Analyst Note
| Neil Macker, CFA |Roku ended 2020 with a strong fourth quarter as revenue and operating income both beat FactSet consensus projections. The firm added 5.2 million accounts in the quarter and over 14 million in 2020 as the pandemic restrictions provided a tailwind to the secular trend toward streaming. With the vast majority of its 51.2 million subscribers in the U.S., Roku’s international expansion will continue to grow in importance with respect to new customer net additions. However, the potential growth in streaming hours and ad dollars means the U.S. will still drive top-line expansion for the near to medium term. We are maintaining our no-moat rating and plan to raise our $150 fair value estimate to account for faster subscriber and streaming hours growth.