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
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 EBITDA1 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 hours2
- Grew SmartCast Hours per average SmartCast Active Account to
101 per month, up 8% YoY
- Expanded our direct ad relationships by 40% compared to
Q1'233
- 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 iF4 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 Q1’235
- 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
1
A reconciliation of Net Loss to Adjusted
EBITDA is provided below.
2
Streamed hours represent SmartCast
Hours.
3
Direct ad relationships consists of the
number of advertisers that purchased advertising inventory directly
from VIZIO during the first quarter.
4
iF International Forum.
5
Excludes sessions under 3 minutes.
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 Expenses1
100.9
78.7
28%
Net Loss
$
(12.1
)
$
(0.7
)
NM
Adjusted EBITDA2
$
(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%
________________________________
1 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.
2 A reconciliation of Net Loss to Adjusted
EBITDA is provided below
NM-Not Meaningful
About VIZIO
Founded and headquartered in Orange County, California, our
mission at VIZIO Holding Corp. (NYSE: VZIO) is to deliver immersive
entertainment and compelling lifestyle enhancements that make our
products the center of the connected home. We are driving the
future of televisions through our integrated platform of
cutting-edge Smart TVs and powerful operating system. We also offer
a portfolio of innovative sound bars that deliver consumers an
elevated audio experience. Our platform gives content providers
more ways to distribute their content and advertisers more tools to
connect with the right audience.
Supplemental Financial and Other Information
Supplemental financial and other information can be accessed
through our Investor Relations website at investors.vizio.com. We
announce material information to the public about our company,
products and services, and other matters through a variety of
means, including filings with the Securities and Exchange
Commission, press releases, public conference calls, webcasts, our
Investor Relations website (investors.vizio.com), our blog
(accessible via vizio.com/en/newsroom) and our X account (@VIZIO)
in order to achieve broad, non-exclusionary distribution of
information to the public and for complying with our disclosure
obligations under Regulation FD.
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.
Non-GAAP Financial Measures
To supplement our financial information presented in accordance
with generally accepted accounting principles in the United States
of America, or GAAP, VIZIO considers certain financial measures
that are not prepared in accordance with GAAP, including Adjusted
EBITDA. We define Adjusted EBITDA as total net loss before interest
income, net, other income, net, benefit from income taxes,
depreciation and amortization and share-based compensation. We
consider Adjusted EBITDA to be an important metric to assess our
operating performance and help us to manage our working capital
needs. Utilizing Adjusted EBITDA, we can identify and evaluate
trends in our business as well as provide investors with
consistency and comparability to facilitate period-to-period
comparisons of our business. We believe that providing users with
non-GAAP measures such as Adjusted EBITDA may assist investors in
seeing VIZIO’s operating results through the eyes of management and
in comparing VIZIO’s operating results over multiple periods with
other companies in our industry.
We use Adjusted EBITDA in conjunction with net loss as part of
our overall assessment of our operating performance and the
management of our working capital needs. Our definition of Adjusted
EBITDA may differ from the definition used by other companies and
therefore comparability may be limited. In addition, other
companies may not publish Adjusted EBITDA or similar metrics.
Furthermore, Adjusted EBITDA has certain limitations in that it
does not include the impact of certain expenses that are reflected
in our condensed consolidated statement of operations that are
necessary to run our business. Thus, Adjusted EBITDA should be
considered in addition to, not as a substitute for, or in isolation
from, measures prepared in accordance with GAAP, including net
loss.
We compensate for these limitations by providing a
reconciliation of Adjusted EBITDA to net loss. We encourage
investors and others to review our financial information in its
entirety, not to rely on any single financial measure and to view
Adjusted EBITDA in conjunction with net loss.
Forward-looking information
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Forward-looking
statements generally relate to future events or VIZIO’s future
financial or operating performance. In some cases, you can identify
forward looking statements because they contain words such as
“may,” “will,” “should,” “expects,” “plans,” “anticipates,” “going
to,” “could,” “intends,” “target,” “projects,” “contemplates,”
“believes,” “estimates,” “predicts,” “potential,” or “continue,” or
the negative of these words or other similar terms or expressions
that concern our expectations, strategy, priorities, plans, or
intentions.
There are a number of risks and uncertainties that could cause
actual results to differ materially from statements made in this
press release. If any of these risks or uncertainties materialize,
our actual results could differ materially from the results
expressed or implied by these forward-looking statements.
The forward-looking statements contained in this press release
are also subject to other risks and uncertainties, including those
more fully described in our filings with the Securities and
Exchange Commission, including our Annual Report on Form 10-K for
the year ended December 31, 2023, as filed on February 28, 2024.
Additional information will also be set forth in our Quarterly
Report on Form 10-Q for the three months ended March 31, 2024. The
forward-looking statements in this press release are based on
information available to VIZIO as of the date hereof, and VIZIO
disclaims any obligation to update any forward-looking statements,
except as required by law.
VIZIO HOLDING CORP.
Consolidated Statements of
Operations
(Unaudited, in millions except
per share amounts)
Three Months Ended
March 31,
2024
2023
Net revenue:
Device
$
194.3
$
231.2
Platform+
159.6
125.5
Total net revenue
353.9
356.7
Cost of goods sold:
Device
201.5
229.6
Platform+
71.3
51.7
Total cost of goods sold
272.8
281.3
Gross profit:
Device
(7.2
)
1.6
Platform+
88.3
73.8
Total gross profit
81.1
75.4
Operating expenses:
Selling, general and administrative
76.1
58.2
Marketing
8.5
7.6
Research and development
15.1
11.9
Depreciation and amortization
1.2
1.0
Total operating expenses
100.9
78.7
Loss from operations
(19.8
)
(3.3
)
Interest income, net
3.9
2.4
Other income, net
0.7
—
Total non-operating income, net
4.6
2.4
Loss before income taxes
(15.2
)
(0.9
)
Benefit from income taxes
(3.1
)
(0.2
)
Net loss
$
(12.1
)
$
(0.7
)
Net loss per share attributable to Class A
and Class B stockholders:
Basic
$
(0.06
)
$
(0.00
)
Diluted
$
(0.06
)
$
(0.00
)
Weighted-average Class A and Class B
common shares outstanding:
Basic
197.9
195.3
Diluted
197.9
195.3
VIZIO HOLDING CORP.
Consolidated Balance
Sheets
(Unaudited, in millions except
par values)
March 31, 2024
December 31,
2023
Assets
Current assets:
Cash and cash equivalents
$
202.8
$
221.6
Short-term investments
131.1
129.9
Accounts receivable, net
267.9
381.2
Inventories
25.6
6.8
Income tax receivable
11.9
9.0
Prepaid and other current assets
56.9
45.9
Total current assets
696.2
794.4
Property, equipment and software, net
19.1
19.7
Goodwill
44.8
44.8
Deferred income taxes
49.6
49.6
Other assets
51.7
52.2
Total assets
$
861.4
$
960.7
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable due to related
parties
$
75.8
$
109.1
Accounts payable
123.4
157.8
Accrued expenses
144.8
178.6
Accrued royalties
40.1
40.7
Other current liabilities
7.9
5.8
Total current liabilities
392.0
492.0
Other long-term liabilities
18.7
19.4
Total liabilities
410.7
511.4
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.0001 par value; 100.0
shares authorized and no shares issued and outstanding as of March
31, 2024 and December 31, 2023
—
—
Common stock, $0.0001 par value; 1,350.0
shares authorized as of March 31, 2024 and December 31, 2023
- Class A, 122.1 and 125.3 shares issued and 122.1 and 121.5
shares outstanding as of March 31, 2024 and December 31, 2023,
respectively,
- Class B, 76.2 shares issued and outstanding as of March 31,
2024 and December 31, 2023
- Class C, no shares issued and outstanding as of March 31, 2024
and December 31, 2023
—
—
Additional paid-in capital
427.9
414.3
Accumulated other comprehensive loss
(0.4
)
(0.3
)
Retained earnings
23.2
35.3
Total stockholders’ equity
450.7
449.3
Total liabilities and stockholders’
equity
$
861.4
$
960.7
VIZIO HOLDING CORP.
Consolidated Statements of
Cash Flows
(Unaudited, in millions)
Three Months Ended
March 31, 2024
March 31, 2023
Cash flows from operating activities:
Net loss
$
(12.1
)
$
(0.7
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
2.9
1.8
Realized gain on investments
(0.4
)
—
Amortization of premium and discount on
investments
(1.8
)
(0.5
)
Change in fair value of investment
securities
—
(0.1
)
Share-based compensation expense
13.3
8.2
Change in allowance for doubtful
accounts
(0.2
)
0.7
Changes in operating assets and
liabilities:
Accounts receivable
113.5
59.5
Other receivables due from related
parties
—
2.0
Inventories
(18.9
)
1.7
Income taxes receivable
(2.9
)
(0.6
)
Prepaid and other current assets
(10.9
)
(4.6
)
Other assets
(0.7
)
(2.9
)
Accounts payable due to related
parties
(33.3
)
(43.9
)
Accounts payable
(34.4
)
(20.1
)
Accrued expenses
(34.1
)
(17.0
)
Accrued royalties
(0.6
)
(1.6
)
Other current liabilities
2.2
(0.2
)
Other long-term liabilities
(0.7
)
(1.0
)
Net cash used in operating activities
(19.1
)
(19.3
)
Cash flows from investing activities:
Purchase of property and equipment
(1.2
)
(0.2
)
Purchase of investments
(25.0
)
(75.7
)
Sale of investments
0.6
—
Maturity of investments
25.5
15.0
Net cash used in investing activities
(0.1
)
(60.9
)
Cash flows from financing activities:
Proceeds from the exercise of stock
options
0.5
1.7
Net cash provided by financing
activities
0.5
1.7
Effects of exchange rate changes on cash
and cash equivalents
(0.1
)
—
Net decrease in cash and cash
equivalents
(18.8
)
(78.5
)
Cash and cash equivalents at beginning of
period
221.6
288.7
Cash and cash equivalents at end of
period
$
202.8
$
210.2
Supplemental disclosure of cash flow
information:
Cash (received from) paid for income
taxes
$
(0.4
)
$
0.4
Cash paid for interest
$
0.1
$
—
Cash paid for amounts included in the
measurement of operating lease liabilities
$
1.2
$
1.2
Supplemental disclosure of non-cash
investing and financing activities:
Right-of-use assets obtained in exchange
for new operating lease liabilities
$
—
$
0.5
Additions to property and equipment
financed by accounts payable
$
0.1
$
0.6
VIZIO HOLDING CORP.
Reconciliation of Net Loss to
Adjusted EBITDA
(Unaudited, in millions)
Three Months Ended
March 31,
2024
2023
Net loss
$
(12.1
)
$
(0.7
)
Adjusted to exclude the following:
Interest income, net
(3.9
)
(2.4
)
Other income, net
(0.7
)
—
Benefit from income taxes
(3.1
)
(0.2
)
Depreciation and amortization
2.9
1.8
Share-based compensation
13.3
8.2
Adjusted EBITDA1
$
(3.6
)
$
6.7
_____________________________
1 Adjusted EBITDA includes
acquisition-related costs of $5.7 million.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240506077561/en/
Investors and Analysts: Michael Marks IR@vizio.com
Media: PR@vizio.com
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