Vizio Profit Shrinks Despite Growth in Smart TV Usage

Vizio reported smaller profits in the second quarter as usage of its smart TVs grew.

Net income was $200,000, or 0 cents per share, compared to $1.9 million, or 1 cent a share a year ago.

Net revenue rose 11% to $437.3 million. Costs for selling, research and development were up.

The company is in the process of being acquired by Walmart.

Vizio’s Platform Plus business — advertising and data sales — posted gross profit of $98.6 million, up 15%.

Revenue for the Platform Plus business rose 19% to $169.4 million

The number of SmartCast active accounts rose 7% to 18.8 million. Total Vizio usage hours rose 5% to 9.3 billion and SmartCast hours rose 13% to 5.6 billion hours.

SmartCast average revenue per user (ARPU) rose 16% to $35.39.

Gross profit for Vizio’s device business was $900,000, up from $300,000 Revenue rose 6% to $267.9 million.

Smart TV shipments rose 15% to 1.2 million.