Roku, Inc.

Good day and thank you for standing by. Welcome to the Roku third quarter 2023 earnings conference call. At this time, all participants are in a listen-only mode. After the presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 1 1 on your touchtone telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your host today, Conrad Groth, Vice President of Investor Relations. Please go ahead.

Thank you, operator. Good afternoon and welcome to Roku's third quarter 2023 earnings call. I'm joined today by Anthony Wood, Roku's founder and CEO, and Dan Jetta, our CFO. Also in today's call for Q&A are Charlie Collier, President, Roku Media, and Mustafa Ozgun, President, Devices. For full details of our results and additional management commentary are available in our shareholder letter, which can be found on our investor relations website at roku.com forward slash investor. Our comments and responses to your questions on this call reflect management's views as of today only, and we disclaim any obligation to update this information. On this call, we'll make forward-looking statements, which are predictions, projections, or other statements about future events, such as our financial outlook, our commitment to positive adjusted EBITDA for full year 2024, and continued improvements thereafter, our investments, future market conditions, and macro environment uncertainties. These statements are based on our current expectations, forecasts, and assumptions, and involve risks and uncertainties. please refer to our shareholder letter and periodic SEC filings for risk factors that could cause our actual results to differ materially from these four looking statements. We'll also discuss certain non-GAAP financial measures on today's call. Reconciliations to the most comparable GAAP financial measures are provided in our shareholder letter. Finally, unless otherwise stated, all comparisons on this call will be against the results for the comparable period of 2022. Now, I'd like to hand the call over to Anthony.

Thanks, Conrad. We are executing well as the shift to TV streaming continues and delivered a strong quarter. We grew our scale with net ads of 2.3 million active accounts and acceleration from the previous quarter. We drove strong engagement with streaming hours surpassing 100 billion for the first time on its trailing 12-month basis. And the Roku channel remains a top 10 streaming app with engagement comparable to Paramount+, Peacock, and Max, according to Nielsen. On the monetization side, platform revenue was up 18% year-over-year, reflecting strong contribution from content distribution and video advertising. We continued to tap into new ad demand sources and are now integrated with more than 30 programmatic partners. Spend on the Roku platform through automated third-party demand sources in Q3 grew meaningfully year-over-year. And we expanded our partnerships with marquee brands this quarter. With Spotify, we introduced video ads in the Spotify app on Roku devices, and with the NFL, we launched the first league-branded zone in the Roku sports experience. We continued to make progress in reducing our year-over-year OpEx growth rate. In September, we announced additional measures that included a reduction of our workforce and office facilities and the removal of select content. These measures and other cost reductions, along with our strong top-line growth, enabled us to deliver adjusted EBITDA of $43 million in Q3. Going forward, we will balance investment for growth with our commitment to positive adjusted EBITDA for the full year 2024. And we expect continued adjusted EBITDA improvements after that. With our growing scale and engagement, relentless focus on providing the best TV streaming experience, and ongoing innovation, we are well positioned as the ad market recovers. Now I'll turn it over to Dan to discuss our results.