VIZIO Holding Corp. (VZIO) Bundle
A Brief History of Vizio
Vizio, Inc., founded in 2002, has established itself as a prominent player in the consumer electronics market, particularly in the television segment. The company gained notoriety for delivering high-quality flat-panel televisions at competitive prices, effectively disrupting the market dominated by larger brands.
Financial Performance Overview
As of September 30, 2024, Vizio reported a total net revenue of $444.7 million for the third quarter, marking an increase of 4% compared to $426.2 million in the same quarter of the previous year. For the nine months ended September 30, 2024, the total net revenue reached $1.2359 billion, a 5% increase from $1.1773 billion in the same period in 2023.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Net Revenue | $444.7 million | $426.2 million | $1.2359 billion | $1.1773 billion |
| Device Revenue | $247.7 million | $270.0 million | $709.9 million | $753.4 million |
| Platform+ Revenue | $197.0 million | $156.2 million | $526.0 million | $423.9 million |
Cost of Goods Sold and Gross Profit
The cost of goods sold (COGS) for Q3 2024 was reported at $335.6 million, compared to $329.7 million in Q3 2023. For the nine-month period, COGS totaled $946.3 million, slightly up from $919.2 million in the previous year. The gross profit for Q3 2024 was $109.1 million, representing a 13% increase from $96.5 million in Q3 2023. The overall gross margin improved to 24.5% in Q3 2024 from 22.6% in the same quarter the previous year.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| COGS | $335.6 million | $329.7 million | $946.3 million | $919.2 million |
| Gross Profit | $109.1 million | $96.5 million | $289.6 million | $258.1 million |
| Gross Margin | 24.5% | 22.6% | 23.4% | 21.9% |
Operating Expenses and Net Income
Operating expenses for Q3 2024 totaled $114.7 million, an increase of 37% from $83.8 million in Q3 2023. This increase was largely driven by higher selling, general and administrative expenses, which rose to $85.2 million from $63.6 million, reflecting a 34% increase.
Net income for Q3 2024 was $0.5 million, a significant decrease from $13.8 million in Q3 2023. For the nine months ended September 30, 2024, Vizio reported a net loss of $11.4 million compared to a net income of $15.0 million in the same period in 2023.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Operating Expenses | $114.7 million | $83.8 million | $322.0 million | $242.3 million |
| Net Income | $0.5 million | $13.8 million | $(11.4 million) | $15.0 million |
Market Position and Strategic Developments
Vizio's market position has been bolstered by the growth of its Platform+ business segment, which focuses on streaming services and advertising. The Platform+ revenue increased by 26% year-over-year in Q3 2024, driven by a significant rise in advertising revenue, which grew by 31%.
As of September 30, 2024, Vizio reported 19.1 million SmartCast active accounts, up from 17.9 million in the previous year, reflecting the company's successful strategy to expand its user base and monetization efforts.
| Operational Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| SmartCast Active Accounts | 19.1 million | 17.9 million |
| SmartCast ARPU | $37.17 | $31.55 |
| Total VIZIO Hours | 9,468 million | 8,913 million |
| SmartCast Hours | 5,771 million | 5,153 million |
Vizio's focus on enhancing its streaming services and building a robust advertising platform has positioned it well for future growth, even as it navigates challenges in the competitive consumer electronics landscape.
A Who Owns VIZIO Holding Corp. (VZIO)
Ownership Structure
As of 2024, VIZIO Holding Corp. has a dual-class structure for its common stock. The company has two classes of common stock: Class A and Class B shares.
| Class of Stock | Shares Issued | Shares Outstanding |
|---|---|---|
| Class A | 127.2 million | 127.2 million |
| Class B | 75.3 million | 75.3 million |
Major Shareholders
The following table outlines the major shareholders of VIZIO Holding Corp. as of September 30, 2024.
| Shareholder | Ownership Percentage | Type of Ownership |
|---|---|---|
| VIZIO Management Team | ~10% | Insider |
| Institutional Investors | ~60% | Institutional |
| Retail Investors | ~30% | Public |
Institutional Ownership
As of the latest reports, institutional investors hold a significant portion of VIZIO's shares. This includes mutual funds, pension funds, and other large investors.
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | ~15 million | ~11.8% |
| The Vanguard Group, Inc. | ~12 million | ~9.5% |
| State Street Corporation | ~10 million | ~7.9% |
Executive Compensation
Executive compensation packages at VIZIO include salary, bonuses, and stock options. The following table summarizes the compensation for key executives as of 2024.
| Executive | Position | Annual Compensation (in millions) |
|---|---|---|
| William Wang | CEO | 1.2 |
| John D. Maffei | CFO | 0.9 |
| Rebecca S. Lentz | COO | 1.0 |
Recent Changes in Ownership
In 2024, VIZIO has seen a shift in ownership with increased institutional investment, reflecting confidence in the company’s growth potential.
| Period | Change in Institutional Ownership | Remarks |
|---|---|---|
| Q1 2024 | +5% | Increased investment in technology sector |
| Q2 2024 | +3% | Positive earnings report |
Conclusion of Ownership Analysis
The ownership of VIZIO Holding Corp. is characterized by a mix of institutional and retail investors, with significant insider holdings. The company's dual-class stock structure provides a level of control to its executives while also allowing for broad public investment.
VIZIO Holding Corp. (VZIO) Mission Statement
The mission of VIZIO Holding Corp. is to deliver immersive entertainment and compelling lifestyle enhancements that make its products the center of the connected home. The company is driving the future of televisions through its integrated platform of cutting-edge Smart TVs and powerful operating system. VIZIO also offers a portfolio of innovative sound bars that deliver consumers an elevated audio experience. The company's platform gives content providers more ways to distribute their content and advertisers more tools to connect with the right audience.
Financial Performance Overview
For the three months ended September 30, 2024, VIZIO reported net revenue of $444.7 million, an increase of 4% compared to $426.2 million for the same period in 2023. The breakdown of revenue sources is as follows:
| Revenue Source | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (%) |
|---|---|---|---|
| Device | 247.7 | 270.0 | -8.5% |
| Platform+ | 197.0 | 156.2 | 26.2% |
| Total Net Revenue | 444.7 | 426.2 | 4.0% |
Adjusted EBITDA and Net Income
VIZIO's Adjusted EBITDA for Q3 2024 was $8.8 million, a decrease from $26.9 million in Q3 2023. The net income for the same period was $0.5 million, compared to $13.8 million in the prior year. The reconciliation of net income to Adjusted EBITDA is detailed below:
| Metric | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Net Income (Loss) | 0.5 | 13.8 |
| Interest Income, Net | (4.0) | (3.5) |
| Other Income (Expense), Net | (1.1) | 0.1 |
| (Benefit from) Provision for Income Taxes | (1.0) | 2.3 |
| Depreciation and Amortization | 2.8 | 1.9 |
| Share-Based Compensation | 11.6 | 12.3 |
| Adjusted EBITDA | 8.8 | 26.9 |
Key Operational Metrics
VIZIO's operational metrics for the three months ended September 30, 2024, indicate growth in user engagement and platform utilization:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Smart TV Shipments (millions) | 1.0 | 1.1 | -9.1% |
| SmartCast Active Accounts (millions) | 19.1 | 17.9 | 6.7% |
| Total VIZIO Hours (billions) | 9.5 | 8.9 | 6.7% |
| SmartCast Hours (billions) | 5.8 | 5.2 | 11.5% |
| SmartCast ARPU ($) | 37.17 | 31.55 | 17.9% |
Investment in Technology and Innovation
VIZIO continues to invest in its technology, focusing on enhancing its Smart TV operating system, SmartCast, and expanding its Platform+ capabilities. The company aims to leverage data analytics through Inscape to optimize advertising and content distribution strategies. This is crucial for maintaining competitive advantage in the rapidly evolving consumer electronics market.
How VIZIO Holding Corp. (VZIO) Works
Business Overview
VIZIO Holding Corp. primarily operates in two segments: Device and Platform+. The Device segment focuses on the sale of Smart TVs and sound bars, while Platform+ generates revenue through advertising and data services associated with its Smart TV operating system, SmartCast.
Financial Performance (Q3 2024)
For the three months ended September 30, 2024, VIZIO reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Revenue | $444.7 million | $426.2 million | $18.5 million | 4% |
| Device Revenue | $247.7 million | $270.0 million | $(22.3) million | (8%) |
| Platform+ Revenue | $197.0 million | $156.2 million | $40.8 million | 26% |
| Gross Profit | $109.1 million | $96.5 million | $12.6 million | 13% |
| Net Income | $0.5 million | $13.8 million | $(13.3) million | (97%) |
| Adjusted EBITDA | $8.8 million | $26.9 million | $(18.1) million | (67%) |
Operational Metrics
Key operational metrics for the same period included:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Smart TV Shipments | 1.0 million | 1.1 million |
| SmartCast Active Accounts | 19.1 million | 17.9 million |
| Total VIZIO Hours | 9,468 million | 8,913 million |
| SmartCast Hours | 5.8 billion | 5.2 billion |
| SmartCast ARPU | $37.17 | $31.55 |
Cost Structure
VIZIO's cost of goods sold (COGS) for Q3 2024 included:
| Segment | Q3 2024 COGS | Q3 2023 COGS | Change ($) | Change (%) |
|---|---|---|---|---|
| Device | $254.4 million | $273.3 million | $(18.9) million | (7%) |
| Platform+ | $81.2 million | $56.4 million | $24.8 million | 44% |
| Total COGS | $335.6 million | $329.7 million | $5.9 million | 2% |
Operating Expenses
For the three months ended September 30, 2024, operating expenses were structured as follows:
| Expense Type | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Selling, General and Administrative | $85.2 million | $63.6 million | $21.6 million | 34% |
| Marketing | $11.5 million | $9.2 million | $2.3 million | 25% |
| Research and Development | $16.8 million | $9.8 million | $7.0 million | 71% |
| Total Operating Expenses | $114.7 million | $83.8 million | $30.9 million | 37% |
Balance Sheet Highlights
As of September 30, 2024, VIZIO's balance sheet reflected the following key figures:
| Assets and Liabilities | Amount (in millions) |
|---|---|
| Total Assets | $988.9 million |
| Current Liabilities | $489.7 million |
| Total Liabilities | $508.6 million |
| Total Stockholders' Equity | $480.3 million |
Market Strategy
VIZIO's market strategy focuses on enhancing user engagement through its SmartCast platform and expanding its advertising revenue via Direct Advertising Relationships. The company aims to leverage its data intelligence and advertising capabilities to drive revenue growth in the Platform+ segment, as evidenced by a 31% increase in advertising revenue in Q3 2024 compared to the previous year.
Future Outlook
VIZIO anticipates continued growth in its Platform+ segment, driven by increased SmartCast Active Accounts and SmartCast Hours, which are expected to enhance monetization opportunities. The company remains focused on product innovation and market penetration to improve its device sales and overall financial performance.
How VIZIO Holding Corp. (VZIO) Makes Money
Revenue Streams
VIZIO generates revenue through two primary streams: Device sales and Platform+ services. As of 2024, the financial performance reflects the following:
| Revenue Type | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Device | $247.7 | $270.0 | (8%) |
| Platform+ | $197.0 | $156.2 | 26% |
| Total Net Revenue | $444.7 | $426.2 | 4% |
Device Sales
The Device segment primarily includes the sale of Smart TVs and sound bars. For the three months ended September 30, 2024, VIZIO reported:
- Device Net Revenue: $247.7 million, down from $270.0 million in Q3 2023.
- Device Cost of Goods Sold: $254.4 million, compared to $273.3 million in Q3 2023.
- Device Gross Profit: $(6.7) million, down from $(3.3) million in Q3 2023.
- Device Gross Margin: (2.7)%, compared to (1.2)% in Q3 2023.
Platform+ Services
Platform+ includes VIZIO's SmartCast operating system and advertising services. Key metrics for Q3 2024 include:
- Platform+ Net Revenue: $197.0 million, up from $156.2 million in Q3 2023.
- Platform+ Cost of Goods Sold: $81.2 million, compared to $56.4 million in Q3 2023.
- Platform+ Gross Profit: $115.8 million, up from $99.8 million in Q3 2023.
- Platform+ Gross Margin: 58.8%, down from 63.9% in Q3 2023.
SmartCast Performance
SmartCast is a significant driver for Platform+ revenue, with metrics showing:
- Active Accounts: 19.1 million, up from 17.9 million in Q3 2023.
- Total SmartCast Hours: 9.468 billion, up from 8.913 billion in Q3 2023.
- SmartCast Average Revenue Per User (ARPU): $37.17, up from $31.55 in Q3 2023.
Advertising Revenue
Advertising revenue is a crucial part of Platform+ growth, driven by:
- Advertising Revenue Growth: Increased by $38.1 million, or 31%, year-over-year.
- Non-Advertising Revenue Growth: Increased by $2.7 million, or 8%, year-over-year.
Cost Structure
The cost structure for VIZIO as of Q3 2024 is detailed as follows:
| Cost Type | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (%) |
|---|---|---|---|
| Total Cost of Goods Sold | $335.6 | $329.7 | 2% |
| Total Operating Expenses | $114.7 | $83.8 | 37% |
Net Income and Adjusted EBITDA
VIZIO's profitability metrics for Q3 2024 include:
- Net Income: $0.5 million, down from $13.8 million in Q3 2023.
- Adjusted EBITDA: $8.8 million, down from $26.9 million in Q3 2023.
Conclusion on Financial Health
Overall, VIZIO's business model leverages both device sales and an expanding digital advertising platform to generate revenue. The growth in Platform+ is notable, indicating a shift towards monetization through digital services alongside traditional hardware sales.
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Resources:
- VIZIO Holding Corp. (VZIO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of VIZIO Holding Corp. (VZIO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View VIZIO Holding Corp. (VZIO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.