Roku, Inc. (NASDAQ:ROKU) Q4 2023 Earnings Call Transcript

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There’s a lot of TVs sold that run on proprietary TVOS and I’ve always said and still believe strongly that we’re going to see consolidation to a small number of licensed TV OS they just have bigger economy scale. They just have a big in terms of user experience with a leading licensed OS and we expect to be a beneficiary of that. So I think that sort of the trends in market share for TVs are in our favor. In the United States, I expect over time the growth rate to continue to climb, although like I said, they do bounce around quarter-to-quarter.

Barton Crockett: Okay, thank you very much.

Operator: Thank you. And our last question, one moment, please, comes from the line of Jason Helfstein with Oppenheimer. Please proceed.

Jason Helfstein: Hi, thanks for getting me in. So two questions. Do you expect media and entertainment revenue to start growing again in the second quarter? And then on the 3P ad platforms, you gave obviously some color on the note, and there’s been questions or comments, questions about that. But what would it take to see a material increase in participation from major DSPs such as Trade Desk and DV360 in your ecosystem back? Thanks.

Anthony Wood: Jason, this is Anthony. So I think Dan will take that first question, and then Charlie can talk about DSG.

Dan Jedda: Sure. We talked about M&E and that we do think it was a challenge in 2023, and we’ll be challenged going forward. And we’re not — I’m not going to break out what the growth rates that we’re expecting of M&E. And we do think it could grow year-over-year, but it’s going to be growing less than our overall platform business most likely, and that’s what we’re anticipating. And that’s all the work that Charlie is doing on diversification and what he talked about is what we’re focused on. But we’ll update you more on M&E as we get into the second half of Q2 and in H2. But we’re actually not — we don’t break that specific activity in our advertising.

Charlie Collier: Jason, I like the way we say we have one more question. So you have two questions. That’s good. And I’ll take the second one on DSPs. We are now actually in relationships with all the major DSPs and SSPs. And the way I look at it is this, we went and prioritize demand diversification. And we’ve done a good job because we’re balancing the direct relationships we have, some of whom wish to execute their transactions on the DSPs. And then there is the opening up of demand to smaller accounts that has really grown in the thousands for us, and a lot of those smaller accounts will become bigger and bigger over time. So we’ve built those relationships. I feel good about the growth, both in dollars and active accounts. And then I think you’ll see the small and medium-size business, it’s really a good result and become, I hope, medium- and large-sized businesses. But we think the strategy is solid and that we’re executing well.

Jason Helfstein: Thank you.

Operator: Thank you. And with that, ladies and gentlemen, we conclude the Q&A session. I will turn it back to Anthony Wood for final comments.

Anthony Wood: Thank you. Thank you, everyone, for joining. And thanks to our employees, customers, content partners and advertisers. I look forward to an exciting year of TV streaming.

Operator: And thank you all for participating.

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