• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Gen Z fled San Francisco for Texas and Florida. Now they’re turning ‘welcomer cities’ into the next big tech towns

2

Anthropic disables Fable and Mythos AI models after U.S. government bars it from giving foreigners access

3

Melinda French Gates' advice to new IPO millionaires: 'Give half your money away'

1

Gen Z fled San Francisco for Texas and Florida. Now they’re turning ‘welcomer cities’ into the next big tech towns

2

Anthropic disables Fable and Mythos AI models after U.S. government bars it from giving foreigners access

3

Melinda French Gates' advice to new IPO millionaires: 'Give half your money away'
TechRoku

Roku IPO Filing: 4 Things You Should Know

By
Kirsten Korosec
Kirsten Korosec
Down Arrow Button Icon
By
Kirsten Korosec
Kirsten Korosec
Down Arrow Button Icon
September 1, 2017, 7:05 PM ET

Roku, the maker of one of the most popular streaming video devices, filed for an initial public offering on Friday to raise $100 million.

The IPO filed with the U.S. Securities and Exchange Commission gives new insight into the streaming television set-top maker, including whether it’s actually profitable. (And no, it isn’t making money, yet.)

Here are four fast facts worth knowing about Roku and its much anticipated IPO:

1. Roku is trying to shift its revenues away from device sales.

Roku considered filing an IPO in 2014. The company, which at the time was in the process of diversifying its business beyond hardware and into software, decided to wait.

Since then, it appears that the company has managed to diversify. Roku makes the bulk of its money selling its Internet set-top box, but it wants to grow revenue generated from its platform through advertising and subscription dollars.

According to its IPO filing, that appears to be happening. The company says it generated $199.7 million in revenue in the first six months of the year, up 23% from $162.3 million in the same six-month period in 2016.

Last year, 74% of its revenue came from sales of its streaming device. That has shifted in the first six months of the year to 59% of its total revenue. Meanwhile, money generated from the Roku platform (advertising and subscriptions) represented 41% of its total revenue.

Get Data Sheet, Fortune’s technology newsletter.

2. Roku users are streaming a lot of video, and they don’t mind ads.

The company, which was founded in 2002, had 15.1 million active accounts as of June 30, 2017, according the IPO filing. That’s helping it to push ahead of other competitors in the space including Google’s Chromecast and Apple.

And its streaming devices aren’t gathering dust. Roku users streamed more than 6.7 billion hours on the company’s platform in the first six months of 2017, a 62% increase from the same period last year.

Some of those numbers have been reported before, but what’s interesting is the growth in “ad-supported” content—another way of saying that people are willing to watch shows with ads, if the content is free. This is a potential revenue driver for Roku.

Hours streamed on the Roku platform that included advertising grew to 2.9 billion hours in the first six months of 2017, up 76% year-over-year from the six months ended June 30, 2016. Searching for free content was the top reason users visited Roku’s website last year, other than to manage their Roku accounts, the company says in the IPO.

3. Rupert Murdoch could make a killing on the IPO.

Roku is backed by Rupert Murdoch’s 21st Century Fox, Menlo Ventures, Globescan Capital Partners, and Fidelity.

It appears that Menlo Ventures is the company’s largest shareholder with a 35.3% stake. Fidelity has a 12.9% stake, followed by Twenty-First Century Fox at 7%, and Globespan Capital Partners at 6.1.%.

4. The company is not profitable—yet.

In fiscal 2016, Roku lost $42.8 million, and the same story appears to be playing out this year. The company reported a net loss of $24.2 million in the first six months of 2017.

Here’s one reason why: Roku is spending a lot on research and development. The company laid out $48.1 million on R&D in the first six months of 2017, a 25% increase over the same period last year.

About the Author
By Kirsten Korosec
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

The hottest debate on Wall Street right now: Does the flood of mega-IPOs and new shares signal a downturn ahead? That depends
InvestingIPOs
The hottest debate on Wall Street right now: Does the flood of mega-IPOs and new shares signal a downturn ahead? That depends
By Jason MaJune 13, 2026
8 hours ago
You can ignore AI giants like SpaceX, but your 401(k) won’t
Investingindex funds
You can ignore AI giants like SpaceX, but your 401(k) won’t
By Stan Choe and The Associated PressJune 13, 2026
10 hours ago
OpenAI hit with multistate probe into possible user harm, days after filing for a highly anticipated IPO
AIOpenAI
OpenAI hit with multistate probe into possible user harm, days after filing for a highly anticipated IPO
By Bernard Condon and The Associated PressJune 13, 2026
11 hours ago
‘It’s not a jailbreak’ — Research leading to U.S. export restrictions on top Anthropic models was for defense, cybersecurity CEO says
AIAnthropic
‘It’s not a jailbreak’ — Research leading to U.S. export restrictions on top Anthropic models was for defense, cybersecurity CEO says
By Jason MaJune 13, 2026
14 hours ago
More and more of Musk’s companies end up under the same roof. Here’s a look at his sprawling empire
C-SuiteElon Musk
More and more of Musk’s companies end up under the same roof. Here’s a look at his sprawling empire
By The Associated PressJune 13, 2026
18 hours ago
herrin
CommentaryInfrastructure
America just committed $1.2 trillion to fix its infrastructure. We’re still flying blind
By Gregg HerrinJune 13, 2026
21 hours ago

Most Popular

Gen Z fled San Francisco for Texas and Florida. Now they’re turning ‘welcomer cities’ into the next big tech towns
Real Estate
Gen Z fled San Francisco for Texas and Florida. Now they’re turning ‘welcomer cities’ into the next big tech towns
By Sydney LakeJune 13, 2026
22 hours ago
Anthropic disables Fable and Mythos AI models after U.S. government bars it from giving foreigners access
AI
Anthropic disables Fable and Mythos AI models after U.S. government bars it from giving foreigners access
By Jeremy KahnJune 13, 2026
1 day ago
Melinda French Gates' advice to new IPO millionaires: 'Give half your money away'
Startups & Venture
Melinda French Gates' advice to new IPO millionaires: 'Give half your money away'
By Emma HinchliffeJune 13, 2026
22 hours ago
SpaceX CFO Bret Johnsen quietly engineered its historic IPO and became an overnight billionaire
C-Suite
SpaceX CFO Bret Johnsen quietly engineered its historic IPO and became an overnight billionaire
By Sasha RogelbergJune 13, 2026
24 hours ago
Trump expects to sign a deal with Iran on Sunday, but Tehran may want to avoid giving him a gift on his birthday
Middle East
Trump expects to sign a deal with Iran on Sunday, but Tehran may want to avoid giving him a gift on his birthday
By Jason MaJune 13, 2026
11 hours ago
U.S. energy secretary says 7 million barrels of oil exiting Persian Gulf daily, but Chevron CEO rebuts the claim
Energy
U.S. energy secretary says 7 million barrels of oil exiting Persian Gulf daily, but Chevron CEO rebuts the claim
By Jordan BlumJune 12, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.