Risk Factors Update Summary

• Potential risks related to generative AI may limit AI technology development, with no assurance of sufficient measures. Failure may result in legal liability, regulatory action, and brand harm.
• The company may experience harm if unable to attract advertisers to its OneView ad platform.
• Operating expenses have increased and may continue to increase as operations expand, with a significant decline in year-over-year growth expected in 2023.
• Roku approved measures to lower operating expense growth rate by consolidating office space, reviewing content portfolio, reducing expenses, and limiting new hires.
• The company launched ad-supported tiers in streaming services, potentially increasing competition for ad revenue.
• The company may suffer if content partners decrease media and entertainment promotional spending campaigns.
• Accumulated deficit increased from $588 million to $1,297 million as of December 31, 2023.
• Roku may strategically reduce device gross margins to increase the number of Active Accounts and grow gross profit.
• Roku may undertake restructuring plans in the future, incurring material costs and charges, impacting operational efficiency and employee morale.
• The company faces risks if unable to effectively sell available video ad inventory.
• The company faces risks if unable to maintain relationships with content publishers for streaming channels.
• Gross margins for Roku-branded TVs experienced negative margins, while the platform segment had positive gross margins for the fiscal year ended December 31, 2023.
• The company's growth depends on maintaining and expanding retail sales channels.
• The company's ability to develop and introduce new products may impact its growth.