Roku Inc at Nasdaq London Investor Conference Transcript

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

Question: Thomas Yeh - Morgan Stanley & Co Ltd - Analyst : Great. So at a high level, I just wanted to start off with talking about the fundamental growth drivers of the company from here as you see it. You're exiting this year seeing acceleration in the core platform revenue growth to roughly 20%. Can you just help us unpack the drivers between content distribution, advertising opportunities that support your confidence in being able to sustain that double-digit growth rate into next year?

Question: Thomas Yeh - Morgan Stanley & Co Ltd - Analyst : Great. I wanted to touch on that subscription piece for sure. But starting with the advertising side, CTV as a broader industry is clearly a fast-growing area of the advertising market as a whole. And we're seeing a lot of streaming companies who started ad-free now move aggressively towards advertising monetization as well. So how does that growing inventory and competition impact Roku's ability to retain its share of that broader CTV opportunity?

Question: Thomas Yeh - Morgan Stanley & Co Ltd - Analyst : Okay. Interesting. Well, on that programmatic point, a lot of these large-scale players are focused on balancing some of these new programmatic initiatives that they're launching with also growing their direct CTV ad channels. And I just wanted to get your thoughts on how you see that broader trend of programmatic ad buying for CTV dollars evolving and how that impacts you? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / 1:00PM, ROKU.OQ - Roku Inc at Nasdaq London Investor Conference

Question: Thomas Yeh - Morgan Stanley & Co Ltd - Analyst : Got it. One of the most significant third-party DSP integrations you've done recently is with Amazon. I think that's a big focus. Can you maybe just give us a sense of the early read-throughs on changes to the ad buying behavior post this integration and what areas of the integration you see as maybe providing more enhanced values for the advertisers?

Question: Thomas Yeh - Morgan Stanley & Co Ltd - Analyst : Do these deeper integrations potentially allow for the broader CTV industry to accelerate its opportunity in terms of the shift into that overall area and the spend?

Question: Thomas Yeh - Morgan Stanley & Co Ltd - Analyst : Yeah. I wanted to ask about the broader health of the advertising market in general. You've spoken to that point about shorter-term non-guaranteed campaigns. It seems like the advertiser increasingly wants greater flexibility. Is that a new normal? Or do you expect a shift back maybe to how -- depending on how macro trends evolve?

Question: Thomas Yeh - Morgan Stanley & Co Ltd - Analyst : Got it. On that point, I guess, heading into '26, do you think that there's a view that there's a lot more sports and political advertising coming to CTV and there are continued migrations that lift that broader opportunity set? Compared to prior cycles, what has Roku done in the last year or two that really helps improve your position in terms of capturing some of that incremental dollars?

Question: Thomas Yeh - Morgan Stanley & Co Ltd - Analyst : Got it. I mean another area that you've talked a lot about in the past is the Roku Ads Manager and the self-serve opportunity. I wanted to touch on that as well. How -- can you maybe just help us get a sense of how big it currently is in terms of contribution, how much realistically it could be contributing over the next few years? And what steps are you taking to really stimulate the advertiser demand on that front? What kind of indicators are you looking for?

Question: Thomas Yeh - Morgan Stanley & Co Ltd - Analyst : So it's a growing percentage of your revenue.

Question: Thomas Yeh - Morgan Stanley & Co Ltd - Analyst : Got it. Okay. Shifting to the subscription piece of the business. One of the key areas of growth that you highlighted at the outset was this push towards premium subscriptions on the Roku Channel. Can you just give us an update on helping us size that growth in the business LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / 1:00PM, ROKU.OQ - Roku Inc at Nasdaq London Investor Conference and what kind of benefits you might be seeing as you increasingly seem to be acting as a wholesaler for your partner services, whether that's through engagement trends or retention that you're seeing?

Question: Thomas Yeh - Morgan Stanley & Co Ltd - Analyst : Okay. Understood. I want to also just ask about the broader industry which has a lot going on in terms of the -- your streaming partners and consolidation is heavily in the news right now. Price increases continue to happen. More broadly, as a distribution partner, what kind of trade-offs do you consider when you're negotiating these subscription take rates? And what -- how do you think about other forms of participating in your partners' economics?

Question: Thomas Yeh - Morgan Stanley & Co Ltd - Analyst : Okay. Got it. Before we run out of time, I do want to talk on margins and profitability, which is very important, and we're reaching an inflection point there, it seems on EBITDA. Maybe just to start off on the gross margin side, you spoke to some expectations that gross margins would remain broadly stable into next year. If we just think about the revenue mixes that go into that, my thought has been that premium subscriptions, as you mentioned, being a growth area would be a potential incremental headwind to the margin mix. How should we think about the primary puts and takes in terms of headwinds and tailwinds that are contributing into that stabilized?

Question: Thomas Yeh - Morgan Stanley & Co Ltd - Analyst : Great. I think we're running out of time. So thank you so much.