Smart-TV maker Vizio reported second-quarter revenue above Wall Street forecasts, but challenges on the hardware side kept the bottom line from meeting expectations.
Revenue of $401.2 million was up only 2% but ahead of analysts’ consensus outlook for $385.9 million. Net losses of $14 million in the period were a bit worse than expected and compared with income of $17.3 million a year ago. Adjusted EBITDA, a different measure of profitability favored by media companies, increased 7% to $26.5 million.
The company, which went public in March, is gunning for the streaming marketplace and results for the quarter were encouraging in that area. It has hit 14 million active accounts with its SmartCast offering, with viewing hours reaching 3.5 billion, up 35%. Average revenue per user (ARPU) rose 90% to $16.76.
In the company’s earnings release, CEO William Wang hailed “strong advertising growth,” describing it as a “direct benefit of our expanding dual revenue model.”
Covid-19, he conceded, presented challenges in the quarter but connected TV is emerging as a key strategic pillar, with 200 new jobs added in the period. Vizio is among a handful of companies looking to profit from the larger shift of ad dollars and viewing from linear to streaming. While it remains a hardware maker, in a similar fashion to Roku (also out with earnings today) it is looking to become more of a streaming facilitator than a gear-dependent company.
“With our Platform+ business continuing its rapid growth trajectory, supported by our ongoing investments in our software and hardware integration, we are excited about the path we are on during a transformative time in the media and entertainment industry,” Wang said.
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