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ROKU Launches Clean Room, Boosts Data Privacy For Consumers
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Roku (ROKU - Free Report) benefits from strong momentum in average revenue per user (ARPU) and improving user engagement.
Roku recently announced its privacy-first data collaboration environment, Clean Room, built for TV streaming.
Clean Room makes it easier for advertisers and agencies to plan and measure advertising campaigns with Roku by using their encrypted first-party data without relying on cookies or consortiums.
Clean Room will create a secure connection between Roku data and the advertiser’s data, allowing brands to match their own data to Roku’s, without sharing or exposing any identifiable data, while protecting Roku consumers from direct identification.
The company generates revenues from subscriptions and advertising, with the latter offering long-term potential for sustainable growth.
In the fourth quarter, Roku’s monetized video ad impressions surged 67% on a year-over-year basis, driven by an increase in client acquisition, retention and spending per client.
Advertising Initiatives to Boost Top-Line
Roku benefits from advertising spend reallocation toward TV streaming as marketers accelerate their shift from traditional TV to TV streaming. The Roku Channel is witnessing a surge in premium subscription signups, which is a major positive.
Growth of the Roku Channel in reach and engagement drove performance in the last reported quarter. Active accounts rose 17% year over year to 60.1 million, driven by the popularity of Roku streaming players and Roku TV models. Streaming hours also rose 15% year over year to 19.5 billion.
Roku also connects content publishers to users at scale and provides a deep array of promotion tools to boost engagement and reach.
Recently, Roku announced the extension of a multi-year distribution agreement with Amazon (AMZN - Free Report) . Per the agreement, customers will continue to access Prime Video and IMDB TV on their Roku devices.
The Roku-Amazon deal is timed appropriately since Prime Video recently became the exclusive hub of NFL’s Thursday night football games. This will help Roku boost its user base and drive the top line.
Earlier this year, the company also launched its Advertising Watermark, a free technology to help advertisers and publishers validate the authenticity of video ads on the Roku platform. This provides marketers with the confidence and trust that their advertising spend reaches real Roku customers.
Moreover, Roku is benefiting from growth in advertising driven by monetized video ad impressions on the increasing popularity of The Roku Channel.
Important factors contributing to this growth include the continued growing interest in streaming by traditional TV advertisers and ongoing investment in the company’s OneView ad platform and overall ad-tech capabilities.
In the last reported quarter, Revenues increased 33.1% year over year to $865.3 million. Platform revenues surged 49.3% year over year to $703.6 million, driven by significant increases in content distribution activities and advertising. Roku’s advertising initiatives are likely to have boosted the top line in the to-be-reported quarter.
The growing popularity of The Roku Channel is expected to have attracted advertisers in the to-be-reported quarter. Apart from an improved ad-spending environment, Roku is expected to have benefited from advertising spend reallocation toward TV streaming as marketers accelerate their shift out of traditional TV and into TV streaming.
SEAS shares are up 14.1% in the year-to-date period compared with the Zacks Leisure and Recreation Services industry’s plunge of 9.8% and the Consumer Discretionary sector’s fall of 16.7%.
OXM shares are down 5.8% in the year-to-date period compared with the Zacks Textile - Apparel industry’s plunge of 14.2% and the Consumer Discretionary sector’s fall of 16.8%.
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ROKU Launches Clean Room, Boosts Data Privacy For Consumers
Roku (ROKU - Free Report) benefits from strong momentum in average revenue per user (ARPU) and improving user engagement.
Roku recently announced its privacy-first data collaboration environment, Clean Room, built for TV streaming.
Clean Room makes it easier for advertisers and agencies to plan and measure advertising campaigns with Roku by using their encrypted first-party data without relying on cookies or consortiums.
Clean Room will create a secure connection between Roku data and the advertiser’s data, allowing brands to match their own data to Roku’s, without sharing or exposing any identifiable data, while protecting Roku consumers from direct identification.
The company generates revenues from subscriptions and advertising, with the latter offering long-term potential for sustainable growth.
In the fourth quarter, Roku’s monetized video ad impressions surged 67% on a year-over-year basis, driven by an increase in client acquisition, retention and spending per client.
Advertising Initiatives to Boost Top-Line
Roku benefits from advertising spend reallocation toward TV streaming as marketers accelerate their shift from traditional TV to TV streaming. The Roku Channel is witnessing a surge in premium subscription signups, which is a major positive.
Growth of the Roku Channel in reach and engagement drove performance in the last reported quarter. Active accounts rose 17% year over year to 60.1 million, driven by the popularity of Roku streaming players and Roku TV models. Streaming hours also rose 15% year over year to 19.5 billion.
Roku also connects content publishers to users at scale and provides a deep array of promotion tools to boost engagement and reach.
Recently, Roku announced the extension of a multi-year distribution agreement with Amazon (AMZN - Free Report) . Per the agreement, customers will continue to access Prime Video and IMDB TV on their Roku devices.
The Roku-Amazon deal is timed appropriately since Prime Video recently became the exclusive hub of NFL’s Thursday night football games. This will help Roku boost its user base and drive the top line.
Earlier this year, the company also launched its Advertising Watermark, a free technology to help advertisers and publishers validate the authenticity of video ads on the Roku platform. This provides marketers with the confidence and trust that their advertising spend reaches real Roku customers.
Moreover, Roku is benefiting from growth in advertising driven by monetized video ad impressions on the increasing popularity of The Roku Channel.
Roku, Inc. Price and Consensus
Roku, Inc. price-consensus-chart | Roku, Inc. Quote
Important factors contributing to this growth include the continued growing interest in streaming by traditional TV advertisers and ongoing investment in the company’s OneView ad platform and overall ad-tech capabilities.
In the last reported quarter, Revenues increased 33.1% year over year to $865.3 million. Platform revenues surged 49.3% year over year to $703.6 million, driven by significant increases in content distribution activities and advertising. Roku’s advertising initiatives are likely to have boosted the top line in the to-be-reported quarter.
The growing popularity of The Roku Channel is expected to have attracted advertisers in the to-be-reported quarter. Apart from an improved ad-spending environment, Roku is expected to have benefited from advertising spend reallocation toward TV streaming as marketers accelerate their shift out of traditional TV and into TV streaming.
Zacks Rank and Stocks to Consider
Roku currently has a Zacks Rank #3 (Hold).
Roku shares are down 48.8% in the year-to-date period compared with the Zacks Broadcast Radio and Television industry’s plunge of 31.4% and the Consumer Discretionary sector’s fall of 16.8%.
Some better-ranked stocks in the Zacks Consumer Discretionary sector are SeaWorld Entertainment and Oxford Industries (OXM - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
SEAS shares are up 14.1% in the year-to-date period compared with the Zacks Leisure and Recreation Services industry’s plunge of 9.8% and the Consumer Discretionary sector’s fall of 16.7%.
OXM shares are down 5.8% in the year-to-date period compared with the Zacks Textile - Apparel industry’s plunge of 14.2% and the Consumer Discretionary sector’s fall of 16.8%.