Vizio swung to a profit in the third-quarter as gains at its Platform Plus business more than offset a drop in device sales.
Net income was $2 million, or 1 cent a share, compared to a net loss of $18.6 million, or 10 cents a share, a year ago.
Revenue fell 26% to $435 million.
Gross profit from Vizio's Platform Plus business rose 38% to $78.9 million. Platform Plus net revenue — including advertising — rose 49% to $128 million. Average revenue per user rose 39% to $27.69.
SmartCast Active accounts rose 15% to 16.6 million and hours viewed rose 17% to 4.2 billion hours.
Device revenue fell 39% to $307 million as smart TV shipments fell 15% to 1.2 million. Gross profit from Vizio's device business fell 95% to $1.2 million.
Vizio said it expects its Platform Plus business to have a gross profit of between $84 million and $87 million in the fourth quarter and net revenue of $138 million to $142 million.
"An important motto for Vizio has always been growth meets discipline," said CEO William Wang. "Our third-quarter results are a continued reflection of this as we grew our platform revenue by 49% and our total company adjusted EBITDA came in at 417 million, all of which surpassed the high end of our guidance ranges." ■
Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.
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