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

Trendingnow

1

Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic

2

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

3

Amazon's record Prime Day masks a darker truth: Americans are spending more and getting less

1

Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic

2

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

3

Amazon's record Prime Day masks a darker truth: Americans are spending more and getting less
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
Add Fortune on Google for similar content.

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
Add Fortune on Google for similar content.

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

stock
InvestingMarkets
How one chip stock reversed the global tech selloff, exposed AI’s ‘memory tax’ and made the case for an entire valuation regime change
By Nick LichtenbergJune 25, 2026
2 hours ago
Larry Ellison quietly gave $45 million to a pro-Trump group—then Oracle landed a starring role in a $500 billion AI buildout
PoliticsLarry Ellison
Larry Ellison quietly gave $45 million to a pro-Trump group—then Oracle landed a starring role in a $500 billion AI buildout
By Sydney LakeJune 25, 2026
2 hours ago
Sundar Pichai
SuccessCareers
Google CEO tells graduates to stop obsessing over first jobs because ‘very few moments are make or break’ in life—a lesson he learned in Vegas
By Preston ForeJune 25, 2026
3 hours ago
Softbank CEO dismisses Elon Musk’s extraterrestrial data center idea in favor of maximizing Earth-side construction now: ‘He who strikes first wins’
AITech
Softbank CEO dismisses Elon Musk’s extraterrestrial data center idea in favor of maximizing Earth-side construction now: ‘He who strikes first wins’
By Marco Quiroz-GutierrezJune 25, 2026
3 hours ago
VivaTech entrance in Paris.
NewslettersEye on AI
Europe’s AI wake-up call: cybersecurity threats, sovereignty fears, and a growing demand for ROI dominated VivaTech
By Beatrice NolanJune 25, 2026
4 hours ago
Digital transformation technology strategy, IoT, internet of things. Businessman using smart phone with AI and Digital Icons design.
AICFO Daily
Top CFOs warn AI success depends on training employees, not just buying technology
By Sheryl EstradaJune 25, 2026
5 hours ago

Most Popular

Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic
Success
Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic
By Orianna Rosa RoyleJune 24, 2026
1 day ago
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
Success
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
By Sydney LakeJune 25, 2026
11 hours ago
Amazon's record Prime Day masks a darker truth: Americans are spending more and getting less
Retail
Amazon's record Prime Day masks a darker truth: Americans are spending more and getting less
By Nick LichtenbergJune 24, 2026
1 day ago
Ray Dalio just finished a 10-day trip to China. He says global leaders know America ‘doesn’t have what it takes to fight to maintain its empire’
Asia
Ray Dalio just finished a 10-day trip to China. He says global leaders know America ‘doesn’t have what it takes to fight to maintain its empire’
By Nick LichtenbergJune 24, 2026
1 day ago
After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup
Success
After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup
By Orianna Rosa RoyleJune 23, 2026
2 days ago
Ikea’s billionaire founder was so frugal that he bought clothes from flea markets and took free salt and pepper from restaurants
Success
Ikea’s billionaire founder was so frugal that he bought clothes from flea markets and took free salt and pepper from restaurants
By Orianna Rosa RoyleJune 25, 2026
11 hours 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.