Roku Inc. reported a 58% increase in revenue during the holiday quarter, as the streaming-media service continued to benefit from customers watching more entertainment while stuck at home during the Covid-19 pandemic.
“We think the pandemic has accelerated, and permanently changed the curve on, the shift to streaming,” Roku Chief Executive Anthony Wood said Thursday.
Consumption of at-home streaming video entertainment has boomed during the pandemic as consumers have diverted more of their time and money to platforms such as Roku, the leading streaming-video competitor, with about 30% of the market, according to Strategy Analytics.
Roku sells smart televisions with built-in streaming technology, as well as devices that users can plug into TVs. However, the company generates the bulk of its revenue by selling ads on streaming channels and taking a share of the streaming service’s subscription revenue and ad inventory. The ad business has boomed as marketers, following their customers, are shifting more toward digital media.
The company’s total revenue rose to $649.9 million in the fourth quarter, up from $411.2 million a year earlier. Revenue at Roku’s platform business, which includes ad sales, jumped 82% to $471.2 million.
