Roku (ROKU) Q4 2024 Earnings Call Transcript

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Roku (ROKU 2.38%)
Q4 2024 Earnings Call
Feb 13, 2025, 5:00 p.m. ET

Contents:

• Prepared Remarks
• Questions and Answers
• Call Participants

Prepared Remarks:

Operator

Good day, and thank you for standing by. Welcome to the Roku fourth quarter 2024 earnings conference call. [Operator instructions] Please be advised that today’s conference is being recorded. I would now like to hand the conference over to your speaker today, Conrad Grodd, vice president of investor relations.

Please go ahead.

Conrad Grodd — Vice President, Investor Relations

Welcome to Roku fourth quarter and year ended 2024 earnings call. On today’s call are: Anthony Wood, Roku’s founder and CEO; Dan Jedda, our CFO; Charlie Collier, president, Roku Media; and Mustafa Ozgen, president, devices. Our full results and additional management commentary are available in our share letter on our IR website at roku.com/investor. On this call, we’ll make forward-looking statements, which are subject to risks and uncertainties.

Please refer to our shareholder letter and periodic SEC filings for risk factors that could cause our actual results to differ materially from these forward-looking statements. We will also present GAAP and non-GAAP financial measures. Reconciliations of non-GAAP measures to the most comparable GAAP financial measures are provided in our shareholder letter. Unless otherwise stated, all comparisons will be against our results for the comparable 2023 period.

Beginning this quarter, we’ll forego prepared remarks and go straight into Q&A. Operator, our first question, please.

Questions & Answers:

Operator

Thank you. [Operator instructions] Our first question comes from the line of Shyam Patil with Susquehanna International Group. Your line is now open.

Shyam Patil — Analyst

Hey, guys, congrats on the strong results. I had a couple of questions. I guess, the first one, very strong fourth quarter. What drove the outperformance? And do you guys expect that to continue in 2025? And then, second question, on free cash flow conversion, how should we expect that to trend in 2025 and beyond? Thank you, guys.

Anthony J. Wood — Founder, Chairman, and Chief Executive Officer

Hi, Shyam, this is Anthony. Thanks for the question. We were very pleased with the Q4 results. It was an outstanding quarter.

I feel like we’re continuing to execute well. And I thought one of the interesting things about the quarter was just how it provides a lot of proof points that our strategy to grow our platform revenue is working and working well. And just to remind everyone, like the three key points of our strategy to grow platform revenue. The first is to lean into making better use of our home screen.

Home screen is a key — our home screen on all our Roku devices is a key asset for us. Half of broadband households in the U.S. start their TV viewing experience with our home screen. So leaning into making better use of the assets is a big part of our strategy to grow platform revenue.