Yahoo Finance

Dan Jedda

Yeah. Thanks, Anthony, and thanks for the question, Cory. I just want to add that in reaffirming our platform revenue and adjusted EBITDA outlook for the full year, we did assume some weakening in the macro, but our outlook does represent the most informed view we have based on the current trends we saw in Q1 and as we start Q2, and we remain vigilant and adaptable to market conditions. And as they evolve, we'll communicate any material impacts in future quarters.
But we feel very good about where we are right now and we feel good about our forecast. Anthony mentioned, we are not the same company that we were four or even two years ago. We have a very diversified platform revenue stream, including the subscriptions that are growing well and all the advertising initiatives that Anthony mentioned earlier.
So we're confident in our strategy, and we continue to see the path to achieving positive operating income in 2026 and achieving our guidance of [3,950] on the platform side and adjusted EBITDA of [$350 million] for 2025. On the trends in advertising, I'll let Charlie take that one.

Charles Collier

Cory, it's a good question. We are continuing to see shifts in advertising. And most of it is driven by our clients really understandable need for greater flexibility in this macro environment. Some of the results of that are shorter planning cycles, what used to be quarterly planning for some, not all, but for some, can now even be as short term as weekly.
So as a result, we are seeing changes in media buying patterns across our platform, particularly a shift from longer-term guaranteed commitments to shorter-term, non-guaranteed campaigns usually executed programmatically.
Again, I think this is a short-term trend. But Roku is well positioned to capitalize on the shift. That's the best news. Over the past couple of years, we focused on building our programmatic capabilities and that investment is absolutely paying off.
In an environment like this that demands agility and programmatic advertising is gaining share because I think, Cory, most of all, it offers the flexibility and performance that advertisers need and that enables them to launch their campaigns quickly and adjust in real time.
So in the near term, we expect some of the high-touch guaranteed business to be delayed or possibly scale back in favor of more flexible nonguaranteed programmatic buys, but this trend really aligns well with Roku's strategic direction and our focus on programmatic excellence.

Operator

Brent Navon, Bank of America.

Brent Navon

I guess just as a follow-up to your comments there. I mean it sounds like some of the more idiosyncratic drivers are able to offset maybe some macro overall weakness. And I guess I'm just trying to think through how much buffer do you still feel like you have with some of these idiosyncratic drivers should macro trends deteriorate a little further going forward?

Anthony Wood

Brent, Dan will take that question.

Dan Jedda

Yeah. Thanks for the question. Yeah, I know where you're going with this Brent. And I'll just say that -- as I said earlier, we've seen a shift, Charlie, talked about a shift from guaranteed to non-guaranteed and that actually has been favorable to us in terms of driving more volume our way. And so we see positives in that.
We do have -- we have a lot of initiatives. When we gave our guide last quarter, we talked about a lot of initiatives. We have a lot of initiatives going on in the subscription and in the advertising activities we announced.
We've talked a lot about advertising and new products and the new initiatives, the growth of our supply. And now we're talking a lot more about subscriptions with the acquisition of Frndly and many more initiatives we have yet to announce.
So I think some of these initial -- we're going to keep doing new things, and these initiatives are going to play out over time. And so I do think like in the back half of the year, some of the -- if there is a greater macro environment, some of our new initiatives should help to offset that.
Obviously, we're not immune if there is a major macro environment recession type, specifically in the ad market, but we also have tremendous secular tailwinds as the market continues to shift from linear to digital and now the shift that Charlie just talked about from guaranteed to non-guaranteed, we're also very well positioned.
One thing I'll just add on this is advertisers are asking more for ROI and measurement. That is a space we play very well in given all the initiatives we have to increase demand to our platform because we have the supply and increase our ability to measure that demand. These are positive tailwinds for us. And so there's a lot of positives going on now, and there will be more that we discuss in the future.

Operator

Vasily Karasyov, Cannonball Research.

Vasily Karasyov

Charlie, I think I have a question for you, and it's about programmatic and the whole transition you're going through. What's the best way for us to think about the contribution of programmatic to platform revenue growth. Is this revenue that entirely incremental? Or is it some inventory that was previously sold direct and now executed programmatic. So there is some cannibalization going on.
And then programmatic guaranteed and open -- transitioning to open pragmatic (inaudible) the same question, will we be accessing a completely incremental budgets or there is some offset that you're losing in direct.

Charles Collier

Thanks, Vasily. This is Charlie. It's a really good question. And the headline is that our multiyear push to diversify demand is absolutely working, some of the programmatic revenue we're seeing is clearly incremental, especially what we're seeing through our platform partnerships. That's what we call our channel sales business. That's entirely net new.
But overall, it is a mix. Many enterprise and independent clients who previously bought Roku directly through IOs or insertion orders are now transacting programmatically, particularly via programmatic guarantees, as you asked about Vasily. One way to step back and think about it, that might be helpful is to think of programmatic, not as a buying category, but as a method of execution. It's really how advertisers choose to execute.
So even just by allowing more buyers to use their preferred DSP, we're allowing them easier access to our inventory inside their broader DSP-driven campaign. So we're making leisure for them to buy from us. And that's even the case, by the way, when the business is sold directly by our sales team.
So some of the advertisers who previously bought us directly, now they're using programmatic pipes. And the clearest example of true incrementality comes from small and medium-sized businesses using our self-service product called Roku as manager.
Now it's early days, but these are D2C brands, mobile app marketers and local advertisers and all of those are net new to the platform. So Vasily, at the heart of your question is a range of new and expanding partnerships. Many of them truly incremental.
Our strategy to diversify demand and meet advertisers where they wish to transact our ability to improve performance through our 100% authenticated identity, our scale the unique ad units we talk a lot about and our data interoperability and our investment in tools and measurement, all of this is helping our partners, particularly as they invest in data and they match their data with Roku's high-fidelity signal.
So all of it's unlocking new revenue, it's deepening existing relationships as well, and it's strengthening, I think our position as the most performant and easiest to work with CTV platform.

Operator

Justin Patterson, KeyBanc.

Justin Patterson

Great. Could you talk more about the significance of Roku Channel becoming the number 2 app on your platform in the US. How does that change your conversation with content providers just given that reach. And at the same time, how does that change the time frame to really do deeper integrations with more DSPs. It seems like you've got a lot of supply there that needs to be filled.

Anthony Wood

Justin, this is Anthony. I'll start and then turn this over to Charlie. We have ad inventory access across our entire platform. The Roku Channel is part of it, is obviously an important part of it. Like you mentioned, it's the number 2 app on the platform now by engagement.
Globally, the Roku Channel engagement grew 84% year-over-year. So I mean this is a powerful asset to have access to that large amount of inventory engagement and reach. And that is a powerful asset for us. So we're going to continue to lean into that. But I'll let Charlie talk more about your question.

Charles Collier

Justin, I appreciate the question about the relationship with content providers. We have an unmatched scale. We talk a lot about being the lead into television. And if you think about it, before anyone makes a choice about what they're watching, we have a home screen that reaches households with over 125 million people every day, almost Super Bowl size ratings every day. And so as content providers, they absolutely look at us for unmatched scale and to provide audience that guides people into their content.
And then from our position, we get to root for all of television and really use our unique assets, our home screen assets to drive engagement. So there's a really symbiotic relationship. And as they move toward performance and really have to watch every marketing dollar, as Dan said earlier, we prove performance, and we've invested in measurement and other tools that really make us very good at driving engagement, retention and subscription.
So that's the content provider side. In terms of what it does for the DSPs, we talk a lot about being able to meet advertisers' demands at every price point and all up and down the demand curve, if you will. And a great example of that, at the very top of that or our home screen units, which are unique and a unique broad reach and also the performance signals we can send to our clients.
We also have live sports and Major League Baseball and a lot of focused originals and content destinations. If that's at the top of the pricing curve, you can say we have the tonnage you described, and that meets a lot of advertisers' needs and allows us to be flexibly priced.
And all the way down the demand curve, you might see us send fewer signals and less specific programming opportunities, and we can participate at the low end of the market as well. So with respect to your question about time frame and DSPs, to be as big as we are as an AVOD platform and the fastest growing, it really is a powerful one-two punch and then the programmatic execution allows us to be the most performant as well.

Conrad Grodd

And I just want to add one thing to that. I agree with everything Charlie said, but also that TRC becoming a top 5, then a top 3 and now number 2 on our platform is really does showcase the power of the platform that we have. We do not have -- we have great content in TRC, but we're not spending billions and billions of dollars in content. What we have is an amazing platform and an amazing OS that helps us drive engagement to TRC.
And it really does show the power of the platform. And we're going to use that to drive subscriptions. We're going to use that to drive advertising. We're going to use that to drive Frndly. It's now part of Roku. Like there's a lot of positives that home screen and the entire UI can do and TRC becoming number 2 in relatively short order is showcases that power.

Operator

Laura Martin, Needham.

Laura Martin

Great numbers, you guys. Congratulations. (inaudible) but start with the hard one. So I understand that Frndly drives your subscription revenue. However, I would like you to tell us why you think the virtual MVPD market is a transitory market going to zero.
And then staying on Frndly for this question, Charlie, can you talk about how it aids your bundle of ad services and why it doesn't look backwards into the linear TV space, which I think Wall Street thinks is dying rather than stick to streaming, which is the growth aspect of advertising. So that's my first one is on Frndly.

Anthony Wood

Laura, This is anthony, thanks for the hard question. Yeah. Well, I don't think it's that hard. I mean. So yeah, I agree that if you look at sort of cable subscriptions and their replication as virtual MVPDs that it's easy to think that, and it's easy to believe that that's going to not last as a bundle or as a market forever.
But linear is a form of entertainment engagement that is very popular. It's just -- and it's actually growing in popularity. On our platform, linear channels, sometimes people call them fast channels. These are streaming linear channels, they're very popular and a huge form of engagement.
There's a lot of people that like to just flip through the channels. And one way I think about Frndly, is it's actually -- it's a lot of brands that I think will stick around, things like Lifetime, Hallmark, A&E. These are brands that are popular.
They have good content. And I don't think of them as a virtual MVPD. I think of them as linear channels that's in a paid tier that we can grow the paid tier linear channels, and there's -- a linear channels are very popular in streaming as well. They're very popular in streaming and they're very popular on our platform as well.
And then I'll let Charlie answer your question about the bundle of ad services.

Charles Collier

Yeah. Thanks, Laura, for the question. I actually think Dan answered it in the last question, which is the power of our platform, it's staggering. I'll answer this first as a programmer because I have the whole media business. So I've got the content side and the ads team.
And I look at the content team and the way they use the power of the platform to really elevate partners' content. And I think there are brands inside Frndly that will be elevated simply by being focused on by Roku. And that's that's exciting for us as programmers and it allows us to do what we're here to do, which is root for all the television and provide a better lead in for it. So this is a good home for that bundle of services.
And then on the ad side, I actually think Frndly will benefit simply by being inside of our recommendation engines being inside of our sales team. Both of these teams are capable and able to elevate content that it's great to be able to do this for us alongside doing it for our partners.

Dan Jedda

I'd just like to quickly add on to that Frndly is growing and growing well. We brought in as a growth company, and we do think that we can grow it faster. It also will be adjusted EBITDA margin accretive in its first full year for us.
Fantastic. Okay. My second one is on data. So Wall Street has decided that third-party data is going to zero, and that first-party data is basically the only thing that has moats, competitive advantage. You guys have world-class first-party data.
But you do not sell it into -- currently to third parties, either to (inaudible) which would make easy sense because it's 80% margins or even to iSpot to some, but these guys that aggregate and actually make a living on selling CTV, let me call it, on a smaller scale. So can you explain the logic of not bundling -- really packaging your first party data for CTV and selling it to others for revenue --

Anthony Wood

Yeah. So Charlie, we'll take that.

Charles Collier

Sure. Laura, first of all, I love the way you describe our data. You're absolutely right. We took a really unique approach to the upfront this year. We spoke directly to each holding company.
And the reason is because they are all solving unique problems for their clients that all come back to the same desired result, which is proving outcomes for businesses. And to have 100% authenticated audience, which Roku does and to have unmatched scale the way we do with over half the broadband households, using Roku as their front door to television, it really is a differentiator.
But I would step back and say one of the terrific things about Roku, writ large, is that we still have more opportunities to exploit over time. But the way I think about our data relationships are this, which is we have a multibillion-dollar business and all the opportunity, Dan and Anthony have been talking about on this call.
And the best way to take care of our partners, which are the advertisers and the content companies inside of -- the media side of the business is to make sure that we serve them and all the data that they're investing in, which is the missing part of your question, I think, is made only better and more powerful and the media more performance by matching it with our high fidelity signals.
So for the short and probably the medium term, the best way for us to deploy the data is to create this remarkable differentiated platform that's growing as much as it is. And for us, to hydrate their data with ours and then prove outcomes for our customers.
I talk a lot about how Roku has moved from building incrementality, and we are now building fundamental, really the base of their performant businesses. And that's what I'm focused on, and I think that's the best use of our data.

Anthony Wood

This is Anthony again. I'll just add -- I'm just going to say that -- I mean I think Charlie covered it, but just to be super clear about it, if you're an advertiser and you buy ads from Roku and you -- but you go through a third-party DSP, you can have a -- you will -- those arrangements often have access to our data.
I mean those are -- and targeting based on our data is part of those deals. And it's part of the reasons advertisers want to work with us. I will also say though, like we understand the value of our data, we -- and there's a lot of activities going on to expand the way we monetize our data. We just haven't necessarily announced what they are or talk about them directly.

Operator

Matt Thornton with FBN Securities.

Matt Thornton

I guess two, if I could. First one is a housekeeping one, probably for Dan. Frndly TV, is that assumed in full year or 2Q guidance? Or would that be incremental? That's the first question.
Second question, as we think about tariffs and the impact on the devices business and volumes in the balance of the year, I'm just kind of curious kind of what you're assuming for the balance of the year in guidance?
And tied to that, how quickly can you move sourcing, production warehousing? I'm sure you've got lots of different scenarios kind of planned out. But I guess, is that something that can get moved in days or weeks? Or is that months or quarters once we get final clarity on the end tariff rates.

Dan Jedda

Yeah. Matt, thanks for the question. When we gave full year guidance in February, we assumed several initiatives that have not yet launched in both our subscriptions and advertising activities. We mentioned at the time -- or I mentioned at the time that we're giving a full year outlook grounded in the best information we had at the time.
Frndly was one of the many initiatives we've been working on, and we're excited to have them as part of Roku. We're very confident that we can leverage the power of our home screen and platform and grow Frndly subscriptions even faster.
Again, it's one of many initiatives that we had at the time. So yes, Frndly is included. We have -- as Anthony said, we have many other initiatives that we look at when we provide guidance. And so again, we'll update you more as those initiatives launch. And as I also mentioned earlier, we do expect Frndly to be adjusted EBITDA margin accretive in the first full year.
I think I'll turn it over to Mustafa for the tariff question.

Mustafa Ozgen

Matt, this is Mustafa. Look, we have a diversified manufacturing strategy already in place. We manufacture in multiple countries with multiple factory partners that provides us quite of agility and flexibility and helps mitigate the impact of the tariffs. And our teams are continue to working to optimize our overall manufacturing footprint. And like as things change, they are ready to be able to move quickly from one place to another.
So that's sort of part of our plan, and they continue to work on that. Based on the current tariff structure that's in place, we do not anticipate a material change to our devices gross profit dollars for the full year. And at the same time, we already implemented some small price increases. So we're passing some of the cost to consumers.
And we're continuously monitoring the environment, remaining flexible in terms of price increases or price increase as well. Just want to make sure we stay competitive, but at the same time, continue to monitor the demand environment. And the other point around the demand and then some -- a mitigating factor for us that's on the positive side is how we actually distribute our Roku operating system to consumers.
Our OS distribution strategy has three pillars: We use our streaming players that are made and sold by us. We have our first party TVs also made and sold by us under the Roku brand. And then we have the third-party TVs that are made and sold by our Roku TV licensing partners. So not all of the tariff mitigation or the impact is carried by Roku. Some of those are carried by -- and mitigated by our third-party TV partners.
But more importantly, in case the TV prices increased due to tariffs and the demand softens, our streaming players are actually a great way for consumers to upgrade and extend the life of their existing TVs at a much lower price point. We have a great selection of streaming players and their price point ranges from $20 all the way to $99. So they are a great optional. I'll turn it for the consumers to upgrade a streaming.

Anthony Wood

Matt, this is Anthony. I'll just add quickly. One possible outcome of tariffs is that the overall TV unit sales decline or declined, I don't think they'll decline a lot, but they might decline slightly. I just think it's important to note that's unlikely to hurt our market share.
We're well positioned -- much better positioned than others given our significant penetration in over half of the US broadband households. Also, our scale is continuing to grow in terms of households. And we're on track to achieve 100 million streaming households, a milestone we set to achieve a couple of calls ago.

Operator

James Heaney, Jefferies.

James Heaney

Dan, can you just walk us through how we should be thinking about the revenue trajectory for platform growth just for the remainder of the year? I know you'll have the tough [political] comp in the second half, but just any other puts and takes that we should be considering?

Dan Jedda

Yeah. I mean we gave the Q2 guide, we gave the full year guide, I think Q3 and Q4 will have probably -- there'll be probably a smaller growth rate in Q4 simply because of the very large quarter we had in Q4 of last year with 25%, and it was, I believe, 19% excluding political. But essentially, I think you're really asking what Q3 and Q4 looks like. And again, I think that we'll probably have a slight sequential step down in growth rate in Q4, but we'll see and we'll update you.
Again, we have many initiatives that we're working on, and we'll update you on that on Q3 and Q4 when we report our Q2 results.
One reminder, I think it's one thing -- there is probably one thing I should remind you of is we did have a lot of [606] adjustments in FY24. And actually, Q2 was the largest of the 606 adjustments at just over $16 million. We also had a fairly large 606 adjustment in Q3 and a much smaller one. in Q4. We had no 606 adjustments in Q1, as we said.
We didn't expect to have -- nor do we expect to have nor does our guide imply any 606 adjustments for Q2 or the rest of this year. So we are comping especially in Q2 and Q3 some 606 adjustments. As a matter of fact, if you back out 606 in Q2, we have the same growth rates in the platform business, very close to the same growth rate as we achieved in Q1. So it's very close to that 17% if you back out 606 in Q2.

James Heaney

Okay. Yeah. Great. Appreciate the extra detail. And maybe just 1 more, just on home screen.
Would -- just love to hear how you're thinking about the growth drivers outside of the M&E vertical? And then just curious if there's any verticals you'd call out where you've seen traction and others that you're looking to expand into just on home screen.

Anthony Wood

Sure, James. This is Anthony. I'll take that. So yes, just to remind everyone, our initiatives, our strategy to grow platform revenue. One is grow our ad business, and a big part of that is integration with third-party DSPs, really embracing them as partners and deepening our integration with them.
Another is focusing on our subscription business, which we think has a lot of room to continue to grow. And then third is just overall arching to really lean into the Roku Experience users start their TV experience every time they sit down to watch television with a Roku home screen. And then there's a lot of UI elements that are adjacent to the home screen aren't directly on the home screen.
And we have an iconic, simple, powerful home screen that's very popular with our customers, and there's just a lot of ways to continue to use that to drive both subscriptions as well as engagement and ad reach.
And for example, and it's definitely not just focused on M&E. I mean that's how our ad business started with the M&E vertical and ads on the home screen, but the home screen is these days is used to drive a lot of businesses besides M&E.
So for example, we added -- not too long ago, we added a single new road to the home screen with recommendations, and we're seeing that drive significant increases in subscription sign-ups as well as significant engagement. I mean it's one of the reasons that Roku Channel grew 84% globally year-over-year in the quarter.
So that's just one example, but there's lots of other things we're looking at and testing on the home screen. It's really an area that we haven't touch significantly over the -- in a long time in several years. We now have a team working on it. We're testing lots of different experiences in the home screen. And I think it's going to continue.
We're going to continue to roll out changes as we test them and they test positive, and it's going to have a material impact on our growth. And Charlie wants to add something.

Charles Collier

Yeah. And James, from the ad sales point of view, I mentioned earlier that the home screen reaches 125 million or -- households with 125 million people in it every day. That kind of reach is so unique that it obviously has been a great place for us to partner with advertisers. And inherent in your question, it works really well for M&E. But I think in the letter, we put a picture of what we call our marquee video ad unit and that one was for Hellmann's.
We've seen a lot of people who are pushing toward performance utilize the home screen, especially marquee video, some of the takeovers we recently had won for the Simpsons that got a lot of viral support and social chatter, it's really powerful, and we're seeing it well beyond the M&E vertical.

Anthony Wood

When we think about the home stream, we also think about the Roku Experience more broadly and -- it includes experiences that are actually engaging in their own right, like Roku City, for example, which is extremely popular. And we just keep adding new features and new promotions inside Roku City and new features for people to watch.

Operator

Stephen Cahall, Wells Fargo.

Steven Cahall

Thank you. Dan, if we could maybe just dig in a little more to what you're talking about with the platform revenue growth. So thanks for that math. I was kind of getting at the same place that Q2 looks a lot like Q1 underlying. If we think about the back half of the year and we take out both 606 and political, is it logical to assume some deceleration just as you start to comp some of the DSP integrations and other things that you started to do towards the end of 2024.
Or do you think that, that kind of teens growth rate is sustainable for a little longer? Because I know there's a lot of work that is still ongoing. So I'd just love to get kind of a sense of that underlying growth rate, maybe more for the medium term.
And then the 51% platform margins for Q2, that's a little bit of a degradation from what we've seen historically, not a lot, but a little bit. Is that just mix because you're growing AVOD so much faster than some of the other parts of the platform revenue or anything else we should think about in the margin mix platform?

Conrad Grodd

Yeah. Thanks, Stephen, for the question. Let me take the second part of that question first on the 51% guide. And maybe I'll talk a little bit about the full year guide 54%. And so in February, we mentioned platform gross margin would be 52% to 53%, which is roughly in line with our prior year margins when you exclude 606 adjustments in FY24.
And within Q1 and into the first month of Q2, Charlie talked about this, we've seen a greater shift from the guarantee to the nonguaranteed. And therefore, just much more on the programmatic side, given the uncertain macro environment. We view this as a positive as we're able to meet the advertiser along any point of the CPM demand curve.
I mean, Charlie talked in detail about why the shift does have a positive impact on us as we're able to measure the higher ROIs, et cetera. But that mix shift from guaranteed to non-guaranteed does have a modest impact on margins within our advertising and Platform segment. That's why we're guiding to 52% for the full year. It's a very modest mix impact.
We'll see if the non-guaranteed versus guaranteed stays where it's at now or if it goes back to more, let's just say, pre macro environment levels in H2 that would have a slight positive impact on margins. But right now, we're expecting that trend to stay where it's at, which is why we're seeing 52% margins.
I've said it many times, I do believe that we can maintain and, in fact, grow our margins over time on mixed adjusted basis and mix -- and within mix because we've got a lot of positive initiatives going on that can help margins as well as all the volume, an increase in platform revenue that we discussed.
To the first part of your question, I absolutely believe team growth rate is sustainable over the longer period of time. And I do believe that if you back out 606 and political, you'll see that growth rate in the back half of the year as well.
The only caveat would be maybe Q4 is a slight deceleration because there was so much volume after political in the month of December. But that may happen again, and we're in a great position if it does happen again to take advantage of that, given our supply. So even once you back out political and if you back out 606, you'll see that we are growing in that 15%-ish range.
And I firmly believe that's sustainable.

I just wanted to get an update on devices. In the fourth quarter letter, you started to grow 12% this year, and now you're saying it should be flat. So I know you've had a good start to the year. But so what's your view on device demand over the year and why the flattening of the outlook versus where you were just a couple of months ago.

Anthony Wood

This is Anthony. I'll turn this over to Mustafa to to Dan. But I'll just say, overall, we're not focused on device revenue. We're focused on growth in Roku using households. And those come in large part from our partners, our TV partners, but also our own devices.
But you can lower prices and sell more devices and get more households. So we're -- I'll let Dan talk about revenue, but it's really not something in device revenue, but we're just not focused on that. We're focused on device unit sales and especially through third-party partners and also growth which results in growth in Roku Household. That's our KPI.

Dan Jedda

Yeah. Anthony is absolutely right. And thanks for the question, Michael. We are not focused on device revenue. Device revenue now can be very lumpy because it's driven by our first-party TVs, which we recognize revenue on, where as opposed to our third-party OEM-based TVs, we don't recognize revenue on players, we've always recognized revenue on it.
And that is actually fairly steady for us. We've got good margins on that, et cetera. But on the first-party TVs, it can be very lumpy depending on the quarter, depending on how -- what our actual sell what we call our sell-in to the distributor.
And so -- it's not something that we pay a ton of attention to. What we look at is our units, our market share in terms of units and our streaming households, which are growing in all countries, including the US. We think it will continue to grow in all countries, including the US. Anthony mentioned, our -- we're on track to hit 100 million streaming households. So we feel very good about that.
And that's again why we guide to platform revenue is because that is where we monetize those -- those basically over 90 million streaming households that we currently have. So Device revenue is just very difficult and very lumpy in the short term. And it's not something we particularly pay attention to, just it's more about the unit volume that we ship.

Operator

Ladies and gentlemen, this does conclude the Q&A portion of today's conference. I'd like to turn the call back over to Anthony for closing remarks.

Anthony Wood

I'd just like to say thanks to our employees, customers, advertisers and content partners, and thank you for listening.

Operator

Ladies and gentlemen, this does conclude today's presentation. You may now disconnect, and have a wonderful day.