Vizio reported a third-quarter loss as gains in its streaming business were overshadowed by increased costs.
Vizio has been adding content and channels to its SmartCast platform, which enables owners of its smart TVs to stream free programming. The Platform Plus business, which includes Vizio’s growing advertising sales and data business, grew rapidly in the quarter, while the company‘s device business saw its revenue and profits shrink.
Vizio’s Platform Plus gross profit jumped 88% to $57.3 million as revenue grew 134% to $85.9 million in the quarter. SmartCast active accounts climbed 35%, to 14.4 million, and SmartCast hours increased 16% to 3.6 billion.
Average revenue per user grew 91% to $19.89.
Overall, Vizio’s net loss was $18.6 million, or 10 cents a share, compared to net income of $35.1 million, or 19 cents a share, a year ago.
Revenue increased 1% to $588.3 million.
Operating expenses increased to $97.5 million from $43.4 million a year ago.
Device revenue fell 8%, to $502.5 million. Device profit fell 56%, to $25.6 million.
“I’m proud of the strength of our third-quarter results, as the investments we’ve made in our Platform Plus business continue to bear fruit,” Vizio CEO William Wang said. “Our dual revenue model is a competitive advantage, and it allows us to leverage our Device business to drive rapidly growing, high-margin revenue within our Platform Plus business. Because Vizio delivers the entire entertainment experience — from the hardware and software, to the content and ads — we are able to deliver an attractive value proposition to consumers, advertisers and content partners alike. We are here to define the future of the Smart TV business.”
Vizio also announced that Vicky L. Free has been appointed to its board of directors, effective Nov. 4.
Free, senior VP of global marketing with Adidas, replaces SC Huang on the board. Huang is retiring after serving as a director since 2004.
“We are pleased to welcome Vicky to the Vizio board,” Wang said. “Her deep experience in global marketing and her strong brand expertise will be invaluable to Vizio as we continue to grow our business and define the future of the Smart TV industry.”
Before joining Adidas, Free worked with brands including McDonald’s, Turner, BET Networks and The Walt Disney Co.
“Technology inspires, connects and empowers. It is the window through which many can see, and make true, their own possibilities,” Free said. “Vizio’s commitment to making technology accessible to all is why I am so proud to join its board.”
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