Vizio grew the number of customers using its smart TV platform to 18.6 million during the first three months of 2024 (Q1), logging a net addition of 400,000 SmartCast customers that helped push its advertising revenue to a new high.
On Wednesday, Vizio said it earned $159.6 million from its connected TV platform, which consists mainly of digital advertising revenue, a 27 percent increase on a year-over basis. Platform revenue was around 10 percent lower on a sequential basis.
Gross profit also increased to $98.1 million, but it wasn’t enough to fully cover expenses at Vizio, with the company reporting a net loss of $12.1 million for the quarter. In the previous quarter, Vizio posted a rare net profit of $13.2 million.
Device revenue continued to hamper Vizio’s overall earnings, with the company bringing in $194.3 million from the sales of its smart TVs and sound bars during the first three months of the year, including the critical Super Bowl shopping period when Americans are more-likely to buy new TVs compared to the rest of the year. The figure represented a 16 percent drop from the $231.2 million earned from smart TV and soundbar sales during the first three months of 2023.
The number of smart TVs shipped during the quarter fell to 800,000, representing a 14 percent decline compared to the same three-month period in 2023.
That said, the number of hours watched on SmartCast increased to 9.54 billion, a 15 percent increase compared to Q1 2023. An uptick in streaming hours helped push Vizio’s average revenue per user (ARPU) higher to $34.24, an increase of 17 percent on a year-over basis.
Executives for Vizio did not address the TV maker’s pending acquisition by retail giant Walmart, which is largely predicated on the health of its digital advertising business. The $2.3 billion acquisition is pending regulatory approval, and is currently being scrutinized by the Federal Trade Commission on antitrust grounds.
