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Roku Fellow Shareholders , August 4 , 2021 Roku delivered a strong second quarter , with record revenue growth that was driven by exceptional performance in platform monetization . Audiences , content , and advertisers continue their shift to TV streaming around the globe , and Roku is a key enabler of this long - term secular trend . We more than doubled monetized video ad impressions year - over - year , and leading media companies are increasingly turning to Roku's tools to grow their DTC ( direct to consumer ) services . Looking ahead , our recent success at the Upfronts demonstrates the accelerating shift of advertisers from traditional TV to TV streaming . We closed commitments with all seven major agency holding companies , doubling dollar commitments year - over - year . We believe that our leading technology , platform scale , and the value we provide content providers , advertisers , and consumers all position us well for long - term growth . Key Results Platform revenue increased 117 % YoY to $ 532 million • Total net revenue grew 81 % year - over - year ( YoY ) to $ 645 million • • Gross profit was up 130 % YoY to $ 338 million • Active Accounts reached 55.1 million , an increase of 1.5 million active accounts from Q1 2021 Streaming hours were 17.4 billion hours , a decrease of 1.0 billion hours from Q1 2021 • Average Revenue Per User ( ARPU ) grew to $ 36.46 ( trailing 12 - month basis ) , up 46 % YoY Key Operating Metrics Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 YoY % Active Accounts ( millions ) 43.0 46.0 51.2 53.6 55.1 28 % Streaming Hours ( billions ) * 14.6 14.8 17.0 18.3 17.4 19 % ARPU ( $ ) $ 24.92 $ 27.00 $ 28.76 $ 32.14 $ 36.46 46 % Summary Financials ( $ in millions ) Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 YoY % Platform revenue $ 244.8 $ 319.2 $ 471.2 $ 466.5 $ 532.3 117 % Player revenue 111.3 132.4 178.7 107.7 112.8 1 % Total net revenue 356.1 451.7 649.9 574.2 645.1 81 % Platform gross profit 138.5 194.7 300.8 311.9 345.0 149 % Player gross profit 8.4 20.2 4.6 14.8 ( 6.7 ) -180 % Total gross profit 146.8 214.8 305.5 326.8 338.3 130 % Platform gross margin % 56.6 % 61.0 % 63.8 % 66.9 % 64.8 % 820bps Player gross margin % 7.5 % 15.2 % 2.6 % 13.8 % -5.9 % -1350bps Total gross margin % 41.2 % 47.6 % 47.0 % 56.9 % 52.4 % 1120bps Research and development 84.4 88.4 94.7 101.6 113.3 34 % Sales and marketing 64.2 71.0 96.1 88.9 93.7 46 % General and administrative 40.5 43.5 49.5 60.5 62.2 54 % Total operating expenses 189.0 202.9 240.3 251.0 269.2 42 % Income ( loss ) from operations ( 42.2 ) 12.0 65.2 75.8 69.1 nm Adjusted EBITDA 1 ( 3.4 ) 56.2 113.5 125.9 122.4 nm Adjusted EBITDA margin % -1.0 % 12.4 % 17.5 % 21.9 % 19.0 % nm Outlook ( $ in millions ) Q3 2021E Total net revenue $ 675 - $ 685 Total gross profit $ 315 - $ 325 Net income ( loss ) Adjusted EBITDA 2 ( $ 3 ) - $ 7 $ 60 - $ 70 ¹ Refer to the reconciliation of net income ( loss ) to adjusted EBITDA in the non - GAAP information in an appendix to this letter . 2 Q3 2021E reconciling items between net income ( loss ) and non - GAAP adjusted EBITDA consist of stock - based compensation of approximately $ 52 million , depreciation and amortization and other net adjustments of approximately $ 11 million . * Reported streaming hours data reflects previously disclosed adjustments to our streaming hours calculations for periods prior to Q4 2020 . Roku Q2 2021 Shareholder Letter 1