What They Say
Vizio announced its result for Q1 with revenue down from $505.7 million to $485.5 million. The net profit of $3.4 million last year turned into a net loss of $11 million this time. William Wang, CEO of Vizio, said:
“I am extremely proud of our exceptional first quarter results.”
Platform+ service revenues were up 97% year on year to $102.6% with GP of $64.9 million. ARPU grew by 64% YoY to $23.68.
What We Think
Well, it’s slightly bizarre to see the comments from Wang, when profits disappeared and revenues shrank, but Vizio is trying to pivot away (at least partly) from its dependence on set sales, and judged on that that, it’s a good performance. By my calculation, the GP on the device business was just about 2%! Even Vizio’s famed low cost model would struggle to make that profitable. Set revenues were down 16% to $383 million. The firm’s stock price rose, so some were persuaded! (BR)
