Roku’s CEO Anthony Wood was on CNBC earlier today and the first question he was asked was if Roku plans to go public this year. While he wouldn’t comment on anything having to do with funding, which is expected, Wall Street bankers I have spoken with tell me Roku will go public shortly. What exactly “shortly” means remains to be seen, and while I haven’t heard a specific date, I’ve been told that Roku is already well into the IPO process. Bankers tell me Roku’s revenue for 2014 was over $200M with them projecting 2015 revenue to be in the range of $275M-$300M. I’m also hearing that Roku is expected to become profitable in Q1 of this year. To date, Roku has raised over $150M in venture funding.
I don’t know how much money Roku is looking to raise in their IPO, but I would estimate it to be $100M on the low-end and as much as $150M on the high-end. While 2014 wasn’t one of the better year’s for new IPOs, GoPro has done well and even thought they sell a different type of consumer product than Roku, many on Wall Street will use GoPro’s IPO success to excite others about Roku’s business. In Q3 of last year, Roku said it had sold 10M players in the U.S. since launching in the market in 2008.