In the SEC filing, the company reports that it had 15.1 million active accounts as of June 30th, 2017, and that those users have “streamed more than 6.7 billion hours on the Roku platform,” during the first half of 2017.
There’s a caveat, however: the company says that it has operated at losses in the past, and that it expects “to incur operating losses in the future and may never achieve or maintain profitability.” It’s language that’s similar to what other companies have made while filing for their own IPOs, such as Snap , which is also looking to the growth of Advertising Revenue as a road to profitability.
Roku reports that as of June, it had an “accumulated deficit of $244 million,” and that its solution here is to attract new users to grow its advertising revenue.
The company is in a good place to attract those users, working not as a straight-up streaming service, but as a platform that CEO Anthony Wood says “connects the entire TV ecosystem.” The company is leading other industry giants such as Amazon, Google and Apple when it comes to active users in the connected television market, and in recent months, Roku has unveiled a range of cheaper products, such as a $30 streaming box , a television that runs just $250 , to some more expensive, but still very good television offerings .
Those cheaper prices might be enough to entice enough users to buy into its services, and help the company grow its desired advertising revenue.
- A Roku IPO problem: Netflix and YouTube are huge on Roku, but they don't make ...Recode
- TV streaming pioneer Roku files for stock market debutTaipei Times
- Understanding Roku's IPO and its growing platform revenuesTechCrunch
- Here's how Roku — the electronics company that's kept Apple and Amazon at bay ...Business Insider
- Streaming video company Roku files for US initial offeringgulfnews.com
- Roku Files For IPO, But The Streaming Device Company Isn't Profitable YetTech Times
- Roku's boxes offer thousands of channels — but viewers are largely just ...Business Insider
- What To Consider Now That Roku Has Filed For IPOSeeking Alpha
- Video streaming player pioneer Roku seeks $100M in IPOPhys.Org