Roku, a streaming service company, has become a market leader for devices that help people stream content directly through their televisions. The company currently offers a range of streaming sticks and set-tops. The company also sells connected television sets.
However, despite its success, Roku is losing money due to increased research, marketing, and HR expenses. To continue funding and developing, Roku recently filed an IPO (Initial Public Offering), through which the company seeks to raise $100 million, according to a document submitted to the Securities and Exchange Commission.
Here are some key figures from the filing:
— $398.6 million revenue in the 2016 fiscal year, up 25% from 2015
— Net loss of $42.8 million in 2016
— 74% of revenue came from selling player devices in 2016
— Roku’s main manufacturers are Foxconn and Lite-On
“Our mission is to be the TV streaming platform that connects the entire TV ecosystem,” CEO Anthony Wood said in a letter included in the SEC filing. “I believe that just like mainframe operating systems didn’t transition to PCs, and just like PC operating systems didn’t make the transition to phones…TVs will be powered by a purpose-built operating system optimized for streaming.”
“We believe all TV content will be available through streaming,” the company said.
The SEC filing also reveals that Roku had 15.1 million active accounts during the second quarter this year, representing growth of 43 percent from the same period last year. The company lost $42.8 million in 2016 and had nearly $399 million in revenue for the same period, up 25 percent from 2015.
The company is backed by 21st Century Fox, Fidelity, and Menlo Ventures, which are major shareholders who will get cash from the IPO. The IPO will be underwritten by Morgan Stanley, Citigroup, Allen & Company, RBC Capital Markets, Needham & Company and William Blair.