The company, best known for its devices, has continued to absorb losses from its player business.
added 2.3 million active accounts during the third quarter as total streaming hours rose to 21.9 billion, representing a 21 percent year-over-year increase.
In a letter to shareholders on Wednesday, Roku said the increase in active accounts was primarily driven by TV sales. But the company, best known for its devices, has continued to absorb losses from its player business, with gross margins down by four percentage points year over year due to “elevated” supply chain costs, according to the letter.
During the third quarter, the company brought in $761.4 million in net revenue — a slight decline from Q2’s $764.4 million but a 12 percent year-over-year increase. Total gross profit dropped by two percent compared to the previous year, landing at $356.8 million. For Q4, Roku is estimating it will reach $800 million in revenue and $325 million in gross profit while sustaining $245 million in net losses.
Roku recently poached Fox Entertainment CEO Charlie Collier, who joined Roku in October to oversee ad monetization, content licensing and production as the president of Roku Media.
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