The first quarter of Roku in 2022 shows signs of a slowdown, in particular a decline in gross domestic product and consumer growth, which is below what analysts estimate. There has been a significant decline in sales unit sales as well due to many existing challenges.
Only 1.1 million active accounts were added, and the total number of Roku customers was 61.3 million in Q1. This was slightly below the expectations of analysts 61.8 million. In context, end of 2021Roku exceeded 60 million accounts, an increase of 3.7 million in Q4.
Roku said gross domestic product fell 28% in Q1 to $ 737.7 million. In the first three months of 2021, the company reported revenue growth of 79%.
In addition, Roku reported a 12% annual decline in sales of flow units. The company explained this because of the COVID-19 distorted business models as well as the ongoing supply chain problem and inflation.
“We have put in a strong performance in a tough work environment and hopefully we will continue to navigate the big winds, including inflationary pressures, geographical differences, and chain disruptions,” said CEO Anthony Wood and Chief Financial Officer Steve Louden. wrote a letter to shareholders.
The silent view, based on the ongoing head wind, may lead to changes like their rivals in the coming months. In the second quarter, the company plans to increase its gross domestic product (GDP) by 25% year-over-year to $ 805 million, lower than those agreed amount of $ 815.7 million.
In addition, although the company was the highest-grossing destination in the United States, Canada, and Mexico, its share was declining. 6% last week, 20% for the last month, and more than 70% for the year.
There is a lot that stands in the way of the Roku road, and the new Charter-Comcast initiative could lead to serious competition such as the integration of new media. The charter will contribute $ 900 million over several years of effort.
However, Roku is not afraid of competition. During yesterday’s call, Anthony pointed out that the costs associated with the technology that will be published will create a challenge. He said,
“It’s very difficult – definitely a new player. How difficult it is to estimate how successful they will be given the long number of years we have spent on our platform and our competitors as well. But also, you just have to adjust that cost to a larger base. big and installed to compete. The weight is very important. “
The company believes it will remain the number one selling system in the country, regardless of how much competition it faces. Anthony added that Roku has been competing with strong companies such as Google and Amazon for many years, and yet the reason for Roku’s success is that it continues to excel in streaming players and smart TVs against one another. or another.
In March, the latest version of the watch TV software, Roku OS 11, was launched. This focused on adding more personalization to the Roku platform, including the new look at Roku Photo Streams, among others.
The Roku Channel had a successful quarter, mostly. Watching hours rose by a quarter, with a total of 20.9 billion hours in the quarter, an increase of 1.4 billion in the last quarter, up 14%. Last year, the company’s users spent 73.2 billion hours of data through Roku services.
Earlier this week, Lionsgate and Roku Channel announced a multi-year deal in which the free platform will have two separate windows that will be the exclusive home of theater addresses until 2024.
This marks a great success for FAST (TV viewers supported by free ads), advertisers, and consumers as well as those who can get a lot of free stuff.
“The global transformation of TV broadcasting continues, and we are investing in the important opportunity that lies ahead of us. Our private assets, including Roku OS, Roku TV, Roku Channel, and the digital advertising platform are They continue to place us in the position to extend our leadership in the coming years.
The company continues to expand its Roku Channel content library. Roku wrote in a letter to shareholders that it had already reached a licensing agreement with A + E Networks and also launched Discovery + through expensive Roku channel subscriptions, bringing in more than 70,000 viewers.
The letter added that on May 3, Roku will be introducing new features for the upcoming service along with the production of ads for ads for Roku’s first personal event. New and upcoming titles include “Honest Renovations,” a home renovation series hosted by Jessica Alba and Lizzy Mathis; “Paris in Love: A Rom-Com,” and “WEIRD: The Amazing Story of Al Yankovic,” starring Daniel Radcliffe.