Roku’s advertising business saw significant growth in Q4 2024, outpacing its overall platform revenue and exceeding the performance of both the U.S. ad market and the OTT ad sector, the company reported.

The company’s platform business, which includes advertising, content sales, and subscription revenue sharing, generated $1.035 billion in revenue for the quarter. For the full year, platform revenue reached $3.5 billion, marking an 18% increase compared to 2023.

Roku attributed this growth to stronger partnerships with programmatic platforms and an increase in available ad inventory on its home screen. “We are very careful about putting ads on our home screen,” CEO Anthony Wood said during the Q4 earnings call. 

Home screen ads drive engagement and revenue

Roku has expanded its home screen advertising strategy in recent years, moving beyond promotions for media and entertainment to include brand advertisers from multiple industries. The company has introduced ad formats such as "marquee" ads, which play video upon interaction, and full-screen interactive ads called "showrooms."

“We are making better use of our home screen to drive more engagement and to drive more ad revenue,” Wood noted. “Our focus remains on leveraging our Home Screen as the lead-in to TV, driving increased ad demand through enhanced integrations and partnerships, and growing subscription revenue.”

Streaming hours on the free, ad-supported Roku Channel increased 82% year over year in Q4. In the U.S., the platform reached approximately 145 million people. Roku also reported a total of 89.8 million streaming households at the end of 2024, reflecting a 12% annual increase.

Q4 earnings beat expectations 

Roku’s total Q4 revenue hit $1.201 billion, representing a 22% year-over-year increase. The company also reduced its net loss to $35.5 million, compared to a $78.3 million loss in Q4 2023. This marked Roku’s first quarter with over $1 billion in platform revenue.

“We delivered outstanding Platform results in Q4 — our first quarter with more than $1 billion in Platform revenue, which grew 25% YoY,” the company stated in its quarterly shareholder letter. Roku also highlighted its growing market presence, now reaching over half of U.S. broadband households.

Roku’s Q1 2025 outlook

For Q1 2025, Roku expects revenue of approximately $1.005 billion, reflecting a 14% increase year over year. The company also anticipates platform revenue growth of 16%, while device sales are expected to remain flat due to high inventory levels following lower-than-expected holiday sales.

‍

Get Smarter at Marketing
The Keyword weekly update → your inbox
Writer, The Keyword
Nelson Oboh
HOME PAGE
Roku

‍

01
How can your services help improve my website's performance?
Our services enhance your website's performance by optimizing load times, improving user experience, and ensuring seamless functionality across all devices. We specialize in custom Webflow builds that are tailored to your specific needs, ensuring your site is both visually appealing and highly efficient.
02
What is the process for starting a project with your team?
Our process begins with an initial consultation to understand your goals and requirements. We then conduct a thorough analysis of your current setup, followed by a collaborative planning phase where we outline the project scope and timeline. Once the plan is approved, our team gets to work on designing and developing your custom Webflow solution.
03
How do you ensure the security of the websites you develop?
We ensure the security of the websites we develop by implementing robust security protocols, including SSL encryption, regular security audits, and secure coding practices. Our team stays updated with the latest security trends and threats to proactively protect your site from vulnerabilities.
04
What support do you offer after a project is completed?
After a project is completed, we offer comprehensive support to ensure your website continues to perform optimally. This includes regular maintenance checks, updates to keep your site secure and up-to-date, and troubleshooting any issues that may arise. Our team is always available to provide guidance and assistance as needed.
05
What is your approach to handling website redesigns?
Our approach to website redesigns involves a comprehensive analysis of your current site to identify areas for improvement. We prioritize user experience and performance, ensuring that the redesign aligns with your brand's goals and enhances functionality. By leveraging the capabilities of Webflow, we create visually stunning and efficient websites tailored to your specific needs.