VIZIO reports Q1 2024 financial results
Wednesday, May 8th, 2024
VIZIO HOLDING CORP. Reports Q1 2024 Financial Results
- Platform+ net revenue increased 27% year-over-year (YoY) to $159.6 million
- Platform+ gross profit increased 20% YoY to $88.3 million
- SmartCast Average Revenue Per User increased 17% YoY to $34.24
IRVINE, Calif. — VIZIO Holding Corp. (NYSE: VZIO) today announced the following results for the three months ended March 31, 2024:
Financial and operational highlights include the following, compared to Q1’23:
- Net revenue of $353.9 million, compared to $356.7 million
- Platform+ net revenue of $159.6 million, up 27%
- Gross profit of $81.1 million, up 8%
- Platform+ gross profit of $88.3 million, up 20%
- Net loss of $12.1 million, compared to $0.7 million
- Adjusted EBITDA of $(3.6) million, compared to $6.7 million
- Adjusted EBITDA includes acquisition-related costs of $5.7 million
- SmartCast Average Revenue Per User (ARPU) of $34.24, up 17%
Q1’24 Business highlights include:
- Reached 18.6 million SmartCast Active Accounts, which streamed 5.6 billion hours[1]
- Grew SmartCast Hours per average SmartCast Active Account to 101 per month, up 8% YoY
- Expanded our direct ad relationships by 40% compared to Q1’23[2]
- Debuted the 2024 lineup of 4K, Full HD, and HD TV models and introduced an all-new 86” 4K model
- Received an Emmy Award for innovative Smart TV operating system deployment
- Winner of 2024 iF[3] Design Award for our Elevate and All-in-One soundbars
- Added WatchFree+ channels including BBC News, Home Crashers, Ebony TV, GoTraveler, and 48 Hours, bringing the total number of FAST channels to over 300
- Reached record growth in WatchFree+ viewership, with viewing hours more than doubling compared to Q1’23[4]
- Launched 23 new apps, including Bloomberg, YES, Dove, Philo, Weather Nation, and LIV Golf, bringing the total number of built-in apps to over 230
Selected Quarterly Financial Results
(Unaudited, in millions, except percentages and SmartCast ARPU)
Three Months Ended
March 31,
------------------ --------
2024 2023 % Change
-------- -------- --------
Financial Highlights
Net Revenue
Device $194.3 $231.2 (16)%
Platform+ 159.6 125.5 27%
Total Net Revenue 353.9 356.7 (1)%
Gross Profit
Device (7.2) 1.6 NM
Platform+ 88.3 73.8 20%
Total Gross Profit 81.1 75.4 8%
Operating Expenses* 100.9 78.7 28%
Net Loss $(12.1) $(0.7) NM
Adjusted EBITDA $(3.6) $6.7 NM
Operational Metrics
Smart TV Shipments 0.8 0.9 (14)%
SmartCast Active Accounts (as of) 18.6 17.5 7%
Total VIZIO Hours 9,539 8,992 6%
SmartCast Hours 5,603 4,881 15%
SmartCast ARPU $34.24 $29.20 17%
* Operating expenses for the three months ended March 31, 2024 include share-based compensation of $12.2 million. Operating expenses for the three months ended March 31, 2023 include share-based compensation of $7.6 million.
NM-Not Meaningful
Key Operational and Financial Metrics
We review certain key operational and financial metrics to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions. We regularly review and may adjust our processes for calculating our internal metrics to improve their accuracy.
The metrics included in this press release, including the key operational and financial metrics defined below, as well as SmartCast Hours per SmartCast Active Account and direct advertising client relationships, are not based on any standardized industry methodology and are not necessarily calculated in the same manner or comparable to similarly titled measures presented by other companies. Similarly, these metrics may differ from estimates published by third parties or from similarly titled metrics of our competitors due to differences in methodology. The numbers that we use to calculate these metrics are based on internal data. While these numbers are based on what we believe to be reasonable judgments and estimates for the applicable period of measurement, there are inherent challenges in measuring usage and engagement. We regularly review and may adjust our processes for calculating our internal metrics to improve their accuracy.
Smart TV Shipments. We define Smart TV Shipments as the number of Smart TV units shipped to retailers or direct to consumers in a given period. Smart TV Shipments currently drive the majority of our revenue and provide the foundation for increased adoption of our SmartCast operating system and the growth of our Platform+ revenue. The growth rate between Smart TV Shipments and Device net revenue is not directly correlated because VIZIO’s Device net revenue can be impacted by other variables, such as the series and sizes of Smart TVs sold during the period, the introduction of new products as well as the number of sound bars shipped.
SmartCast Active Accounts. We define SmartCast Active Accounts as the number of VIZIO Smart TVs where a user has activated the SmartCast operating system through an internet connection at least once in the past 30 days. We believe that the number of SmartCast Active Accounts is an important metric to measure the size of our engaged user base, the attractiveness and usability of our operating system, and subsequent monetization opportunities to increase our Platform+ net revenue.
Total VIZIO Hours. We define Total VIZIO Hours as the aggregate amount of time users spend utilizing our Smart TVs in any capacity. We believe this usage metric is useful to understanding our total potential monetization opportunities.
SmartCast Hours. We define SmartCast Hours as the aggregate amount of time viewers engage with our SmartCast platform to stream content or access other applications. This metric reflects the size of the audience engaged with our operating system as well as indicates the growth and awareness of our platform. It is also a measure of the success of our offerings in addressing increased user demand for OTT streaming. Greater user engagement translates into increased revenue opportunities as we earn a significant portion of our Platform+ net revenue through advertising, which is influenced by the amount of time users spend on our platform.
SmartCast ARPU. We define SmartCast ARPU as total Platform+ net revenue, less revenue attributable to legacy VIZIO V.I.A. Plus units, during the preceding four quarters divided by the average of (i) the number of SmartCast Active Accounts at the end of the current period; and (ii) the number of SmartCast Active Accounts at the end of the corresponding prior year period. SmartCast ARPU indicates the level at which we are monetizing our SmartCast Active Account user base. Growth in SmartCast ARPU is driven significantly by our ability to add users to our platform and our ability to monetize those users.
Device gross profit. We define Device gross profit as Device net revenue less Device cost of goods sold in a given period. Device gross profit is directly influenced by consumer demand, device offerings, and our ability to maintain a cost-efficient supply chain.
Platform+ gross profit. We define Platform+ gross profit as Platform+ net revenue less Platform+ cost of goods sold in a given period. As we continue to grow and scale our business, we expect Platform+ gross profit to increase over the long term.
1. Streamed hours represent SmartCast Hours.
2. Direct ad relationships consists of the number of advertisers that purchased advertising inventory directly from VIZIO during the first quarter.
3. iF International Forum.
4. Excludes sessions under 3 minutes.
Links: VIZIO