Vizio recently published its financial report for Q2’23. The company’s net revenue was $394.4 million, a slight decrease from $408.9 million in the previous year. Despite this decrease in net revenue, the company’s Platform+ segment reported net revenue of $142.3 million, a significant 28% growth. Gross profit also saw an increase, going up by 17% to $86.1 million, with Platform+ gross profit rising by 23% to $85.8 million.
Net income for the period was reported at $1.9 million, down from $2.3 million in Q2’22. However, Adjusted EBITDA, however, increased by 59% to $18.1 million. SmartCast average revenue per user (ARPU), a key measure of platform monetization, went up by 18% to $30.55.
Key business highlights for Q2’23 include an increase in SmartCast active accounts to 17.6 million, which streamed 5.0 billion hours. It introduced a reimagined home screen experience, enhancing user engagement. Additionally, SmartCast hours per SmartCast active account grew by 5% YoY to 94 per month.
Other significant announcements include the debut of Clean Break, a series to provide exclusive brand sponsored content, and expansion in direct ad client relationships by 25% compared to Q2’22, with 80 net new advertisers. Vizio also launched Peacock Preview, offering access to premium content and a seamless engagement with the Peacock streaming app.
The company further expanded its offerings by adding WatchFree+ channels, including local channel category collection, Project Runway, and Family Feud Classic, making a total of over 290 FAST channels. They launched new apps such as Weather Channel, QVC/HSN, Wild Earth, and Power Nation, bringing the total number of built-in apps to over 170.
| Q2’23 Highlights (in millions) | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | % Change |
|---|---|---|---|
| Financial Highlights | |||
| Net Revenue | |||
| Device | $252.1 | $298.1 | (15)% |
| Platform+ | $142.3 | $110.8 | 28% |
| Total Net Revenue | $394.4 | $408.9 | (4)% |
| Gross Profit | |||
| Device | 0.3 | 4.0 | (93)% |
| Platform+ | $85.8 | $69.9 | 23% |
| Total Gross Profit | $86.1 | $73.9 | 17% |
| Operating Expenses | $79.8 | $69.8 | 14% |
| Net Income | $1.9 | $2.3 | (17)% |
| Adjusted EBITDA | $18.1 | $11.4 | 59% |
| Operational Metrics | |||
| Smart TV Shipments | 1.0 | 1.1 | (11)% |
| SmartCast Active Accounts (as of) | 17.6 | 16.1 | 10% |
| Total Vizio Hours | 8,852 | 8,154 | 9% |
| SmartCast Hours | 4,952 | 4,281 | 16% |
| SmartCast ARPU | $30.55 | $25.87 | 18% |
