Vizio just reported its financial results for Q1’23, showing a net revenue of $356.7 million, a decline from the previous year’s $485.5 million. The big drop in smart TV sales was offset by revenues from various aspects of its streaming services is interesting by itself alone.
| Financial Highlights | March 31, 2023 | March 31, 2022 | % Change |
| Net Revenue | |||
| Device | $231.2m | $382.9m | -40% |
| Platform+ | $125.5m | $102.6m | 22% |
| Total Net Revenue | $356.7m | $485.5m | -27% |
| Gross Profit | |||
| Device | $1.6m | $7.9m | -80% |
| Platform+ | $73.8m | $64.9m | 14% |
| Total Gross Profit | $75.4m | $72.8m | 4% |
| Operating Expenses | $78.7m | $85.7m | -8% |
| Net Loss | $0.7m | $11.0m | NM |
| Adjusted EBITDA | $6.7m | $4.4m | 52% |
| Operational Metrics | |||
| Smart TV Shipments | 0.9m | 1.4m | -32% |
| SmartCast Active Accounts (as of) | 17.5m | 15.6m | 12% |
| Total VIZIO Hours | 8,992m | 8,208m | 10% |
| SmartCast Hours | 4,881m | 4,116m | 19% |
| SmartCast ARPU | $29.20 | $23.68 | 23% |
The Platform+ net revenue rose by 22% YoY to $125.5 million, and its gross profit increased by 14% to $73.8 million. The SmartCast average revenue per user (ARPU) also showed a considerable increase of 23% YoY to $29.20. As a result, the company reported a net loss of $0.7 million, an improvement compared to the net loss of $11.0 million in Q1’22.
Vizio’s advertising business also showed strength, up 24% YoY. The company also reported operational achievements, including increased active accounts and streaming hours, new partnerships, and expansions in ad client relationships.
Vizio’s TVs, TV Content, and Services Business
In Q1’23, Vizio achieved 17.5 million SmartCast active accounts, and these accounts streamed 4.9 billion hours of content. This indicates a strong user engagement with their platform and a potential increase in the sales of their SmartCast-integrated TVs. The average SmartCast hours per active account increased to 93 per month, a 5% YoY increase, implying that their user base is consuming more content than before.
Partnerships play a significant role in Vizio’s business strategy, as evidenced by their collaborations with major retailers such as Amazon, Best Buy, Costco, Sam’s Club, Target, and Walmart on exclusive offers. These partnerships likely increase the visibility and accessibility of Vizio’s TVs to consumers.
Vizio also expanded its direct ad client relationships by 77% compared to Q1’22, which likely contributes to the increased revenue from its advertising business. They added 148 net new advertisers in Q1’23.
In terms of TV content, Vizio launched 23 new apps including SiriusXM, OWN, Animal Planet, Destination America, and Travel Channel Go, enhancing the variety of content available on their platform. They also added 23 WatchFree+ channels, including Tastemade Home, Afroland TV, Portlandia, and MSG Sports Zone, further expanding their free-to-watch content offerings.
