News Worms
News Worms

Gadget maker Roku's stock soars after IPO raises $219M

Gadget maker Roku's stock soars after IPO raises $219M

In addition to calling advertising the "break and butter" of Roku's business, he also pointed out that 80% of gross profit comes from Roku's Platforms business, which includes the advertising component. Video player sales dipped 2% to $117 million in the first half of 2017 compared with a year earlier despite a 37% increase in volume sales.

Some investors point to cautionary tales like Blue Apron, Snap Inc. and FitBit, whose stocks initially flew high before falling to earth.

In the quarter ended June 30, the company posted a net loss of $15.5 million, bigger than $14.1 million loss in the year-ago quarter.

This company connects users to the streaming content, enables content publishers to build and monetize large audiences, and provides advertisers with unique capabilities to engage consumers.

Roku's S1 filing reveals that the video and audio streaming device company now has 15.1 million active accounts, up 43 percent from a year ago. As of June 30, Roku had 15.1 million active accounts.

While it's a popular name among cord-cutters, Roku must now prove to investors that it can compete with the tech industry's leaders. It has the biggest share of the streaming-gadget market, but has deep-pocketed competitors in Amazon, Google and Apple. "We partner with TV brands and service operators so they can thrive in this rapidly changing ad world", said Roku CEO Anthony Wood in the company's SEC filing.

Despite heavyweight rivalry, Roku has managed to find and maintain its footing.

This places a value on Roku of $1.3 billion. Where Google, Amazon, and Apple are blocking rival services and products-Google recently pulled its YouTube video Service from Amazon's Echo Show device, and Netflix was not initially included in one of Apple's TV apps-Roku offers its users a wide range of streaming options. The company takes a cut of advertising revenue from apps on Roku devices and it's become an increasingly important part of Roku's financials.


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