Roku, however, has managed to deftly navigate the turbulent landscape, wisely branching out from the revenue from its streaming sticks and boxes-which is still three-quarters of total sales-into areas like advertising and licensing. It generated revenue of $199.7 million in the first six months of 2017, up 23% from $162.3 million in the same six months of 2016.
Some investors point to cautionary tales like Blue Apron, Snap Inc. and FitBit, whose stocks initially flew high before falling to earth.
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.
In its last quarter, it reported a net loss of $15.5 mllion, up from a $14.1 million loss in the same period a year ago.
"As the world moves to streaming, that means all TV advertising is moving to streaming", Wood said.
Additionally, Roku has been able to steadily increase its customer base.
While it's a popular name among cord-cutters, Roku must now prove to investors that it can compete with the tech industry's leaders. Roku has also seen increasing competition from companies like Apple, Google and Amazon, which all sell their own streaming TV devices.
"We are in a golden age of TV", the prospectus said.
Despite heavyweight rivalry, Roku has managed to find and maintain its footing. But instead of having to worry about only one major foe, Roku must prove it can outmaneuver a cast of formidable competitors, including Amazon, Apple and Google. 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.
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.