ROKU INC

For the period ended Mar 31, 2024. Filed Apr 26, 2024.

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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Mar 31, 2024 · Filed Apr 26, 2024

ROKU$160.52+0.1%Stored close · as of Nov 6, 2026

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Contents

15. Restructuring

RESTRUCTURING

The Company began efforts to reduce its operating expense growth rate due to economic conditions in the fourth quarter of fiscal 2022. The Company recorded employee termination expenses, and an impairment charge related to abandoned technology assets during the year ended December 31, 2022.

During the year ended December 31, 2023, the Company implemented additional measures including consolidating its office space utilization, performing a strategic review of its content portfolio, reducing outside services expenses, and slowing its year-over-year headcount expense growth rate through a workforce reduction and limiting new hires, among other measures. As a result of these measures, the Company recorded restructuring charges associated with employee termination expenses consisting primarily of severance payments, employee benefits contributions, payroll taxes and related costs, impairment charges related to decisions to sub-lease and cease the use of certain office facilities and related property and equipment, and impairment charges related to removing select licensed and produced content from The Roku Channel during that period.

During the three months ended March 31, 2024, the Company recorded restructuring charges associated with employee termination expenses consisting primarily of severance payments, employee benefits contributions, payroll taxes and related costs, and impairment charges related to decisions to sub-lease and cease the use of certain office facilities and related property and equipment.

Restructuring charges are recorded as follows (in thousands):

	Three Months Ended March 31, 2024				Three Months Ended March 31, 2023
	Employee Terminations	Facilities Exit Costs	Assets Impairment Charges	Total	Employee Terminations	Facilities Exit Costs	Assets Impairment Charges	Total
Cost of revenue, platform	$(10)	$—	$—	$(10)	$—	$—	$—	$—
Cost of revenue, devices	1	—	5	6	—	—	—	—
Research and development	383	37	533	953	13,850	—	—	13,850
Sales and marketing	686	2	173	861	6,677	—	—	6,677
General and administrative	(130)	(24)	140	(14)	4,712	1,693	4,338	10,743
Total restructuring charges	$930	$15	$851	$1,796	$25,239	$1,693	$4,338	$31,270

The asset impairment charges for the three months ended March 31, 2024 include $0.6 million of operating lease right-of-use assets impairment, and $0.5 million of property and equipment impairment, offset by $0.3 million of adjustments to other long-term liabilities and assets. The asset impairment charges for the three months ended March 31, 2023 include $3.8 million of operating lease right-of-use assets impairment, and $0.5 million of property and equipment impairment.

A reconciliation of the beginning and ending balance of employee termination restructuring charges and facilities exit costs, which are included in Accrued liabilities in the condensed consolidated balance sheets, is as follows (in thousands):

	Three Months Ended March 31, 2024			Three Months Ended March 31, 2023
	Employee Terminations	Facilities Exit Costs	Total	Employee Terminations	Facilities Exit Costs	Total
Beginning balance	$12,661	$1,198	$13,859	$22,093	$—	$22,093
Restructuring charges incurred	930	15	945	25,239	1,693	26,932
Payments made	(11,248)	(309)	(11,557)	(22,133)	(398)	(22,531)
Ending balance	$2,343	$904	$3,247	$25,199	$1,295	$26,494

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