Roku (NASDAQ:ROKU) reported Q4 EPS of ($1.70), $0.02 better than the analyst estimate of ($1.72). Revenue for the quarter came in at $867.1 million versus the consensus estimate of $802.12 million.
Outlook
Looking ahead, although macro uncertainty seems likely to persist in 2023, our unmatched scale and engagement, along with our competitive advantages, give us conviction in our ability to navigate and execute in challenging times. While the overall ad market was muted in Q4, ad spend among verticals such as restaurants, travel, consumer packaged goods, and health and wellness appear to be improving thus far in Q1. However, other verticals including financial services and M&E remain pressured. We expect this continued weakness in M&E spend to compress Platform margins in the near term due to a higher mix shift toward video advertising. Importantly, we have been adjusting our operations and operating expense profile to better manage through the challenging macro environment. As a result, we expect operating expense YoY growth to significantly decline over the course of the year, from approximately 40% in Q1 (a 30-point sequential improvement from Q4 2022) to single-digit YoY growth by Q4 2023. Accordingly, our Q1 outlook reflects normal seasonality with total net revenue of roughly $700 million, total gross profit of roughly $310 million, and adjusted EBITDA of negative $110 million. Given our ongoing work to carefully manage expenditures, we are committed to a path that delivers positive adjusted EBITDA for full year 2024
(Consensus sees Q1 revenue of $690 million)