Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures
Roku: Unmatched Scale, But Can Monetization Headwinds Stall the Growth Engine Into 2025?
Roku delivered a strong Q2 2024 performance, with a 14% year-over-year revenue increase to $968 million, exceeding expectations by $30.26 million. With 83.6 million households and a 20% rise in streaming hours, Roku’s platform remains a dominant force, underscored by its lead as the number one U.S. TV operating system. Adjusted EPS of -$0.18 beat estimates by $0.26, highlighting its cost discipline, while free cash flow hit $318 million. Platform revenue, contributing $824 million, saw 11% growth, driven by rising ad demand and streaming services. However, challenges in the Media & Entertainment (M&E) sector persist, placing pressure on monetization efforts. Flat ARPU, particularly in international markets, and negative device margins are key headwinds to watch. Despite these, Roku’s expansion of Roku-branded TVs, a strong advertising ecosystem, and the strategic use of its Home Screen present substantial opportunities for future growth. Looking ahead, Roku projects an 11% revenue increase in Q3 but acknowledges that platform growth may decelerate slightly. Can Roku overcome these headwinds and reignite its growth engine as competition intensifies?
