Fellow Shareholders,February 15, 2024

We are executing well and ended 2023 with 80 million Active Accounts globally and our first year of more than
100 billion Streaming Hours. We grew monetization with Platform revenue up double digits YoY in both Q4 andfull year 2023. We also achieved positive Adjusted EBITDA and Free Cash Flow for 2023 — a year ahead ofschedule. From this position of improved operational efficiency, we are focusing more of our management
attention in 2024 on innovation and growth. There are more opportunities to help our viewers find content
across the streaming universe, in ways that are engaging and entertaining, while also driving monetization.

Full Year 2023 Key Results
•
•
•
•
•
•
•

Total net revenue was $3.5 billion, up 11% year over year (YoY)
Platform revenue was $3.0 billion, up 10% YoY
Gross profit was $1.5 billion, up 6% YoY
Active Accounts were 80.0 million, a net increase of 10.0 million from 2022
Streaming Hours were 106.0 billion, up 18.6 billion hours YoY
Average Revenue Per User (ARPU) was $39.92 (trailing 12-month basis), down 4% YoY
Achieved positive Adjusted EBITDA and Free Cash Flow for full year 2023, ahead of schedule

Roku Q4 and Full Year 2023 Shareholder Letter

1

Total Net Revenue $(M)

Platform Revenue $(M)Gross Profit $(M)

$1,12952%$1,77858%$2,76555%$3,127
13%$3,48511% (YoY)

$721
85%

$1,24873%$2,26582%$2,71120%$2,994
10% (YoY)

$495
49%

$808
63%

$1,40974%$1,441
2%

2019

2020

2021

2022

2023

2019

2020

2021

2022

2023

2019

2020

2021

2022

$1,523
6% (YoY)

2023

Our Business Model
Our three-phased business model — grow scale, grow engagement, and grow monetization — drives our
mission as a global streaming platform that connects and benefits the TV ecosystem of viewers, content
partners, and advertisers. We leverage our ownership of the platform to help our viewers find content acrossthe streaming universe, while simultaneously growing monetization.

Market-Leading Scale
We ended 2023 with 80.0 million Active Accounts globally. Q4
net adds were 4.2 million, and full year net adds of 10.0 million
were a record outside of 2020 and driven primarily by the Roku
TV program in the U.S. and international markets. In the U.S., ourActive Account base is bigger than the subscribers of the six
largest traditional pay-TV providers combined1.
We were pleased with our net adds despite overall TV unit sales
in the U.S. being down YoY in Q4, due to LCD panel prices that
increased YoY leading to smaller TV price discounts for
consumers. Roku continued to benefit from consumers’ focus onvalue, and the Roku operating system (OS) was the #1 selling TV
OS in the U.S. for the fifth year in a row2.

Active Accounts (M)
36.9
36%

51.2
39%

60.1

70.0
16%

14% (YoY)

2019

2020

2021

2022

2023

17%

80.0

We have also driven strong results internationally as we continue to expand our Roku TV licensing program. In
Q4, the Roku OS was the #1 selling TV OS in both Canada and Mexico3. In Canada, we launched the Philips QLED
Roku TV in 2023. In Mexico, we grew our lineup to include the 8K Roku TV with TCL; new Roku TV models with
Philips and Sharp; and a new Roku TV partner, RCA. In Central America, we launched RCA Roku TV models in
Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua, and Roku TV models with Caixun in Chile. And in
the U.K., we launched Roku TV models with JVC at Currys stores, with Polaroid at Asda stores, and with Sharpat numerous retailers.
As we celebrate 10 years of our successful Roku TV program, we now have more than 30 TV partners globally,
with a wide range of models in a variety of sizes. To complement this program, we launched Roku-branded TVs(designed, made, and sold by Roku) in early 2023 exclusively at Best Buy, the leading consumer tech retailer.
We recently expanded retail availability of Roku-branded TVs to Costco and Amazon.com.

1 Leichtman Research Group, Nov 2023

2 Source: Circana, Retail Tracking Service, Quarterly Unit Sales, Q1 2019 – Q4 2023
3 Source: Circana, Retail Tracking Service, Unit Sales, Oct-Dec 2023 combined

Roku Q4 and Full Year 2023 Shareholder Letter

2

In January 2024, one year after the launch of Roku-branded TVs, we announced an expansion to our awardwinning lineup by adding the Roku Pro Series with advanced features and best-in-class technology. Roku Pro
Series TVs will have exceptional picture quality with a 4K QLED display and enhanced audio technology for awide cinematic sound. Additionally, both Roku-branded TVs and Roku TV models will have Roku Smart Picture.
This new set of features identifies the type of content on the screen through artificial intelligence to adjust the
picture automatically for an optimized viewing experience. Roku Pro Series TVs will be available in the U.S. thisspring in three sizes: 55”, 65”, and 75”, with retail prices under $1,500.

Roku Pro Series TV

Driving Engagement
Globally, our users streamed a record 29.1 billion hours in Q4 and
106.0 billion hours in 2023 — the first year in which we havesurpassed 100 billion hours. Roku continues to be the #1 TV
streaming platform by hours streamed in the U.S. and Mexico4.
The shift from traditional TV to streaming continues unabated. In
Q4, hours on traditional TV in the U.S. fell 16% YoY (Nielsen), while
global Streaming Hours on the Roku platform grew 21% YoY, andStreaming Hours on The Roku Channel grew 63% YoY. We also
grew engagement per account globally, with Streaming Hours per
Active Account per day of 4.1 hours in Q4 2023, up from 3.8 hours
in Q4 2022 and 3.6 hours in Q4 2021. Average viewing time on
traditional TV is 7.5 hours per day in the U.S. (Nielsen), providing
significant opportunity for us to continue to grow our engagement.
Additionally, there remains a significant gap between viewershipand ad dollars on TV streaming. In 2023, U.S. adults aged 18-49
spent more than 60% of their TV time on streaming5, while
advertisers spent just 29% of their TV budgets on streaming6.

Streaming Hours (B)
37.8
59%

58.7
55%

73.2
25%

87.4
19%

106.0
21% (YoY)

2019

2020

2021

2022

2023

4 Dec 2023, Hypothesis Group
5 Nielsen

6 eMarketer

Roku Q4 and Full Year 2023 Shareholder Letter3

Viewer Experience
We leverage our advantage as the programmer of the home screen for 80 million Active Accounts globally, tohelp viewers discover content from the start of their streaming journey. In 2023, Streaming Hours originatingfrom the home screen menu (left-hand navigation) more than doubled YoY.
In Q4, we updated the Roku home screen so viewers can quickly find and watch content from two popular
categories: lifestyle and Live TV. Within lifestyle, we created two new viewer experiences, All Things Food and
All Things Home, to aggregate the best culinary-themed and home and garden-themed content on the Roku
platform. We continue to improve our Live TV offering by updating the experience and adding more FAST7
content partners, which together drives growing engagement on our platform. We recently added a Live TV
guide tile to the first position in the home screen grid (on the right side of the home screen), for TVs poweredby a Roku streaming player, to give viewers quicker and easier access to this popular category.

All Things Home

Live TV guide tile in the home screen grid

Located on our home screen menu, What to Watch offers viewers a curated selection of content from acrossthe Roku platform. We first launched this experience in the U.S. and followed in international markets ofCanada, Mexico, Brazil, and the U.K. In late 2022, we also launched the Sports experience on the Roku home
screen menu in the U.S. to aggregate sporting events in a single, centralized location. Throughout 2023, weadded a Women’s Sports Zone, the NFL Zone, and the ability for viewers to track their favorite teams.
Viewers can find a specific piece of content by launching our powerful search functionality from the home screen
menu, the remote (with a voice search), or the Roku mobile app. In 2023 we made enhancements to better
personalize results by displaying streaming service options according to the viewer’s active subscriptions.
Additionally, search results are now more informative, showing trailers, episode guides, and features such as
Save List and You May Also Like recommendations. This enhanced search, which is the result of dozens ofimprovements, provides a better viewer experience while also growing engagement and monetization
opportunities. In Q4, Streaming Hours launched from search results were up 50% YoY.

7 FAST: free ad-supported linear streaming TV, does not include on-demand content

Roku Q4 and Full Year 2023 Shareholder Letter4

BEFORE improvements

AFTER improvements
The Roku Channel
We aim to offer a broad array of entertainment, and The Roku Channel aggregates three types of content —AVOD8, Live TV (FAST), and Premium Subscriptions — into viewing experiences that are integrated throughout
our platform. The Roku Channel has grown to become a top 10 streaming app in the U.S., comparable inengagement to peers such as Paramount+, Peacock, and Max9. In Q4, The Roku Channel reached U.S.
households with an estimated 120 million people.
The Roku Channel demonstrates how we leverage our ownership of the platform to simultaneously drive a
better viewer experience and growing monetization. Our free Live TV offering can be accessed from the home
screen menu, the home screen grid, and directly within The Roku Channel. Live TV offers diverse content, froma local news selection that rivals broadcast TV, to entertainment channels such as MrBeast and The NFL Channel
that over-index with younger audiences. In Q4, we attracted strong advertiser interest with a viewer experiencecreated specifically for the holidays. The experience featured thematic licensed programming, pop-up holiday
FAST channels, and a lineup of new Roku Originals including How to Fall in Love by the Holidays sponsored byWalmart, The Holiday Shift sponsored by Kohl’s, and The Great American Baking Show: Celebrity Holiday
sponsored by State Farm.

State Farm sponsored The Great American Baking Show: Celebrity Holiday
89Ad-supported video on demand
December 2023 report of The GaugeTM
Roku Q4 and Full Year 2023 Shareholder Letter

5Growing Monetization
Platform revenue was $3.0 billion in 2023, up 10% YoY, and $829
million in Q4, up 13% YoY, reflecting strong contributions fromstreaming services distribution activities and video advertising,offset by lower M&E (media and entertainment) promotional
spend. In Q4, Platform Gross Margin was 55%, relatively flat YoY.
ARPU was $39.92 in Q4 (on a trailing 12-month basis), down 4%
YoY, reflecting an increasing share of Active Accounts ininternational markets where we are currently focused on growing
scale and engagement.

ARPU ($)$22.51
34%$28.3026%$40.6744%$41.68
2%

2019

2020

2021

2022

$39.92(4)% (YoY)2023

We generate Platform revenue primarily from the sale of advertising (including direct and programmatic video
advertising, M&E promotional spending, sponsorships, and related ad products and services), as well as
streaming services distribution (including subscription and transactional revenue, the sale of Premium
Subscriptions, and the sale of branded app buttons on remote controls). We have renamed “content
distribution” to “streaming services distribution” to more accurately describe these activities, though theactivities remain the same.
Streaming Services Distribution Activities
In Q4 and for full year 2023, streaming services distribution activities grew faster than Platform revenue overall,benefiting from increases in both subscription sign-ups and prices. As subscription prices increase, we believe
consumers will seek savings via ad-supported subscriptions that have been launched by the major streaming
services in the U.S. We believe these launches, along with growing consumer adoption, will be a catalyst within
the industry for the shift of ad dollars from traditional TV to streaming. Roku is well-positioned to benefit fromthis shift due to our significant scale of 80 million Active Accounts and the tools to help streaming service
partners not only attract subscribers but also grow engagement, which is critical in an ad-supported
environment.
Advertising Activities
While the U.S. ad market recovery is uneven, the decline in traditional linear TV and the shift of advertising fromtraditional TV to streaming is consistent. In Q4, ad spending on traditional TV decreased 11% YoY, and traditionalad scatter decreased 9% YoY (according to SMI). Conversely, Roku saw continued signs of rebound. In Q4, theYoY growth of video advertising across the Roku platform outperformed both the overall ad market and the
traditional linear TV ad market in the U.S. In Q4, Consumer Packaged Goods, Health and Wellness, and Telecom
grew, while Media & Entertainment, Financial Services, and Insurance remain challenged.
In 2023, we made strong progress expanding our relationships with third-party platforms, including retail media
networks, DSPs (demand side platforms), and other strategic partners. As a result, we have increased our new
and existing advertisers, programmatic ad spend, and ad spend through third-party DSPs. In the past year, weformed new partnerships with retail platforms, including DoorDash, Instacart, Cox, and Best Buy; third-party
DSPs, including Unity and FreeWheel; and measurement partners like Comscore. Serving more partners andadvertisers, we also continue to improve and expand the performance and measurement capabilities Roku
provides.

Roku Q4 and Full Year 2023 Shareholder Letter6

As we build new ad offerings for marketers, we are focused on the streamer’s journey, which begins with the
Roku home screen. It is the first thing our viewers see, making Roku the lead-in10 to all content. With All Things
Food, we simultaneously created a compelling entertainment destination for viewers and new monetization
opportunities for Roku. The food zone was exclusively sponsored by Coca-Cola, which ran an innovative
campaign during the 2023 holiday season to elevate its iconic brand. Coca-Cola leveraged marquee and spotlightads on the Roku home screen, a shoppable experience in partnership with DoorDash, a sponsorship of Roku
Original series Martha Holidays, and a holiday-themed Roku City integration – an immersive experience that
only Roku can provide. This, and several other key sponsorships, drove Q4 to be the highest-ever quarter ofsponsorship spend.

Exclusive sponsorship of All Things Food by Coca-Cola
Since opening Roku City (our beloved screensaver) to brand advertisers, we have executed integrations withsome of the world’s most renowned brands, including Coca-Cola, Disney, Lego, McDonald's, Barbie/Mattel,
Carnival, Acura, and more. Roku City integrations have reached an average of more than 40 million Active
Accounts. These engaging executions — again, only available on and through Roku — drive positive brandawareness for marketing partners, delight viewers, and elevate Roku’s distinct and playful brand attributes.

10 The power of one program to elevate what comes after it

Roku Q4 and Full Year 2023 Shareholder Letter

7

Roku City sponsorships from Coca-Cola, Disney, and Lego

Outlook
We plan to increase revenue and free cash flow and achieve profitability over time. At the same time, we remain
mindful of near-term challenges in the macro environment and an uneven ad market recovery. While we will
face difficult YoY growth rate comparisons in streaming services distribution and a challenging M&E
environment for the rest of the year, we expect to maintain our Q4 2023 YoY Platform growth rates in Q1. This
will result in Total net revenue of $850 million, total gross profit of roughly $370 million, and break-even
Adjusted EBITDA in Q1. Continuing our performance from 2023, we expect to deliver positive Adjusted EBITDA
for full year 2024.

Conclusion
For 2024 and beyond, there are two industry trends that are particularly important for Roku. The first is theenormous volume of content and live events on streaming. We have an inherent advantage as the programmerof the home screen to help our viewers find what they want to watch, while simultaneously growing ourmonetization. This is a big opportunity for Roku. Second, streaming services are focused on building successful
ad-supported options for consumers, and this will further accelerate the overall shift of ad dollars fromtraditional TV to streaming. Roku has the tools and expertise to drive engagement, which is critical in an adsupported environment. With our platform advantages, first-party relationship with 80 million Active Accounts,
and deep user engagement, we are well-positioned to accelerate revenue growth in future years.

Thank you for your support, and Happy Streaming™!
Anthony Wood, Founder and CEO, and Dan Jedda, CFO

Roku Q4 and Full Year 2023 Shareholder Letter8Conference Call Webcast – February 15, 2024 at 2 p.m. PT

The Company will host a webcast of its conference call to discuss the Q4 and fiscal year 2023 results at 2 p.m.
Pacific Time / 5 p.m. Eastern Time on February 15, 2024. Participants may access the live webcast in listen-onlymode on the Roku investor relations website at www.roku.com/investor. An archived webcast of theconference call will also be available at www.roku.com/investor after the call.

Segment Reporting Change
Effective as of the fourth quarter of fiscal 2022, we reorganized reportable segments to better align withmanagement’s reporting of information reviewed by our Chief Operating Decision Maker, our CEO, for eachsegment. Our segment and related financial information was recast to reflect the following changes: werenamed the Player segment to the Devices segment, which now includes licensing arrangements with service
operators and TV brands in addition to sales of streaming players, audio products, smart home products andservices, and starting in 2023, Roku-branded TV sales. All financial information, current and historical, is recast
based on the reorganized segments.

About Roku, Inc.

Roku pioneered streaming to the TV. We connect viewers to the streaming content they love, enable content
publishers to build and monetize large audiences, and provide advertisers with unique capabilities to engage
consumers. Roku streaming players and TV-related audio devices are available in the U.S. and in select countries
through direct retail sales and licensing arrangements with service operators. Roku TV™ models are available in
the U.S. and in select countries through licensing arrangements with TV OEM brands. Roku Smart Home
products, including cameras, video doorbells, lighting, plugs, and more are available in the U.S. Roku isheadquartered in San Jose, Calif. U.S.A.
Roku, the Roku logo and other trade names, trademarks or service marks of Roku appearing in this shareholder
letter are the property of Roku. Trade names, trademarks and service marks of other companies appearing inthis shareholder letter are the property of their respective holders.
Investor Relations
Conrad Grodd
cgrodd@roku.com

Media
Stephanie Tackach
stackach@roku.com

Roku Q4 and Full Year 2023 Shareholder Letter

9Use of Non-GAAP Measures

In addition to financial information prepared in accordance with generally accepted accounting principles in the
United States (GAAP), this shareholder letter includes certain non-GAAP financial measures. These non-GAAP
measures include Adjusted EBITDA and Free Cash Flow (FCF). In order for our investors to be better able tocompare our current results with those of previous periods, we have included a reconciliation of GAAP to nonGAAP financial measures in the tables at the end of this letter. The Adjusted EBITDA reconciliation excludes
other income (expense), net, stock-based compensation expense, depreciation and amortization, restructuring
charges, and income tax (benefit)/expense from the net income (loss) of the period, and the FCF reconciliation
excludes capital expenditures and effects of exchange rates from the cash flow from operations of the period,in each case where applicable. We believe these non-GAAP financial measures are useful as a supplement inevaluating our ongoing operational performance and enhancing an overall understanding of our past financial
performance. However, these non-GAAP financial measures have limitations, and should not be considered inisolation or as a substitute for our GAAP financial information.

Forward-Looking Statements

This shareholder letter contains “forward-looking” statements that are based on our beliefs and assumptions
and on information currently available to us. Forward-looking statements include all statements that are nothistorical facts and can be identified by terms such as “anticipate,” “believe,” “continue,” “could,” “design,”“estimate,” “expect,” “may,” "plan,” “seek,” “should,” “will,” “would” or similar expressions and the negativesof those terms. Forward-looking statements involve known and unknown risks, uncertainties and other factorsthat may cause our actual results, performance or achievements to be materially different from any future
results, performance or achievements expressed or implied by the forward-looking statements. Forwardlooking statements represent our beliefs and assumptions only as of the date of this letter. These statements
include those related to our ability to innovate, build and launch new products and services, including the Roku
Pro Series TVs; changes in the ad market; the shift of TV and TV advertising to streaming; increasing subscription
prices and the potential consumer response to seek savings via ad-supported subscriptions; the effect that the
proliferation of ad-supported subscriptions will have on the overall shift of ad dollars from traditional TV tostreaming; our ability to grow our Active Accounts; our room for growth in engagement; our ability to promote
content effectively on The Roku Channel both to serve our existing audience and to attract new viewers; ourinternational expansion; our ability to continue to improve the viewer experience, including by innovating the
Roku home screen to help viewers discover content, improving search functionality, and enhancing our Live TV
offering; the growth in volume of content and live events on streaming; our ability to deliver growth in platform
monetization; our ability to innovate our ad tech; our relationships with third-party advertising platforms; ourability to navigate through macroeconomic headwinds and an uneven ad market recovery; our belief that thecurrent macro environment is temporary; our financial outlook for the first quarter of 2024, our plans to achieve
positive adjusted EBITDA for full year 2024, and our qualitative color on our business in 2024 and beyond; ourbelief that we are well-positioned to accelerate revenue growth; and our overall business trajectory. Except as
required by law, we assume no obligation to update these forward-looking statements publicly, or to update
the reasons actual results could differ materially from those anticipated in the forward-looking statements, even
if new information becomes available in the future. Further information on factors that could cause actual
results to differ materially from the results anticipated by our forward-looking statements is included in thereports we have filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K
for the year ended December 31, 2022 and our Quarterly Report on Form 10-Q for the quarter ended September
30, 2023. Additional information also will be available in our Annual Report on Form 10-K for the year ended
December 31, 2023. All information provided in this shareholder letter and in the tables attached hereto is as
of February 15, 2024, and we undertake no duty to update this information unless required by law.

Roku Q4 and Full Year 2023 Shareholder Letter

10

ROKU, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except per share data)(unaudited)Three Months Ended December 31,

Years Ended December 31,

2023

2022

2023

2022

828,867 $

731,261 $2,994,105

155,558

135,795

490,514415,093

984,425

867,056

3,484,619

3,126,534

Platform (1)370,395

323,279

1,427,546

1,179,675

Devices (1)176,106

179,400

534,458

505,737

546,501

502,679

1,962,004

1,685,412

Platform

458,472

407,982

1,566,559

1,531,766

Devices(20,548)(43,605)(43,944)(90,644)437,924

364,377

1,522,615

1,441,122

Research and development (1)183,801

220,670

878,474

788,913

Sales and marketing (1)264,554

297,562

1,033,359

838,419

General and administrative (1)93,737

96,043403,159

344,678

Total operating expenses

542,092

614,275

2,314,992

1,972,010(104,168)(249,898)(792,377)(530,888)

Interest expense(35)(1,888)(730)(5,161)Other income, net

27,665

13,614

93,67743,766

Total other income, net
Loss Before Income Taxes

27,630(76,538)

11,726(238,172)92,947(699,430)

38,605(492,283)

Income tax expense (benefit)

1,753

(975)

10,131

5,722

Net Revenue:
Platform$

Devices
Total net revenue$

2,711,441

Cost of Revenue:

Total cost of revenue
Gross Profit (Loss):

Total gross profit
Operating Expenses:

Loss from Operations
Other Income, Net:Net Loss$(78,291) $(237,197) $(709,561) $(498,005)

Net loss per share — basic and diluted$(0.55) $(1.70) $(5.01) $(3.62)

Weighted-average common shares outstanding —basic and diluted

143,011

139,658

141,572

137,668(1) Stock-based compensation was allocated as follows:
Cost of revenue, platform

$

422 $

347 $

1,478

$

1,229

Cost of revenue, devices

1,335

621

3,761

2,440

Research and development

37,18840,523

147,989

147,653

Sales and marketing

30,577

37,638130,362

123,946

General and administrative

23,25225,14886,54084,663

92,774 $104,277 $

370,130

Total stock-based compensation$$

359,931

Roku Q4 and Full Year 2023 Shareholder Letter

11

ROKU, INC.
CONSOLIDATED BALANCE SHEETS(in thousands, except par value data)(unaudited)
As of December 31,
2023

2022

2,025,891 $

1,961,956

Accounts receivable, net of allowances of $34,127 and $40,191 as ofDecember 31, 2023 and 2022, respectively

816,337

760,793

Inventories

92,129106,747

Prepaid expenses and other current assets

138,585

135,383

Total current assets

3,072,942

2,964,879

Property and equipment, net

264,556

335,031

Operating lease right-of-use assets

371,444521,695

Content assets, net

257,395

292,766

Intangible assets, net

41,75358,881

Goodwill

161,519

161,519

Other non-current assets

92,183

77,830$4,261,792 $

4,412,601$

385,330 $

164,800

AssetsCurrent Assets:
Cash and cash equivalents$

Total Assets
Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts payable
Accrued liabilities

788,040

750,810

Current portion of long-term debt—

79,985

Deferred revenue, current portion

102,157

87,6781,275,527

1,083,273——

Deferred revenue, non-current portion

24,572

28,210Operating lease liability, non-current portion

586,174584,651

Other long-term liabilities

49,186

69,911

1,935,459

1,766,045

14

14

3,623,747

3,234,860

159

(292)

(1,297,587)(588,026)

2,326,333

2,646,556

4,261,792 $

4,412,601

Total current liabilities
Long-term debt, non-current portion

Total Liabilities
Stockholders’ Equity:
Common stock, $0.0001 par value;
Additional paid-in capital
Accumulated other comprehensive income (loss)
Accumulated deficit
Total stockholders’ equity
Total Liabilities and Stockholders’ Equity$

Roku Q4 and Full Year 2023 Shareholder Letter

12

ROKU, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands)(unaudited)Years Ended December 31,

Cash flows from operating activities:
Net loss
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization
Stock-based compensation expense
Amortization of right-of-use assets
Amortization of content assets
Foreign currency remeasurement (gains) losses
Change in fair value of Strategic Investment
Impairment of assets
Provision for (recoveries of) doubtful accounts
Other items, net
Changes in operating assets and liabilities:
Accounts receivable
Inventories
Prepaid expenses and other current assets
Content assets and liabilities, net
Other non-current assets
Accounts payable
Accrued liabilities
Operating lease liabilities
Other long-term liabilities
Deferred revenue
Net cash provided by operating activities
Cash flows from investing activities:
Purchases of property and equipment
Purchase of Strategic Investment
Net cash used in investing activities
Cash flows from financing activities:
Repayments of borrowings
Proceeds from equity issued under incentive plans
Net cash (used in) provided by financing activities
Net increase (decrease) in cash, cash equivalents and restricted cash
Effect of exchange rate changes on cash, cash equivalents and restricted cash
Cash, cash equivalents and restricted cash —Beginning of period
Cash, cash equivalents and restricted cash —End of period
Cash, cash equivalents and restricted cash at end of period:
Cash and cash equivalents
Restricted cash, current
Cash, cash equivalents and restricted cash —End of period

Roku Q4 and Full Year 2023 Shareholder Letter

2023

2022

(709,561) $(498,005)

70,447370,130
57,579207,852
1,457(4,348)269,402
1,674(1,510)48,651359,93155,507234,355(8,230)
532
7,500
2,081
(190)

(56,937)
14,725
15,058(267,155)(592)
248,175
57,714(27,786)(1,309)10,841
255,856(10,887)(56,471)(15,941)(313,204)(7,304)
14,190167,526(9,245)(403)
41,402
11,795(82,619)(10,000)(92,619)(161,696)(40,000)(201,696)$(80,000)
18,757(61,243)
101,994
2,654
1,961,956
2,066,604 $(10,000)
18,357
8,357(181,544)(4,170)2,147,670
1,961,956$

2,025,891
40,713
2,066,604 $

1,961,956—
1,961,956$

13

Years Ended December 31,
2023

2022

Supplemental disclosures of cash flow information:
Cash paid for interest

$

915 $

3,894

Cash paid for income taxes$

6,632 $

7,016

$

429 $

28,503

Supplemental disclosures of non-cash investing and financing activities:
Unpaid portion of property and equipment purchases

NON-GAAP INFORMATION(in thousands)(unaudited)
Reconciliation of Net loss to Adjusted EBITDA:
Three Months Ended December 31,
2023

Years Ended December 31,

2022

2023

2022

(78,291) $(237,197) $(709,561) $(498,005)

Other income (expense), net(27,630)(11,726)(92,947)(38,605)

Stock-based compensation

92,774104,277

370,130

359,931

Depreciation and amortization

17,40012,25470,44748,651

Restructuring charges

41,731

38,140356,094

38,140

Income tax expense (benefit)

1,753

(975)

10,131

5,722

Net loss$(1)

Adjusted EBITDA$

47,737$(95,227) $4,294 $

(84,166)(1) Restructuring charges of $356.1 million in fiscal year 2023 were composed primarily of operating lease right-of-use asset impairment
charges of $131.6 million, property and equipment impairment charges of $72.3 million, content asset impairment charges of$65.5 million, employee severance and related charges of $83.2 million, and facilities exit costs of $3.5 million.
Restructuring charges of $38.1 million in fiscal year 2022 were composed primarily of employee severance and related charges of$30.6 million and an impairment charge of $7.5 million for the abandonment of certain technology intangible assets.

Free cash flow (TTM):
Q4 22

Cash flow from operations$

Less: Capital expenditures
Add/(Less): Effects of exchange rates on cash
Free cash flow (TTM)

Q1 23

Q2 23

15,383 $

Q3 23

Q4 23

246,882 $255,856

11,795$ (243,415) $(161,696)(201,175)(181,803)(144,477)(82,619)(4,170)(3,515)(2,914)(1,599)2,654

100,806 $175,891$ (154,071) $ (448,105) $ (169,334) $Roku Q4 and Full Year 2023 Shareholder Letter

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