Roku reported a 55% surge in first quarter revenue to $320.8 million, with usage of the platform surging amid stay-at-home pandemic mandates.
Active Roku user accounts increased by 2.9 million in the first quarter, reaching 39.8 million. Hours spent streaming on the Roku platform increased by 49% year over year to 13.2 billion—a dynamic punctuated in April, when streaming hours surged 80%.
Revenue for Roku’s ad-driven “platform” business increased 73% year over year to $232.6 million. Revenue for the hardware side of the business spiked 22% to $88.2 million.
“The pandemic associated stay-at-home orders and increased unemployment appear to have accelerated the shift from linear TV viewing to streaming during the past few weeks,” Roku founder/CEO Anthony Wood and CFO Steve Louden wrote in a letter to shareholders.
But like every other business supported by ad sales, Roku is anticipating headwinds. The company warned investors that full-year profits will likely miss forecasts.