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Roku had just under 40 million active accounts by the close of the first quarter of 2020. Marking another successful quarter for the company.
Roku has been one of the unstoppable forces in streaming in recent years. While the company is mostly known for its Roku players, it recently became more involved with the user experience by offering up content directly to the public. This has not only helped to further build out a more complete user experience, but also to increase users and revenue.
Roku today published its earnings report for the first quarter of 2020, confirming the addition of 2.9 million active accounts during the three-month period. As a result, the company ended Q1 2020 with 39.8 million active accounts.
While the increase in almost three million accounts is good for Roku, the company saw a greater increase over the holiday period, considering in the last three months of 2019, the number of Roku active accounts rose from 32 million to almost 37 million.
As to be expected with the current COVID-19 stay-at-home orders that are in palace, streaming hours were also up, with 1.6 billion more than the quarter before. This resulted in a total of 13.2 billion streaming hours during the three-month period.
Roku’s platform continues to outperform player revenue
Ever since Roku moved beyond players, it has seen a large jump in revenue from its platform activities. Since then, the gap between the two just continues to widen as well, and that’s the case once again.
In the three months, Roku saw $321 million in total revenue. However, $233 million of that was platform revenue alone, with the remaining $88 million coming from players. While the platform revenue is technically down from Q4, 2020, that’s to be expected. What’s more revealing is how minimal the drop was. For example, platform revenue declined from $259 million to $232 million quarter over quarter. In contrast, player revenue dropped from $151 million to $88 million during the same period.
To add further perspective to the rate the company’s platform revenue is growing at, the same quarter last year only generated $134 million in revenue. This resulted in a 73 percent year-over-year change, compared to the 22 percent change for player revenue.