IRVINE, Calif. – VIZIO Holding Corp. (NYSE: VZIO) reported lower net revenue and a net loss in the first quarter of 2024, missing Wall Street’s expectations. The company’s net revenue was $353.9 million, down slightly from $356.7 million in the same period last year and below analysts’ consensus estimate of $377.35 million. Net loss widened to $12.1 million, compared with with a minimal loss of $0.7 million in the first quarter of 2023 and unfavorably missed analysts’ estimates of a breakeven quarter.
Despite the overall revenue decline, Platform+’s net revenue grew significantly by 27% YoY to $159.6 million, and Platform+’s gross profit grew by 20% to $88.3 million. SmartCast’s average revenue per user (ARPU) also saw strong growth year-on-year. 17% YoY to $34.24.
The company’s operational performance for the quarter included achieving 18.6 million active SmartCast accounts and record growth in WatchFree+ viewership, with hours watched more than doubling compared to the prior year’s first quarter. VIZIO also expanded its direct advertising relationships by 40% compared to the first quarter of 2023 and launched 23 new applications.
Despite these operating gains, the company’s net loss was impacted by acquisition-related costs of $5.7 million, which contributed to adjusted EBITDA of -$3.6 million, down from positive $6.7 million in the prior year’s first quarter .
VIZIO’s CFO stated, “While we face challenges in the current market, our Platform+ revenue growth and SmartCast ARPU demonstrate the strength and scalability of our advertising and content distribution platforms.”
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Since the company has not provided forward guidance or stock performance data, the focus remains on its ability to navigate market conditions and leverage Platform+ and SmartCast growth to improve financial performance in the coming quarters.
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