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Roku Fellow Shareholders , May 6 , 2021 Roku delivered an exceptional first quarter led by strong growth in advertising and the expansion of content distribution partnerships . We generated record revenue and gross profit growth , as well as record Adjusted EBITDA . More broadly , the overall secular shift to streaming continues , and Roku benefits as a result of our leading technology and scale . OneViewⓇ , our ad platform built for TV streaming , connects brands , performance advertisers , and our content partners with their target audience . The Roku Channel continues to perform well , as it provides easy access to content with broad appeal , which attracts viewers , which attracts advertising spend , which in turn enables reinvestment in more content . And our hardware and operating system deliver a best - in - class user experience . Q1 2021 Highlights • Total net revenue grew 79 % year - over - year ( YoY ) to $ 574.2 million ; • Platform revenue increased 101 % YoY to $ 466.5 million ; • Gross profit was up 132 % YoY to $ 326.8 million ; • • • • Roku added 2.4 million incremental Active Accounts in Q1 2021 to reach 53.6 million ; Streaming Hours increased by 1.4 billion hours over last quarter to 18.3 billion ; Average Revenue Per User ( ARPU ) grew to $ 32.14 ( trailing 12 - month basis ) , up 32 % YoY ; Raised approximately $ 1 billion through an At - The - Market ( ATM ) stock offering Key Operating Metrics Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 YoY % Active Accounts ( millions ) 39.8 43.0 46.0 51.2 53.6 35 % Streaming Hours ( billions ) * 12.3 14.6 14.8 17.0 18.3 49 % ARPU ( $ ) $ 24.35 $ 24.92 $ 27.00 $ 28.76 $ 32.14 32 % Summary Financials ( $ in millions ) Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 YoY % Platform revenue $ 232.6 $ 244.8 $ 319.2 $ 471.2 $ 466.5 101 % Player revenue 88.2 111.3 132.4 178.7 107.7 22 % Total net revenue 320.8 356.1 451.7 649.9 574.2 79 % Platform gross profit 130.6 138.5 194.7 300.8 311.9 139 % Player gross profit 10.5 8.4 20.2 4.6 14.8 42 % Total gross profit 141.1 146.8 214.8 305.5 326.8 132 % Platform gross margin % 56.2 % 56.6 % 61.0 % 63.8 % 66.9 % 1070bps Player gross margin % 11.9 % 7.5 % 15.2 % 2.6 % 13.8 % 190bps Total gross margin % 44.0 % 41.2 % 47.6 % 47.0 % 56.9 % 1290bps Research and development 88.3 84.4 88.4 94.7 101.6 15 % Sales and marketing 68.2 64.2 71.0 96.1 88.9 30 % General and administrative 39.7 40.5 43.5 49.5 60.5 52 % Total operating expenses 196.3 189.0 202.9 240.3 251.0 28 % Income ( loss ) from operations ( 55.2 ) ( 42.2 ) 12.0 65.2 75.8 nm Adjusted EBITDA ( 16.3 ) ( 3.4 ) 56.2 113.5 125.9 nm Adjusted EBITDA margin % -5.1 % -1.0 % 12.4 % 17.5 % 21.9 % nm Outlook ( $ in millions ) Q2 2021E Total net revenue $ 610 - $ 620 Total gross profit $ 295 - $ 305 Net Income ( loss ) $ 10 - $ 20 Adjusted EBITDA 2 $ 60 - $ 70 Refer to the reconciliation of net income to adjusted EBITDA in the non - GAAP information in an appendix to this letter . ² Q2 2021E reconciling items between net income and non - GAAP adjusted EBITDA consist of stock - based compensation of approximately $ 39 million , depreciation and amortization and other net adjustments of approximately $ 12 million . * * Reported streaming hours data reflects previously disclosed adjustments to our streaming hours calculations for periods prior to Q4 2020 . Roku Q1 2021 Shareholder Letter 1