growth rate. And then it looks like this quarter, expenses came in lower than we expected.

Operator: ... and it comes from the line of Vasily Karasyov with Cannonball Research. Please proceed.

Speaker Change: He comes from the line of Vasili carrier.

Vasili: With Cannonball research. Please proceed.

Vasily Karasyov: Thank you Dan I would like to follow up on your comments on Opex.

Vasily Karasyov: Thank you. Dan, I would like to follow up on your comments on OpEx. And if you remember, on the last quarter call, you made the comment about annualizing Q4 operating expenses and applying a growth rate. And then it looks like this quarter, expenses came in lower than we expected. So can you help us understand exactly how we should think about this ramp for the remainder of the year, in terms of quarterly progression? So from this $460 this quarter, how it's gonna progress and what the full year, full year, estimate should be at this point, should be what the reasonable estimate should be. And when you say mid-single-digit growth rates, would you, would you please specify what that range is for you? Thank you.

Vasili: And if you remember on the last quarter call you made the comment about Annualizing Q4 operating expenses on applying a growth rate and then.

Speaker Change: It looks like this quarter.

Speaker Change: This came in lower than we expected. So can you help us understand exactly how we should think about this matt.

Dan Jedda: So can you help us understand exactly how we should think about this map for the remainder of the year in terms of quarterly progression? So from this 460, this quarter, how it's going to progress, and what the full-year estimate should be at this point should be what the reasonable estimate should be. Would you please specify what that range is for you?

Speaker Change: For the remainder of the year.

Speaker Change: In terms of quarterly progression. So from this 460 this quarter how has it gone up for grabs.

Speaker Change: Full year.

Vasili: Which should be at this point should be.

Vasili: I assume it should be.

Vasili: When you say mid single digit growth rates.

Vasili: Would you.

Vasili: Could you please specify what.

Vasili: Range is.

Speaker Change: For you. Thank you.

Dan Jedda: Yeah, thanks, Vasily. I will take that. So we ended the year in a good place with our operating expense profile based on all the work we had done throughout the year in 2023. And you see that in our Q1 OPEX. And as I mentioned, in my prepared remarks, we expect full-year OPEX to be in the low single digits from FY23, excluding the impairment and restructuring charges that we had in FY23.

Speaker Change: Yes, Thanks <unk>.

Anthony Wood: Yeah. Thanks, Vasily. I'll take that. So we ended the year in a good place with our operating expense profile, based on all the work we had done throughout the year in 2023, and you see that in our Q1 OpEx. As I mentioned in my prepared remarks, we expect full year OpEx to be in the low single digits from FY 2023, excluding the impairment and restructuring charges that we had in FY 2023. So let me just be clear on that. Our GAAP OpEx in 2023 was $2.3 billion. If you exclude impairment and restructuring, our OpEx would have been $2.0 billion, just a little bit above $2.0 billion in FY 2023. So think about it as...

Dan Jedda: Yeah. Thanks, Vasily. I'll take that. So we ended the year in a good place with our operating expense profile, based on all the work we had done throughout the year in 2023, and you see that in our Q1 OpEx. As I mentioned in my prepared remarks, we expect full year OpEx to be in the low single digits from FY 2023, excluding the impairment and restructuring charges that we had in FY 2023. So let me just be clear on that. Our GAAP OpEx in 2023 was $2.3 billion. If you exclude impairment and restructuring, our OpEx would have been $2.0 billion, just a little bit above $2.0 billion in FY 2023. So think about it as...

Speaker Change: I will take that.

Speaker Change: So we exited the year in a good place with our operating expense profile based on all the work we have done throughout the year and in 2023 and you see that.

Speaker Change: Our Q1, Opex and as I mentioned in my prepared remarks, we expect full year opex to be in the low single digits from FY2023 excluding the impairment and restructuring charges that we had in FY2023 so let me just be clear on that so our GAAP Opex in 2023 was $2 3 billion if you exclude impair.

Dan Jedda: So let me just be clear on that. So our GAAP OPEX in 2023 was $2.3 billion. If you exclude impairment and restructuring, our OPEX would have been $2.0 billion, just a little bit above $2.0 billion in FY23.

Speaker Change: <unk> and restructuring our Opex would have been $2 $8 billion, just a little bit above $2 8 billion in FY2023 so think about it as and I'll be very clear that mid single digit but think about it at low single digits off of that $2 billion is what we'd expect.

Dan Jedda: So think about it as, and I'll be very clear, not mid single digits, but think about it as low single digits off of that $2 billion, which is what we'd expect for full year 2024. That just happens to be down double digits off a gap basis. But the way to look at it is that off our $2 billion OPEX excluding restructuring in 2023, we will likely grow low single digits off that number. We do expect H2 OPEX to be higher than H1. I mentioned that in the prepared remarks, and that's due to the normal seasonality that we see in sales and marketing for devices, and then Q3, Q4 if possible. Again, we'll update that.

Anthony Wood: And I'll be very clear, not mid-single digits, but think about it as low single digits off of that $2 billion, is what we'd expect for full year 2024. That just happens to be down double digits off a GAAP basis. But the way to look at it is off our $2 billion OpEx, excluding restructuring in 2023, we will likely grow low single digits off that number. We do expect H2 OpEx to be higher than H1. I mentioned that in the prepared remarks, and that's due to normal seasonality that we see in sales and marketing for devices.

Dan Jedda: And I'll be very clear, not mid-single digits, but think about it as low single digits off of that $2 billion, is what we'd expect for full year 2024. That just happens to be down double digits off a GAAP basis. But the way to look at it is off our $2 billion OpEx, excluding restructuring in 2023, we will likely grow low single digits off that number. We do expect H2 OpEx to be higher than H1. I mentioned that in the prepared remarks, and that's due to normal seasonality that we see in sales and marketing for devices.

Speaker Change: For full year 2024.

Speaker Change: And to be down double digits off of GAAP basis, but the way to look at it this up our $2 billion opex, excluding restructuring in 2023, we will likely grow low single digits up that number.

Speaker Change: We do expect <unk> to opex to be higher than H, one I mentioned that in the prepared remarks, and that's due to normal seasonality that we see in sales and marketing for devices.

Vasily Karasyov: And then Q3, Q4, if possible?

Speaker Change: And then Q3 Q4 is possible.

Vasily Karasyov: And then Q3, Q4, if possible?

Speaker Change: Again, we'll update that.

Anthony Wood: Again, like, we'll update that. I've given you a very clear guidance for overall OpEx. We'll update Q3 and Q4 once we close on Q2, but again, think of it low single digits, off that $2 billion.

Dan Jedda: Again, like, we'll update that. I've given you a very clear guidance for overall OpEx. We'll update Q3 and Q4 once we close on Q2, but again, think of it low single digits, off that $2 billion.

Dan Jedda: I've given you very clear guidance for overall OpEx. We'll update Q3 and Q4 once we close on Q2. But again, think of it as low single digits off that $2 billion. Thank you so much.

Speaker Change: Giving you a very clear guidance for overall Opex all up all up eight Q3 and Q4 once we close on Q2, but again think of it low single digits.

Speaker Change: Of that $2 billion.

Vasily Karasyov: Okay. Thank you so much.

Speaker Change: Okay. Thank you so much.

Speaker Change: Thank you.

Operator: Thank you. One moment-

Anthony Wood: A lot of that, I just wanna add, like, a lot of that timing depends on how sales and marketing ramps in Q3 and into holiday and Q4, which is why I'm not providing specific guidance, but we do have a very good view for full year.

Dan Jedda: A lot of that, I just wanna add, like, a lot of that timing depends on how sales and marketing ramps in Q3 and into holiday and Q4, which is why I'm not providing specific guidance, but we do have a very good view for full year.

Steven Lee Cahall: Thank you. A lot of that. A lot of that timing depends on how sales and marketing ramps up in q3 and into holiday and q4, which is why I'm not providing specific guidance, but we do have a very good view for full year. That makes sense. One moment for our next question, which comes from the line of Steven Cahall with Wells Fargo. Please proceed.

Speaker Change: A lot of that I, just wanted to add a lot of that timing depends on how sales and marketing ramps in Q3 and into holiday in Q4, which is why I'm not providing specific guidance, but we do have a very good view for full year.

Speaker Change: Okay makes sense. Thank you.

Vasily Karasyov: Okay. Makes sense. Thank you.

Speaker Change: One moment for our next question.

Operator: One moment for our next question. Comes from the line of Steven Cahall with Wells Fargo. Please proceed.

Speaker Change: Comes from the line of Steven <unk> with Wells Fargo. Please proceed.

Dan Jedda: Thank you. So first, on device margins, I was just wondering if you could elaborate on some of the sequential change you're talking about from Q1 to Q2. Is that mix or channel partners or anything else that takes it from the pretty good down five in Q1 to the low teens, a little weaker in Q2? And with the seasonally higher marketing spend in the second half of the year, is there anything that also is reflected in device margin being weaker in the back half, relatedly?

Steven: Thank you. So first on device margins I was just wondering if you could elaborate on some of the sequential change you are talking about from Q1 to Q2 is that mix or channel partners or anything else that takes it from the pretty good down five in Q1 to that low teens, a little weaker in Q2 and with the seasonally higher marketing spend.

Steven Cahall: Thank you. So first on device margins, I was just wondering if you could elaborate on some of the sequential change you're talking about from Q1 to Q2. Is that mix or channel partners, or anything else that takes it from the pretty good down 5 in Q1 to that low teens, a little weaker in Q2? And with the seasonally higher marketing spend in the second half of the year, is there anything that also is reflected in device margin being weaker in the back half, relatedly? And then secondly, Anthony, just on Roku Pay, it seems like it's a really big focus for monetization and growth. I think you said it's really popular.

Steven: In the second half of the year is there anything that also is reflected in device margin being weaker in the back half Relatedly and then secondly, Anthony just on Roku pay it seems like it's a really big focus for monetization of growth. I think you said, it's really popular any sense of what percentage of your streaming households use roku pay and how we think about what the ARPA.

Dan Jedda: And then secondly, Anthony, just on Roku Pay, it seems like it's a really big focus for monetization and growth. I think you said it was really popular. Any sense of what percentage of your streaming households use Roku pay, and how we think about what the ARPU uplift is when you've got that? Thank you. Yeah, I'll take the device gross margin. So again, Q1 device gross margin was negative 5%, which was perfectly flat if you exclude the $10 million positive service operator licensing catch-up in Q1 of last year.

Steven Cahall: Any sense of what percentage of your streaming households use Roku Pay, and how we think about what the ARPU uplift is when you've got that? Thank you.

Steven: Uplift is when you've got that thank you.

Anthony Wood: I think that ended. Yeah, I'll take the device gross margin. So again, Q1 device gross margin was negative 5%, which was basically flat if you exclude the $10 million positive service operator licensing catch-up in Q1 of last year. In terms of, like, the near term and the change from Q1 to Q2, it really is reflective of the ramp-up in our Roku-branded devices. And again, that's a positive. We are continuing to ramp that up. It is. We're far more distributed now. We're in 2023. I'm sure Mustafa can talk on that, but we see that as positive, and we would expect those margins to be in the Q2 ballpark going forward.

Dan Jedda: I think that ended. Yeah, I'll take the device gross margin. So again, Q1 device gross margin was negative 5%, which was basically flat if you exclude the $10 million positive service operator licensing catch-up in Q1 of last year. In terms of, like, the near term and the change from Q1 to Q2, it really is reflective of the ramp-up in our Roku-branded devices. And again, that's a positive. We are continuing to ramp that up. It is. We're far more distributed now. We're in 2023. I'm sure Mustafa can talk on that, but we see that as positive, and we would expect those margins to be in the Q2 ballpark going forward.

Anthony: Yes, I'll take I'll take the device gross margin. So again Q1 device gross margin was negative 5%.

Anthony: Probably flat if you exclude the $10 million positive service operator licensing catch up in Q1 of last year.

Dan Jedda: In terms of the near term, and they change from Q1 to Q2, it really is reflective of the ramp up in our Roku branded devices. And again, that's a positive. We are continuing to wrap that up. It is we're far more distributed now. We're in 2023. I'm sure Mustafa can talk about that.

Anthony: In terms of like the near term and the change from Q1 to Q2. It really is reflective of the ramp up in our in our Roku branded.

Anthony: Devices and again, that's a positive we are continuing to ramp that up it is we're far more distributed now we're in 2023 I'm sure. Mr. Alpha can talk on that but we see that as a positive and we would expect those margins to be in the Q2 ballpark going forward again as.

Dan Jedda: But we see that as a positive, and we would expect those margins to be in the Q2 ballpark going forward. Again, as we grow and scale this program, we will improve our cost structure within devices. And over time, those margins will get better relative to where we are now.

Anthony Wood: Again, as we grow and scale this program, we will improve our cost structure within devices, and over time, those margins will get better, relative to where we are now. But again, we are in the ramp-up stage of Roku-branded TVs, and so for the near term, as we ramp that program up, I would expect to see margins, you know, similar to Q2. Now, in terms of Roku Pay, you know, I don't think we've broken out the percentage of streaming households that use it. I'll just say that it's the primary way that we drive subscriptions on our platform is through having viewers sign up to a subscription service with the ease of using Roku Pay.

Dan Jedda: Again, as we grow and scale this program, we will improve our cost structure within devices, and over time, those margins will get better, relative to where we are now. But again, we are in the ramp-up stage of Roku-branded TVs, and so for the near term, as we ramp that program up, I would expect to see margins, you know, similar to Q2.

Steven: We grow and scale. This program, we will improve our cost structure within devices and over time, those margins will get better relative.

Steven: Relative to where we are now but again, we are in the ramp up stage of Roku branded Tvs and so for the near term as we ramp that program up I would expect to see margins similar to Q2.

Anthony J. Wood: But again, we are in the ramp-up stage of Roku branded TVs. And so for the near term, as we ramp that program up, I would expect to see margins similar to Q2. Yeah, in terms of Roku Pay, I don't think we've broken out the percentage of streaming households that use it. I'll just say that it's the primary way that we drive subscriptions on our platform through having viewers sign up for a subscription service with the ease of using RokuPay. And a lot of the way we plan and we have improved RokuPay adoption on the platform is, you know, things like integrating SVOD content So, for example, like I just mentioned, we're adding a content row, a recommendation of content, a row of recommended content at the top of our home screen.

Anthony Wood: Now, in terms of Roku Pay, you know, I don't think we've broken out the percentage of streaming households that use it. I'll just say that it's the primary way that we drive subscriptions on our platform is through having viewers sign up to a subscription service with the ease of using Roku Pay. And a lot of, a lot of the way we plan and we have improved Roku Pay adoption on the platform is, you know, things like, integrating SVOD content more throughout the recommendation engine. So for example, like I mentioned, just mentioned, we're adding just rolled out a content row, a recommendation, a content, a row.

Speaker Change: Yeah and in terms of Roku pay.

Steven: We've broken out assuming households to use it I'll just say that.

Steven: The primary way that we drive subscriptions on our platform is through.

Steven: Having viewers sign up to a subscription service with the ease of using rope to pay at a lot of a lot of the way. We we plan and we have improved broker pay adoption on our platform is.

Anthony Wood: And a lot of, a lot of the way we plan and we have improved Roku Pay adoption on the platform is, you know, things like, integrating SVOD content more throughout the recommendation engine. So for example, like I mentioned, just mentioned, we're adding just rolled out a content row, a recommendation, a content, a row.

Steven: Things like integrating <unk> content more throughout the recommendation engine. So for example, the Buckeye Mitch just mentioned we are adding up.

Steven: Just rolled out the content wrote a recommendation of content.

Steven: A row of recommended content at the top of our home screen that will include recommendations of <unk> content, both entitled Untitled desktop content, meaning <unk> content that you have a subscription for which will increase engagement, which will reduce churn as well as <unk> content that you don't have a subscription forwards with few bandwidth sign up get a free trial of sign up using.

Conrad Grodd: ... of recommended content at the top of our home screen. That'll include recommendations of SVOD content, both entitled and untitled SVOD content, meaning SVOD content that you have a subscription for, which will increase engagement, which will reduce churn, as well as SVOD content that you don't have a subscription for, which you then would sign up, you know, get a free trial and sign up using Roku Pay. But we also so integrating SVOD throughout the platform more, but also the user experience of how easy it is to sign up with Roku Pay. Also, to technicalities of running a large-scale billing platform, things like passive cancellations. You know, there's just a lot of operational focus on improving the numbers in Roku Pay.

Anthony Wood: ... of recommended content at the top of our home screen. That'll include recommendations of SVOD content, both entitled and untitled SVOD content, meaning SVOD content that you have a subscription for, which will increase engagement, which will reduce churn, as well as SVOD content that you don't have a subscription for, which you then would sign up, you know, get a free trial and sign up using Roku Pay. But we also so integrating SVOD throughout the platform more, but also the user experience of how easy it is to sign up with Roku Pay. Also, to technicalities of running a large-scale billing platform, things like passive cancellations. You know, there's just a lot of operational focus on improving the numbers in Roku Pay. And so, you know, it's a big business, and it's -- and there's still lots of opportunities to continue to improve it.

Anthony J. Wood: That'll include recommendations of SVOD content, both entitled and unentitled SVOD content, meaning SVOD content that you have a subscription for, which will increase engagement, which will reduce churn, as well as SVOD content that you don't have a subscription for, which you then would sign up for, you know, get a free trial and sign up using RokuPay. But we also, so integrating SVOD throughout the platform more, but also the user experience of how easy it is to sign up with RokuPay.

Steven: Okay.

Steven: But we also sort of integrating <unk> throughout the platform more but also the user experience of how easy it is to sign up with Roku pay also.

Anthony J. Wood: Also, the technicalities of running a large-scale billing platform, things like passive cancellations, you know, there's just a lot of operational focus on improving the numbers in RokuPay. And so, you know, it's a big business, and it's, it's, it's, and there's still lots of opportunities to continue to improve it. Thanks.

Steven: <unk> of running a large scale billing platform things like pass the cancellations Theres just a lot of operational focus on improving the numbers that are up you pay it so.

Conrad Grodd: And so, you know, it's a big business, and it's -- and there's still lots of opportunities to continue to improve it.

Steven: It's a big business and it's.

Steven: And there is still lots of opportunities to improve it.

Steven: Thanks.

Anthony Wood: Thanks.

Steven Cahall: Thanks.

Ralph Edward Schackart: Thank you. One moment for our next question, and it comes from the line between Ralph Schackart and William Blair.

Operator: Thank you. One moment for our next question, please. It comes from the line of Ralph Schackart with William Blair. Please proceed.

Speaker Change: Thank you one moment for our next question. Please.

Speaker Change: And he comes from the line of Ralph <unk> with William Blair. Please proceed.

Ralph Schackart: Good afternoon. Thanks for taking the question. Dan, just a question on ARPU. You know, it did increase sequentially, so, just kind of curious, you know, how we should think about that trend line going forward, particularly with, you know, some of the monetization efforts that Anthony highlighted. And then just maybe as a follow-up, maybe bigger picture, you know, a couple quarters now of, higher levels of EBITDA and free cash flow. Just kind of thinking or give some perspective, if you could, how you're thinking about, just philosophically, about these levels of sustained profitability. Thank you.

Ralph: Hi, good afternoon. Thanks for taking the question Dan just a question on <unk>.

Ralph Edward Schackart: Please proceed. Good afternoon. Thanks for taking the questions. Dan, just a question on ARPU. It did increase sequentially. So I'm just kind of curious, you know, how we should think about that trend line going forward, particularly with, you know, some of the monetization efforts that Anthony highlighted. And then maybe, as a follow-up, maybe a bigger picture, you know, a couple quarters now of higher levels of EBITDA and free cash flow, just kind of thinking, or give some perspective, if you could, how you're thinking about just philosophically about these levels of sustained profitability. Thank you. Yeah, okay, so I'll take the ARPU question first.

Ralph: The increase sequentially.

Ralph: Just kind of curious how we should think about that trend line going forward, particularly with some of the monetization efforts that Anthony highlighted.

Speaker Change: And then just maybe as a follow up maybe bigger picture a couple of quarters now of higher levels of EBITDA and free cash flow just kind of thinking.

Ralph: Give some perspective, how you're thinking about just philosophically about these levels of sustained profitability.

Ralph: Okay.

Anthony Wood: Yeah. Okay, so I'll, I'll take the ARPU question first. We were flat year on year in ARPU, and that's, of course, mixing out as to more international than US, where we're in our scale and engage phase. We are starting to monetize in areas like Mexico and continue to monetize in areas like Canada, UK, and Germany. But, essentially, a lot of our international growth does have a lower ARPU, so we do mix out. I will say, what we do see, which is positive, is one, you know, if I were to just look at US in isolation, we, of course, look at it in multiple ways. And on a trailing twelve-month basis, US ARPU was up, year on year, and when we mix in international, it becomes flat for total company.

Dan Jedda: Yeah. Okay, so I'll, I'll take the ARPU question first. We were flat year on year in ARPU, and that's, of course, mixing out as to more international than US, where we're in our scale and engage phase. We are starting to monetize in areas like Mexico and continue to monetize in areas like Canada, UK, and Germany. But, essentially, a lot of our international growth does have a lower ARPU, so we do mix out. I will say, what we do see, which is positive, is one, you know, if I were to just look at US in isolation, we, of course, look at it in multiple ways. And on a trailing twelve-month basis, US ARPU was up, year on year, and when we mix in international, it becomes flat for total company.

Speaker Change: Yes, Okay. So I'll take the <unk> question first.

Dan Jedda: We were flat year-on-year in ARPU, and that's, of course, mixing out to more international than U.S., where we're in our scale and engage phase. We are starting to monetize in areas like Mexico and continuing to monetize in areas like Canada, the U.K., and Germany. But essentially, a lot of our international growth does have a lower ARPU, so we do mix out. I will say what we do see, which is positive, is one, if I were to just look at the U.S. in isolation, we, of course, look at it in multiple ways.

Ralph: We were flat year on year in <unk> and Thats of course <unk>.

Ralph: Axing out is two more international than U S, where we're in our scale and engage phase we are starting to monetize in areas like Mexico and continue to monetize things like Canada, UK, and Germany, but essentially a lot of our international growth does have a lower arpus. So we do mix out I will say, what we do see.

Ralph: <unk>, which is positive as one.

Ralph: If I were to just look at U S. In isolation, we of course look at it in multiple ways.

Dan Jedda: And on a trailing 12-month basis, U.S. ARPU was up year-on-year, and when we mix in international, it becomes flat for total companies. So that is a positive for us that we are improving ARPU on a trailing 12-month basis. We also look at it on a quarterly basis, and that also was positive in the U.S., looking at the most recent quarter, which is positive. So I like the trends I see in terms of on a mixed-adjusted basis in ARPU, but when we mix things out, the ARPU does tend to be flat, just given the growth that we're seeing for actives internationally, which, again, is a good thing as we Ultimately, we will monetize international traffic. We are monetizing pieces of it, but we'll continue to monetize it, and that should improve international ARPU over time. This is Anthony.

Ralph: On a trailing 12 month basis U S <unk> was up year.

Ralph: Year on year, and when we mix in international it becomes flat for total company. So that as a positive for us that we are improving our two on a trailing 12 month basis. So we also look at it on a quarterly basis that also was positive.

Anthony Wood: So that is a positive for us, that we are improving ARPU on a trailing twelve-month basis. So we also look at it on a quarterly basis. That also is positive, in the US, looking at the most recent quarter, which is a positive. So, you know, I like the trends I see in terms of on a mixed-adjusted basis in ARPU, but when we mix things out, the ARPU does tend to, you know, be flat, just given the growth that we're seeing, for actives, international. Which again, is a good thing as we continue to scale, and grow engagement, internationally. Ultimately, we will monetize international. We are monetizing pieces of it, but we'll continue to monetize it, and that should improve international ARPU over time.

Dan Jedda: So that is a positive for us, that we are improving ARPU on a trailing twelve-month basis. So we also look at it on a quarterly basis. That also is positive, in the US, looking at the most recent quarter, which is a positive. So, you know, I like the trends I see in terms of on a mixed-adjusted basis in ARPU, but when we mix things out, the ARPU does tend to, you know, be flat, just given the growth that we're seeing, for actives, international. Which again, is a good thing as we continue to scale, and grow engagement, internationally. Ultimately, we will monetize international. We are monetizing pieces of it, but we'll continue to monetize it, and that should improve international ARPU over time.

Ralph: In the U S.

Ralph: Looking at the most recent quarter, which is a positive so I like the trends I see in terms of on a mix adjusted basis. It <unk> the only mixed things out.

Ralph: <unk> does tend to.

Ralph: Be flat.

Ralph: Just given the growth that we're seeing for active international which again is a good thing as we continued to scale.

Ralph: And grow engagement internationally ultimately, we will monetize international we are monetizing pieces of it but we'll continue to monetize it and that should improve international <unk>.

Anthony J. Wood: Over time.

Anthony J. Wood: I'll just comment that, you know, we're seeing great progress with our international growth plans. For example, in Mexico, we've now achieved a 40% market share for TVs. 40% of TVs sold in Mexico are now Roku TVs, which is a great achievement for us.

Conrad Grodd: And this is Anthony. I'll just, I'll just comment that, you know, we're seeing great progress with our international, growth plans. You know, for example, in Mexico, we've now achieved 40% market share for TVs. 40% of TVs sold in Mexico are now Roku TVs, which is a great achievement for us. And we're also starting to ramp up monetization. I mean, it's still early days internationally, but we are starting to make progress with, for example, launching the Roku Channel in Mexico and things like that.

Anthony Wood: And this is Anthony. I'll just, I'll just comment that, you know, we're seeing great progress with our international, growth plans. You know, for example, in Mexico, we've now achieved 40% market share for TVs. 40% of TVs sold in Mexico are now Roku TVs, which is a great achievement for us. And we're also starting to ramp up monetization. I mean, it's still early days internationally, but we are starting to make progress with, for example, launching the Roku Channel in Mexico and things like that.

Ralph: This is Anthony I'll, just I'll just comment that we're seeing great progress with our international.

Ralph: Growth plans for example in Mexico.

Ralph: We've now achieved 40% market share for Tvs, 40% of TV Solar Mexico, Roku, Tvs, which is a great achievement for us.

Anthony J. Wood: And we're also starting to ramp up monetization. I mean, it's still early days internationally, but we are starting to make progress with, for example, launching the Roku channel in Mexico and things like that. And I'll just take the second part of that question, Ralph, on EBITDA and free cash flows. So, you know, we feel very good about EBITDA. We've basically had our third straight quarter of positive adjusted EBITDA, and we've guided to a positive adjusted EBITDA of $30 million for Q1. So, four quarters inclusive of the guide.

Anthony: So starting to ramp up monetization I mean, it's still early days internationally, but we are starting to make progress with for example, watching the Roku channel in Mexico and things like that.

Speaker Change: And I'll just take the second part of that question, Ralph on EBITDA and free cash flow.

Anthony Wood: I'll just take the second part of that question, Ralph, on EBITDA and free cash flow. So, you know, we feel very good about EBITDA. We've, you know, basically, we have had our third straight quarter of positive Adjusted EBITDA, and we've guided to a positive Adjusted EBITDA of $30 million for Q1, so four quarters inclusive of the guide. I feel very good about EBITDA going forward. We said that, you know, in the letter, and Anthony repeated that, as you know, as we focus on growing the growth rate of platform in FY 2025, we will continue to grow EBITDA and free cash flow.

Dan Jedda: I'll just take the second part of that question, Ralph, on EBITDA and free cash flow. So, you know, we feel very good about EBITDA. We've, you know, basically, we have had our third straight quarter of positive Adjusted EBITDA, and we've guided to a positive Adjusted EBITDA of $30 million for Q1, so four quarters inclusive of the guide. I feel very good about EBITDA going forward. We said that, you know, in the letter, and Anthony repeated that, as you know, as we focus on growing the growth rate of platform in FY 2025, we will continue to grow EBITDA and free cash flow.

Ralph: We feel very good about EBITDA.

Ralph: Basically we have had our third straight quarter of positive adjusted EBITDA and we guided to.

Ralph: Positive adjusted EBITDA of $30 million or Q1, so four quarters inclusive of the guy that I feel very good about what we need going forward.

Dan Jedda: I feel very good about EBITDA going forward. We said that, you know, in the letter, and Anthony repeated that as we focus on growing the growth rate of the platform in FY25, we will continue to grow EBITDA and free cash flow. I will say, I've said it many times, free cash flow EBITDA, adjusted EBITDA, will be a good proxy for free cash flow as we are CapEx Lite and will continue to be CapEx Lite for at least the next year.

Ralph: We said.

Ralph: In that letter and Anthony repeated that is as we focus on growing.

Dan Jedda: The growth rate of our platform in FY 'twenty five we will continue to grow EBITDA and free cash flow I will say.

Anthony Wood: I will say, I've said it many times, free cash flow, EBITDA, adjusted EBITDA will be a good proxy for free cash flow, as we are CapEx light and will continue to be CapEx light for at least the next year. I'm really, really happy with the capital that we have and how we're focusing, you know, CapEx being CapEx light. So adjusted EBITDA will be a great proxy for free cash flow, so we see that growing along with adjusted EBITDA. I will say, one thing that we did do in Q1 was something called a net share settlement, where when we issued our shares via our restricted stock units in Q1, we did offset some of that with net share settlement.

Dan Jedda: I will say, I've said it many times, free cash flow, EBITDA, adjusted EBITDA will be a good proxy for free cash flow, as we are CapEx light and will continue to be CapEx light for at least the next year. I'm really, really happy with the capital that we have and how we're focusing, you know, CapEx being CapEx light. So adjusted EBITDA will be a great proxy for free cash flow, so we see that growing along with adjusted EBITDA. I will say, one thing that we did do in Q1 was something called a net share settlement, where when we issued our shares via our restricted stock units in Q1, we did offset some of that with net share settlement.

Ralph: Many times free cash flow EBITDA adjusted EBITDA will be a good proxy for free cash flow as we are Capex light and we will continue to be Capex light for at least the next year.

Dan Jedda: Really, really happy with the capital that we have and how we're focusing, you know, CapEx being CapEx Lite. So adjusted EBITDA will be a great proxy for free cash flow. So we see that growing along with adjusted EBITDA. I will say one thing that we did in Q1 was something called a net share settlement, where when we issued our shares via our restricted stock units in Q1, we did offset some of that with a net share settlement. So we offset a third of our dilution by essentially issuing less shares and paying the taxes in cash, which had the impact of reducing the dilution impact of the shares issued.

Ralph: Really really happy with the capital that we have and how we're focusing capex being capex light. So adjusted EBITDA will be a great proxy for free cash flow. So we see that growing along with adjusted EBITDA I will say one thing that we did will do in Q1.

Ralph: Was something called the net share settlement, where when we issued our shares.

Dan Jedda: Our restricted stock units in Q1.

Ralph: We did offset some of that with net share settlement. So we offset a third of our dilution by essentially issuing less shares and paying the taxes and cash <unk>.

Anthony Wood: So we offset 1/3 of our dilution by essentially issuing less shares and paying the taxes in cash. That had the impact of reducing the dilution impact of shares issued. That's just one way we've utilized cash, and as we continue to focus on free cash flow and free cash flow per share, that will have a positive impact. I do expect us to continue to do that for the rest of this year, which should offset about 1/3 of the dilution of future issuances.

Dan Jedda: So we offset 1/3 of our dilution by essentially issuing less shares and paying the taxes in cash. That had the impact of reducing the dilution impact of shares issued. That's just one way we've utilized cash, and as we continue to focus on free cash flow and free cash flow per share, that will have a positive impact. I do expect us to continue to do that for the rest of this year, which should offset about 1/3 of the dilution of future issuances.

Ralph: The impact of reducing the dilution impact of shares issued that's just one way we utilized cash and as we continue to focus on free cash flow and free cash flow per share that will have a positive impact.

Dan Jedda: That's just one way we utilize cash. And as we continue to focus on free cash flow and free cash flow per share, that will have a positive impact. I do expect us to continue to do that for the rest of this year, which should offset about a third of the dilution of future issues. Great, it's helpful. Thanks, Anthony.

Ralph: I do expect us to continue to do that for the rest of this year, which should offset.

Dan Jedda: About a third of the of the dilution of future issuances.

Ralph Schackart: Great. It's helpful. Thanks, Anthony. Thanks, Dan.

Speaker Change: That's helpful. Thanks, Anthony Thanks, Dan.

Richard Greenfield: Thank you. One moment for our next question. All right, it comes from the line of Rich Greenfield with Light Chef Barners.

Speaker Change: Thank you one moment for our next question.

Operator: Thank you. One moment for our next question. All right. It comes from the line of Rich Greenfield with LightShed Partners. Please proceed.

Ralph: Alright come from the line of Rich Greenfield with <unk> partners. Please proceed.

Anthony J. Wood: Please proceed. Hi, thanks for taking the question. You know, Anthony, earlier in the call, you touched on this idea of this personalized feed that you've rolled out at the top of Roku. For a long time, Roku was always about apps or, you know, clicking on apps. Unknown Speaker, Fundamentally, what made Transcribed by https://otter.ai, how, you know, con, As you think about this, personalize your feed.

Rich Greenfield: Hi. Thanks for taking the question. You know, Anthony, earlier in the call, you touched on this idea of this personalized feed that you've rolled out at the top of Roku. For a long time, Roku was always about apps or, you know, clicking on apps, and, curious, sort of, fundamentally, what made you take the shift? Because it seems like a pretty big fundamental shift in how, you know, content is sort of surfaced. And as you think about this personalized feed, obviously, as you think about directing the traffic to The Roku Channel, where you sell ads or apps that you could subscribe to, it seems to give you a lot of power to drive revenue.

Richard Greenfield: Hi, Thanks for taking my question Anthony earlier in the call you touched on this idea of this personalized fee that you've rolled out at the top of Roku.

Richard Greenfield: For a long time, Roku was always about apps or clicking on apps.

Richard Greenfield: Curious sort of.

Richard Greenfield: Fundamentally what made you take the shift because it seems like a pretty big fundamental shift in how content is sort of surfaced as you.

Speaker Change: Think about this personalized feed obviously as you think about directing the traffic to the Roku channel, where you sell ads or apps that you could subscribe to it seems to give you a lot of power to drive revenue and I'm trying to think about how the interplay between purely what a user might want to watch.

Richard Greenfield: Obviously, as you think about directing the traffic to the Roku channel where you sell ads or apps that you could subscribe to, it seems to give you a lot of power to drive revenue. And I'm trying to think about the interplay between purely what a user might want to watch next versus how it drives revenue at Roku and how you think about that balance going forward. You know, and sort of just how this evolves for Roku would be really interesting to hear. Thanks. Hey Rich,

Rich Greenfield: I'm trying to think about how the interplay between purely what a user might want to watch next versus how it drives revenue at Roku, and how you think about that balance going forward. You know, and sort of just how this evolves for Roku would be really interesting to hear. Thanks.

Speaker Change: X versus how it drives revenue Roku and how you think about that balance going forward.

Speaker Change: Sort of just how this evolves for roku would be really interesting here. Thanks.

Anthony J. Wood: Yeah. So, you know, there are a few different things to think about that I think about when I think about putting a content row on the home screen. One is our viewers, you know, the fundamental driver of our success has been building a custom-built operating system for television that has, you know, a simple and delightful viewer experience, and we have an iconic home screen that's differentiated and recognizably different than our competitors. So we don't want to, obviously, we don't want to lose that.

Anthony: Hey, rich, yes so.

Conrad Grodd: Hey, Rich. Yeah. So, you know, I think there's a few different things that I think about when I think about putting a content row on the home screen. One is our viewers. You know, the fundamental driver of our success has been building a custom-built operating system for television that has a, you know, a simple and delightful viewer experience. And we have an iconic home screen that's different, differentiated, and recognizably different than our competitors. And so we don't want to- we obviously don't want to lose that, and we're not going to lose that. But also, you know, if you just look at the evolution of what people view on a platform like Roku, it used to be that a lot of things were spread out, a lot of different apps.

Anthony Wood: Hey, Rich. Yeah. So, you know, I think there's a few different things that I think about when I think about putting a content row on the home screen. One is our viewers. You know, the fundamental driver of our success has been building a custom-built operating system for television that has a, you know, a simple and delightful viewer experience. And we have an iconic home screen that's different, differentiated, and recognizably different than our competitors. And so we don't want to- we obviously don't want to lose that, and we're not going to lose that. But also, you know, if you just look at the evolution of what people view on a platform like Roku, it used to be that a lot of things were spread out, a lot of different apps.

Dan Jedda: I think theres a few different things I think that I think about when I think about being a content ROE on the home screen one is our viewers.

Dan Jedda: The fundamental driver of our success has been building a custom built operating system for TV that has.

Speaker Change: A simple and delightful experience and we have an iconic.

Speaker Change: Home screen this different differentiated recognizably different than our competitors. So we don't want to they obviously don't want to lose that and we're not going to lose that.

Anthony J. Wood: We're not going to lose that. But, also, you know, if you just look at the evolution of what people view on a platform like Roku used to be that a lot of things spread out a lot of different apps. Now I say, for example, the number three app on the platform is the Roku Channel. But, you know, but it's not really an app.

Speaker Change: But also if you just look at the evolution of.

Speaker Change: What people view on a platform of growth through it used to be that a lot of things spread out a lot of different apps.

Conrad Grodd: You know, now I say, for example, the number, we said the number 3 app on the platform is The Roku Channel. But, you know, but it's not really an app. I mean, of course, it is an app, but it's also more than an app. It's content that we have. It's FAST content, it's premium subscription content, it's AVOD content. It's content that we've licensed directly, that we have direct distribution deals with, and that we integrate throughout our user experience. One way to access that content is through The Roku Channel app, but you can also access it through the more ways to watch interface on our UI.

Anthony Wood: You know, now I say, for example, the number, we said the number 3 app on the platform is The Roku Channel. But, you know, but it's not really an app. I mean, of course, it is an app, but it's also more than an app. It's content that we have. It's FAST content, it's premium subscription content, it's AVOD content. It's content that we've licensed directly, that we have direct distribution deals with, and that we integrate throughout our user experience. One way to access that content is through The Roku Channel app, but you can also access it through the more ways to watch interface on our UI.

Speaker Change: I would say for example, the number we said the number three app on our platform is the Roku channel.

Richard Greenfield: But.

Dan Jedda: <unk>.

Dan Jedda: But it's not really an app I mean of course it has an app, but it's also more than that its content that we have SaaS content premium subscription content and <unk> content.

Anthony J. Wood: I mean, of course, it is an app, but it's also more than that. It's content that we have. It's fast content, it's pre-use subscription content, it's ABOG content, it's content that we've licensed directly, that we have direct distribution deals with, and that we integrate throughout our user experience. One way to access that content is through the Roku Channel app.

Anthony J. Wood: But you can also access it through the more ways to watch interface on our UI, you can access it through the sports zone, you know, you can access it there's just lots of different ways. And it's one of the fundamental parts of our business model to expose content to viewers and drive engagement with content. While being disciplined about how much we spend on content. So we can do that by integrating it into our UI.

Dan Jedda: Content that we've licensed directly that we have direct distribution deals with <unk>.

Dan Jedda: Integrate throughout our user experience one way to access that content.

Richard Greenfield: Disney broker channel App.

Richard Greenfield: But you can also access it through the more ways to watch interface on our UI you can access it through the sports zone.

Conrad Grodd: You can access it through the sports zone, you know. There are just lots of different ways, and it's one of the fundamental parts of our business model, to expose content to viewers and drive engagement with content while being disciplined about how much we spend for content. And we can do that by integrating it into our UI. So it's important for our viewers to expose that content, and it's super important for our business model to, you know, expose content. So. And then, of course, you know, this year, last year for me, was the year of focusing on operational efficiency. This year I'm focused on driving platform revenue growth. There's tons of opportunity. One of the big ones is just the home screen.

Anthony Wood: You can access it through the sports zone, you know. There are just lots of different ways, and it's one of the fundamental parts of our business model, to expose content to viewers and drive engagement with content while being disciplined about how much we spend for content. And we can do that by integrating it into our UI. So it's important for our viewers to expose that content, and it's super important for our business model to, you know, expose content. So. And then, of course, you know, this year, last year for me, was the year of focusing on operational efficiency. This year I'm focused on driving platform revenue growth. There's tons of opportunity. One of the big ones is just the home screen.

Richard Greenfield: There's just lots of different ways and it's one of the fundamental.

Richard Greenfield: Parts of our business model is to expose content to viewers.

Richard Greenfield: And drive engagement and content.

Anthony J. Wood: While being disciplined about how much we spend for content and we can do that by integrating it into our UI.

Anthony J. Wood: So it's important for our viewers to know that content is super important for our business model, you know, to expose content. And then, of course, this year, last year for me, was the year of focusing on operational efficiencies.

Richard Greenfield: It's important for our viewers both their content is super important for our business model.

Richard Greenfield: <unk>.

Richard Greenfield: It's exposed content so.

Anthony J. Wood: And then of course.

Anthony J. Wood: This year last year for me was the year of focusing on operational efficiencies. This year I'm focused on driving platform revenue growth.

Anthony J. Wood: This year, I'm focused on driving platform revenue growth. There's tons of opportunity. One of the big ones is just the homestead. It's iconic, but it hasn't changed much in a long time.

Richard Greenfield: Tons of opportunity on the big ones is just the <unk> and its iconic but it hasnt changed really in a long time and there's lot of ways to still keep what's made a great but also make it more useful for our viewers and drive revenue. So that's that's sort of a different kind of aspects.

Conrad Grodd: It's iconic, but it hasn't changed really in a long time, and there's a lot of ways to still keep what's made it great, but also make it more useful for our viewers and drive revenue. So that's sort of the different kind of aspects.

Anthony Wood: It's iconic, but it hasn't changed really in a long time, and there's a lot of ways to still keep what's made it great, but also make it more useful for our viewers and drive revenue. So that's sort of the different kind of aspects.

Richard Greenfield: And there are a lot of ways to still keep what's made it great but also make it more useful for our viewers and drive revenue. So that's sort of a different kind of aspect. Maybe ask another way, do you think ultimately it will become a content feed and not an app feed, like in the long term? Well, I don't want to design our home screen on your install, but the home screen. My goal with the home screen is that it will evolve while maintaining its iconic differentiation and while increasing monetization and increasing its usefulness for viewers.

Rich Greenfield: Maybe asked another way, do you think ultimately it becomes a content feed and not an app feed, like long term?

Richard Greenfield: Maybe asked another way do you think ultimately it becomes the content feed and not in App feed like long term.

Conrad Grodd: Well, I don't want to design our home screen, you know, on your install, but the home screen- my goal with the home screen is that it will evolve, while maintaining its iconic differentiation and while increasing monetization and increasing its usefulness for viewers. And a big part of that strategy for that, some of it is content, but it's not-- It's also about what we call experiences. Things like this, you know, the sports experience, you know, which is just, you bring it up a lot because it's just a good example. Like, it's an experience for helping viewers find sports content across the app, across the platform.

Rich: Well I don't want to design our home Scaleup.

Anthony Wood: Well, I don't want to design our home screen, you know, on your install, but the home screen- my goal with the home screen is that it will evolve, while maintaining its iconic differentiation and while increasing monetization and increasing its usefulness for viewers. And a big part of that strategy for that, some of it is content, but it's not-- It's also about what we call experiences. Things like this, you know, the sports experience, you know, which is just, you bring it up a lot because it's just a good example. Like, it's an experience for helping viewers find sports content across the app, across the platform.

Richard Greenfield: On the earnings call, but but.

Richard Greenfield: The home screen by goal with the hopes that it will evolve.

Anthony J. Wood: While maintaining its iconic <unk>.

Brent Jason.

Richard Greenfield: While increasing monetization and increasingly for viewers and a big part of our strategy for that.

Anthony J. Wood: And a big part of that strategy for that, some of its content, but it's not, it's also about what we call experiences, things like this, you know, the sports experience. You know, which is just, we bring it up a lot because it's just a good example, like, of helping viewers find sports content across the app, across the platform. And so I think one of the things we plan to do with the home screen is build more of these types of experiences to make them more useful for viewers and to use them as a way to integrate advertising, promotion, and sponsorship as well. So that's, you know, you might see more of that kind of thing integrated into our home screen in the long term, but no, I don't think it'll ever become just content recommendations. Thanks.

Anthony J. Wood: Some of this content, but it's not it's also about what we call experience so things like the sports experience.

Richard Greenfield: Just to bring it up because it's just a good example is an experienced for helping juress spine sports content across the across the across the platform. So I think one of the things we plan to do with the home space. It's still more of these types of experiences.

Conrad Grodd: And so I think one of the things we plan to do with the home screen is build more of these types of experiences, to make them more useful to viewers and to use them as a way to integrate advertising, promotion, and sponsorship as well. So that's, you know, you might see more of that kind of thing integrated into our home screen long term. But, but no, I don't think it'll ever become just content recommendations.

Anthony Wood: And so I think one of the things we plan to do with the home screen is build more of these types of experiences, to make them more useful to viewers and to use them as a way to integrate advertising, promotion, and sponsorship as well. So that's, you know, you might see more of that kind of thing integrated into our home screen long term. But, but no, I don't think it'll ever become just content recommendations.

Richard Greenfield: To make them more useful viewers at to use those ways to integrate advertising or promotion to the sponsorship as well. So that you might see more of that kind of thing integrate into our home screen long term, but.

Richard Greenfield: But no I don't think it will ever become Jeff content recommendations.

Speaker Change: Thank you.

Rich Greenfield: Thank you.

Speaker Change: Thank you one moment for our next question.

Operator: Thank you. One moment for our next question. It comes from the line of Ruplu Bhattacharya with Bank of America. Please proceed.

Operator: Thank you. One moment for our next question, and it comes from the line of Ruplu Bhattacharya with Bank of America. Please proceed. Hi, thanks for taking my questions. I have two, one on active account growth and one on programmatic revenues. On active account growth, do you see more growth in the US? Or do you think that more growth now comes from international markets?

Speaker Change: And he comes from the line of <unk> <unk> with Bank of America. Please proceed.

Ruplu Bhattacharya: Hi. Thanks for taking my questions. I have two, one on active account growth and one on programmatic revenues. On active account growth, do you see more growth in the US, or do you think that more growth now comes from international markets? And, you know, with respect to the Walmart Vizio deal, do you see any impact from that, and do you see yourself maybe potentially gaining share at other retailers? And then the second question on programmatic. Charlie, I wanted to ask you, what innings are we in with respect to opening up to other DSPs? And have you seen a meaningful uptick in the fill rates and any impact on CPMs? Thank you.

Speaker Change: Hi, Thanks for taking my questions I have two one on active account growth and one on programmatic revenues.

Anthony J. Wood: On active account growth do you see more growth in the U S or do you think that more growth now comes from international markets.

Ruplu Bhattacharya: And, you know, with respect to the Walmart Vizio deal, do you see any impact from that, and do you see yourself maybe potentially gaining share at other retailers? And then the second question on programmatic, Charlie, I wanted to ask you, what innings are we in with respect to opening up to other DSPs? And have you seen a meaningful uptick in the fill rate and any impact on CPI?

Anthony J. Wood: And with respect to the Walmart Brasil deal do you see any impact from that and do you see yourself, maybe potentially gaining share at other retailers and then the second question on programmatic Charlie I wanted to ask you what innings are we in with respect to opening up to other DSP and have you seen a meaningful uptick in the.

Anthony J. Wood: Fill rates and any impact on CPM.

Speaker Change: Thank you.

Anthony J. Wood: Right. So this is Anthony.

Conrad Grodd: Right. Cool. So this is Anthony, and I actually see, I think, three questions in that question. So I'll take the first one, turn it over to Mustafa to talk about Walmart, Vizio, and then Charlie, to talk about DSPs. I mean, in terms of active account growth, you know, we're seeing growth. I mean, obviously, there's more future growth outside the US than inside the US, because there's just a lot more humans with broadband households that watch TV outside the US than inside the US. And certainly, we're seeing stronger growth at this point outside the US than inside the US. But there's still, I believe, you know, plenty of room to continue to grow active accounts inside the US, for a while.

Anthony Wood: Right. Cool. So this is Anthony, and I actually see, I think, three questions in that question. So I'll take the first one, turn it over to Mustafa to talk about Walmart, Vizio, and then Charlie, to talk about DSPs. I mean, in terms of active account growth, you know, we're seeing growth. I mean, obviously, there's more future growth outside the US than inside the US, because there's just a lot more humans with broadband households that watch TV outside the US than inside the US. And certainly, we're seeing stronger growth at this point outside the US than inside the US. But there's still, I believe, you know, plenty of room to continue to grow active accounts inside the US, for a while.

Anthony J. Wood: Right, cool. So this is Anthony, and I actually see, think three questions in that question. So I'll take the first part, turn it over to Mustafa to talk about Walmart and Vizio, and then Charlie to talk about DSPs. I mean, in terms of active account growth, you know, we're seeing growth. I mean, obviously, more future growth outside the U.S. because there are just a lot more humans with broadband households to watch TV outside the U.S. than inside the U.S.

Anthony J. Wood: I actually see.

Anthony J. Wood: I think three questions in that question.

Speaker Change: So I'll take the first part.

Anthony J. Wood: Turning it over to staff, it and talk about Walmart.

Speaker Change: <unk>.

Richard Greenfield: And then Charlie to talk about <unk> I mean in terms of active account growth.

Richard Greenfield: We're seeing growth.

Speaker Change: Obviously.

Richard Greenfield: Its more future growth are firmly opens because theres just a lot more humans with broadband households, the watch TV outside the U S than inside the U S and certainly we're seeing stronger growth at this point outside U S and inside the U S but.

Anthony J. Wood: Certainly, we're seeing stronger growth at this point outside the U.S. than inside the U.S., but there's still, I believe, you know, plenty of room to continue to grow active accounts inside the U.S. for a while, and, of course, there's tons and tons of room to continue to grow active accounts outside the U.S., and we're making good progress there. I mean, we, you know, our approach outside the U.S. has been to focus on a small number of specific countries. Unknown Executive, Vikram Kesavabhotla, Ross Walthall, Ross Walthall, Unknown Executive, countries in the Americas, like Mexico, like the US, Mexico, Canada, still, and then, and then outside the Americas, primarily the UK.

Speaker Change: But there is still I believe.

Speaker Change: Plenty of room to continue to grow active accounts inside the U S for for a while and of course, there is tons and tons of room to continue to grow exit paths outside the U S.

Conrad Grodd: Of course, there's tons and tons of room to continue to grow active accounts outside the US, which we're making good progress there. I mean, we. You know, our approach outside the US has been to focus on a small number of specific countries, which we call focus countries, establish scale in those countries and then add more countries. So, you know, the countries we've been focused on historically are primarily countries in the Americas, like US, Mexico, Canada, Brazil, and then outside the Americas, primarily the UK. And we're seeing great progress in all those countries. You know, and then at some point, we'll add other countries as well. So, I don't know, Mustafa, if you wanna talk...

Anthony Wood: Of course, there's tons and tons of room to continue to grow active accounts outside the US, which we're making good progress there. I mean, we. You know, our approach outside the US has been to focus on a small number of specific countries, which we call focus countries, establish scale in those countries and then add more countries. So, you know, the countries we've been focused on historically are primarily countries in the Americas, like US, Mexico, Canada, Brazil, and then outside the Americas, primarily the UK. And we're seeing great progress in all those countries. You know, and then at some point, we'll add other countries as well. So, I don't know, Mustafa, if you wanna talk...

Anthony J. Wood: Which we're making good progress there.

Speaker Change: Our approach outside the us has been to focus on.

Speaker Change: A small number of.

Anthony J. Wood: Specific countries I think I'll focus countries.

Speaker Change: Established scale in those countries and then add more countries. So the countries. We've been focused on historically are primarily.

Anthony J. Wood: Countries in the Americas, like Mexico, like U S, Mexico, Canada sale and then.

Speaker Change: Outside the Americas, primarily in the U K.

Anthony J. Wood: And we're seeing great progress in all those countries.

Speaker Change: And.

Speaker Change: And then at some point, we'll add other countries as well so.

Speaker Change: I'm going to stop that you wanted.

Conrad Grodd: I don't know if you have anything to add on international or if you just want-

Anthony Wood: I don't know if you have anything to add on international or if you just want-

Speaker Change: You could add on the international or if you go to slide <unk>.

Mustafa Ozgen: No, I think you covered all the important parts of international.

Speaker Change: Walmart lease.

Speaker Change: Awesome.

Speaker Change: Walmart Walmart Vizio.

Conrad Grodd: Walmart Vizio.

Mustafa Ozgen: Walmart VIZIO, sure, higher blue. Look, we've spent the last 15 years building America's number one TV streaming platform and the brand, and our users love Roku and ask for Roku, and many have multiple devices in their homes. We are becoming the platform where they consume their content. So we know what our customers want, and we are always innovating. Our innovation is not just about launching new features, but also bringing down the cost of existing features for customers. So we have a very strong setup here. We are confident in our ability to continue to grow our streaming households. Obviously, we have a great relationship with all of our retail partners, including Walmart, where we are an important part of their shelf space in streaming players, TVs, and smart home categories.

Mustafa Ozgen: And we're seeing great progress in all those countries, you know, and then at some point, we'll add other countries as well. So, I don't know if you have anything to add on the international scene or if you want to respond. No, I think the international will be important to know. [inaudible] Sure, Hi Ruplu. Look, we've spent the last 15 years building America's number one TV streaming platform and brand, and our users love Roku and ask for it. And many have multiple devices in their homes.

Operator: Sure.

Speaker Change: Look we have spent the last 15 years building America's number one TV streaming platform and the brand and our users log broker and ask for Roku and many have multiple devices in their homes.

Mustafa Ozgen: We are becoming the platform where they consume their content, so we know what our customers want, and we are always innovating. Our innovation is not just about launching new features but also bringing down the cost of existing features for our customers. So we have a very strong setup here. We are confident in our ability to continue to grow our streaming household. Obviously, we have a great relationship with all of our retail partners, including Walmart, where we are an important part of their shelf space for streaming players, TVs, and the smart home category.

Speaker Change: Becoming the platform where they consume their content.

Ruplu Bhattacharya: So we know what our customers want.

Speaker Change: We are always innovating.

Ruplu Bhattacharya: Our innovation is not just about launching new features but also brings out of the cost of the existing features for our customers.

Ruplu Bhattacharya: So we havent very strong set up here, we are confident in our ability to continue to grow our streaming households.

Speaker Change: Obviously, we have a great relationship with all of our retail partners, including Walmart, where we are an important part of their shelf space in streaming players TV.

Speaker Change: Smart home categories.

Mustafa Ozgen: Additionally, we have a wide retail distribution in and outside of the U.S., and we continue to expand and also deepen it with select retail partners. So overall, we have a robust strategy to continue to grow our streaming households with our devices, which include streaming players. Our licensed Roku TV program and our Roku branded TVs that we launched last year. And on the Roku branded TVs, we are expanding the product lineup with the recent introduction of higher performance TVs with the Roku Pro Series, which complements the existing SelectM plus series. And we're also expanding its distribution. They are now available at Best Buy, Costco, Amazon.com, and Walmart.com.

Mustafa Ozgen: Additionally, we have a wide retail distribution in and outside of the US, and we continue to expand it and also deepen it with select retail partners. So overall, we have a robust strategy to continue to grow our streaming households with our devices that includes streaming players, our licensed Roku TV program, and our Roku-branded TVs that we launched last year. And over on the Roku-branded TVs, we are expanding the product lineup with recent introduction of higher performance TVs with the Roku Pro Series, which complement the existing Select Series and Plus Series. And we're also expanding its distribution. They are now available at Best Buy, Costco, Amazon.com, and Walmart.com.

Speaker Change: Additionally, we have a wide retail distribution and then outside of the U S.

Speaker Change: Can expand it and also deepening with select retail partners.

Speaker Change: So overall, we have a robust strategy to continue to grow our streaming household without devices.

Anthony J. Wood: Statements players.

Speaker Change: Our licensed broker television program in our Roku branded Tvs that we launched last year.

Anthony J. Wood: I opened on the Roku branded Tvs.

Anthony J. Wood: We are expanding.

Product lineup with recent introduction of higher performance <unk> with the Roku pro serious.

Speaker Change: Which complement the existing select them plus serious.

Anthony J. Wood: And we're also expanding.

Anthony J. Wood: Its distribution they are now available at best buy.

Anthony J. Wood: Costco, Amazon Dot com and Walmart Dot com.

Anthony J. Wood: So these factors in our strong track record and capacity to innovate, such as the recently announced AI-based picture quality settings. Along with our singular focus on streaming and low-cost hardware that's enabled by our purpose-built TV operating system gives us confidence that we will keep growing our distribution and streaming households. And this is Anthony again.

Speaker Change: So these factors and our strong track record capacity.

Mustafa Ozgen: So these factors and our strong track record and capacity to innovate, such as recently announced AI-based picture quality settings, along with our singular focus on streaming and low-cost hardware that's enabled by our purpose-built TV operating system, gives us confidence that we will keep growing our distribution and streaming households.

Anthony J. Wood: Such as recently announced AI based picture quality settings.

Anthony J. Wood: Along with our singular focus on streaming and low cost hardware. That's enabled by our purpose build TV operating system gives us confidence that we will keep growing our distribution and streaming households.

Anthony J. Wood: So just back, the third part of your question was on DSPs. I'll turn it over to Charlie, but just let me just say that, like I said before, I highlighted three areas where I think there's a lot of potential for us to increase our focus, drive more growth, accelerate growth in 2025 in terms of platform revenue growth, and DSPs are one of the pillars. And, you know, we've changed our strategy a bit there to be much more focused on working with third-party partners, and I would say it's pretty early in that sort of adoption of that new strategy.

Anthony J. Wood: And this is Anthony again, so just back third part of your question was on DSO.

Conrad Grodd: This is Anthony again. So just back, the third part of your question was on DSPs. I'll turn it over to Charlie, but just I'll just say that, like I said before, you know, I highlighted three areas where I think there's a lot of potential for us to increase our focus, drive more growth, accelerate growth in 2025 in terms of platform revenue growth, and DSPs are one of the pillars. You know, we've changed our strategy to a bit there to be much more focused on working with third-party partners. And I would say it's pretty early in that sort of adoption of that new strategy, and there's a lot of room to grow. But we've had some early successes, and we're making good progress.

Anthony Wood: This is Anthony again. So just back, the third part of your question was on DSPs. I'll turn it over to Charlie, but just I'll just say that, like I said before, you know, I highlighted three areas where I think there's a lot of potential for us to increase our focus, drive more growth, accelerate growth in 2025 in terms of platform revenue growth, and DSPs are one of the pillars. You know, we've changed our strategy to a bit there to be much more focused on working with third-party partners. And I would say it's pretty early in that sort of adoption of that new strategy, and there's a lot of room to grow. But we've had some early successes, and we're making good progress.That's at least at the high level to you. I don't know, Charlie, if you wanna expand on that at all?

Anthony: I'll turn it over to Charlie, but just I'll, just say that like I said before.

Anthony J. Wood: I highlighted three areas, where I think theres a lot of potential for us to increase our focus drive more growth accelerate growth in 2025.

Anthony J. Wood: In terms of platform revenue growth and DSP. So one of the one of the pillars and.

Anthony J. Wood: We've changed our strategy.

Speaker Change: A bit there to be much more focused on working with third party partners.

Anthony: I would I would say, it's pretty early in that.

Speaker Change: And that trend and that sort of adoption that new strategy and theres a lot of room to grow but we've had some early successes and we're making good progress.

Charlie Collier: And there's a lot of room to grow. But we've had some early successes, and we're making good progress. That's at least at a high level to you.

Conrad Grodd: That's at least at the high level to you. I don't know, Charlie, if you wanna expand on that at all?

Speaker Change: That's the high level to you I don't know Charlie do you want to expand on that.

Charlie Collier: I don't know, Charlie, if you want to expand on that. I agree. It is early innings, for sure.

Charlie Collier: I agree. Thanks, Ruplu, for the question. It is, it's early innings for sure. I think we're getting to the heart of our lineup. There continues to be a ton of opportunity for us with third-party DSPs, and it's an important priority for all of us. As you know, over the last year or so, we made the strategic changes Anthony talked about, and we've been really focusing on incorporating more third-party DSPs. Now, it is going well, but the expanded access to our platform that I talked about on the last call, we now have over 30 partners. Not just all the names you think of, by the way, our list includes all the notable partners, but also Instacart, Cox Auto, and others you might not immediately have come to mind.

Charlie: Great. Thanks for the question. It's early innings for sure I think we're getting to the heart of our lineup.

Charlie Collier: I think we're getting to the heart of our lineup. There continues to be a ton of opportunity for us with third-party DSPs, and it's an important priority for all of us. As you know, over the last year or so, we made the strategic changes Anthony talked about, and we've been really focusing on incorporating more third-party DSPs. Now, it is going well.

Mustafa Ozgen: There continues to be a ton of opportunity for us with third party DSP and it's an important priority for all of us.

Speaker Change: As you know over the last year or so we made the strategic changes Anthony talked about.

Speaker Change: And we've been really focusing on incorporating more third party DSP is now.

Charlie Collier: But the expanded access to our platform that I talked about on the last call, we now have over 30 partners, not just all the names you think of, by the way. Our list includes all the notable partners, but also Instacart and Coxauto and others you might not immediately have popped to mind. So this expansion is part of our commitment to an open ecosystem, which is central to our growth strategy. And I think this will be a key differentiator for us versus large, closed ecosystems.

Mustafa Ozgen: It is going well, but the expanded access to our platform that I talked about on the last call. We now have over 30 partners not just all the names you think by the way. Our list includes all the notable partners, but also in the car and Cox, our auto and others you might not immediately pop to mind. So this expansion is part of our commitment to an open.

Charlie Collier: So this expansion is part of our commitment to an open ecosystem, which is central to our growth strategy. And I think, this will be a key differentiator for us versus large, closed ecosystems. As I've shared before, we're committed to flexibility and meeting advertisers where they prefer to transact, and this strategic pivot has been paying real dividends. In Q1, we continued to see increase in programmatic ad spend as a percentage of total video investment on our platform, and that underscores, for me, the strength and appeal of our offering. You know, our strategy isn't just about expanding the platforms we operate on; it's also about deepening these relationships. So we're making it easier for advertisers to execute campaigns programmatically with us and easier for them to use Roku inventory.

Mustafa Ozgen: <unk> system, which is central to our growth strategy and I think this will be a key differentiator for us versus large closed ecosystems.

Charlie Collier: As I've shared before, we're committed to flexibility and meeting advertisers where they prefer to transact. And this strategic pivot has been paying real dividends. In the first quarter, we continued to see an increase in programmatic ad spend as a percentage of total video investment on our platform. And that underscores, for me, the strength and appeal of our offering. This strategy isn't just about expanding the platforms we operate on; it's also about deepening these relationships.

Mustafa Ozgen: As I've shared before we're committed to flexibility and meeting advertisers, where they prefer to transact and district strategic pivot, it's been paying real dividends in the first quarter. We continued to see increase in programmatic AD spend as a percentage of total video investment on our platform.

Mustafa Ozgen: And that underscores for me the strength and appeal of our offering our strategy isn't just about expanding the platforms. We operate on its also about deepening these relationships. So we're making it easier for advertisers to execute campaigns programmatically with us and easier for them to use roku.

Charlie Collier: So we're making it easier for advertisers to execute campaigns programmatically with us and easier for them to use Roku inventory. So as we continue to deploy our programmatic strategies, Ruplu, I really expect us to continue the early traction we're seeing and prove that this is really just as good as it was, as you said earlier. Thank you so much for all the details and congratulations on the quarter.

Charlie Collier: So as we continue to deploy our programmatic strategies, Ruplu, I really expect us to continue the early traction we're seeing and prove that this is really just, as you said, early innings.

Anthony J. Wood: Tori so as we continue to deploy our programmatic strategies ruble.

Anthony: Really expect us to continue the early traction we're seeing and prove that this is really just as you said early innings.

Charlie: Thank you so much for all the details and congrats on the quarter.

Mustafa Ozgen: Thank you so much for all the details, and congrats on the quarter.

Ruplu Bhattacharya: Thank you so much for all the details, and congrats on the quarter.

Charlie: Thank you.

Ruplu Bhattacharya: Thank you. One moment for our next question, and he comes from the line of Jason Bazinet with Citi, please proceed. I just had a quick question about the home screen. I'm always surprised when I turn on my Roku how much sort of white space there is there. My question is, is your sense that this sort of move from static to more video-centric is sort of a key unlock to monetize it?

Charlie Collier: Thank you.

Operator: Thank you. One moment for our next question. It comes from the line of Jason Bazinet with Citi. Please proceed.

Speaker Change: Thank you we'll move on.

Operator: Thank you. One moment for our next question. It comes from the line of Jason Bazinet with Citi. Please proceed.

Speaker Change: For our next question.

Anthony J. Wood: And he comes from the line of Jason Bazinet with Citi. Please proceed.

Anthony J. Wood: I just had a quick question on the home screen.

Jason Bazinet: I just had a quick question on the home screen. I'm always surprised when I turn on my Roku, how much sort of white space there is there. My question is, is your sense that this sort of move from static to more video-centric is sort of the key unlock to monetize it? Or do you think there's just something about marketers that don't quite understand since it's a pretty unique sort of piece of inventory to buy? In other words, do you think that this shift to video is sort of the key enabler, or could it take more time? Thanks.

Charlie: I'm always surprised when I turn on my Roku, how much sort of white space there is there.

Charlie: My question is is your sense that this sort of move from static to more video centric is sort of a key unlock to monetize it.

Ruplu Bhattacharya: Or do you think there's just something about marketers that they don't quite understand since it's a pretty unique sort of piece of inventory to buy? In other words, do you think that this shift to video is sort of a key enabler? Or could it take more?

Speaker Change: Do you think there's just something about marketers.

Charlie Collier: That don't quite understand since it's a pretty unique sort of piece of inventory to buy.

Speaker Change: In other words do you think that this shift to video.

Speaker Change: The key enabler.

Charlie Collier: It take more time.

Speaker Change: Yes.

Charlie Collier: Okay.

Conrad Grodd: This is Anthony. I think that, you know, to be frank, like, there's lots of areas we spend our time and our resources on, and our home screen has served us well. There is a lot of white space as part of what makes it iconic and different, and recognizable, you know, as part of our brand. But I would say the big change is that we just identified it as like, okay, we're gonna prioritize resources to work on the home screen. There's just a lot of untapped opportunities there. Video ad's just one of the areas of opportunity. I mean, integrating some content, like the recommendation row that we're adding.

Charlie Collier: <unk>.

Anthony Wood: This is Anthony. I think that, you know, to be frank, like, there's lots of areas we spend our time and our resources on, and our home screen has served us well. There is a lot of white space as part of what makes it iconic and different, and recognizable, you know, as part of our brand. But I would say the big change is that we just identified it as like, okay, we're gonna prioritize resources to work on the home screen. There's just a lot of untapped opportunities there. Video ad's just one of the areas of opportunity. I mean, integrating some content, like the recommendation row that we're adding.

Jason Boisvert Bazinet: Unknown Speaker. This is Anthony. I think that, you know, to be frank, there's lots of areas we spend our time and our resources on, and our home screen has served us well. There is a lot of white space as part of what makes it iconic and different and recognizable, you know, as part of our brand. But I would say the big change is that we just identified it like, OK, we're going to we're going to prioritize resources to work on the home screen. There's just a lot of untapped opportunity there. But you ask just one of the areas of opportunity.

Speaker Change: This is Anthony I think I think that.

Charlie Collier: To see frankly, there's lots of areas, we spend our time and our resources on them.

Charlie Collier: Our homescreen has served US well there is a lot of white space as part of what makes the iconic different recognizable as part of our brand.

Charlie Collier: Uh huh.

Charlie Collier: But I'd say the big change is that you just identified it like okay. We're going to we're going to we're going to prioritize resources to work on the home screen Theres, just a lot of untapped opportunity there, but you asked is one of the one of the areas of opportunity I mean, integrating some form some content like the wreck.

Anthony J. Wood: I mean, integrating some forms, some content, like the recommendation road that we're adding. But there are just lots of areas on the home screen in terms of the potential to both increase engaging UI experiences with our viewers and more deeply integrate promotion and advertising in ways that work for marketers as well as our viewers. And so.

Charlie Collier: Recommendation road that we're adding.

Conrad Grodd: But there's just lots of, there's just lots of areas on the home screen in terms of the potential to both increase engaging UI experiences with our viewers and more deeply integrating promotion and advertising in ways that work for marketers as well as our viewers. And so, no, I think the video, adding a video ad to the home screen is gonna be very popular. Well, my prediction is it'll be very popular with advertisers. You know, it's like I said, it's households with 140 million people in them, daily reach before they enter an app. Many of those apps don't have video advertising, so it'll, I think it'll be popular. And like I said, we're also looking at other ways to integrate video into our home screen.

Anthony Wood: But there's just lots of, there's just lots of areas on the home screen in terms of the potential to both increase engaging UI experiences with our viewers and more deeply integrating promotion and advertising in ways that work for marketers as well as our viewers. And so, no, I think the video, adding a video ad to the home screen is gonna be very popular. Well, my prediction is it'll be very popular with advertisers. You know, it's like I said, it's households with 140 million people in them, daily reach before they enter an app. Many of those apps don't have video advertising, so it'll, I think it'll be popular. And like I said, we're also looking at other ways to integrate video into our home screen. But, the video is not the only thing we're looking at.

Charlie Collier: But there are just lots of business lots of areas on the home screen in terms of the potential to both increase engaging experiences with our viewers.

Charlie Collier: And more deeply integrating promotion and advertising in ways that work for marketers as well as our viewers and so.

Anthony J. Wood: No, I think adding a video ad to the home screen is going to be very popular. Well, my prediction: it'll be very popular with advertisers. You know, like I said, it's households with 140 million people in them daily before they enter an app.

Charlie Collier: No I think the video, though adding a video ads that altria is going to be very popular might predict there'll be very popular with advertisers.

Charlie Collier: Like I said as households, with 140 million people in their daily rates before they enter in App. Many of those apps don't have video advertising so.

Anthony J. Wood: Many of those apps don't have video advertising, so I think it'll be popular. And like I said, we're also looking at other ways to integrate video into our homestream, but video is not the only thing we're looking at. And then I'd like to know, Charlie, do you think marketers understand the value of PR advertising on the home screen? Look, you know, it's really about distinction. We do so much well, but as Anthony said, when you've got nearly 120 million people, that's a huge distinction in and of itself.

Speaker Change: I think it will be popular.

Speaker Change: And like I said, we're also looking at other ways to integrate video answer homescreen, but.

Conrad Grodd: But, the video is not the only thing we're looking at.

Speaker Change: Nobody is not that's not the only thing we're looking at.

Speaker Change: That's probably the marketers understand the value of your advertising do.

Jason Bazinet: That's great.

Conrad Grodd: Then, Charlie, do you think TV marketers understand the value of video advertising on the home screen?

Anthony Wood: Then, Charlie, do you think TV marketers understand the value of video advertising on the home screen?

Charlie Collier: And there's a whole class of viewers today who purchase ad-free streaming subscriptions, for example, and they do so so they see fewer ads. And so it's worth noting, and you should remember that the one thing all viewers see when they turn on their TV is our home screen. And Roku's ads, as you note, are elegantly placed in an uncluttered ad environment.

Charlie Collier: Oh, I do. I, thanks for the question, Jason. Look, you know, it's, it's really about distinction. We do so much well, but as Anthony said, when you got nearly 120 million people, that's huge distinction in and of itself. And there's a whole class of viewers today who purchase ad-free streaming subscriptions, for example, and they do so, so they see fewer ads. And so it's worth noting, and you should remember that the one thing all viewers see when they turn on their TV is our home screen. Roku's ads, as you note, are neatly placed in an uncluttered ad environment. We literally have the privilege of engaging viewers before they choose what to watch, before audiences splinter into apps. If you think about the problem for marketers, a lot of it is attention fragmentation. Our home screen is a huge opportunity, because it really differentiates us.

Ruplu Bhattacharya: Thanks for the question Jason.

Ruplu Bhattacharya: It's really about distinction, we do so much well, but as Anthony said when you've got nearly 120 million people. That's a huge distinction that in of itself and there is a whole class of viewers today crude purchase that feed AD free streaming subscriptions for example.

Speaker Change: So they see fewer ads and so it's worth noting.

Speaker Change: Remember that the one thing all viewers seat when they turn on their Tvs are home screen and brokerage adds as you note are placed in an uncluttered AD environment. So we literally have the privilege of engaging viewers before they choose what to watch before audience splinter into apps and if you think about the problem for marketers a lot of it is attention fragment.

Jason Bazinet: Right.

Charlie Collier: Roku's ads, as you note, are neatly placed in an uncluttered ad environment. We literally have the privilege of engaging viewers before they choose what to watch, before audiences splinter into apps. If you think about the problem for marketers, a lot of it is attention fragmentation.

Jason Boisvert Bazinet: So we literally have the privilege of engaging viewers before they choose what to watch, before audiences splinter into apps. And if you think about the problem for marketers, a lot of it is attention fragmentation. So our home screen is a huge opportunity because it really differentiates. That's great. Thank you. Thank you. One moment for our next question, and it comes from the line of Barton Crockett with Gross and Blatt.

Speaker Change: Patients so our home screen is a huge opportunity because it really differentiation.

Jason Bazinet: Right.

Charlie Collier: Our home screen is a huge opportunity, because it really differentiates us.

Jason Bazinet: That's great. Thank you.

Speaker Change: That's great. Thank you.

Speaker Change: Thank you one moment for our next question. Please.

Operator: Thank you. One moment for our next question, please. And it comes from the line of Barton Crockett with Rosenblatt. Please proceed.

Ruplu Bhattacharya: And he comes from the line of Barton Crockett with <unk>. Please proceed.

Barton Crockett: Okay. Thanks for taking my question. I was curious about sports, which, you know, has been a theme you've been touching on a lot. And, in particular, I mean, there's been some media reports, perhaps, that Roku, you know, could be looking at buying some sports rights directly. I think there was something recently about the Major League Baseball Sunday lead off that was on Peacock. And you guys have done something at small scale, I think it was Formula E. I'm just wondering, kind of just structurally, is buying sports rights directly at a meaningful level, does that make sense for Roku? You know, it would seem to be questionable given that, you know, anyone streaming sports is kind of want to have a deal with you to go through you, I would imagine.

Barton Crockett: Please. Okay, thanks for taking my question. I was curious about sports, has been a theme we've been touching on a lot and in particular I mean there's been some media reports perhaps that Roku you know could be looking at buying some sports rights directly I think there was something recently about the Major League Baseball Sunday leadoff that was on Peacock you guys have done something at small scale I think was Formula E. I'm just wondering kind of just structurally, buying sports rights directly, at a meaningful level.

Barton Crockett: Okay. Thanks for taking my question.

Barton Crockett: I was curious about about sports, which has been a theme you've been touching on a lot and.

In particular, I mean, there's been some media reports, perhaps that roku.

Speaker Change: It could be looking at buying some sports rights directly I think I saw something recently about the major League Baseball Sunday.

Lead off that wasn't on Peacock.

Anthony J. Wood: And you guys have done something as small scale articulates formula E.

Anthony J. Wood: I'm just wondering kind of just structurally is buying sports rights to rapidly.

Barton Crockett: Does that make sense for Roku? You know, it would seem to be questionable given that, you know, anyone streaming sports is kind of going to want to have a deal with you to go through you, I would imagine. So if you could talk about how you see sports rights deals in the role for Roku direct or, you know, through kind of a third party kind of intermediary. Yeah, this is Anthony. You know, I would say the primary so first of all, we don't comment on rumors, speculation, that sort of thing.

Anthony J. Wood: At a meaningful level does that makes sense for roku it would seem to be questionable given that anyone streaming sports just kind of want to have a deal with you to go through you I would imagine so if you could talk about how you see sports rights deals and the wall for Roku direct or through kind of third party kind of intermediaries.

Barton Crockett: So if you could talk through how you see sports rights deals and the role for Roku direct or, you know, through kind of third-party kind of intermediaries.

Conrad Grodd: Yeah, this is Anthony. You know, I would say the primary... So first of all, we don't comment on rumors, speculation, that sort of thing, so I can't comment on that particular rumor. But, just your bigger question, like, how, how do we think about sports? I mean, you know, I think the primary way I think about sports is that we're a platform, we're a platform, and there's, there's many different streaming services that we distribute on our platform. Many of them have sports, and so, and sports in particular is incredibly fragmented, and, viewers just have no idea how to find the game they wanna watch or, you know, their favorite team or...

Anthony: Yes. This is Anthony.

Anthony Wood: Yeah, this is Anthony. You know, I would say the primary... So first of all, we don't comment on rumors, speculation, that sort of thing, so I can't comment on that particular rumor. But, just your bigger question, like, how, how do we think about sports? I mean, you know, I think the primary way I think about sports is that we're a platform, we're a platform, and there's, there's many different streaming services that we distribute on our platform. Many of them have sports, and so, and sports in particular is incredibly fragmented, and, viewers just have no idea how to find the game they wanna watch or, you know, their favorite team or...

Anthony J. Wood: Say the primary so first of all we don't comment on <unk>.

Anthony J. Wood: Speculation that sort of thing so I can't comment on that particularly remember but.

Anthony J. Wood: So I can't comment on that particular rumor. But just your bigger question, like, well, how do we think about sports? I mean, you know, I think the primary way I think about sports is that we're a platform, We're a platform and there's many different streaming services that we distribute on our platform. Many of them have sports. And so and sports in particular is incredibly fragmented, and because viewers just have no idea how to find the game they want to watch or you know their favorite team or so so the primary opportunity for us is to help our viewers to be the place they go to help them find find a sporting event to watch and now That doesn't mean we also have, you know, we also have content that we monitor, that we license directly, we have, we have rev share content, we have direct license content, we have original, So, you know, we've done, you know, we've done, like you mentioned, Formula E, I mean, the way I would think about Roku Originals is, you know, a budget of content, budget for content that we either produce or or, you know, have more more exclusive relationships around.

Charlie Collier: Your bigger question like how do we think about sports I mean.

Anthony J. Wood: The primary way I think about sports is that we're a platform.

Anthony J. Wood: We're a platform and there's many different streaming services that we distributed on our platform.

Anthony J. Wood: Many of them have sports.

Anthony J. Wood: So sports in particular is incredibly fragmented.

Anthony J. Wood: Viewers just have no idea how to.

Anthony J. Wood: The game they want to watch their favorite team or.

Conrad Grodd: So, the primary opportunity for us is to help our viewers to be the place they go to, help them find a sporting event to watch. And, now, that doesn't mean. We also have, you know, we also have content that we license directly. We have registered content, we have direct license content, we have Roku originals. So, you know, and we've done, like you mentioned, Formula E. I mean, the way we think about Roku originals is, you know, a budget of content, budget for content that we either produce or, you know, have more exclusive relationships around. So, and we do things like the Rich Eisen Show, you know, which is a Roku original that we integrate into the sports zone.

Anthony Wood: So, the primary opportunity for us is to help our viewers to be the place they go to, help them find a sporting event to watch. And, now, that doesn't mean. We also have, you know, we also have content that we license directly. We have registered content, we have direct license content, we have Roku originals. So, you know, and we've done, like you mentioned, Formula E. I mean, the way we think about Roku originals is, you know, a budget of content, budget for content that we either produce or, you know, have more exclusive relationships around. So, and we do things like the Rich Eisen Show, you know, which is a Roku original that we integrate into the sports zone.

Anthony J. Wood: So the primary opportunity for us is to help our viewers to be the place. They go to help them find find a sporting event.

Charlie Collier: Watch.

Charlie Collier: Now.

Charlie Collier: That doesn't mean, we also have we also have content that we monitor that we license directly we are currently a rev share content, we have direct license content, we have broker to originals. So.

Charlie Collier: We've done we've done that you mentioned from a <unk> I mean, the way I would think about Roku original.

Barton Crockett: Budgeted content budget for content that we either produce or.

Jason Boisvert Bazinet: Or.

Barton Crockett: I have more exclusive relationships around so.

Anthony J. Wood: So and there's been things like the Rich Eisen Show, you know, which is a Roku original that we integrate into the sports zone. We also look at sponsorships for the SportsZone. We also think about, well, is that a place where we can put video ads?

Barton Crockett: We did things like the <unk> show, which.

Barton Crockett: Which is the roku original that we integrate into the into the sport zone.

Conrad Grodd: We also look at sponsorships for the sports zone. We also look, think about, well, is that a place where we could put video ads? I mean, so for us, it's really the experience of helping viewers find content. We also do licensed content and produce content, and so that also could end up in our sports zone. But the primary goal is to be just the go-to place for a viewer to find what to watch and then to monetize that whole experience when they figure out what they want to watch. And then at the end of watching something that we have licensed directly, then, you know, we monetize that as well.

Anthony Wood: We also look at sponsorships for the sports zone. We also look, think about, well, is that a place where we could put video ads? I mean, so for us, it's really the experience of helping viewers find content. We also do licensed content and produce content, and so that also could end up in our sports zone. But the primary goal is to be just the go-to place for a viewer to find what to watch and then to monetize that whole experience when they figure out what they want to watch. And then at the end of watching something that we have licensed directly, then, you know, we monetize that as well.

Barton Crockett: We also look at sponsorships from the sports side and we also think about what it is that a place where we get the video ads I mean, so for US it's really the experience of helping your spine content.

Anthony J. Wood: I mean, for us, it's really the experience of helping viewers find content. We also do license content and produce content, and so that could end up in our SportsZone.

Barton Crockett: Also do licensed content and produce content and so that also could end up in our sports zone, but but the primary goal is to be just the go to place for <unk> to final to Washington.

Barton Crockett: But the primary goal is to be just the go-to place for a viewer to find what to watch and then to monetize that whole experience when they figure out what they want. And at the end of watching something that we have licensed directly, then, you know, we monetize that as well. Okay, all right, that's great. And then I could squeeze in just one more.

Barton Crockett: To monetize that whole experience when they figure out what they want to watch.

Barton Crockett: And it may end up watching something that we have licensed directly that we monetize that as well.

Barton Crockett: Okay. All right. That, that's great. And then if I, if I could squeeze in just one other. I was just curious if you could give us an update on what you're seeing in terms of the endemic kind of media marketing partners, at this point. It's been a headwind historically, but that business is in some ways kind of normalizing and in some ways still going through some structural issues with some of the media companies, and the cost cutting at the streaming services. So what are you seeing in that kind of market right now for you guys?

Speaker Change: Okay, Alright, that's great and then if I if I could squeeze in just one other.

Barton Crockett: I was just curious if you could give us an update on what youre seeing in terms of the endemic kind of media marketing partners.

Charlie Collier: Curious if you could give us an update on what you're seeing in terms of the endemic kind of media marketing partner. At this point, it's been a headwind historically, but that business is, in some ways, kind of normalizing and, in some ways, still going through some structural issues with some of the media companies and cost cutting at the streaming services. So what are you seeing in that kind of market right now for you guys? Yeah, Charlie will take that.

Barton Crockett: At this point, it's been a headwind historically, but that business is somebody is kind of normalizing in that somebody is still going through some structural issues with some of the media companies and the cost cutting at the streaming services. So what are you seeing in that kind of market right now for you guys.

Conrad Grodd: Yeah, Charlie will take that.

Anthony Wood: Yeah, Charlie will take that.

Barton Crockett: Yes, Charlie Charlie will take that great. Thanks.

Charlie Collier: Great. Thanks, Barton. Look, we have a large M&E business, and good news is we're really good at it, and Roku is really the best place for marketers to build audiences. So simply put, we build content companies, businesses. Now I think you used the right word. Obviously, the market has been normalizing versus what it used to be, and so our efforts have been to monetize our home screen in the way Anthony described, and we're now focused on all verticals as we continue to diversify and successfully sell inventory that was previously utilized nearly exclusively by M&E advertisers. So we're also growing engagement and monetization by creating new experiences on the home screen. Actually, Anthony mentioned The Rich Eisen Show.

Anthony: Thanks Barton.

Barton Crockett: Great. Thanks, Barton. Look, we have a large M&E business, and the good news is we're really good at it. And Roku is really the best place for marketers to build audiences. So, simply put, we build content companies. Businesses. Now, I think you used the right word.

Anthony: We have a large <unk> business and good news is we're really good at it and Roku is really the best place for marketers to build audiences so simply put.

Anthony J. Wood: We build content companies businesses.

Charlie Collier: Obviously, the market has been normalizing versus what it used to be, and so our efforts have been to monetize our home screen in the way Anthony described. And we're now focused on all verticals as we continue to diversify and successfully sell inventory that was previously utilized nearly exclusively by M&E advertisers. We're also growing engagement and monetization by creating new experiences on the home screen. In fact, Anthony mentioned the Rich Eisen Show.

Anthony J. Wood: I think you used the right word obviously the market has been normalizing versus what it used to be and so our efforts have been to monetize our home screen.

Anthony J. Wood: Hey, Anthony described and we're now focused on all verticals as we continue to diversify.

Anthony J. Wood: Successfully sell inventory that was previously utilized nearly exclusively by many advertisers. So we're also growing engagement and monetization by creating new experiences on the home screen actually.

Anthony J. Wood: Anthony mentioned there rich is on the shelf. So a notable example worth sharing is BMW sponsorship of the rich and show which included.

Charlie Collier: So a notable example worth sharing is BMW sponsorship of The Rich Eisen Show, which included a Marquee Ad on our home screen, as well as custom advertising within Roku City. Of course, they sponsored his live show. By the way, he's at the draft this week for us and doing live shows from there. And then our partnership with BMW is growing, so our home screen is being deployed beyond M&E, and for the client, we're enhancing brand visibility and engagement.

Charlie Collier: So a notable example worth sharing is BMW's sponsorship of the Rich Eisen Show, which included a marquee ad on our home screen, as well as custom advertising within Roku City. And, of course, they sponsored his live show.

Anthony J. Wood: <unk> on our home screen as well as custom advertising within Roku city or state sponsored his live show by the way is that the draft. This week for us and doing a lot of shows from there and then.

Charlie Collier: By the way, he's at the draft this week for us and doing live shows from there. And then our partnership with BMW is growing. So our home screen is being deployed beyond M&E. And for the client, we're enhancing brand visibility and engagement. Okay, thank you.

Anthony J. Wood: Our partnership with BMW is growing so our home screen is being deployed beyond M&A and for the client, we're enhancing brand visibility and engagement.

Speaker Change: Okay. Thank you.

Vasily Karasyov: Okay. Thank you.

Barton Crockett: Okay. Thank you.

Operator: Thank you. One moment for our next question, and it comes from the line of Mark Mahaney with Evercore ISI. Please proceed. This is Ian Peterson on behalf of Mark.

Operator: Thank you. One moment for our next question, please. It comes from the line of Mark Mahaney with Evercore ISI. Please proceed.

Speaker Change: Thank you.

Speaker Change: For our next question please.

Anthony J. Wood: And it comes from the line of Mark Mahaney with Evercore ISI. Please proceed.

Ian Peterson: This is Ian Peterson on for Mark. Thank you for taking my questions. First question, The Roku Channel streaming hours accelerated for the second quarter in a row. Can you help us walk through some of the drivers of that? Where within The Roku Channel or what areas of content are you seeing the strong engagement trends from? And maybe to follow up on the earlier programmatic question, how should we think about their trajectory and mix of video ad revenue coming from third party programmatic demand going forward? And last question on advertising. Anything you can call out on the macro front on quarter-to-date advertising trends you are seeing heading into the upfront season, and maybe progress on some of the SMB advertiser initiatives you've laid out in attracting them to the Roku platform? Thanks.

Anthony J. Wood: This is Ian Peterson on for Mark. Thank you for taking my questions first question, the Roku channel streaming hours accelerated for the second quarter in a row.

Mark Mahaney: Thank you for taking my questions. First question, Roku channel streaming hours accelerated for the second quarter in a row. Can you help us walk through some of the drivers of that?

Speaker Change: Can you help us walk through some of the drivers are of that.

Anthony J. Wood: <unk>.

Anthony J. Wood: Within the Roku channel or what areas of content are you seeing the strong.

Barton Crockett: Engagement trends from.

Speaker Change: And maybe to follow up on the earlier programmatic question, how should we think about the trajectory and mix of video AD revenue coming from third party.

Barton Crockett: <unk> demand going forward and last question on advertising anything you can call out on the macro front on quarter to date advertising trends youre seeing heading into the upfront season, and maybe progress on some of the SMB advertiser initiatives, you've laid out and attracting them to the roku platform.

Ian Peterson: Where within the Roku channel or what areas of content are you seeing the strong engagement trends from? And maybe to follow up on the earlier programmatic question, how should we think about their trajectory and mix of video ad revenue coming from third-party programmatic demand going forward? And last question on advertising; anything you can call out on the macro front on quarter-to-date advertising trends you are seeing heading into the upfront season, and maybe progress on some of the SMB advertiser initiatives you've laid out in attracting them to the Roku platform. Thanks. Hey, and this is Anthony. Thanks for all the questions. I think we'll start with Charlie.

Charlie Collier: Hey, Ian this is Anthony thanks for all the questions.

Conrad Grodd: Hey, Ian, this is Anthony. Thanks for all the questions. Let's see. I think we'll start with Charlie.

Anthony Wood: Hey, Ian, this is Anthony. Thanks for all the questions. Let's see. I think we'll start with Charlie.

Charlie Collier: Let's see I think we'll start with Charlie Thank you got it.

Charlie Collier: You got it. primarily AVOD, live TV, and premium subscriptions. And we deliver them via viewing experiences that are integrated throughout our platform. As I mentioned earlier, we've made some strategic programming choices for the Roku Channel. Its strong growth in the first quarter made it the number three app on our platform by both reach and engagement. And at the program type this past weekend, for example, the Spiderwick Chronicles opening weekend debut made it the most watched on-demand title on the Roku Channel with the highest reach and most hours streamed of any title in the history of the Roku Channel for its opening weekend.

Charlie Collier: You got it. Thanks, Ian. You asked about PRC. The Roku Channel offers three types of content, primarily, you know, AVOD, live TV, and premium subscriptions, and we deliver them via viewing experiences that are integrated throughout our platform. As I mentioned earlier, you know, we've made some strategic programming choices for The Roku Channel. It's strong growth in Q1 made it the number 3 app on our platform by both reach and engagement. And as the program type this past weekend, for example, The Spiderwick Chronicles opening weekend debut made it the most watched on-demand title on The Roku Channel, with the highest reach and most hours streamed of any title in the history of The Roku Channel for its opening weekend.

Charlie Collier: Thanks, Ian you asked about Trc.

Charlie Collier: So it shows there's a tremendous opportunity to engage new audiences with the power of the Roku platform. Other content We've recently also added short form content, launching clips from popular NBC shows like Saturday Night Live and sports. And by servicing this content throughout the Roku platform, including our home screen, we're able to generate additional reach and engagement. I mentioned live TV.

Charlie Collier: The Roku channel offers three types of content, primarily Avon slide PV and premium subscriptions and we deliver them viewing experiences that are integrated throughout our platform.

Charlie Collier: As I mentioned earlier, we've made some strategic programming choices for the Roku channel.

Charlie Collier: <unk> strong growth.

Charlie Collier: In the first quarter made it the number three app on our platform by both reach and engagement and as the program type. This past weekend. For example, the Spiderwick chronicles opening weekend debut made it the most watched on demand title on the Roku channel with the highest reach and most our screen.

Charlie Collier: Of any title in the history of Roku channel for its opening weekend. So.

Charlie Collier: So, it shows there's a tremendous opportunity to engage new audiences with the power of the Roku platform. Other content, we've recently also added short-form content, launching clips from popular NBC shows like Saturday Night Live and sports. And by servicing this content throughout the Roku platform, including our home screen, we're able to generate additional reach and engagement. I mentioned, you know, live TV. We continue to expand our lineup of FAST channels. We recently partnered with the NBA to launch the first-ever NBA FAST channel, and that's exclusively on The Roku Channel. And we now have more than 35 sports-focused live TV channels. So all these examples point to the opportunities for us to serve and delight our audiences with the content they love.

Charlie Collier: It shows there is a tremendous opportunity to engage new audiences with the power of the Roku platform. Other content. We briefly also added short form content launching clips from popular NBC shows like Saturday night live and sports and by servicing this content throughout the roku platform, including our home screen.

Charlie Collier: Able to generate additional reach and engagement.

Charlie Collier: We continue to expand our lineup of fast channels. We recently partnered with the NBA to launch the first ever NBA fast channel, and that's exclusively on the Roku Channel.

Charlie Collier: Mentioned, we had a live TV, we continue to expand our lineup of fast channels. We recently partnered with the NBA to launch the first ever MBA SaaS channel and that's exclusively on the Roku channel and we now have more than 35 sports focused live TV channels. So all of these examples point to the opportunities for us to serve.

Charlie Collier: And we now have more than 35 sports-focused live TV channels. So all these examples point to the opportunities for us to serve and delight our audiences with the content they love. And I'm going to head into the new front next week, and I look forward to sharing more of what's coming on the Roku Channel. DSPs.

Mark Mahaney: Serve and delight, our audiences with the content they love and.

Charlie Collier: And, you know, I'm gonna head into the NewFront next week, and I look forward to sharing more of what's coming at The Roku Channel.

Mark Mahaney: I'm going to head into the new front last week and I look forward to sharing more of what's coming at the broker channel.

Conrad Grodd: Uh, DSPs.

Mark Mahaney:

Ian Peterson: Yes.

Charlie Collier: DSPs. Well, look, I talked a little bit about it before. There is a lot of opportunity for us in third-party DSPs. You know, I mentioned that we expanded our relationships to now over 30 partners. And, you know, while we don't break out the mix, I'm really focused on the re-acceleration of platform revenue, and the DSP focus will play a huge part in that.

Mustafa Ozgen: DSPs. Well, look, I talked a little bit about it before. There is a lot of opportunity for us in third-party DSPs. You know, I mentioned that we expanded our relationships to now over 30 partners. And, you know, while we don't break out the mix, I'm really focused on the re-acceleration of platform revenue, and the DSP focus will play a huge part in that.

Charlie Collier: Well look.

Charlie Collier: Well, look, I talked a little bit about it before. There is a lot of opportunity for us in third-party DSPs. You know, I mentioned that we expanded our relationships to now include over 30 partners. And you know, while we don't break out the mix, I'm really focused on the reacceleration of platform review, and the DSP focus will play a huge part in that. I mean, DSPs. One of the things that will happen with more focus on DSPs is an increased diversity of advertisers.

Anthony: I talked a little bit about it before there is a lot of opportunity for us in third party DSP.

Anthony: <unk> that we expanded our relationships to now over 30 partners and while we don't break out the mix really.

Anthony: <unk> focused on the Reacceleration of platform revenue and <unk>.

Anthony: Focus will play a huge part of that.

Anthony: I mean dft's one of the things that will happen with more focus on DSP users increased diversity of advertisers and I think that will probably help attract more SMB advertisers for sure our farm as well Yeah third question number three no. Yes. So you asked about the small and medium sized businesses for sure that the demand diversification is something we've been focused on for Seth.

Conrad Grodd: I mean, DSPs, one of the things that will happen with the more focus on DSPs is increased diversity of advertisers, and I think, I don't want to try, that'll probably help attract more SMB advertisers-

Anthony Wood: I mean, DSPs, one of the things that will happen with the more focus on DSPs is increased diversity of advertisers, and I think, I don't want to try, that'll probably help attract more SMB advertisers.

Charlie Collier: For sure.

Charlie Collier: Oh, for sure.

Conrad Grodd: - to the platform as well.

Anthony Wood: To the platform as well.

Charlie Collier: Yeah. Yeah. To third-

Anthony Wood: [crosstak] Question number 3.

Conrad Grodd: Question number 3.

Charlie Collier: And I don't think I want to try that. But I'll probably help attract more SMB advertisers. So you asked about small, medium-sized businesses; for sure, demand diversification is something we've been focused on for several quarters, I've talked about for a few quarters in a row, and I answered earlier that we're in the early innings. I really think you're going to see the re-acceleration of platform revenue growth into 2025 and beyond.

Charlie Collier: No, yeah. So yeah, ask about the small, medium-sized businesses, for sure. The demand diversification is something we've, you know, been focused on for several quarters. I've talked about for a few quarters in a row, and I answered earlier that we're in the early innings. I really think you're gonna see the, the re-acceleration of the platform revenue growth into 25 and beyond. And it is both small, medium-sized businesses, and it's also expanding the work we're doing with so many of our existing partners.

Charlie Collier: Every quarter as I've talked about for a few quarters in a row.

Charlie Collier: And I answered earlier that we're in the early innings I really think you're going to see the reacceleration of the platform revenue growth into 'twenty, five and beyond and it is both.

Ian Peterson: And it is both small and medium-sized businesses, and it's also expanding the work we're doing. Got it. Thank you. Thank you. And with that, we conclude our Q&A session. I will turn it back to Anthony Wood for final comments.

Charlie Collier: Small and medium sized businesses and it's also expanding the work we're doing with so many of our existing partners.

Speaker Change: Got it thank you.

Ian Peterson: Got it. Thank you.

Operator: Thank you.

Operator: Thank you. And with that, we conclude our Q&A session. I will turn it back to Anthony Wood for final comments.

Conrad Grodd: Thank you.

Speaker Change: Thank you.

Operator: With that, we conclude our Q&A session. I will turn it back to Anthony Wood for final comments.

Charlie Collier: And with that we conclude our Q&A session I will turn it back to Anthony Wood for final comments.

Charlie Collier: Yeah.

Conrad Grodd: Well, thanks to everyone for joining, and thanks to our employees, customers, and partners, and advertisers.

Speaker Change: Well, thanks to everyone for joining and thanks for our employees customers and partners and advertisers.

Anthony Wood: Well, thanks to everyone for joining, and thanks to our employees, customers, and partners, and advertisers.

Speaker Change: And with that ladies and gentlemen, thank you for participating.

Operator: With that, ladies and gentlemen, thank you for participating. You may-

Charlie Collier: You mean.

Speaker Change: Thank you.

Charlie Collier: Okay.

Charlie Collier: Yes.

Speaker Change: Thank you.

Charlie Collier: Thanks.

Charlie Collier: Okay.

Charlie Collier: Yes.

Charlie Collier: Okay.

Charlie Collier: [music].

Charlie Collier: Yes.

Charlie Collier: Sure.

Charlie Collier: Yeah.

Charlie Collier: Yes.

Charlie Collier: Okay.

Charlie Collier: Yes.

Charlie Collier: Okay.

Charlie Collier: Sure.

Charlie Collier: Okay.

Charlie Collier: Yes.

Anthony J. Wood: Well, thanks to everyone for joining and thanks to our employees, customers, partners, and advertisers. And with that, ladies and gentlemen, thank you for participating.

Charlie Collier: This town is post story.

Charlie Collier: This town is full of stories.

Vasily Karasyov: Welcome to Spiderwick.

Speaker Change: Welcome the final question.

Conrad Grodd: This house is full of secrets and surprises.

Charlie Collier: And then how soon followed.

Charlie Collier: This trend.

Charlie Collier: My father in Heaven.

Anthony Wood: My father cataloged every creature of the invisible world.

Operator: My father cataloged every creature of the invisible world.

Charlie Collier: If we could you update in Ctrip, and <unk> Parker, Spider, which will soon be hours compared to placebo.

Charlie Collier: Arthur Spiderwick's Field Guide soon be ours.

Operator: Arthur Spiderwick's Field Guide soon be ours.

Anthony Wood: Ogret's a deceiver, a shape shifter.

Operator: Ogret's a deceiver, a shape shifter.

Charlie Collier: <unk> yeah.

Narrator: I'm an ogre. You have to help save everyone. I'm just a kid. That's why you can succeed. You're all chosen because you are enough.

Conrad Grodd: I'm an ogre!

Operator: I'm an ogre!

Anthony Wood: You have to help save everyone.

Operator: You have to help save everyone.

Speaker Change: Thank you Stephanie.

Conrad Grodd: I'm just a kid.

Operator: I'm just a kid.

Anthony Wood: That's why you can succeed.

Operator: That's why you can succeed.

Charlie Collier: That's why you can succeed.

Charlie Collier: Okay.

Charlie Collier: [music].

Charlie Collier: You are all chosen because you are enough you've made it.

Barton Crockett: You were all chosen 'cause you are enough. You made it.

Operator: You were all chosen 'cause you are enough. You made it.

Narrator: You've made it. We are inviting athletes to become the next WWE superstars. Coming from Cuba, my dad risked his life for me to have these opportunities.

Dan Jedda: We are inviting athletes to become the next WWE superstars.

Operator: We are inviting athletes to become the next WWE superstars.

Charlie Collier: Absolutely she will become the next WWE superstar coming from Cuba.

Conrad Grodd: Coming from Cuba, my dad risked his life for me to having these opportunities. I'm Brayden Ray, AKA Sexy BJ Ray.

Operator: Coming from Cuba, my dad risked his life for me to having these opportunities. I'm Brayden Ray, AKA Sexy BJ Ray.

Speaker Change: I mean, these opportunities Brian Ray Hey.

Narrator: I'm Brayden Ray, aka Sexy BJ Ray. Who do you think you are? I see so much raw potential.

Speaker Change: Hey, guys. Thanks, Vijay Ram Thank you what I see.

Charlie Collier: Who do you think you are?

Operator: Who do you think you are?

Dan Jedda: I see so much raw potential.

Operator: I see so much raw potential.

Charlie Collier: So much raw potential and this is your money.

Narrator: This is your moment. Whoo! Whoo! It's life changing. There is nothing else like being a WWE superstar. But, if you close your eyes and think about your future, what do you really want? We have invited the most promising female founders in the country to come pitch to us today, so Ashley and I have to decide if we're going to invest in your company. And you have to decide if you're going to quit your day job.

Charlie Collier: This is your moment.

Operator: This is your moment.

Conrad Grodd: Woo! Woo!

Operator: Woo! Woo!

Charlie Collier: It's life changing there is nothing else like being a WWE superstars.

Dan Jedda: Woo! It's life-changing. There is nothing else like being a WWE superstar.

Operator: Woo! It's life-changing. There is nothing else like being a WWE superstar.

Charlie Collier: Okay.

Anthony J. Wood: Thank you.

Charlie Collier: If you close your eyes and think about your future, what do you really want?

Operator: If you close your eyes and think about your future, what do you really want?

Anthony J. Wood: And think about your cash what do you really want.

Conrad Grodd: We have invited the most promising female founders in the country to come pitch to us today.

Operator: We have invited the most promising female founders in the country to come pitch to us today.

Anthony J. Wood: We have invited them, commenting BMO foundry in the country.

Charlie Collier: So Ashley and I have to decide if we're gonna invest in your company.

Operator: So Ashley and I have to decide if we're gonna invest in your company.

Anthony J. Wood: I have to decide if we're going to invest in your company you have to buy if youre going to quit your day job.

Conrad Grodd: You have to decide if you're going to quit your day job.

Operator: You have to decide if you're going to quit your day job.

Ian Peterson: Yes.

Narrator: Everything is on the line. I just can't let it die. I'm not going to feel like you. This is business, baby. You're actually turning your side hustle into your main hustle, www.youtube.com.uk www.youtube.com.uk, Thank you for watching! , , , , , , , , , , , , , , , , , , , , , , [inaudible] ?? ?? ?? ?? ?? ?? ?? ??? ??? ??? ??? ??? ??? ??? ??? ??? ??? ??? ??? ??? ??? ??? ??? ??? ??? ??? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? © 2020 Mooji Media Ltd. All Rights Reserved. No part of this recording may be reproduced without Mooji Media Ltd.'s express consent.

Speaker Change: Everything is on the line I just cannot.

Charlie Collier: Everything is on the line. I just can't let it die.

Operator: Everything is on the line. I just can't let it die.

Conrad Grodd: I'm not gonna feel my kids. This is business, baby.

Operator: I'm not gonna feel my kids. This is business, baby.

Ian Peterson: I'm not going to sale by Keith This is business aviation.

Charlie Collier: You are actually turning your side hustle into your main hustle.

Operator: You are actually turning your side hustle into your main hustle.

Anthony J. Wood: So any time you start also.

Ian Peterson: Okay.

Ian Peterson: Yes.

Ian Peterson: Yeah.

Ian Peterson: Okay.

Ian Peterson: Yes.

Ian Peterson: [music].

Ian Peterson: Okay.

Anthony J. Wood: [music].

Anthony J. Wood: Yes.

Anthony J. Wood: Okay.

Narrator: Yeah.

Narrator: [music].

Narrator: Yes.

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Speaker Change: Thank you.

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Narrator: Okay.

Narrator: [music].

Narrator: Yes.

Narrator: Sure.

Narrator: Yes.

Narrator: Okay.

Narrator: [music].

Narrator: Yes.

Narrator: Okay.

Narrator: Yes.

Narrator: [music].

Narrator: Yes.

Narrator: Okay.

Narrator: Sure.

Narrator: Okay.

Narrator: Yes.

Narrator: Okay.

Narrator: [music].

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