VIZIO reports 4Q 2021 results

Thursday, March 3rd, 2022 
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VIZIO HOLDING CORP. Reports Q4 and Full Year 2021 Financial Results

  • Fourth quarter Platform+ net revenue increased 74% year-over-year to $105.1 million
  • SmartCast Active accounts increased 24% year-over-year to 15.1 million
  • Average Revenue Per User increased 67% year-over-year to $21.68

IRVINE, Calif. — VIZIO Holding Corp. (NYSE: VZIO) today announced the following results for the three and twelve months ended December 31, 2021, as compared to the corresponding period of last year:

Financial and operating results for the fourth quarter ended December 31, 2021 as compared to the corresponding period of last year included:

  • Net revenue of $628.8 million, compared to $734.3 million
  • Platform+ net revenue grew 74% to $105.1 million
  • Gross profit of $77.1 million, compared to $101.9 million
  • Platform+ gross profit increased 39% to $67.3 million
  • SmartCast Active Accounts grew 24% to 15.1 million
  • SmartCast Hours increased 11% to 3.9 billion
  • Average Revenue Per User (ARPU) grew 67% to $21.68

Financial and operating results for the year ended December 31, 2021 as compared to the corresponding period of last year included:

  • Net revenue increased 4% to $2.1 billion
  • Platform+ net revenue grew 110% to $308.7 million
  • Gross profit increased 10% to $326.3 million
  • Platform+ gross profit grew 88% to $210.6 million
  • SmartCast Hours increased 26% to 14.6 billion

“2021 was a transformational year for VIZIO. Since our IPO almost one year ago, we have continued to see success in the execution of our combined hardware and software strategy,” said William Wang CEO of VIZIO. “Our dual revenue model has allowed us the flexibility to invest in creating an even better consumer experience with great products, while our advertising and data offerings increasingly draw partners to our streaming platform. Going forward we will continue to focus on execution on all sides of the business, and we are excited for the year ahead as we celebrate our 20th Anniversary in the TV market.”

Fourth quarter 2021 business highlights include:

  • Returned to pre-pandemic stock levels which lead to healthier inventory positions across retail partners
  • Expanded number of gaming TVs shipped with FreeSync certification
  • Increased our direct ad client base by 20%+ and our average revenue per advertiser by 70%+ versus Q4’20
  • Grew relationships with ad categories like Auto, Media & Entertainment, Insurance, and Retail versus Q4’20
  • Expanded WatchFree+ with thousands of free on demand movies, TV shows and VIZIO exclusives
  • App launches included Discovery+, History Vault, Lifetime Movie Club, AfroLandTV, and Crime Central
  • Launched more VIZIO Features (Mission, House and Fear) curated channels with 100% ad inventory control

Selected Financial Results
(Unaudited, in millions, except percentages and ARPU)

                                         Quarter Ended          Year Ended                Full
                                          December 31,        December 31,   Quarter      Year
                                    ------------------  ------------------  --------  --------
                                        2021      2020      2021      2020     QTD %     YTD %
                                    --------  --------  --------  --------  --------  --------
Financial Highlights
 Device                                $523.7   $674.0  $1,815.3  $1,895.3     (22)%      (4)%
 Platform+                              105.1     60.3     308.7     147.2       74%      110%
Total Revenue                           628.8    734.3   2,124.0   2,042.5     (14)%        4%
Gross Profit
 Device                                   9.8     53.6     115.7     184.5     (82)%     (37)%
 Platform+                               67.3     48.3     210.6     111.9       39%       88%
Total Gross Profit                       77.1    101.9     326.3     296.4     (24)%       10%
 Operating Expenses                      97.2     48.8     355.9     164.5       99%      116%
Net (loss) Income                     $(10.1)    $40.8   $(39.4)    $102.5    (125)%    (138)%
Adjusted EBITDA                         $17.3    $54.4    $107.6    $139.0     (68)%     (23)%

Operational Metrics
Smart TV Shipments                        1.5      2.2       5.5       7.1     (31)%     (22)%
SmartCast Active Accounts (as of)        15.1     12.2      15.1      12.2       24%       24%
VIZIO Hours                             7,915    6,577    29,337    23,264       20%       26%
SmartCast Hours                         3,851    3,469    14,598    11,596       11%       26%
SmartCast ARPU                         $21.68   $12.99    $21.68    $12.99       67%       67%

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.

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 units shipped 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 critical 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.

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