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Vizio Swings Back to Q3 Profit as Ad-Supported Platform Revenue Surges

Consumer electronics manufacturer Vizio Nov. 9 reported third quarter (ended Sept. 30) net income of $2 million on revenue of $435 million. That compared to a loss of $18.6 million on revenue of $588.3 million in the prior year period.

The Irvine, Calif.-based company reflected a 39% drop in device sales to $307 million from $502.5 million last year. The decline in smart TV and soundbar revenue was surprising considering The NPD Group touted Vizio TV as No. 2 smart TV brand in the quarter.

The company shipped 1.2 million smart TVs in the quarter, down 15% from 1.4 million units shipped in the previous-year period.

Meanwhile, Vizio’s decision to launch an ad-supported streaming platform continues to pay dividends. The platform surpassed 16.6 million active accounts in the quarter, generating $128 million in ad revenue — up 49% from revenue of $85.5 million last year.

Total Vizio user hours increased 11% to 8.12 million hours from 7.3 million. SmartCast hours increased 17% to 4.2 million from 3.6 million. More importantly, average revenue per user increased 39% to $27.7 from $19.9.

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“Our platform revenue [growth] and adjusted pre-tax earnings all surpassed the high-end of our guidance ranges,” CEO William Wang said in a statement.

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