Roku connects with investors in debut, shares up 16.6 percent

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Roku priced its shares at $14 in its public offering, valuating the company at $1.3 billion. For its 2016 fiscal year, Roku generated $398.5 million of revenue which was an increase of more than 25% compared to its fiscal year 2015.

The company's shares were set at 11.50 euros ahead of its slated market debut Friday, giving it a value of around $1.06 billion, according to Reuters.

Roku's S1 filing reveals that the video and audio streaming device company now has 15.1 million active accounts, up 43 percent from a year ago.

By comparison, revenue generated on the platform, such as ads and subscription fees, grew 91% year-over-year to $82.4 million in the first half of 2017. But it also burned more cash than the year before, reporting a net loss of $42.6 million for the year.

This company connects users to the streaming content, enables content publishers to build and monetize large audiences, and provides advertisers with unique capabilities to engage consumers.

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Roku's advantage is that it doesn't make any of its own content.

Snapchat owner Snap Inc (SNAP.N), and meal-kit delivery company Blue Apron Holdings Inc (APRN.N), which listed in the first-half of the year are trading well below their listing prices.

A pioneer in helping consumers cut the cord from traditional cable, Roku made one of the first devices to offer streaming content such as Netflix over TVs.

Even though CEO Wood isn't anxious about his company's ability to compete, investors will have to decide if Roku's market share and option-oriented platform are enough to set the streaming device maker apart.

"We are in a golden age of TV", the prospectus said. Where Google, Amazon, and Apple are blocking rival services and products-Google recently pulled its YouTube video Service from Amazon's Echo Show device, and Netflix was not initially included in one of Apple's TV apps-Roku offers its users a wide range of streaming options.

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