EquityZen
  • ···
  • Marketplace
  • ···
  • How it Works
  • ···
  • Knowledge Center
  • ···
  • About
  • ···
  • ···
  • ···

Investor Newsletter >

Weekly Update #215: Roku files for IPO

EquityZen
Sep 5th, 2017

Today's blurb comes from Catherine Klinchuch, our Research Lead.

Roku files for IPO

  • Roku filed an S-1 with the SEC on Friday, indicating its intent to complete an IPO. The company will be trading on the NASDAQ under the ticker “ROKU”.

  • Roku is not yet profitable, but growth remains solid. Trailing twelve-month (TTM) revenue was $436M, a 23% increase over the prior twelve-month period.

  • Expected IPO pricing range is not available at this time. Roku’s implied valuation from its last funding round was $1.1B. Netflix - the closest pure-play comp - trades at 7.3x TTM sales. If Roku achieves a similar multiple, its shares would be worth ~$3.2B (using revenue figure cited above).

  • Key Roku investors include Menlo Ventures and Fidelity

Key questions from our reading of the S-1

  • Public investors can be less patient on achieving profitability than their private market peers and some recent tech IPOs have floundered post-offering as profit expectations were reset. What is Roku’s path to profitability and how quickly does the company expect to move out of the red?

  • What does the competitive landscape look like for Roku? The company indicates it has a 37% share in the streaming media playing market -- how has this changed over time? Roku’s key competitors include three formidable tech giants -- Apple, Amazon and Google. What is the company’s strategy to compete effectively against these deep-pocketed rivals?

In other news...

  • SpaceX opens applications for its 2018 Hyperloop Pod competition (TechCrunch)
  • The state of the unicorn (TechCrunch)
  • Lilium raises $90 million to build flying taxis (VentureBeat)
  • A Roku IPO problem: Netflix and YouTube are huge on Roku, but they don’t make Roku any money (Re/code)
View more newsletters

Join 200,000+ global shareholders and investors on EquityZen

Marketplace

  • Shareholders
  • Investors
  • Managed Funds
  • Investment Returns

Resources

  • FAQs
  • Blog
  • Newsletter
  • IPO Center
  • Knowledge Center

Company

  • About
  • Careers
  • Press
  • Contact Us

Connect

Investment opportunities posted on this website are "private placements" of securities that are not publicly traded, are subject to holding period requirements, and are intended for investors who do not need a liquid investment. Investing in private companies may be considered highly speculative and involves a high degree of risk, including the risk of substantial loss of investment. Investors must be able to afford the loss of their entire investment. See our Risk Factors for a more detailed explanation of the risks involved by investing through EquityZen’s platform.

EquityZen Securities LLC (“EquityZen Securities”) is a subsidiary of EquityZen Inc. EquityZen Securities is a broker/dealer registered with the Securities Exchange Commission and is a FINRA/SIPC member firm.

Equity securities are offered through EquityZen Securities. Check the background of this firm on FINRA’s BrokerCheck.

EquityZen.com is a website operated by EquityZen Inc. ("EquityZen"). By accessing this site and any pages thereof, you agree to be bound by our Terms of Use.
EquityZen and logo are trademarks of EquityZen Inc. Other trademarks are property of their respective owners.
© 2020 EquityZen Inc. All rights reserved.

  • Disclosures
  • Business Continuity Plan
  • Privacy Policy
  • Allocation Policy
  • Form CRS
EquityZen Inc.
30 Broad Street,
Suite 1200
New York, NY 10004

Secured via DigiCert Extended Validation certificate
FINRA's BrokerCheck
SIPC