Roku prices IPO at top of price range, raises United States dollars 219 mln

Robyn Ryan
September 29, 2017

The firm priced its 15.67 million shares at $14 apiece - the high end of the expected price range - although shares actually entered the market closer to $16. Roku is averaging $11.22 in annual revenue per user, which is also up 35 percent year-over-year.

Shares of Roku Inc. blasted off in their stock market debut Thursday, trading up as much as 65% to add to the streaming device company's initial $1.3 billion valuation.

Roku's S1 filing reveals that the video and audio streaming device company now has 15.1 million active accounts, up 43 percent from a year ago. Its streaming service offers users access to programming from Netflix, Hulu, Amazon Video, HBO and more.

By comparison, revenue generated on the platform, such as ads and subscription fees, grew 91% year-over-year to $82.4 million in the first half of 2017.

In the quarter ended June 30, the company posted a net loss of $15.5 million, bigger than $14.1 million loss in the year-ago quarter. The company lost $24.2 million in the first half of 2017.

Similar concern is being raised about Roku the next tech company in line for an IPO on Thursday.

Even though CEO Wood isn't anxious about his company's ability to compete, investors will have to decide if Roku's market share and option-oriented platform are enough to set the streaming device maker apart. Its software is commonly built into smart TVs and hardware like the Roku Premiere and Streaming Stick can easily be connected to older TVs. However, rather than being anxious about only one big competitor, Roku will have to fend off others previously named such as Google, Apple and Amazon.

"We are in a golden age of TV", the prospectus said. Roku's offering, on the other hand, plays nice with whatever service you want to watch. Roku has delivered 11.9 billion total streaming hours in the past 12 months, more than double its 5.5 billion streaming hours in 2015.

Other reports by VideoGamingPros

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