Roku CEO Anthony Wood Is ‘More Confident Than Ever’ Despite 23% Stock Plunge

The CEO focused on Roku's user growth in the holiday quarter. The smart TV provider had 80 million accounts at the end of 2023.

Roku CEO Anthony Wood
Anthony Wood, founder and CEO of Roku since 2002. Dia Dipasupil/Getty Images for Tribeca Festival

Though Roku’s fourth-quarter earnings results reported yesterday (Feb. 15) may have raised alarm for investors, the smart TV maker’s founder and CEO Anthony Wood acted unfazed when being asked to comment on the company’s sinking stock price.

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“I’m super confident in our business. More confident than ever,” Wood said in an interview with CNBC today (Feb. 16).

Roku reported growth in both revenue and subscribers for the quarter ended December. The number of user accounts grew to 80 million from the previous quarter’s 75.8 million. Quarterly revenue came at $829 million, up 13 percent from the same quarter the year before, beating analyst expectations. However, average revenue per user (APRU) declined 4 percent year-over-year $39.92. And Roku warned about a “challenging macro environment and uneven ad market recovery” this year, sending its stock price plunging more than 23 percent today. 

Wood insisted that Roku is seeing good growth in its video advertising business, but said the company’s media and entertainment division, which is where it helps media companies promote their services on Roku’s platform, was affected by new streaming services emerging last year and the level of media companies’ spending that came with it. 

“It’s been challenged and pressured for the last fourth-quarter business and it’s probably going to continue to be pressured for the rest of this year,” Wood said of Roku’s media and entertainment division. “The root cause of that is that there were a lot of streaming services that launched, and they spent a lot of money promoting their services historically, and it was at unsustainable levels.”  

However, the CEO also said Roku’s streaming service distribution was “very strong” last year due to price raises on different platforms. Roku TVs have free, built-in programs from popular streamers like Netflix. 

Earnings were not the only reason Roku made headlines this week. On Valentine’s Day, the Wall Street Journal reported Walmart is looking to buy a Roku competitor, Vizio. The news sent Roku shares down almost 9 percent. 

Wood would not directly address the report, but reiterated his confidence in Roku. Vizio’s business is relatively small in comparison to Roku’s, with a market cap of $2 billion after the news of Walmart’s interest compared to Roku’s $13 billion valuation. 

“We have a very strong brand,” Wood said. “Our streaming, our innovation, our scale, our loyalty of customers, our brand, it all gives me a lot of confidence that we’re going to continue to grow the distribution of our platform.”

Roku CEO Anthony Wood Is ‘More Confident Than Ever’ Despite 23% Stock Plunge