So for example, with DoorDash, it’s a great example of what TV streaming in the Roku platform can do. It’s a first of its kind partnership that empowers DoorDash merchants to place unique click-to-order offers within their Roku ad. So picture of your home, watching a movie on Roku and you’re hungry and you see an ad from DoorDash and Wendy’s and you click on it and while you’re watching your movie, we prove that we’re full funnel and your food and you get your food as delivered and get your dinner and a movie. So for the first time, restaurant advertisers can partner with DoorDash and Roku to attribute target, measure TV streaming ads on Roku. It’s truly accountable media. It’s differentiating media and it’s lower funnel attribution, which Roku is first to market with, again, truly accountable.
So I think here, Roku is taking a lead because of its tech stack and literally teaching new consumer behavior in this case, how to interact with the TV screen.
Operator: And our next question is coming from Shweta Khajuria of Evercore.
Shweta Khajuria : I guess I have a follow-up on the Roku-branded TVs. Congrats on launching those TVs in the line. the TV line. But I guess the question is, how should we think about the gross margin contribution from Roku-branded TVs versus, let’s say, your player segment gross margins historically pre-COVID just for our modeling purposes? And then second is on Steve, have you — has the guidance philosophy changed over the past couple of quarters, call it, in terms of how you’ve delivered through the quarters and how you’ve guided.
Anthony Wood : In terms of Roku branded TVs, I mean we haven’t disclosed anything about gross margins. But just in general, our device business is focused on customer acquisition. So it’s not focused on gross profit from hardware. Our monetization obviously comes from our service and ad business, content distribution, which obviously is a great business for us. So that philosophy applies to TVs as well. And like I said, another big focus on the Roku — I’m sorry, on the branded TV program is just driving innovation as well as moving a little bit more upmarket in the TV space. And then in terms of guidance, Steve, you want to talk about the outlook?
Steve Louden : Sure. Hey, Shweta, thanks for the question. Yes. I wouldn’t say that our guidance philosophy has changed over the last couple of quarters. I think what’s changed since Q2 of last year is just the level of uncertainty in the macro environment, and obviously, the impact that has on consumers as well as the advertising market, which, in particular, is obviously a large portion of our monetization. And so I think like a lot of companies, what you see over our approach to outlook and whether we provide full year outlook or just the near quarter and how we think about the color around that, it’s really more of a factor around the macroeconomic environment and how we’re trying to find their way through the amount of certainty and then looking at what levers that we have better control over and which levers we don’t in terms of the advertising market spend which is largely macro-driven and vertical driven versus things that we can control better, which is what we’ve done with our operations and our operating expense base and corralling the year-over-year growth rate on stuff like that.
So I think that’s really how we look at it, and it’s really driven by how we see the business and the industry timing given what’s out in the broader world.
Shweta Khajuria : Okay, Steve. If I could follow up, what kind of ad demand trends have you seen, whether it is sequentially from, call it, Q4 or December up until now mid-February and/or year-over-year, if you could please comment on that? And that’s it for me. Thanks, Anthony. Thanks, Steve.
