Roku Q3 Profit, Revenue Soar on Higher Media & Entertainment Ad Spending, Subscription Growth

Roku reported a surge in profits and revenue for Q3, with revenue reaching $1.5 billion and a profit of $1.20 per share. The company's Media & Entertainment vertical saw its highest year-over-year growth in four years, as media companies invested on Roku’s platform to promote their content and services. Advertising revenue grew by 23% to $727.4 million, driven by the highest year-over-year spending growth in this vertical in four years, fueled by higher political advertising and the World Cup driving over one million sign-ups across services.

However, the devices business, which includes revenue from the sale of Roku players and branded TVs, posted a widened loss of $48.6 million due to elevated memory costs. Despite this, Roku's overall platform revenue increased by 23% to $1.3 billion, with gross profit rising by 27% to $697.1 million.

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