Roku: Not So Good Under The Hood


  • Roku has been up 30% in the last week mainly as a result of optimism on this stock post its earnings release.
  • When I reviewed the release I could not understand the market’s optimism.
  • Outside of the metrics the company wanted the investors to see, there was nothing delightful about the release.

Depressed Woman Changing Channels on a TV Remote

BenAkiba/E+ via Getty Images

There was plenty of cheer after Roku (NASDAQ:ROKU) released its earnings. Expectations were low and the company did not really have a high bar to set for its earnings. At its lowest point, the stock had been down

Data by YCharts

Data by YCharts

Income and Adjusted EBITDA - financials

Income and Adjusted EBITDA (Company website)

Definition of scale


Date Stock Based Compensation to Revenue
2022-12-31 12%
2021-12-31 7%
2020-12-31 8%
2019-12-31 8%
2018-12-31 5%
2017-12-31 2%

Data by YCharts

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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