Roku Continues to Benefit From Pandemic-led Shift to Streaming

Roku at IGNITION Future of Media at Time Warner Center - Getty -H 2019
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The device company grew its active account base to 46 million during the third quarter.

Roku grew its active account base to 46 million as it continued to see a streaming boom during the novel coronavirus pandemic.

The company, which makes streaming devices and smart TVs, has added 13.7 million active accounts in the past year. That growth helped drive a 54 percent year-over-year increase in streaming on its devices, which hit 14.8 billion hours during the third quarter.

In a letter to shareholders, Roku acknowledged "continued uncertainties caused by the pandemic" but said it was "pleased with the trajectory of our business." In particular, its curated channel of free programming, The Roku Channel, grew its reach to 54 million U.S. households.

Roku struck an agreement with NBCUniversal to carry its Peacock streaming service during the period after a several month stalemate. Roku acknowledged the deal in its shareholder letter, calling it "a mutually beneficial agreement" for both companies.

Net revenue for the period grew 73 percent to nearly $452 million, led by a 78 percent growth in platform revenue, which primarily comes from advertising. The company reported a net income of 10 cents per share, compared with a loss of 22 cents per share during the same period last year.

Roku shares were up nearly 3 percent during after-hours trading on the Nasdaq.