Company: Roku, Inc.
Description: They pioneered streaming to the TV.
Roku connects users to the streaming content they love, enables content publishers to build and monetize large audiences, and provides advertisers with unique capabilities to engage consumers.
Shares: 15.7 million
Price Range: $12.00-$14.00
Trade Date: 9/28
Underwriter(s): Morgan Stanley, Citigroup, Allen & Co., RBC Capital Markets
Co-Manager(s): Needham & Co., Oppenheimer & Co., William Blair
Link to S-1/A Prospectus
Link to Retail Roadshow
Business: As of June 30, 2017, they had 15.1 million active accounts.
By comparison, the fourth largest multichannel video programming video distributor in the United States had approximately 13.3 million subscribers as of June 30, 2017. Their users streamed more than 6.7 billion hours on the Roku platform in the six months ended June 30, 2017, 62% growth from the six months ended June 30, 2016.
TV streaming’s disruptive content distribution model is shifting billions of dollars of economic value. Roku is capitalizing on this large economic opportunity as a leading TV streaming platform for users, content publishers and advertisers.
Market Opportunity: The rapid adoption of TV streaming has disrupted the traditional linear TV distribution model, creating new options for consumers and new economic opportunities for content publishers and advertisers.
OTT viewing has become mainstream in the United States. According to an April 2017 comScore report, 51 million U.S.
homes have used OTT, and OTT has a 54% reach among homes with WiFi. Additionally, their advertising products enable advertisers to serve relevant ads to our users and measure return on investment.
Financials: In the six months ended June 30, 2017, they generated revenue of $199.7 million, up 23% from $162.3 million in the six months ended July 2, 2016.
In fiscal 2016, they generated revenue of $398.6 million, up 25% from $319.9 million in fiscal 2015.
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