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Roku Fellow Shareholders , November 3 , 2021 In the third quarter , ARPU surpassed the milestone of $ 40 ( trailing 12 - month basis ) and grew nearly 50 % year- over - year . As the global shift to TV streaming continues , our performance demonstrates the strength of our business fundamentals and the momentum of our platform monetization . We are making significant progress with traditional TV advertisers , while also expanding our total addressable market to digital - first advertisers . Despite the ongoing headwinds created by the global supply chain disruptions , Roku remains well positioned as a result of our scale , brand , technology , and relentless focus on the TV streaming experience . Key Results Platform revenue increased 82 % YoY to $ 583 million • Total net revenue grew 51 % year - over - year ( YoY ) to $ 680 million • • Gross profit was up 69 % YoY to $ 364 million • • Active Accounts reached 56.4 million , a net increase of 1.3 million active accounts from Q2 2021 Streaming hours were 18.0 billion hours , an increase of 0.7 billion hours from Q2 2021 • Average Revenue Per User ( ARPU ) grew to $ 40.10 ( trailing 12 - month basis ) , up 49 % YoY The Roku Channel was a top 5 channel on the platform by active account reach Key Operating Metrics Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 YoY % Active Accounts ( millions ) 46.0 51.2 53.6 55.1 56.4 23 % Streaming Hours ( billions ) * 14.8 17.0 18.3 17.4 18.0 21 % ARPU ( $ ) $ 27.00 $ 28.76 $ 32.14 $ 36.46 $ 40.10 49 % Summary Financials ( $ in millions ) Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 YoY % Platform revenue $ 319.2 $ 471.2 $ 466.5 532.3 $ 582.5 82 % Player revenue 132.4 178.7 107.7 112.8 97.4 -26 % Total net revenue 451.7 649.9 574.2 645.1 680.0 51 % Platform gross profit 194.7 300.8 311.9 345.0 378.5 94 % Player gross profit ( loss ) 20.2 4.6 14.8 ( 6.7 ) ( 14.6 ) -172 % Total gross profit 214.8 305.5 326.8 338.3 363.9 69 % Platform gross margin % 61.0 % 63.8 % 66.9 % 64.8 % 65.0 % 400bps Player gross margin % 15.2 % 2.6 % 13.8 % -5.9 % -15.0 % -3020bps Total gross margin % 47.6 % 47.0 % 56.9 % 52.4 % 53.5 % 600bps Research and development 88.4 94.7 101.6 113.3 120.3 36 % Sales and marketing 71.0 96.1 88.9 93.7 109.7 55 % General and administrative 43.5 49.5 60.5 62.2 65.1 50 % Total operating expenses 202.9 240.3 251.0 269.2 295.1 45 % Income from operations 12.0 65.2 75.8 69.1 68.8 475 % Adjusted EBITDA ¹ Adjusted EBITDA margin % Outlook ( $ in millions ) 56.2 113.5 125.9 122.4 130.1 132 % 12.4 % 17.5 % 21.9 % 19.0 % 19.1 % 670bps Q4 2021E Total net revenue Total gross profit $ 885 - $ 900 $ 380 - $ 390 $ ( 5 ) - $ 5 Net income ( loss ) Adjusted EBITDA 2 $ 65 - $ 75 ¹ Refer to the reconciliation of net income to adjusted EBITDA in the non - GAAP information in an appendix to this letter . ² Q4 2021E reconciling items between net income ( loss ) and non - GAAP adjusted EBITDA consist of stock - based compensation of approximately $ 57 million , depreciation and amortization and other net adjustments of approximately $ 13 million . * Reported streaming hours data reflects previously disclosed adjustments to our streaming hours calculations for periods prior to Q4 2020 . 1 Roku Q3 2021 Shareholder Letter