Roku, Inc. (NASDAQ:ROKU) Q4 2022 Earnings Call Transcript

Anthony Wood : Yes. I think — I mean, there’s a couple of different things and kind of Charlie mentioned this in some of the — included in the letter in the prepared remarks as well as we were concerned, and you saw this in our language for the Q4 guide, we were concerned with how the holiday season will both on the consumer side of things as well in the ad market. And so we were we were hearing some concerns out there from a lot of different parts of the ecosystem. And so that was reflected in our view that it was going to be a difficult holiday season, which overall for a lot of companies, it was. For us, we had some bright spots around how TV is performed and then the ad business was better than we hoped it would be. So that’s good, even though the market was down overall year-over-year.

When you look into Q1, you see some bright spots in terms of certain verticals that seem to be stabilizing or potentially on a bit of a green shoot type uptick, but then you also have other verticals that remain pressured. So that’s kind of the challenge we have. And part of our outlook reflects the fact that — we do have a strong M&E business in general, and that’s also a high-margin business. And so that’s reflected both in the top line viewpoint as well as how that translates down into gross profit in and the EBITDA look as well.

Operator: This concludes our question-and-answer session. I’m going to turn the call back over to Anthony for closing remarks.

Anthony Wood : Thanks, everyone, for joining the call. I also want to thank our employees, customers and partners for their focus and commitment.

Operator: Thank you all for joining today’s conference call. You may disconnect, and everyone, have a great evening.