IRVINE, Calif. - VIZIO Holding Corp. (NYSE: VZIO) reported a decrease in net revenue and a net loss in the first quarter of 2024, falling short of Wall Street expectations. The company's net revenue came in at $353.9 million, a slight decrease from the $356.7 million reported in the same period last year, and below the analyst consensus estimate of $377.35 million. The net loss widened to $12.1 million, compared to a minimal loss of $0.7 million in the first quarter of 2023, and was unfavorably off from the analyst estimate of a break-even quarter.
Despite the overall revenue decline, Platform+ net revenue saw a significant increase of 27% YoY to $159.6 million, and Platform+ gross profit rose by 20% to $88.3 million. The SmartCast Average Revenue Per User (ARPU) also showed a healthy increase of 17% YoY to $34.24.
The company's operational highlights for the quarter included reaching 18.6 million SmartCast Active Accounts and a record growth in WatchFree+ viewership, with viewing hours more than doubling compared to the first quarter of the previous year. VIZIO also expanded its direct ad relationships by 40% compared to Q1'23 and launched 23 new apps.
Despite these operational achievements, the company's net loss was impacted by acquisition-related costs of $5.7 million, contributing to an adjusted EBITDA of -$3.6 million, a drop from a positive $6.7 million in the first quarter of the previous year.
VIZIO's Chief Financial Officer stated, "While we are facing challenges in the current market, the growth in our Platform+ revenue and SmartCast ARPU demonstrates the strength and scalability of our advertising and content distribution platforms."
As the company did not provide forward guidance or stock movement data, the focus remains on its ability to navigate market conditions and leverage its Platform+ and SmartCast growth to improve financial performance in the upcoming quarters.
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