Smart TV maker Vizio grew its overall revenue and gross profit during the company’s third financial quarter (Q3) of the year, boosted by an uptick in advertising and partnerships that increased its platform income and a surge in new customers activating smart TVs over the three-month period.
The number of customers now using a Vizio smart TV reached 19.1 million during Q3, an increase of 300,000 accounts, the company disclosed. Platform revenue accounted for $197 million of the company’s $444.7 million in net revenue, of which $115.8 million was logged as gross profit — representing year-over gains across all line items.
Average revenue per user (ARPU) climbed 18 percent to $37.17 during Q3, the company revealed. Net income — the amount of profit left over certain operating expenses, including taxes and amortization — fell 96 percent to just $500,000, compared to $13.8 million logged during Q3 2023.
The average Vizio TV user streamed 101 hours of content through the SmartCast platform per month, the company said. Part of this was influenced by the launch of a dedicated Sports Zone on Vizio TVs; the enhanced menu directs streamers to the channels or apps that are carrying a particular athletic competition at any given time.
Vizio also added more content to its free, ad-supported streaming TV (FAST) service WatchFree Plus, including linear channels from Britbox, the BBC and others, and launched a version of the FAST platform that is accessible through mobile phones and tablets, without the need for a Vizio smart TV.
Executives at Vizio have not held a conference call with investors to dissect the company’s quarterly earnings reports since earlier this year, when retailer Walmart announced it was acquiring the smart TV maker for $2.3 billion. The deal is still pending regulatory approval.
