432: Sizing Up Streaming with Steve Louden, CFO, Roku

While the viewing public watches TV, Roku CFO Steve Louden and his finance team are watching Roku’s data—a treasure trove of viewing tastes, habits, and streaming developments that are being derived from the billions of hours of content that Roku streams quarterly. Join us when Steve explains how a data science and analytics platform—originally incubated inside Roku’s finance organization—aspires to provide digestible insights across the company. Learn how the platform’s “super users” today reside in Roku’s finance and advertising groups and why communication between data science engineers, data analytics, and functional executives has been key to the platform’s growing success.

Listen to the Episode Below (00:44:24)

The Three Metrics That Matter Most

“We have three key operating metrics which really mirror the three components of our business model. We want to build scale of the platform, we want to get folks to engage on the platform itself, and then we monetize that engagement. So our three key operating metrics start with active accounts. Those are sort of a proxy for households that have streamed on the platform in the last 30 days. That is our first and foremost way of tracking how we are building our scale. As of Q2, we are at 22 million active accounts, and that figure has been growing in the mid–40 percent range year-over-year for a while. We’ve been able to maintain good account growth and scale. Then on the engagement side we measure that by streaming hours. Those are the amount of time that people spend on the Roku platform engaging with content, and that has generally been growing faster than the active accounts. Then the third one where we monetize the platform is the average revenue per user. As of Q2, that was 16 dollars and 60 cents on a trailing 12-month basis. That’s largely composed of advertising revenue and also revenue shares that we get from signing up subscribers for subscription services or video-on-demand transactions.”

Making Time for Data Analysis

Guest: Steve Louden, CFO

Company: Roku

Headquarters: Los Gatos, CA

Connect:  www.roku.com

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