Roku Inc at Evercore ISI TMT Conference (Virtual) Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : Okay. Let's get started. So Steve, at a high level, what impact has COVID had on Roku's business and on CTV and OTT industry in general? So is it fair to assume that Roku is emerging stronger from the pandemic with a greater potential to grow revenue at a faster clip versus pre-COVID?

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : Yes. Just to follow up on that, and then I'll flip it to Mark. Do you see any permanent changes? And specifically, you touched on upfront. So what are your expectations from upfronts and Newfronts this year versus, call it, what you saw and the changes you saw last year and pre-COVID? And then the second thing is, in the fourth quarter of last year, you saw some structural changes within retail and CPG in particular in terms of accelerated spend. How do you think that will shake out in a post-COVID environment and in this year? How should we be thinking about sustainability of that ad spend? And will other categories follow as well? So those 2, please.

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : Makes sense. Mark Stephen F. Mahaney - Evercore ISI Institutional Equities, Research Division - Senior MD & Head of Internet Research All right. Let me jump in and ask about active accounts. Steve, you made a comment that you thought active accounts could grow. The net adds would be greater this year -- less than last year, but greater than 2019. That doesn't strike me as a statement from a -- that struck me as an unusual statement from a pretty conservative CFO. So why is it that active accounts -- because 2019 was a pretty robust year. Obviously, 2020 was huge, but 2019 was pretty robust. Why is it that active account growth will be greater this year than in '19?

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : Okay. If I were to switch gears just a little bit and go to your first quarter platform revenue growth. Now it came in well above expectations, and you saw a lot of strength driven from 3 things: One is content distribution. Second is media and entertainment revenue came in stronger. And third is 606 accounting. And so I guess the question is, how early in the quarter does -- do you do these revaluations for 60 -- that would impact -- that would have the 606 impact? And then is it fair to assume that your second quarter guide does not account for a material change from 606 accounting? So those 2, please.

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : Makes sense. And then just to follow up on that, and then I'll flip it back to Mark. Is -- I guess what adjustment -- what will these adjustments mean for long term? So there could be movement within quarter -- from one quarter to the other in short-term outlook. But really, what do these mean for long-term growth, call it, if we are looking at it on a year-over-year basis for the full year? Now it seems like these adjustments are becoming bigger and more frequent. So is that true? And two, is this generally positive or negative for -- as we think about the long-term growth trajectory?

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : Yes. Makes sense. Mark? Mark Stephen F. Mahaney - Evercore ISI Institutional Equities, Research Division - Senior MD & Head of Internet Research Steven, a couple of more questions from investors on just your international comments. So here's a simple question, quick one. Did COVID accelerate or slow down your international expansion efforts?

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : Okay. If we switch gears to OneView. At a high level, can you remind us what the long-term strategic goal is with OneView? I mean it has been growing well. You've mentioned that TV streaming ad impressions delivered through OneView in the first quarter, tripled year-over-year. So if we were to just step back, what is the goal with OneView long term? And how do you see that evolve, call it, in the next 2 to 5 years? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 07, 2021 / 4:30PM, ROKU.OQ - Roku Inc at Evercore ISI TMT Conference (Virtual)

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : Just to follow up on that, Steve. So it sounds like in addition to the technology and you have, kind of the broader conversations, programmatic, you're also sort of now targeting a larger TAM. So the digital spend that advertisers, who are initially just thinking on video platforms or maybe other digital platforms, now Roku can target that spend. Is that true just as it relates to OneView? Or is it true across Roku's platform because now you have these ad -- now you are also offering not only brand advertising top of the funnel, but you're also going down more to the bottom of the funnel? So has your TAM overall expanded because of the product evolution?

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : Okay. Makes sense. Let me try 2 quick ones, and then I'll flip it back to Mark. One, as you talked about Nielsen's ACR and DAI technologies -- so Roku already had this partnership with Nielsen before. But now you basically acquired this technology. So to me, it sounds like not a whole lot will change in the short term. Instead of licensing, you're owning this. But what does it mean over the long term when it comes to this dynamic ad insertion technology? And is that right?

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : Okay. Mark? Mark Stephen F. Mahaney - Evercore ISI Institutional Equities, Research Division - Senior MD & Head of Internet Research Two questions, Steve. Does consolidation in the media industry have any impact on Roku, positive or negative?

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : Okay. Thanks, Mark. I'll touch on -- there are quite a few questions that came in. So I'll touch on one that's related, DSPs and SSPs. Does Roku actively work with third-party SSPs and DSPs? And to what extent will that continue in the future? That's one. And then the second is, is the -- are The Roku Channel ads walled off from external DSPs, like The Trade Desk?

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : With 1 minute left, maybe, Steve, if you could tell us, what do you think is most underappreciated by Roku -- by investors today?

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : Wonderful. Thanks so much. Steve Louden, CFO of Roku. Thanks so much for being with us today.