Roku Inc - Ordinary Shares - Class A

Q1 performance: strong momentum across platform monetization + cash generation - Platform revenue grew 28% YoY, ahead of outlook, helped by the Olympics and the Super Bowl (raised subscription and M&E spend). - Advertising revenue grew 27% YoY; management emphasized improving ad gross margin (over ~60%, up 400 bps+ YoY). - Subscription revenue grew 30% YoY, driven by premium subscription sign-ups and expanding “tier-one” partners (e.g., Apple added in March, Peacock announced this week). - EBITDA margin more than doubled YoY to ~nearly 12%, and free cash flow was $148M (~16% FCF margin)—their second-highest on record.

Forward outlook: Q2 strong but second-half conservatism due to comps + politics visibility - Q2 platform revenue expected to grow ~20% YoY, with subscriptions and advertising each around that growth level. - For the full year, Roku raised platform revenue guidance by $100M+ (~~3 points) to nearly 21% growth (and guided to continuing EBITDA margin expansion). - CFO framed conservatism in the second half due to less visibility on political and other initiatives as they ramp; they plan to update once they have better visibility.

Device segment: memory price headwinds, but Roku argues structural advantage and investment flexibility - Management said memory prices rising are a real cost factor for first-party TVs/players, but Roku’s OS uses significantly less memory/storage, helping maintain a bill-of-materials cost advantage vs competitors. - Despite elevated memory expectations into the back half, they stated total device investment and unit sales in the full-year outlook have not changed from last quarter. - Device investment is managed across device gross profit + distribution costs (in Sales & Marketing), and Roku highlighted mix flexibility across players, first-party TVs, and third-party OEM TVs. - Important negative/drag called out: device revenue was down 16% in the quarter discussed on the call, with margin down ~14%—driven mainly by lower ASPs in streaming players and higher memory costs (not “kicked out of Walmart”).