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Roku (ROKU) Gross Margin % : 45.20% (As of Sep. 2024)


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What is Roku Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Roku's Gross Profit for the three months ended in Sep. 2024 was $480 Mil. Roku's Revenue for the three months ended in Sep. 2024 was $1,062 Mil. Therefore, Roku's Gross Margin % for the quarter that ended in Sep. 2024 was 45.20%.


The historical rank and industry rank for Roku's Gross Margin % or its related term are showing as below:

ROKU' s Gross Margin % Range Over the Past 10 Years
Min: 28.07   Med: 43.87   Max: 50.95
Current: 44.43


During the past 9 years, the highest Gross Margin % of Roku was 50.95%. The lowest was 28.07%. And the median was 43.87%.

ROKU's Gross Margin % is ranked better than
56.83% of 966 companies
in the Media - Diversified industry
Industry Median: 38.59 vs ROKU: 44.43

Roku had a gross margin of 45.20% for the quarter that ended in Sep. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Roku was 0.40% per year.


Roku Gross Margin % Historical Data

The historical data trend for Roku's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Roku Gross Margin % Chart

Roku Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only 43.87 45.45 50.95 46.09 43.70

Roku Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 40.44 44.49 44.05 43.87 45.20

Competitive Comparison of Roku's Gross Margin %

For the Entertainment subindustry, Roku's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Roku's Gross Margin % Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Roku's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Roku's Gross Margin % falls into.



Roku Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Roku's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=1522.6 / 3484.619
=(Revenue - Cost of Goods Sold) / Revenue
=(3484.619 - 1962.004) / 3484.619
=43.70 %

Roku's Gross Margin for the quarter that ended in Sep. 2024 is calculated as


Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=480.1 / 1062.203
=(Revenue - Cost of Goods Sold) / Revenue
=(1062.203 - 582.128) / 1062.203
=45.20 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Roku  (NAS:ROKU) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Roku had a gross margin of 45.20% for the quarter that ended in Sep. 2024 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Roku Gross Margin % Related Terms

Thank you for viewing the detailed overview of Roku's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Roku Business Description

Address
1155 Coleman Avenue, San Jose, CA, USA, 95110
Roku enables consumers to stream television programming. It has more than 80 million streaming households and provided well over 100 billion streaming hours in 2023. Roku is the top streaming operating system in the US, reaching more than half of broadband households, according to the company. Roku's OS is built into streaming devices and televisions that Roku sells and on connected televisions from other manufacturers that license Roku's name and software. Roku also operates the Roku Channel, a free, ad-supported streaming television platform that offers a mix of on-demand and live television programming. Roku generates revenue primarily from selling devices, licensing, and advertising, and it receives fees from subscription streaming platforms that sell subscriptions through Roku.
Executives
Dan Jedda officer: CFO C/O STITCH FIX, INC., 1 MONTGOMERY STREET, SUITE 1500, SAN FRANCISCO CA 94104
Charles Collier officer: President, Roku Media 1155 COLEMAN AVE, SAN JOSE CA 95110
Anthony J. Wood director, 10 percent owner, officer: CEO and Chairman BOD C/O ROKU, INC., 150 WINCHESTER CIRCLE, LOS GATOS CA 95032
Matthew C. Banks officer: VP, Corp Controller & CAO 1155 COLEMAN AVE, SAN JOSE CA 95110
Gilbert Fuchsberg officer: SVP, Corporate Development 1155 COLEMAN AVE, SAN JOSE CA 95110
Stephen H Kay officer: SVP General Counsel, Secretary 6922 HOLLYWOOD BLVD., 12TH FLOOR, LOS ANGELES CA 90028
Mai Fyfield director C/O ROKU, INC., 150 WINCHESTER CIRCLE, LOS GATOS CA 95032
Jeffrey M Blackburn director PO BOX 81226, SEATTLE WA 98108-1226
Mustafa Ozgen officer: President, Devices 150 WINCHESTER CIRCLE, LOS GATOS CA 95032
Gidon Katz officer: President, Consumer Experience 1155 COLEMAN AVE, SAN JOSE CA 95110
Ray A. Rothrock director 3340 HILLVIEW AVENUE, PALO ALTO CA 94304
Ravi Ahuja director C/O TWENTY-FIRST CENTURY FOX, INC., 1211 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Gina Luna director 24955 INTERSTATE 45 N, THE WOODLANDS TX 77380
Laurie Simon Hodrick director C/O 655 BROAD STREET, NEWARK NJ 07102
Jeff Hastings director AVID TECHNOLOGY, INC., ONE PARK WEST, TEWKSBURY MA 01876