Roku IPO Values Company at $1.3 Billion

Roku, the leader in Internet streaming devices, is going public. Today, a new stock will appear on the NASDAQ: ROKU. The company established an IPO price of $14 per share, which equates to a valuation of $1.3 billion. This price was initially reported by Dow Jones and confirmed by various other news outlets including CNBC.

According to the CNBC article, Roku’s revenue is up 23% versus this time a year ago, and its losses have decreased, a positive trend going into this IPO.

While the share price values the company at $1.3 billion, what the company seeks to do is raise approximately $219 million in capital. An article on Bloomberg.com hints that the funds could be used to help execute Roku’s growth strategy, which relies on increasing the number of user accounts across the globe by providing more “channels.” Unsurprisingly, the ultimate goal is to serve more ads and profit off that endeavor.

According to the CNBC article, Roku’s revenue is up 23% and its losses have decreased, a positive trend going into this IPO.

Roku is approaching the 10th anniversary of the debut of its first device, the DVP. It’s amazing to think how much has changed in the decade that’s passed. Today, streaming is no longer a niche, Netflix makes is own shows, and 4K HDR video is available through multiple services. Back then, 720p SDR was the best you could get out of the company’s devices, and people still thought of Netflix as a DVD rental service.

It remains to be seen what changes becoming a public company will bring to Roku and its popular platform that is now found on TVs as well as standalone streamers. In the meantime, it will be interesting to watch the stock price today and see where it lands.


Artwork used in the cover image supplied by bigstockphoto.com