Good day everyone, and thank you for standing by. Welcome to the Roku's first quarter 2024 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during this session, you will need to press star 11 on your telephone. You will then hear a message advising your hand is raised. To withdraw your question, press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Conrad Grodd. Please go ahead. Thank you, operator. Welcome to Roku's first quarter 2024 earnings call. On today's call are Anthony Wood, Roku's founder and CEO; Dan Jedda, our CFO; Charlie Collier, President, Roku Media; and Mustafa Ozgen, President, Devices. Full details of results and additional management commentary are available in our shareable letter, which can be found on our investor relations website at roku.com/investor. On this call, we'll make forward-looking statements, which are predictions, projections, or other statements about future events based on current expectations, forecasts, and assumptions. These statements involve risks and uncertainties. Please refer to our shareable letter and periodic SEC filings for risk factors that could cause our actual results to differ materially from these forward-looking statements. On today's call, we'll present GAAP and non-GAAP financial measures. Reconciliations of non-GAAP measures of the most comparable GAAP financial measures are provided in our shareable letter. Finally, unless otherwise stated, all comparisons on this call will be against the results of the comparable period of 2023. Now, I'd like to hand the call over to Anthony. Thank you, Conrad. We delivered solid results in Q1, growing streaming households 14% year-over-year, streaming hours 23% year-over-year, and platform revenue 19% year-over-year. As I mentioned on the Q4 call, this year we are directing more of our attention to platform growth and innovation. We will accelerate platform revenue, Adjusted EBITDA, and free cash flow growth in 2025 by focusing on three key opportunities: maximizing the Roku home screen as the lead-in for TV, growing Roku billed subscriptions, and growing demand for Roku. Every day, the Roku home screen reaches U.S. households with nearly 120 million people. This significant reach creates a lot of opportunity. I see many ways to improve the user experience while also growing monetization for Roku. For example, the Roku Sports Experience, which viewers can click into right from the home screen, addresses the fragmentation of sports as it shifts to streaming, making it easier for viewers to find games and other sports-related content. The NFL Zone was our first league-sponsored zone, and for this year's Super Bowl, it was sponsored by TurboTax, delivering massive reach to the brand during a critical time of year. We recently launched the NBA Zone in partnership with the NBA in April. We also see a big opportunity to grow Roku-billed subscriptions. Roku Pay, our payment and billing service, simplifies the sign-up process for users so they can quickly transact and start streaming, and ensures content partners don't lose subscribers due to unnecessary friction at the point of purchase. Additionally, we are making it easier for advertisers to execute campaigns programmatically on the Roku platform by expanding and deepening our relationships with third-party platforms. In Q1, we continued to grow programmatic ad spend as a percentage of total video ad spend on the Roku platform. With our platform advantages, first-party relationships on more than 80 million streaming households, and deep user engagement, we are well-positioned to accelerate platform revenue growth in 2025 and beyond. Now I'll turn it over to Dan to discuss our results. Thanks, Anthony. We ended Q1 with 81.6 million streaming households. Sequential net adds of 1.6 million were in line with Q1 2023 and driven by both TVs and streaming players. We continue to drive strong growth in engagement, with streaming hours up 23% year-over-year and surpassing 30 billion for the first time in a single quarter. We also grew engagement per account globally, with streaming hours per streaming household per day of 4.2 hours in Q1 2024, up from 3.9 hours in Q1 2023. In Q1, we grew total net revenue 19% year-over-year to $882 million. Platform revenue was $755 million, also up 19% year-over-year, driven by both streaming service distribution and advertising activities. Streaming services distribution activities grew faster than overall platform revenue, benefiting in part from subscription price increases. However, the year-over-year growth rate of streaming services distribution in Q1 2024 was lower than the year-over-year growth rate in Q4 2023 due to lapping past price increases and higher mix shift towards entry-priced ad-supported offerings. Devices revenue increased 19% year over year in Q1, driven by the expansion of retail distribution of Roku-branded TVs. ARPU was $40.65 in Q1 on a trailing 12-month basis, flat year over year. This reflects an increasing share of streaming households in international markets, where we are currently focused on growing scale and engagement. Q1 total gross margin was 44%, down slightly year over year. Platform gross margin of 52% was stable year over year, while devices gross margin was -5%, which was down 8 points year over year. Excluding the one-time $10 million service operator licensing catch-up benefit in Q1 2023, device gross margin would have been roughly flat year over year. Q1 adjusted EBITDA was $41 million, which was above our outlook of break-even. The better-than-expected performance was driven by our platform segment, along with improvements to our operating expense profile. Free cash flow was $427 million on a trailing 12-month basis, and we ended the quarter with $2.1 billion of cash and cash equivalents. Let me turn to our outlook for the second quarter. We anticipate total net revenue of $935 million, gross profit of $410 million, with gross margin of 44%, and adjusted EBITDA of $30 million. Our outlook for total net revenue anticipates a 10% year-over-year increase. This takes into account challenging year-over-year growth rate comparisons with streaming service distribution, along with an elevated 606 adjustment in Q2 of last year. We expect platform margin to be similar to Q2 of last year at roughly 53%. On the devices side, we expect margin to decline from -5% in Q1 to negative low teens in Q2, which reflects continued expansion and investment in our Roku-branded TV program. We expect to benefit from having implemented multiple operational improvements over the course of the past year, and as a result, forecast our year-over-year OpEx growth rate in Q2 to be down to negative low single digits. Looking into the second half of the year, we expect normal seasonal spend in sales and marketing for devices, which will cause second-half adjusted EBITDA to slightly moderate relative to the first half of the year. Looking at the full year, we expect 2024 year-over-year OpEx growth rate to be in the low single digits when excluding impairment and restructuring charges in 2023. We continue to see leverage in our operating model, with our third straight quarter of positive adjusted EBITDA and free cash flow. We will continue to drive operational efficiency. As Anthony mentioned, we remain confident in our ability to accelerate the growth of platform revenue in 2025 and beyond. With that, let's take questions. Operator? Thank you. As a reminder to ask a question, simply press star 11 on your telephone and wait for your name to be announced. To remove your question, simply press star 11 again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Cory Carpenter with J.P. Morgan. Please proceed. Great. Thank you. I'm hoping you could expand on the drivers of the platform reaccel you're expecting in 2025 and what you're seeing that gives you confidence in this happening. And then, Dan, a quick follow-up for you. Just could you elaborate on what's embedded in the 2Q revenue guide for the platform segment? Thank you. Hey, Cory. This is Anthony. I'll be happy to talk about that. So for some context, before I start, I'll just start by noting that last year we grew platform revenue to $3 billion. Last year also, of course, we focused on operational efficiencies. And like I just said, this year I'm directing more of my attention than my team is directing more of their attention towards accelerating platform revenue growth in 2025. And there's a lot of opportunity to do that on our platform, but I'll just highlight three key areas where I see a lot of opportunity, where we are increasing our focus. The first is the Roku home screen. By the home screen, I mean not just, of course, the actual home screen, but the UI, the user experience of viewers' seats when they turn on their TV and they use to kind of find something to watch. The home screen is a big area. Programmatic ad capabilities and also Roku- billed subscriptions. To talk a little bit more about the Roku home screen, every day the Roku home screen reaches U.S. households with nearly 120 million people. That means every day households with 120 million people turn on their TV and they start their viewing experience, their streaming journey on the Roku home screen. That home screen is what a viewer sees before they select an app. They use that home screen to find something to watch. During that process, they're exposed to promotions, they're exposed to advertising. They'll see advertising on our home screen before they select an app. They might be selecting an app that doesn't actually have ads in it. So we have the ability to reach everyone on the platform, not just the people, not just the viewers to select apps with advertising. But to give you some examples of the kinds of things we're looking at on the home screen, on the home screen today, there's the premier video ad we call the Marquee ad. That ad traditionally has been a static ad. We're going to add video to that ad. So that'll be the first video ad unit we add to the home screen. That'll be a big change for us. We're also testing other types of video ad units, looking at other experiences we can add to the home screen that would be where we could integrate more video advertising. So that's something we're looking at. Another example, this quarter we launched the NBA Zone in the Roku Sports Experience. The sports experience is a way for viewers to find sports across the platform. It's a way for us to promote content, both AVOD and SVOD content. It's also a way for us to integrate advertising into that experience. Another example, we just launched, we just rolled out a personalized content row on the home screen. So this is the first time we've ever added content recommendations directly on our home screen. It's a big change for us in terms of the home screen. It'll be obviously AI-driven recommendations, but it'll promote both subscriptions and AVOD content in that row. There's lots of ways we're working on enhancing the home screen to make it more valuable to viewers, but also increase the monetization on the home screen. That's the home screen. Another area we're looking at increasing our focus on and I'm spending more time on is programmatic ad capabilities. We recently switched our programmatic strategy to be more focused on third-party platforms and expanding our relationships with third-party platforms, including DSPs, expanding what we can offer advertisers. We're building out the relationships. We're also increasing the expertise in-house and the talent we have in-house related to programmatic advertising. I think one example of how this will be useful is if you look at The Roku Channel, The Roku Channel in Q1 was the number 3 app on the Roku platform. I mean, that's pretty impressive. That's the number 3 app after Netflix and after YouTube. Engagement in The Roku Channel was up 66% year-over-year. But there's a lot of opportunity to close the gap between engagement in The Roku Channel and the fill rates in The Roku Channel. Programmatic ad capabilities are one of the ways we intend to do that. Then the third area, another third example of an area that there's lots of opportunities to continue to build monetization is subscriptions. We've talked about in the past that we had various teams throughout Roku working on subscriptions. We've reorganized them into one team. We've reallocated more resources towards subscriptions. That team now reports directly to me. They've already come up with a good list of priorities, ways we can increase our focus and monetization on subscriptions. One area that we're looking at, of course, is Roku Pay, which is our payments and billing service. Roku Pay is very popular, but it can be even more popular. It's great for viewers. It allows them to sign up for a subscription in a frictionless way without having to enter their credit card number. It's great for our business partners because it allows them to reduce friction when a customer is signing up for a subscription. Those are three examples of how we're working on increasing monetization and monetizing our home screen, programmatic, and subscriptions. I just think overall, if you just look at the platform advantages we have, we have a brand the viewers love. We have first-party relationships with more than 80 million streaming households. We have deep user engagement. We're well positioned to continue to re-accelerate platform revenue growth in 2025 and beyond. Then, Dan, did you want to take the? Yeah. I'll take the second part of that question. Thanks, Cory, for the question. So let me talk briefly about the change in Q1 to Q2 before I answer the question on platform revenue in Q2. So last year, Q1 platform revenue growth rate was negative 1% due to a weak ad market. So Q1 of this year grew 19% as it had a relatively easy comp on a year-over-year basis. Platform growth in Q2 of last year was plus 11%. So we went from negative 1% in Q1 to plus 11% in Q2. And that was due to streaming services distribution growth rate increasing, primarily from increases in both subscriptions and subscription prices. Advertising revenue growth also improved in Q2 relative to Q1 last year, but SSD was the primary growth driver. We faced that challenging comp in SSD in Q2 and really for the rest of the year. We also had a positive 606 adjustment in Q2 and Q3 for platform revenue last year, adding to the difficult comp. If you exclude that 606 adjustment in Q2 of last year, our outlook for total revenue growth rate would increase by nearly 200 basis points for Q2 of this year. Again, we did see positive growth rate in advertising in Q1 versus the easier comp of Q1 last year. Our Q2 guide assumes a similar year-over-year growth rate in advertising versus what we exited the year at. We're seeing momentum there. The comp is the reason for the sequential decline in growth rate from Q1 to Q2. To answer your question specifically of the 10% growth that we guided to for Q2, I would think of platform growth as very high single-digit growth rate inclusive of 606. And if you were to exclude 606, the 606 adjustment in Q2 of last year, we would be in low double-digit growth rate for platform revenue. Cory, does that answer your question? Yes. Thank you both. Thank you so much. One moment for our next question, please. He comes from the line of Vasily Karasyov with Cannonball Research. Please proceed. Thank you, Dan. I would like to follow up on your comments on OpEx. And if you remember, on the last quarter call, you made the comment about annualizing Q4 operating expenses and applying a growth rate. And then it looks like this quarter, expenses came in lower than we expected. So can you help us understand exactly how we should think about this math for the remainder of the year in terms of quarterly progression? So from this $460 this quarter, how it's going to progress and what the full-year estimate should be at this point, what the reasonable estimate should be? And when you say mid-single-digit growth rates, would you please specify what that range is for you? Thank you. Yeah. Thanks, Vasily. I will take that. So we exited the year in a good place with our operating expense profile based on all the work we had done throughout the year in 2023. And you see that in our Q1 OpEx. And as I mentioned in my prepared remarks, we expect full-year OpEx to be in the low single digits from FY23, excluding the impairment and restructuring charges that we had in FY23. So let me just be clear on that. So our GAAP OpEx in 2023 was $2.3 billion. If you exclude impairment and restructuring, our OpEx would have been $2.0 billion, just a little bit above $2.0 billion in FY23. So think about it as and I'll be very clear, not mid-single digits, but think about it as low single digits off of that $2 billion is what we'd expect for full year 2024. That just happens to be down double digits off a GAAP basis. But the way to look at it is off our $2 billion OpEx excluding restructuring in 2023, we will likely grow low single digits off that number. We do expect H2 OpEx to be higher than H1. I mentioned that in the prepared remarks. And that's due to normal seasonality that we see in sales and marketing for devices. Q3, Q4, if possible? Again, we'll update that. I've given you a very clear guidance for overall OpEx. We'll update Q3 and Q4 once we close on Q2. But again, think of it low single digits off that $2 billion. Okay. Thank you so much. Thank you. Just to be clear, a lot of that. I just want to add, a lot of that timing depends on how sales and marketing ramps in Q3 and into holiday in Q4, which is why I'm not providing specific guidance. But we do have a very good view for full year. It makes sense. Thank you. One moment for our next question. Comes from the line of Steven Cahall with Wells Fargo. Please proceed. Thank you. So first on device margins, I was just wondering if you could elaborate on some of the sequential change you're talking about from Q1 to Q2. Is that mix or channel partners or anything else that takes it from the pretty good, down 5 in Q1 to that low teens, a little weaker in Q2? And with the seasonally higher marketing spend in the second half of the year, is there anything that also is reflected in device margin being weaker in the back half relatedly? And then secondly, Anthony, just on Roku Pay, it seems like it's a really big focus for monetization and growth. I think you said it's really popular. Any sense of what percentage of your streaming households use Roku Pay and how we think about what the ARPU uplift is when you've got that? Thank you. I think that ended. Yeah. I'll take the device growth margin. So again, Q1 device growth margin was negative 5%, which was typically flat if you exclude the $10 million positive service operator licensing catch-up in Q1 of last year. In terms of the near-term and the change from Q1 to Q2, it really is reflective of the ramp-up in our Roku-branded devices. And again, that's a positive. We are continuing to ramp that up. We're far more distributed now. We're in 2023. I'm sure Mustafa can talk on that. But we see that as a positive. And we would expect those margins to be in the Q2 ballpark going forward. Again, as we grow and scale this program, we will improve our cost structure within devices. And over time, those margins will get better relative to where we are now. But again, we are in the ramp-up stage of Roku-branded TVs. And so for the near term, as we ramp that program up, I would expect to see margins similar to Q2. Yeah. And in terms of Roku Pay, I don't think we've broken out the percentage of streaming households to use it. I'll just say that it's the primary way that we drive subscriptions on our platform is through having viewers sign up to a subscription service with the ease of using Roku Pay. And a lot of the way we plan and we have improved Roku Pay adoption on the platform is things like integrating SVOD content more throughout the recommendation engine. So for example, like I just mentioned, we're adding a just rolled out a content row, a recommendation content a row of recommended content at the top of our home screen. That'll include recommendations of SVOD content, both entitled and unentitled SVOD content, meaning SVOD content that you have a subscription for, which will increase engagement, which will reduce churn, as well as SVOD content that you don't have a subscription for, which you then would sign up, get a free trial, and sign up using Roku Pay. So integrating SVOD throughout the platform more, but also the user experience of how easy it is to sign up with Roku Pay, also to technicalities of running a large-scale billing platform, things like passive cancellations. There's just a lot of operational focus on improving the numbers in Roku Pay. And so it's a big business. And there's still lots of opportunities to continue to improve it. Thanks. Thank you. One moment for our next question, please. He comes from the line of Ralph Schackart with William Blair. Please proceed. Good afternoon. Thanks for taking the question. Dan, just a question on ARPU. It did increase sequentially. So just kind of curious how we should think about that trend line going forward, particularly with some of the monetization efforts that Anthony highlighted. And then just maybe as a follow-up, maybe bigger picture, a couple of quarters now of higher levels of EBITDA and free cash flow, just kind of thinking or give some perspective if you could, how you're thinking about just philosophically about these levels of sustained profitability. Thank you. Yeah. Okay. So I'll take the ARPU question first. We were flat year-over-year on ARPU, and that's, of course, mixing out to more international than U.S., where we're in our scale and engage phase. We are starting to monetize in areas like Mexico and continue to monetize in areas like Canada, U.K., and Germany. But essentially, a lot of our international growth does have a lower ARPU, so we do mix out. I will say what we do see, which is positive, is one, if I were to just look at U.S. in isolation, we, of course, look at it in multiple ways. And on a trailing 12-month basis, U.S. ARPU was up year-over-year. And when we mix in international, it becomes flat for total company. So that is a positive for us that we are improving ARPU on a trailing 12-month basis. So we also look at it on a quarterly basis. That also was positive in the U.S., looking at the most recent quarter, which is a positive. So I like the trends I see in terms of on a mix-adjusted basis in ARPU. But when we mix things out, the ARPU does tend to be flat just given the growth that we're seeing for Actives International, which again is a good thing as we continue to scale and grow engagement internationally. Ultimately, we will monetize international. We are monetizing pieces of it, but we'll continue to monetize it. And that should improve international ARPU over time. This is Anthony. I'll just comment that we're seeing great progress with our international growth plans. For example, in Mexico, we've now achieved 40% market share for TVs. 40% of TVs sold in Mexico are now Roku TVs, which is a great achievement for us. And we're also starting to ramp up monetization. I mean, it's still early days internationally, but we are starting to make progress with, for example, launching the Roku Channel in Mexico and things like that. I'll just take the second part of that question, Ralph, on EBITDA and free cash flow. So we feel very good about EBITDA. Basically, we have had our third straight quarter of positive adjusted EBITDA, and we've guided to a positive adjusted EBITDA of $30 million for Q1. So four quarters inclusive of the guide, I feel very good about EBITDA going forward. We said that in the letter, and Anthony repeated that as we focus on growing the growth rate of platform in FY2025, we will continue to grow EBITDA and free cash flow. I will say I've said it many times, free cash flow. Adjusted EBITDA will be a good proxy for free cash flow as we are CapEx light and will continue to be CapEx light for at least the next year. I'm really happy with the capital that we have and how we're focusing CapEx, being CapEx light. So adjusted EBITDA will be a great proxy for free cash flow. So we see that growing along with adjusted EBITDA. I will say one thing that we did do in Q1 was something called a net share settlement where when we issued our shares via our restricted stock units in Q1, we did offset some of that with net share settlement. So we offset a third of our dilution by essentially issuing less shares and paying the taxes in cash. That had the impact of reducing the dilution impact of shares issued. That's just one way we utilize cash. And as we continue to focus on free cash flow and free cash flow per share, that will have a positive impact. I do expect us to continue to do that for the rest of this year, which should offset about a third of the dilution of future issuances. Great. That's helpful. Thanks, Anthony. Thanks, Dan. Thank you. One moment for our next question. All right. It comes from the line of Rich Greenfield with LightShed Partners. Please proceed. Hi. Thanks for taking the question. Anthony, earlier in the call, you touched on this idea of this personalized feed that you've rolled out at the top of Roku. For a long time, Roku was always about apps or clicking on apps. I'm curious sort of fundamentally, what made you take the shift? Because it seems like a pretty big fundamental shift in how content is sort of surfaced. As you think about this personalized feed, obviously, as you think about directing the traffic to The Roku Channel where you sell ads or apps that you could subscribe to, it seems to give you a lot of power to drive revenue. I'm trying to think about how the interplay between purely what a user might want to watch next versus how it drives revenue at Roku and how you think about that balance going forward and sort of just how this evolves for Roku would be really interesting to hear. Thanks. Hey, Rich. Yeah. So I think there's a few different things that I think about when I think about putting a content row on the home screen. One is our viewers. The fundamental driver of our success has been building a custom-built operating system for television that has a simple and delightful viewer experience. And we have an iconic home screen that's differentiated and recognizably different than our competitors. And so we don't want to we obviously don't want to lose that, and we're not going to lose that. But also, if you just look at the evolution of what people view on a platform like Roku, it used to be that a lot of things were spread out a lot of different apps. Now, I say, for example, we said the number three app on the platform was The Roku Channel. But it's not really an app. I mean, of course, it is an app, but it's also more than that. It's content that we have. It's FAST content. It's premium subscription content. It's AVOD content. It's content that we've licensed directly, that we have direct distribution deals with, and that we integrate throughout our user experience. One way to access that content is through the Roku Channel app. But you can also access it through the more ways to watch interface on our UI. You can access it through the Sports Zone. You can, there's just lots of different ways. And it's one of the fundamental parts of our business model is to expose content to viewers and drive engagement with content while being disciplined about how much we spend for content. And we can do that by integrating it into our UI. So it's important for our viewers to expose that content. It's super important for our business model to expose content. And then, of course, this year, last year for me was the year of focusing on operational efficiencies. This year, I'm focused on driving platform revenue growth. There's tons of opportunity. One of the big ones is just the home screen. It's iconic, but it hasn't changed really in a long time. And there's a lot of ways to still keep what's made it great, but also make it more useful for our viewers and drive revenue. So that's sort of the different kind of aspects. Maybe ask another way. Do you think ultimately it becomes a content feed and not an app feed long-term? Well, I don't want to design our home screen on the earnings call. But the home screen my goal with the home screen is that it will evolve while maintaining its iconic differentiation and while increasing monetization and increasing its usefulness for viewers. And a big part of the strategy for that is some of it's content, but it's also about what we call experiences, things like the sports experience, which is just we bring it up a lot because it's just a good example. It's an experience for helping viewers find sports content across the platform. And so I think one of the things we plan to do with the home screen is to build more of these types of experiences to make them more useful for viewers and to use them as a way to integrate advertising and promotion and sponsorship as well. You might see more of that kind of thing integrated into our home screen long-term. No, I don't think it'll ever become just content recommendations. Thank you. Thank you. One moment for our next question. He comes from the line of Ruplu Bhattacharya with Bank of America. Please proceed. Hi. Thanks for taking my questions. I have two, one on active account growth and one on programmatic revenues. On active account growth, do you see more growth in the U.S., or do you think that more growth now comes from international markets? And with respect to the Walmart Vizio deal, do you see any impact from that? And do you see yourself maybe potentially gaining share at other retailers? And then the second question on programmatic, Charlie, I wanted to ask you, what innings are we in with respect to opening up to other DSPs? And have you seen a meaningful uptick in the fill rates and any impact on CPMs? Thank you. Right. Cool. So this is Anthony. And I actually see, I think, three questions in that question. So I'll take the first part, turn it over to Mustafa to talk about Walmart Vizio, and then Charlie to talk about DSPs. I mean, in terms of active account growth, we're seeing I mean, obviously, there's more future growth outside the U.S. because there's just a lot more humans with broadband households that watch TV outside the U.S. than inside the U.S. And certainly, we're seeing stronger growth at this point outside the U.S. than inside the U.S. But there's still, I believe, plenty of room to continue to grow active accounts inside the U.S. for a while. And of course, there's tons and tons of room to continue to grow active accounts outside the U.S., which we're making good progress there. I mean, our approach outside the U.S. has been to focus on a small number of specific countries, if you call focus countries, establish scale in those countries, and then add more countries. And so the countries we've been focused on historically are primarily countries in the Americas like U.S., Mexico, Canada, Brazil. And then outside the Americas, primarily the U.K. And we're seeing great progress in all those countries. And then at some point, we'll add other countries as well. So I don't know, Mustafa, if you want to talk I don't know if you have anything to add on international or if you just want to touch on Walmart. No, I think you touched on Walmart. Walmart will be important to know. Our sub-international. Walmart Vizio. Walmart Vizio. Sure. Look, we've spent the last 15 years building America's number one TV streaming platform and the brand. Our users love Roku and ask for Roku. Many have multiple devices in their homes. We are becoming the platform where they consume their content. We know what our customers want, and we are always innovating. Our innovation is not just about launching new features but also bringing down the cost of the existing features for our customers. We have a very strong setup here. We are confident in our ability to continue to grow our streaming households. Obviously, we have a great relationship with all of our retail partners, including Walmart, where we are an important part of their shelf space in streaming players, TVs, and smart home categories. Additionally, we have a wide retail distribution in and outside of the U.S., and we continue to expand it and also deepen it with select retail partners. Overall, we have a robust strategy to continue to grow our streaming households with our devices that includes streaming players, our licensed Roku TV program, and our Roku branded TVs that we launched last year. Over on the Roku branded TVs, we are expanding the product lineup with recent introduction of higher performance TVs with the Roku Pro Series, which complement the existing Select Series and Plus Series. We're also expanding its distribution. They are now available at Best Buy, Costco, Amazon.com, and Walmart.com. These factors and our strong track record and capacity to innovate, such as recently announced AI-based picture quality settings, along with our singular focus on streaming and low-cost hardware that's enabled by our purpose-built TV operating system, gives us confidence that we will keep growing our distribution and streaming households. This is Anthony again. So just back, third part of your question was on DSPs. I'll turn it over to Charlie. But I'll just say that, like I said before, I highlighted three areas where I think there's a lot of potential for us to increase our focus, drive more growth, accelerate growth in 2025 in terms of platform revenue growth. And DSPs are one of the pillars. And we've changed our strategy a bit there to be much more focused on working with third-party partners. And I would say it's pretty early in that sort of adoption of that new strategy, and there's a lot of room to grow. But we've had some early successes, and we're making good progress. At least that's the high-level view. I don't know, Charlie, if you want to expand on that. I agree. Thanks, Ruplu, for the question. It's early innings for sure. I think we're getting to the heart of our lineup. There continues to be a ton of opportunity for us with third-party DSPs, and it's an important priority for all of us. As you know, over the last year or so, we made the strategic changes Anthony talked about, and we've been really focusing on incorporating more third-party DSPs now. It is going well, but the expanded access to our platform that I talked about on the last call, we now have over 30 partners, not just all the names you think of, by the way. Our list includes all the notable partners, but also Instacart and Cox Auto and others you might not immediately have come to mind. So this expansion is part of our commitment to an open ecosystem, which is central to our growth strategy. I think this will be a key differentiator for us versus large closed ecosystems. As I've shared before, we're committed to flexibility and meeting advertisers where they prefer to transact. And this strategic pivot has been paying real dividends. In the first quarter, we continued to see an increase in programmatic ad spend as a percentage of total video investment on our platform. And that underscores, for me, the strength and appeal of our offering. Our strategy isn't just about expanding the platforms we operate on. It's also about deepening these relationships. So we're making it easier for advertisers to execute campaigns programmatically with us and easier for them to use Roku inventory. So as we continue to deploy our programmatic strategies, Ruplu, I really expect us to continue the early traction we're seeing and prove that this is really just, as you said, early innings. Thank you so much for all the details, and congrats on the quarter. Thank you. Thank you. One moment for our next question. He comes from the line of Jason Bazinet with Citi. Please proceed. I just had a quick question on the home screen. I'm always surprised when I turn on my Roku how much sort of white space there is there. My question is, is your sense that this sort of move from static to more video-centric sort of a key unlock to monetize it? Or do you think there's just something about marketers that don't quite understand since it's a pretty unique sort of piece of inventory to buy? In other words, do you think that this shift to video is sort of a key enabler, or could it take more time? Thanks. This is Anthony. I think that, to be frank, there's lots of areas we spend our time and our resources on, and our home screen has served us well. There is a lot of white space as part of what makes it iconic and different and recognizable as part of our brand. But I would say the big change is that we've just identified it like, "Okay, we're going to prioritize resources to work on the home screen." There's just a lot of untapped opportunity there. Video ads is just one of the areas of opportunity. I mean, integrating some content like the recommendation row that we're adding. But there's just lots of areas on the home screen in terms of the potential to both increase engaging UI experiences with our viewers and more deeply integrating promotion and advertising in ways that work for marketers as well as our viewers. And so, no, I think adding a video ad to the home screen is going to be very popular. Well, my prediction, it'll be very popular with advertisers. Like I said, it's households with 140 million people in them daily reach before they enter an app. Many of those apps don't have video advertising. So I think it'll be popular. And like I said, we're also looking at other ways to integrate video into our home screen. But the video is not the only thing we're looking at. That's cool. Then, Charlie, do you think marketers understand the value of video advertising on the home screen? Oh, I do. Thanks for the question, Jason. Look, it's really about distinction. We do so much well. But as Anthony said, when you got nearly 120 million people, that's huge distinction in and of itself. And there's a whole class of viewers today who purchase ad-free streaming subscriptions, for example. And they do so so they see fewer ads. And so it's worth noting. And you should remember that the one thing all viewers see when they turn on their TV is our home screen. And Roku's ads, as you note, are elegantly placed in an uncluttered ad environment. So we literally have the privilege of engaging viewers before they choose what to watch, before audiences splinter into apps. And if you think about the problem for marketers, a lot of it is attention fragmentation. So our home screen is a huge opportunity because it really differentiates us. That's great. Thank you. Thank you. One moment for our next question, please. He comes from the line of Barton Crockett with Rosenblatt. Please proceed. Okay. Thanks for taking my question. I was curious about sports, which has been a theme you've been touching on a lot. And in particular, I mean, there's been some media reports, perhaps, that Roku could be looking at buying some sports rights directly. I think there was something recently about the Major League Baseball Sunday Leadoff that was on Peacock. And you guys have done something at small scale. I think it was Formula E. And I'm just wondering, kind of just structurally, is buying sports rights directly at a meaningful level? Does that make sense for Roku? It would seem to be questionable given that anyone streaming sports is kind of wanting to have a deal with you to go through you, I would imagine. If you could talk through how you see sports rights deals and the role for Roku direct or through kind of third-party kind of intermediaries? Yeah. This is Anthony. I would say the primary, so first of all, we don't comment on rumors, speculation, that sort of thing. So I can't comment on that particular rumor. But just your bigger question, how do we think about sports? I mean, I think the primary way I think about sports is that we're a platform. We're a platform, and there's many different streaming services that we distribute on our platform. Many of them have sports. And sports, in particular, is incredibly fragmented. And viewers just have no idea how to find the game they want to watch or their favorite team. So the primary opportunity for us is to help our viewers to be the place they go to help them find a sporting event to watch. And now, that doesn't mean we also have content that we license directly. We have rev share content. We have direct licensed content. We have Roku Originals. And we've done, like you mentioned, Formula E. I mean, the way we think about Roku Originals is a budget for content that we either produce or have more exclusive relationships around. And we did things like the Rich Eisen Show, which is a Roku Original that we integrate into the Sports Zone. We also look at sponsorships for the Sports Zone. We also think about, "Well, is that a place where we could put video ads?" I mean, so for us, it's really the experience of helping viewers find content. We also do license content and produce content. And so that also could end up in our Sports Zone. The primary goal is to be just the go-to place for a viewer to find what to watch and then to monetize that whole experience when they figure out what they want to watch. Then if they end up watching something that we have licensed directly, then we monetize that as well. Okay. All right. That's great. And then if I could squeeze in just one other, I was curious if you could give us an update on what you're seeing in terms of the endemic kind of media marketing partners at this point. It's been a headwind historically, but that business is in some ways kind of normalizing and in some ways still going through some structural issues with some of the media companies and the cost-cutting at the streaming services. So what are you seeing in that kind of market right now for you guys? Yeah. Charlie will take that. Great. Thanks, Barton. Look, we have a large M&E business. Good news is we're really good at it. Roku is really the best place for marketers to build audiences. So simply put, we build content companies' businesses. Now, I think you used the right word. Obviously, the market has been normalizing versus what it used to be. Our efforts have been to monetize our home screen the way Anthony described. We're now focused on all verticals as we continue to diversify and successfully sell inventory that was previously utilized nearly exclusively by M&E advertisers. We're also growing engagement and monetization by creating new experiences on the home screen. Actually, Anthony mentioned the Rich Eisen Show. A notable example worth sharing is BMW's sponsorship of the Rich Eisen Show, which included a marquee ad on our home screen as well as custom advertising within Roku City. Of course, they sponsored his live show. By the way, he's at the draft this week for us and doing live shows from there. Then our partnership with BMW is growing. Our home screen is being deployed beyond M&E. For the client, we're enhancing brand visibility and engagement. Okay. Thank you. Thank you. One moment for our next question, please. He comes from the line of Mark Mahaney with Evercore ISI. Please proceed. This is Ian Peterson on for Mark. Thank you for taking my questions. First question, The Roku Channel streaming hours accelerated for the second quarter in a row. Can you help us walk through some of the drivers of that? Where within The Roku Channel or what areas of content are you seeing the strong engagement trends from? And maybe to follow up on the earlier programmatic question, how should we think about their trajectory and mix of video ad revenue coming from third-party programmatic demand going forward? And last question on advertising, anything you can call out on the macro front on quarter-to-date advertising trends you are seeing heading into the upfront season and maybe progress on some of the SMB advertiser initiatives you've laid out in attracting them to the Roku platform. Thanks. Hey, Ian. This is Anthony. Thanks for all the questions. Let's see. I think we'll start with Charlie. You got it. Thanks, Ian. You asked about TRC. The Roku Channel offers three types of content primarily: AVOD, live TV, and premium subscriptions. We deliver them via viewing experiences that are integrated throughout our platform. As I mentioned earlier, we've made some strategic programming choices for The Roku Channel. Its strong growth in first quarter made it the number 3 app on our platform by both reach and engagement. As to program type, this past weekend, for example, The Spiderwick Chronicles opening weekend debut made it the most watched on-demand title on The Roku Channel with the highest reach and most hours streamed of any title in the history of The Roku Channel for its opening weekend. So it shows there's a tremendous opportunity to engage new audiences with the power of the Roku platform. Other content, we've recently also added short-form content, launching clips from popular NBC shows like Saturday Night Live and sports. And by servicing this content throughout the Roku platform, including our home screen, we're able to generate additional reach and engagement. I mentioned live TV. We continue to expand our lineup of FAST channels. We recently partnered with the NBA to launch the first-ever NBA FAST channel. And that's exclusively on the Roku Channel. And we now have more than 35 sports-focused live TV channels. So all these examples point to the opportunities for us to serve and delight our audiences with the content they love. And I'm going to head into the New Fronts next week, and I look forward to sharing more of what's coming at the Roku Channel. DSPs. DSPs. Well, look, I talked a little bit about it before. There is a lot of opportunity for us in third-party DSPs. I mentioned that we expanded our relationships to now over 30 partners. While we don't break out the mix, I'm really focused on the reacceleration of platform revenue. The DSP focus will play a huge part in that. I mean, DSPs, one of the things that will happen with more focus on DSPs is increased diversity of advertisers. And I think I don't know, but that'll probably help attract more SMB advertisers to the platform as well. Oh, for sure. Yeah. Yeah. Question number 3. No, yeah. So you asked about the small, medium-sized businesses. For sure. The demand diversification is something we've been focused on for several quarters. I've talked about for a few quarters in a row. And I answered earlier that we're in the early innings. I really think you're going to see the reacceleration of the platform revenue growth into 2025 and beyond. And it is both small, medium-sized businesses. And it's also expanding the work we're doing with so many of our existing partners. Got it. Thank you. Thank you. And with that, we conclude our Q&A session. I will turn it back to Anthony Wood for final comments. Well, thanks to everyone for joining. Thanks to our employees, customers, and partners, and advertisers. With that, ladies and gentlemen, thank you for participating.