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Roku’s platform revenue and profit are growing more quickly than its hardware

How has this company not been acquired already?

Rani Molla is a senior correspondent at Vox and has been focusing her reporting on the future of work. She has covered business and technology for more than a decade — often in charts — including at Bloomberg and the Wall Street Journal.

Roku’s platform revenue and profit are growing more quickly than hardware, according to details released today in the streaming company’s S-1. Roku filed for an IPO late Friday before Labor Day weekend and is expecting to raise $100 million.

The company allows users to stream over-the-top content like Netflix and HBO Go as well as traditional TV channels, and it has benefited as Americans continue to cut the cord.

Although Roku makes the most revenue ($53 million in Q2) from its player hardware, its platform is more profitable. The company made $34 million in gross profit on its platform last quarter on about $46 million in revenue:

Roku had 15.1 million active user accounts in Q2 streaming 3.5 billion hours of video, according to Roku’s S-1 filings. Year over year, Roku user accounts increased 42 percent.

Earlier this summer, research firm eMarketer estimated that Roku had nearly 40 million American users, making it the most popular branded device on which to watch internet video on TV.

Roku is not profitable, with a net loss of $15.5 million in Q2 2017.

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