Smart TV set maker Vizio Holding Corp., in its first report since its initial public offering, said earnings fell, but that more people were using its SmartCast streaming platform and that its revenue from advertising and data businesses more than doubled.
Like several other home electronics makers, Vizio is looking to take advantage of the fast -growing connected TV and addressable advertising markets. In the first quarter, Vizio’s Platform Plus business grew much faster than its device business.
Vizio’s Platform Plus business, which consists of selling advertising and data, had a gross profit of $38.4 million, more than double the $15.2 million profit it rang up a year ago. Revenues rose 120% to $52.2 million.
SmartCast active accounts grew 57% to 13.4 million. Time spent streaming SmartCast content rose 70% to more than 3.6 billion. Average revenue per user increased 76% to $14.52. The growth in ARPU was driven by higher advertising revenue, the company said.
Vizio’s device business had a gross profit of $48.2 million, up from $32.5 million. Revenues rose to $453.5 million from $308.9 million.
Overall, Vizio’s reported net income of $3.3 million, or 2 cents a share, down 64% from $9.3 million or 5 cents a share.
Revenues rose 52% to $505.7 million from $308.9 million, but selling and administrative expenses jumped to $67.9 million from $30.1 million.
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“Our first quarter results demonstrate the success of our investments in our Device and Platform business," said Vizio founder and CEO William Wang,. “We see tremendous opportunity ahead as we continue to invest in the quality of our execution, the quality of our products, and most importantly, the quality of our team. The evolution of TV is calling for a revolution, and Viziois here to answer it.”
For the second quarter, Vizio said it expects Platform Plus net revenue to double to between $55 million and $59 million, with gross profit of between $36 million and $40 million. Vizio expect higher advertising revenue on rat increases and expanded ad inventory.
