On February 27, 2024, VIZIO Holding Corp (VZIO, Financial) released its 8-K filing, announcing its financial results for the fourth quarter of 2023. The company, known for its high-performance Smart TVs and immersive audio soundbars, operates through two integrated businesses: Device and Platform+. VIZIO's SmartCast operating system is central to its Platform+ business, offering a vast array of content and applications.
The fourth quarter of 2023 was marked by significant achievements for VIZIO. Despite a challenging environment, the company reported a 28% year-over-year increase in Platform+ net revenue, reaching $174 million. This growth was driven by a 36% increase in advertising revenue, reflecting the company's strong execution and the appeal of its integrated hardware and software model. The company's total Q4 net income was $13M, up 110%, and adjusted EBITDA was $24 million, surpassing expectations. The SmartCast ARPU also reached a record high of $32.48 during the quarter.
These financial achievements are particularly important for VIZIO as they demonstrate the robustness of its business model in the competitive hardware industry. The company's ability to grow its user base and deepen engagement with streaming content has led to higher gross profit margins, including a record 20% for a fourth quarter as a public company.
Financial Performance Analysis
VIZIO's financial performance in Q4 2023 reflects the company's resilience and strategic focus. The company's Platform+ business continues to be a significant growth driver, with gross profit increasing by 27% year-over-year to $105.4 million. This success can be attributed to VIZIO's innovative approach to user experience, as evidenced by the recent Emmy Award for innovation in delivering an exceptional user experience through Smart TVs.
The company's Device business faced headwinds, with a 17% year-over-year decrease in net revenue, reflecting broader market challenges. However, the strength of the Platform+ segment helped offset this impact, showcasing the importance of VIZIO's diversified revenue streams.
Operational metrics also highlight VIZIO's progress, with SmartCast Active Accounts reaching 18.5 million, a 6% increase from the previous year. The total number of VIZIO hours streamed also grew by 5% year-over-year, indicating higher user engagement.
"2023 marked another year of solid execution as we continue to deliver exceptional value with our award-winning products and the ultimate entertainment experience through our fully integrated Smart TV platform," said William Wang, CEO of VIZIO.
The company's pending acquisition by Walmart Inc. is a significant development, with VIZIO expressing excitement about the opportunities this partnership will bring. However, due to the transaction, VIZIO will not host an earnings conference call or provide financial guidance and is withdrawing all previously provided goals and outlook.
For value investors and potential GuruFocus.com members, VIZIO's latest earnings report presents a company that is successfully navigating industry challenges while capitalizing on growth opportunities. The strategic combination with Walmart is poised to further enhance VIZIO's market position and offer new avenues for expansion.
For more detailed financial information and operational metrics, investors are encouraged to review VIZIO's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, which will be filed subsequently with the SEC.
Stay tuned to GuruFocus.com for continued coverage and analysis of VIZIO's financial journey and the broader market implications.
Explore the complete 8-K earnings release (here) from VIZIO Holding Corp for further details.
