Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 02, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-40271 | |
Entity Registrant Name | VIZIO HOLDING CORP. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 85-4185335 | |
Entity Address, Address Line One | 39 Tesla | |
Entity Address, City or Town | Irvine | |
Entity Address, State or Province | CA | |
City Area Code | 949 | |
Local Phone Number | 428-2525 | |
Entity Address, Postal Zip Code | 92618 | |
Title of 12(b) Security | Class A common stock, par value $0.0001 per share | |
Trading Symbol | VZIO | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001835591 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Class A common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 125,646,983 | |
Class B common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 75,275,674 | |
Class C common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 0 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 202.1 | $ 221.6 |
Short-term investments | 132 | 129.9 |
Accounts receivable, net | 321.6 | 381.2 |
Inventories | 27.6 | 6.8 |
Income tax receivable | 21.4 | 9 |
Prepaid and other current assets | 53.8 | 45.9 |
Total current assets | 758.5 | 794.4 |
Property, equipment and software, net | 18.5 | 19.7 |
Goodwill | 44.8 | 44.8 |
Deferred income taxes | 49.6 | 49.6 |
Other assets | 71.8 | 52.2 |
Total assets | 943.2 | 960.7 |
Current liabilities: | ||
Accrued expenses | 153 | 178.6 |
Accrued royalties | 43.4 | 40.7 |
Other current liabilities | 5.3 | 5.8 |
Total current liabilities | 457.2 | 492 |
Other long-term liabilities | 19.1 | 19.4 |
Total liabilities | 476.3 | 511.4 |
Commitments and contingencies (Note 12) | ||
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value; 100.0 shares authorized and no shares issued and outstanding as of June 30, 2024 and December 31, 2023 | 0 | 0 |
Common stock, $0.0001 par value; 1,350.0 shares authorized as of June 30, 2024 and December 31, 2023 Class A, 125.7 and 125.3 shares issued and 125.7 and 121.5 shares outstanding as of June 30, 2024 and December 31, 2023, respectively Class B, 75.3 and 76.2 shares issued and 75.3 and 76.2 shares outstanding as of June 30, 2024 and December 31, 2023, respectively Class C, no shares issued and outstanding as of June 30, 2024 and December 31, 2023 | 0 | 0 |
Additional paid-in capital | 443.9 | 414.3 |
Accumulated other comprehensive loss | (0.4) | (0.3) |
Retained earnings | 23.4 | 35.3 |
Total stockholders’ equity | 466.9 | 449.3 |
Total liabilities and stockholders’ equity | 943.2 | 960.7 |
Related Party | ||
Current liabilities: | ||
Accounts payable | 65.9 | 109.1 |
Nonrelated Party | ||
Current liabilities: | ||
Accounts payable | $ 189.6 | $ 157.8 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
Stockholders’ equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized (in shares) | 1,350,000,000 | 1,350,000,000 |
Class A common stock | ||
Stockholders’ equity: | ||
Common stock, issued (in shares) | 125,700,000 | 125,300,000 |
Common stock, outstanding (in shares) | 125,700,000 | 121,500,000 |
Class B common stock | ||
Stockholders’ equity: | ||
Common stock, issued (in shares) | 75,300,000 | 76,200,000 |
Common stock, outstanding (in shares) | 75,300,000 | 76,200,000 |
Class C common stock | ||
Stockholders’ equity: | ||
Common stock, issued (in shares) | 0 | 0 |
Common stock, outstanding (in shares) | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
Net revenue: | |||||
Total net revenue | $ 437.3 | $ 394.4 | $ 791.1 | $ 751.2 | |
Cost of goods sold: | |||||
Total cost of goods sold | 337.8 | 308.3 | 610.5 | 589.5 | |
Gross profit: | |||||
Total gross profit | 99.5 | 86.1 | 180.6 | 161.7 | |
Operating expenses: | |||||
Selling, general and administrative | 79.8 | 58.6 | 155.9 | 116.8 | |
Marketing | 9.8 | 10 | 18.3 | 17.7 | |
Research and development | 15.7 | 10 | 30.7 | 21.9 | |
Depreciation and amortization | 1.2 | 1.2 | 2.4 | 2.2 | |
Total operating expenses | 106.5 | 79.8 | 207.3 | 158.6 | |
(Loss) income from operations | (7) | 6.3 | (26.7) | 3.1 | |
Interest income, net | 3.2 | 3.1 | 7.1 | 5.4 | |
Other income, net | 2.6 | 0.3 | 3.2 | 0.3 | |
Total non-operating income, net | 5.8 | 3.4 | 10.3 | 5.7 | |
(Loss) income before income taxes | (1.2) | 9.7 | (16.4) | 8.8 | |
(Benefit from) provision for income taxes | (1.4) | 7.8 | (4.5) | 7.6 | |
Net income (loss) | $ 0.2 | $ 1.9 | [1] | $ (11.9) | $ 1.2 |
Net income (loss) per share attributable to Class A and Class B stockholders: | |||||
Basic (in dollars per share) | $ 0 | $ 0.01 | $ (0.06) | $ 0.01 | |
Diluted (in dollars per share) | $ 0 | $ 0.01 | $ (0.06) | $ 0.01 | |
Weighted-average Class A and Class B common shares outstanding: | |||||
Basic (in shares) | 199.3 | 195.9 | 198.6 | 195.6 | |
Diluted (in shares) | 210 | 200.7 | 198.6 | 201 | |
Device | |||||
Net revenue: | |||||
Total net revenue | $ 267.9 | $ 252.1 | $ 462.2 | $ 483.4 | |
Cost of goods sold: | |||||
Total cost of goods sold | 267 | 251.8 | 468.5 | 481.4 | |
Gross profit: | |||||
Total gross profit | 0.9 | 0.3 | (6.3) | 2 | |
Platform+ | |||||
Net revenue: | |||||
Total net revenue | 169.4 | 142.3 | 328.9 | 267.8 | |
Cost of goods sold: | |||||
Total cost of goods sold | 70.8 | 56.5 | 142 | 108.1 | |
Gross profit: | |||||
Total gross profit | $ 98.6 | $ 85.8 | $ 186.9 | $ 159.7 | |
[1]Totals may not sum due to rounding |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income (loss) | $ 0.2 | $ 1.9 | [1] | $ (11.9) | $ 1.2 |
Other comprehensive loss: | |||||
Foreign currency translation adjustments | 0 | (0.1) | [1] | (0.1) | 0 |
Comprehensive income (loss) | $ 0.2 | $ 1.8 | $ (12) | $ 1.2 | |
[1]Totals may not sum due to rounding |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Class A | Class B | Preferred Stock | Common Stock Class A | Common Stock Class B | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | ||||||
Preferred stock, beginning balance (in shares) at Dec. 31, 2022 | [1] | 0 | |||||||||||||
Common stock, beginning balance (in shares) at Dec. 31, 2022 | [1],[2] | 118,100,000 | 76,800,000 | ||||||||||||
Beginning balance at Dec. 31, 2022 | $ 373.7 | [3] | $ 0 | [1] | $ 366.9 | $ (0.3) | $ 7.1 | [3] | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Share-based compensation expense | 8 | [3] | 8 | ||||||||||||
Shares issued pursuant to incentive award plans (net of shares in lieu of taxes) (in shares) | [1],[2] | 600,000 | |||||||||||||
Shares issued pursuant to incentive award plans (net of shares in lieu of taxes) | 1.7 | [3] | 1.7 | ||||||||||||
Net (loss) income | [3] | (0.7) | (0.7) | ||||||||||||
Preferred stock, ending balance (in shares) at Mar. 31, 2023 | [1] | 0 | |||||||||||||
Common stock, ending balance (in shares) at Mar. 31, 2023 | [1],[2] | 118,700,000 | 76,800,000 | ||||||||||||
Ending balance at Mar. 31, 2023 | 382.8 | [3] | $ 0 | [1] | 376.6 | (0.3) | 6.5 | [3] | |||||||
Preferred stock, beginning balance (in shares) at Dec. 31, 2022 | [1] | 0 | |||||||||||||
Common stock, beginning balance (in shares) at Dec. 31, 2022 | [1],[2] | 118,100,000 | 76,800,000 | ||||||||||||
Beginning balance at Dec. 31, 2022 | 373.7 | [3] | $ 0 | [1] | 366.9 | (0.3) | 7.1 | [3] | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Foreign currency translation | 0 | ||||||||||||||
Net (loss) income | 1.2 | ||||||||||||||
Preferred stock, ending balance (in shares) at Jun. 30, 2023 | [1] | 0 | |||||||||||||
Common stock, ending balance (in shares) at Jun. 30, 2023 | [1],[2] | 119,500,000 | 76,800,000 | ||||||||||||
Ending balance at Jun. 30, 2023 | 395.4 | [3] | $ 0 | [1] | 387.4 | (0.4) | 8.4 | [3] | |||||||
Preferred stock, beginning balance (in shares) at Mar. 31, 2023 | [1] | 0 | |||||||||||||
Common stock, beginning balance (in shares) at Mar. 31, 2023 | [1],[2] | 118,700,000 | 76,800,000 | ||||||||||||
Beginning balance at Mar. 31, 2023 | 382.8 | [3] | $ 0 | [1] | 376.6 | (0.3) | 6.5 | [3] | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Share-based compensation expense | 9.7 | [3] | 9.7 | ||||||||||||
Shares issued pursuant to incentive award plans (net of shares in lieu of taxes) (in shares) | [1],[2] | 800,000 | |||||||||||||
Shares issued pursuant to incentive award plans (net of shares in lieu of taxes) | 1.1 | [3] | 1.1 | ||||||||||||
Foreign currency translation | (0.1) | [3] | (0.1) | ||||||||||||
Net (loss) income | [3] | 1.9 | 1.9 | ||||||||||||
Preferred stock, ending balance (in shares) at Jun. 30, 2023 | [1] | 0 | |||||||||||||
Common stock, ending balance (in shares) at Jun. 30, 2023 | [1],[2] | 119,500,000 | 76,800,000 | ||||||||||||
Ending balance at Jun. 30, 2023 | $ 395.4 | [3] | $ 0 | [1] | 387.4 | (0.4) | 8.4 | [3] | |||||||
Preferred stock, beginning balance (in shares) at Dec. 31, 2023 | 0 | 0 | [1] | ||||||||||||
Common stock, beginning balance (in shares) at Dec. 31, 2023 | 121,500,000 | 76,200,000 | 121,500,000 | [1],[2],[3] | 76,200,000 | [1],[2],[3] | |||||||||
Beginning balance at Dec. 31, 2023 | $ 449.3 | $ 0 | [1] | 414.3 | (0.3) | 35.3 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Share-based compensation expense | 13.1 | 13.1 | |||||||||||||
Shares issued pursuant to incentive award plans (net of shares in lieu of taxes) (in shares) | [1],[2],[3] | 700,000 | |||||||||||||
Shares issued pursuant to incentive award plans (net of shares in lieu of taxes) | 0.5 | 0.5 | |||||||||||||
Foreign currency translation | (0.1) | (0.1) | |||||||||||||
Net (loss) income | (12.1) | (12.1) | |||||||||||||
Preferred stock, ending balance (in shares) at Mar. 31, 2024 | [1] | 0 | |||||||||||||
Common stock, ending balance (in shares) at Mar. 31, 2024 | [1],[2],[3] | 122,100,000 | 76,200,000 | ||||||||||||
Ending balance at Mar. 31, 2024 | $ 450.7 | $ 0 | [1] | 427.9 | (0.4) | 23.2 | |||||||||
Preferred stock, beginning balance (in shares) at Dec. 31, 2023 | 0 | 0 | [1] | ||||||||||||
Common stock, beginning balance (in shares) at Dec. 31, 2023 | 121,500,000 | 76,200,000 | 121,500,000 | [1],[2],[3] | 76,200,000 | [1],[2],[3] | |||||||||
Beginning balance at Dec. 31, 2023 | $ 449.3 | $ 0 | [1] | 414.3 | (0.3) | 35.3 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Foreign currency translation | (0.1) | ||||||||||||||
Net (loss) income | $ (11.9) | ||||||||||||||
Preferred stock, ending balance (in shares) at Jun. 30, 2024 | 0 | 0 | [1] | ||||||||||||
Common stock, ending balance (in shares) at Jun. 30, 2024 | 125,700,000 | 75,300,000 | 125,700,000 | [1],[2],[3] | 75,300,000 | [1],[2],[3] | |||||||||
Ending balance at Jun. 30, 2024 | $ 466.9 | $ 0 | [1] | 443.9 | (0.4) | 23.4 | |||||||||
Preferred stock, beginning balance (in shares) at Mar. 31, 2024 | [1] | 0 | |||||||||||||
Common stock, beginning balance (in shares) at Mar. 31, 2024 | [1],[2],[3] | 122,100,000 | 76,200,000 | ||||||||||||
Beginning balance at Mar. 31, 2024 | 450.7 | $ 0 | [1] | 427.9 | (0.4) | 23.2 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Share-based compensation expense | 12.7 | 12.7 | |||||||||||||
Shares issued pursuant to incentive award plans (net of shares in lieu of taxes) (in shares) | [1],[2],[3] | 2,600,000 | |||||||||||||
Shares issued pursuant to incentive award plans (net of shares in lieu of taxes) | 3.3 | 3.3 | |||||||||||||
Foreign currency translation | 0 | ||||||||||||||
Conversion of Class B shares into Class A shares (in shares) | [1],[2],[3] | 900,000 | (900,000) | ||||||||||||
Net (loss) income | $ 0.2 | 0.2 | |||||||||||||
Preferred stock, ending balance (in shares) at Jun. 30, 2024 | 0 | 0 | [1] | ||||||||||||
Common stock, ending balance (in shares) at Jun. 30, 2024 | 125,700,000 | 75,300,000 | 125,700,000 | [1],[2],[3] | 75,300,000 | [1],[2],[3] | |||||||||
Ending balance at Jun. 30, 2024 | $ 466.9 | $ 0 | [1] | $ 443.9 | $ (0.4) | $ 23.4 | |||||||||
[1]There were no shares of Preferred Stock or Class C common stock issued or outstanding as of June 30, 2024 and 2023.[2]As of both June 30, 2024 and 2023, the par value on common stock outstanding was $20 thousand[3]Totals may not sum due to rounding |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Jun. 30, 2023 |
Class C common stock | ||
Common stock, issued (in shares) | 0 | |
Common stock, outstanding (in shares) | 0 | |
Common Stock | ||
Par value on common stock outstanding | $ 20 | $ 20 |
Common Stock | Class C common stock | ||
Common stock, issued (in shares) | 0 | 0 |
Common stock, outstanding (in shares) | 0 | 0 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (11.9) | $ 1.2 |
Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||
Depreciation and amortization | 5.7 | 3.7 |
Realized gain on investments | (0.4) | 0 |
Amortization of premium and discount on investments | (3.2) | (1.8) |
Change in fair value of investment securities | 0 | (0.2) |
Unrealized gain on conversion of convertible equity investments | (3.8) | 0 |
Share-based compensation expense | 26.1 | 18.1 |
Change in allowance for doubtful accounts | (0.5) | 0.7 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 60.1 | 50.9 |
Other receivables due from related parties | 0 | 2.2 |
Inventories | (20.8) | 7.9 |
Income taxes receivable | (12.4) | 1.7 |
Prepaid and other current assets | (7.9) | (6.2) |
Other assets | (18.2) | (5.7) |
Accounts payable due to related parties | (43.2) | (59.5) |
Accounts payable | 31.8 | 5.9 |
Accrued expenses | (25.6) | (45.4) |
Accrued royalties | 2.7 | (0.1) |
Income taxes payable | 0 | 1.9 |
Other current liabilities | (0.5) | (0.3) |
Other long-term liabilities | (0.3) | (2.6) |
Net cash used in operating activities | (22.3) | (27.6) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (2.3) | (1.5) |
Purchase of investments | (67.4) | (114.6) |
Sale of investments | 0.6 | 0 |
Maturity of investments | 68.6 | 45.1 |
Net cash used in investing activities | (0.5) | (71) |
Cash flows from financing activities: | ||
Proceeds from the exercise of stock options | 2.2 | 1.9 |
Withholding taxes paid on behalf of employees on net settled share-based awards | 0 | (0.6) |
Proceeds from sale of stock under employee stock purchase plan | 1.2 | 1.2 |
Net cash provided by financing activities | 3.4 | 2.5 |
Effects of exchange rate changes on cash and cash equivalents | (0.1) | 0 |
Net decrease in cash and cash equivalents | (19.5) | (96.1) |
Cash and cash equivalents at beginning of period | 221.6 | 288.7 |
Cash and cash equivalents at end of period | 202.1 | 192.6 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 7.4 | 4.6 |
Cash paid for interest | 0.1 | 0.1 |
Cash paid for amounts included in the measurement of operating lease liabilities | 2.3 | 2.1 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Right-of-use assets obtained in exchange for new operating lease liabilities | 1.8 | 0.5 |
Additions to property and equipment financed by accounts payable | $ 0 | $ 0.7 |
Organization and Nature of Busi
Organization and Nature of Business | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Business | Organization and Nature of Business Founded and headquartered in Orange County, California, the mission of VIZIO Holding Corp. (NYSE: VZIO) (the “Company”) 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. The Company 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. “VIZIO,” “we,” “us,” “our,” and the “Company” refer collectively to VIZIO Holding Corp. and its subsidiaries unless expressly indicated or the context otherwise requires. In 2020, the Company launched Platform+, which is comprised of SmartCast, the Company’s award-winning Smart TV operating system, which enables a fully integrated entertainment solution, and Inscape, which powers its data intelligence and services. SmartCast delivers content and applications through an easy-to-use interface. It supports leading streaming apps and hosts the Company’s own free ad-supported video app, WatchFree+. The Company purchases all of its products from manufacturers headquartered in Asia. Since 2012, the Company has purchased a portion of its televisions fro m three manufacturers who are affiliates of an investor who holds a noncontrolling interest in the Company through its ownership of Class A common stock. These manufacturers do not have any significant voting privileges, nor sufficient seats on the Board of Directors that would enable them to significantly influence any of the Company’s strategic or operating decisions. All transactions executed with the aforementioned manufacturers are presented as related party transactions. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Consolidation The Company has prepared these accompanying unaudited condensed consolidated financial statements in accordance with generally accepted accounting principles in the United States (“GAAP”). These unaudited condensed consolidated financial statements include the accounts of the Company and all subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. The Company considers the U.S. dollar as its reporting currency. The functional currency of most of the foreign subsidiaries is the U.S. dollar. Translation adjustments for subsidiaries where the functional currency is its local currency are included in other comprehensive loss. Foreign currency transaction gains (losses) resulting from exchange rate fluctuation on transactions denominated in a currency other than the functional currency are reported in the condensed consolidated statements of operations. The condensed consolidated balance sheet as of December 31, 2023 included herein was derived from the audited financial statements as of the same date. The Company has condensed or omitted certain information and notes normally included in complete financial statements prepared in accordance with GAAP. As such, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K. In the Company’s opinion, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, comprehensive loss and cash flows for the interim periods, but they are not necessarily indicative of the results of operations to be expected for the year ending December 31, 2024. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results may differ from those estimates and assumptions. Significant Accounting Policies There have been no material changes to the Company's significant accounting policies from its Annual Report on Form 10-K for the fiscal year ended December 31, 2023. |
Net Revenue
Net Revenue | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Net Revenue | Net Revenue The Company disaggregates net revenue by (i) Device net revenue, and (ii) Platform+ net revenue, as it believes it best depicts how the nature, timing and uncertainty of revenue and cash flows are affected by economic factors. The Company derives Device net revenue primarily from the sale of televisions and sound bars. Revenue is recognized when control of the promised goods or services is transferred to the Company’s retailers and distributors, in an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. The Company sells its products to certain customers under terms that allow them to receive price protection on future price reductions and may provide for limited rights of return and discounts. The Company generates Platform+ net revenue through sales of advertising and other services, such as content distribution, subscription and transaction revenue shares, promotions, sales of branded channel buttons on remote controls and data licensing arrangements. The Company’s digital advertising inventory consists of streaming inventory on WatchFree+ and third-party applications as well as banner placements on its SmartCast homescreen. The Company’s advertising revenue is recognized on a cost-per-thousand impressions delivered (“CPM”) basis. The Company applies a five-step approach as defined in Financial Accounting Standards Board (“FASB”) ASC 606, Revenue from Contracts with Customers (Topic 606), in determining the amount and timing of revenue to be recognized: (1) identifying the contract with a customer; (2) identifying the performance obligations in the contract; (3) determining the transaction price; (4) allocating the transaction price to the performance obligations in the contract; and (5) recognizing revenue when the corresponding performance obligation is satisfied. As of June 30, 2024 and December 31, 2023, t he Company recorded $23.3 million and $24.2 million of contract assets , respectively. As of June 30, 2024, $19.8 million and $3.5 million of contract assets were recorded in prepaid and other current assets and other assets, respectively, in the accompanying condensed consolidated balance sheets. As of December 31, 2023, $20.3 million and $3.9 million of contract assets were recorded in prepaid and other current assets and other assets, respectively, in the accompanying condensed consolidated balance sheets. As of June 30, 2024 and December 31, 2023, the Company recorded $1.0 million and $2.1 million of contract liabilities, respectively, which are recorded in other current liabilities in the accompanying condensed consolidated balance sheets. Contract assets primarily represent revenue earnings over time for which the Company does not presently have an unconditional right to payment (generally not yet billable) based on the terms of the contracts. Contract liabilities consist of fees invoiced or paid by the Company's customers for which the associated performance obligations have not been satisfied and revenue has not been recognized based on the Company's revenue recognition criteria described above. Additionally, no costs associated with obtaining contracts with customers were capitalized, nor were any costs associated with fulfilling its contracts. All costs to obtain contracts were expensed as incurred as a practical expedient. Significant Customers The Company is a wholesale distributor of televisions and other home entertainment products, which are sold to leading retailers and wholesale clubs in the United States. The Company’s sales can be impacted by consumer spending and the cyclical nature of the retail industry. The following customers account for more than 10% of net revenue: Three Months Ended Six Months Ended 2024 2023 2024 2023 Net revenue: Customer A 36 % 35 % 32 % 34 % Customer B 10 12 10 12 |
Investments
Investments | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Short-term investments: The Company purchases U.S. Treasury bills, which are recorded in short-term investments in the accompanying condensed consolidated balance sheets. The Company is classifying these securities as held-to-maturity as management has the intent and ability to hold to maturity and as such, are carried at amortized cost. As of June 30, 2024 and 2023 , the maturity dates of all U.S. Treasury bills were within 12 months. The Company reviews these securities for other-than-temporary impairment at least quarterly or when there are changes in credit risk or other potential valuation concerns. When evaluating an investment for its current expected credit losses, the Company reviews factors such as historical experience with defaults, losses, credit ratings, term, market sector and macroeconomic trends, including current conditions. During the three and six months ended June 30, 2024 and 2023, the Company did not recognize any impairment losses related to these securities. The following table summarizes the Company’s short-term investments: June 30, December 31, U.S. Treasury Bills: (In millions) Maturity 1 year or less 1 year or less Amortized cost $ 132.0 $ 129.9 Gross unrealized gains — 0.2 Gross unrealized losses (0.1) — Estimated fair value $ 131.9 $ 130.1 Equity investments: The Company has investments in equity securities, which are recorded in other assets in the accompanying condensed consolidated balance sheets amounting to $9.6 million and $6.2 million as of June 30, 2024 and December 31, 2023, respectively. The Company records its investments in equity securities at historical cost if they do not have a readily determinable fair value. As of June 30, 2024 and December 31, 2023, the Company had $4.8 million and $6.0 million of investments in equity securities that were recorded at historical cost, respectively. The remaining balance of investments were measured at fair value, and are considered Level 1 investments as the shares are publicly traded and have a readily determinable fair value. As of June 30, 2024 and December 31, 2023, the Company had $4.8 million and $0.2 million of investments in equity securities that are recorded at fair value, respectively. The increase in this amount was due to a conversion of a preferred stock investment to a common stock investment on June 25, 2024. As a result of the conversion, the investment went from being recorded at historical cost to being measured at fair value. The conversion resulted in a $3.8 million unrealized gain, which is recorded in other income, net in the accompanying condensed consolidated statements of operations. The Company periodically reviews the investments for possible impairment. There was no impairment or observable price changes on the investments during the three months ended June 30, 2024 and 2023. |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Accounts receivable consists of the following: June 30, December 31, (In millions) Accounts receivable $ 324.3 $ 383.4 Allowance for doubtful accounts (2.7) (2.2) Total accounts receivable, net of allowance $ 321.6 $ 381.2 The Company maintains credit insurance on certain accounts receivable balances to mitigate collection risk for these customers. The Company evaluates all accounts receivable for the allowance for doubtful accounts. During the three and six months ended June 30, 2024, the Company recorded bad debt reductions of $0.3 million and $0.5 million, respectively. During the three and six months ended June 30, 2023, the Company recorded bad debt (reduction)/expense of $(0.1) million and $0.7 million, respectively. The following customers account for a significant portion of accounts receivable: June 30, December 31, Net receivables: Customer A 29 % 30 % Customer B 10 9 Customer A and Customer B are affiliates under common control with one another. Collectively, they comprised 39% and 39% of the Company’s total accounts receivable as of June 30, 2024 and December 31, 2023, respectively. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following: June 30, December 31, (In millions) Inventory on hand $ 8.7 $ 3.0 Inventory in transit - outbound 2.2 3.3 Inventory in transit - inbound 16.7 0.5 Total inventory $ 27.6 $ 6.8 Significant Manufacturers The Company purchases a significant amount of its product inventory from certain manufacturers. The inventory is purchased under standard product supply agreements that outline the terms of the product delivery. Once all aspects of the product are agreed upon, in most instances the manufacturers are then responsible for transporting the product to their warehouses located in the United States. In most instances, the manufacturers are considered the importers of record and are required to insure the product as it is shipped to the warehouses. In these instances, the title and risk of loss of the product passes to the Company upon shipment from the manufacturer’s warehouse in the United States to the customer. The product supply agreements stipulate that the manufacturer will (i) generally reimburse the Company for at least a portion of the price protection or sales concessions negotiated between the Company and customers on product purchased, and (ii) indemnify the Company against all liability resulting from valid and enforceable patent infringement with regard to product purchased under the agreement except if such infringement arises out of the Company’s modification or misuse of the product. The Company has the following significant concentrations related to suppliers: Three Months Ended Six Months Ended 2024 2023 2024 2023 Inventory purchases: Supplier A — related party 25 % 36 % 32 % 36 % Supplier B 18 21 17 20 Supplier C 39 28 38 28 The Company currently obtains the majority of its products from these manufacturers. Although the Company can obtain products from other sources, the loss of a significant manufacturer could have a material impact on the Company’s financial condition and results of operations as the products that are being purchased may not be available on the same terms from another manufacturer. The Company has also recorded other receivables of $0.2 million and $0.8 million due from these manufacturers as of June 30, 2024 and December 31, 2023, respectively. The other receivable balances are attributable to price protection and customer allowances as well as accrued royalties due in connection with the settlement of certain patent infringement cases for units shipped, which are indemnified by the Company’s manufacturers and are recognized at the time the aforementioned liabilities are incurred. The net effect is recorded in the condensed consolidated statements of operations as a reduction to cost of goods sold. Recycling costs The Company incurs recycling costs in order to comply with electronic waste recycling programs within certain states. These fees are assessed by the states using current market share and actual costs incurred on administration of such programs and are expensed as incurred. Recycling costs were $0.9 million and $2.5 million for the three and six months ended June 30, 2024, respectively. Recycling costs were $0.1 million and $2.1 million for the three and six months ended June 30, 2023, respectively. These amounts are recorded in cost of goods sold in the accompanying condensed consolidated statements of operations. |
Property, Equipment and Softwar
Property, Equipment and Software, Net | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property, Equipment and Software, Net | Property, Equipment and Software, Net Property, equipment and software, net consist of the following: June 30, December 31, (In millions) Land $ 2.6 $ 2.6 Building 7.6 7.6 Machinery and equipment 1.1 1.1 Leasehold improvements 9.3 9.3 Furniture and fixtures 5.1 5.1 Computer and software 18.7 16.9 Construction in progress 0.8 0.4 Total property, equipment and software 45.2 43.0 Less accumulated depreciation and amortization (26.7) (23.3) Total property, equipment and software, net $ 18.5 $ 19.7 Depreciation and amortization expense was $1.7 million and $3.5 million for the three and six months ended June 30, 2024, respectively, and $1.9 million and $3.7 million for the three and six months ended June 30, 2023, respectively. Disposals of fully depreciated assets reduced property, equipment and software and accumulated depreciation and amortization by $0.1 million and $7.7 million as of June 30, 2024 and December 31, 2023, respectively. There was no impact to the statements of operations for the three and six months ended June 30, 2024 or 2023. |
Capitalized Software
Capitalized Software | 6 Months Ended |
Jun. 30, 2024 | |
Research and Development [Abstract] | |
Capitalized Software | Capitalized Software The Company’s capitalized software consist of the following: June 30, December 31, (In millions) Capitalized software $ 21.8 $ 21.8 Accumulated amortization (2.2) — Capitalized software, net $ 19.6 $ 21.8 |
Accrued Expenses
Accrued Expenses | 6 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses The Company’s accrued expenses consist of the following: June 30, December 31, (In millions) Accrued price protection $ 25.2 $ 33.4 Accrued other customer related expenses 47.4 55.8 Accrued supplier/partner related expenses 47.1 46.1 Accrued payroll expenses 30.7 40.8 Accrued other expenses 2.6 2.5 Total accrued expenses $ 153.0 $ 178.6 |
Accrued Royalties
Accrued Royalties | 6 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Accrued Royalties | Accrued Royalties A summary of future commitments on royalty obligations (including amounts currently accrued for under existing royalty agreements yet to be paid, as well as amounts that will become due in future periods relating to these existing arrangements) as of June 30, 2024 is as follows: June 30, (In millions) 2024 (remaining) $ 9.0 2025 12.7 2026 6.5 2027 6.0 2028 1.5 2029 and thereafter — Total $ 35.7 For potential future settlements related to historical sales, a reserve has been recorded in accrued royalties in the condensed consolidated balance sheets. Any patent infringement lawsuit in which the Company is not indemnified is expensed when management determines that it is probable that a liability has been incurred and the amount is estimable. In the ordinary course of business, the Company is currently party to, and management anticipates the Company will continue to be party to, various claims and suits including disputes arising over intellectual property rights and other matters. The Company intends to vigorously defend against such claims and suits; however, the ultimate outcome of such claims may remain unknown for some time. Based on all of the information available to date, management does not believe that there are any claims or suits that would have a material adverse effect on the Company’s financial condition, results of operations, or liquidity. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Leases | Leases The Company has various non-cancelable operating leases for its corporate and satellite offices primarily in the United States. These leases expire at various times through 2029. The table below presents supplemental balance sheet information related to the Company’s operating leases as follows (in millions, except lease term and discount rate): Classification June 30, December 31, Assets: Right-of-use asset Other assets $ 13.5 $ 13.8 Liabilities: Current portion of lease liabilities Other current liabilities $ 4.3 $ 3.5 Long-term portion of lease liabilities Other long-term liabilities $ 10.1 $ 11.0 Weighted-average remaining lease term 3.3 3.8 Weighted-average discount rate 6.7 % 6.3 % Operating lease costs were $1.7 million and $3.4 million for the three and six months ended June 30, 2024, respectively. Operating lease costs were $1.4 million and $2.8 million for the three and six months ended June 30, 2023, respectively. The table below reconciles the undiscounted cash flows of the operating leases for each of the first five years, and total of the remaining years, to the operating lease liabilities recorded on the condensed consolidated balance sheets as of June 30, 2024: June 30, (In millions) 2024 (remainder) $ 2.6 2025 5.2 2026 4.8 2027 2.7 2028 0.7 2029 and thereafter 0.2 Total minimum lease payments 16.2 Less imputed interest (1.8) Total lease liabilities $ 14.4 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Volume Commitments Certain product supply agreements include a volume supply commitment on up to 13 weeks of inventory forecasted by the Company. Management provides periodic forecasts to manufacturers at which time they consider the first 13 weeks of supply to be committed. As of June 30, 2024, no liabilities were recorded related to this supply commitment. Data Support Spend Commitments The Company has agreements with outside companies to provide data support services, which include future spend commitments to continue to use the services provided. The committed future spend is as follows: June 30, (In millions) 2024 (remainder) $ 18.7 2025 39.7 2026 35.4 Total $ 93.8 Revolving Credit Facility The Company was party to a credit agreement with Bank of America, N.A. (as amended, the “Credit Agreement”), which provided for a revolving credit line of up to $50.0 million maturing April 13, 2024. The Company’s indebtedness to Bank of America, N.A. under the Credit Agreement was collateralized by substantially all of the Company’s assets. On April 13, 2024, the Company’s Credit Agreement was terminated in accordance with its terms. In connection therewith, the Company paid all required fees and expenses thereunder and released all existing liens granted to the lenders. The Company had no outstanding borrowings under the Credit Agreement at the time of termination. Fees related to the unused line of credit were not material in any of the periods presented. For the three and six months ended June 30, 2024 and June 30, 2023, there were no draws on the line of credit and the Company was in compliance with all debt covenants. Legal Matters The Company currently, and in the future may continue to be, subject to litigation, claims and assertions incidental to the business, including patent infringement litigation and product liability claims, as well as other litigation of a non-material nature in the ordinary course of business. The Company believes that the outcome of any existing litigation, either individually or in the aggregate, will not have a material impact on the business, financial condition, results of operations or cash flows. The results of any future litigation cannot be predicted with certainty, and regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources, and other factors. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Preferred Stock As of June 30, 2024, the Company had 100.0 million shares of undesignated preferred stock authorized but not issued with rights and preferences determined by the Company’s Board of Directors at the time of issuance of such shares. Common Stock The Company has three classes of authorized common stock, Class A common stock, Class B common stock and Class C common stock. Equity Incentive Plans The Company has two equity incentive plans, the 2017 Incentive Award Plan (as amended, the “2017 Plan”) and the 2007 Incentive Award Plan (the “2007 Plan,” and together with the 2017 Plan, collectively, the “Plans”). The 2017 Plan replaced the 2007 Plan. Under the 2017 Plan, the Company is permitted to grant stock options, restricted stock units (“RSUs”) and restricted stock. The primary purpose of the 2017 Plan is to enhance the Company’s ability to attract, motivate, and retain the services of qualified employees, officers, and directors. Stock Option Awards A summary of the Company’s stock option activity under the Plans as of June 30, 2024, is presented below: Number of Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (In millions, except years and per share amounts) Outstanding at December 31, 2023 14.2 $ 7.72 6.5 $ 25.2 Granted 0.0 9.53 Exercised (0.6) 3.38 Forfeited and expired (0.2) 9.35 Outstanding at June 30, 2024 13.4 $ 7.91 6.2 $ 53.6 Options vested and exercisable at June 30, 2024 10.0 $ 7.32 5.5 $ 45.7 The grant date fair values of stock options are estimated using the Black-Scholes-Merton option pricing model. The following provides information on the weighted-average assumptions used for stock options granted during the three and six months ended June 30, 2024 and 2023 (shares in millions): Three Months Ended Six Months Ended 2024 2023 2024 2023 Number of options granted — 1.1 — 1.2 Volatility — % 46.0 % 46.1 % 45.9 % Expected term (years) — 6.25 years 6.25 years 6.25 years Dividend yield — % 0.0 % 0.0 % 0.0 % Risk-free interest rate — % 3.8 % 4.3 % 3.8 % Fair value of common stock $ — $ 6.49 $ 9.53 $ 6.75 Grant date fair value per share determined using a Black-Scholes-Merton option pricing model for purposes of determining compensation expense $ — $ 3.24 $ 4.85 $ 3.37 As of June 30, 2024, the Company had $12.6 million of unrecognized share-based compensation expense related to stock options, which the Company expects to recognize over a weighted average vesting period of approximately 1.7 years. Restricted Stock Units The grant date fair values of the Company's RSUs are determined based on the fair value of the Company's common stock on the date of grant. A summary of the Company’s activity related to RSUs as of June 30, 2024 is presented below: Number of Shares Weighted Average Grant Date Fair Value (In millions) Outstanding at December 31, 2023 12.2 $ 8.89 Granted 1.2 9.27 Vested (1.8) 9.62 Forfeited (0.4) 9.26 Outstanding at June 30, 2024 11.2 $ 8.80 As of June 30, 2024, the Company had $80.7 million of unrecognized share-based compensation expense related to RSUs, which the Company expects to recognize over a weighted average vesting period of approximately 2.6 years. Performance Stock Units The Company has granted performance stock units (“PSUs”) to select executive employees that vest over an approximately four-year service period based on a performance metric tied to the Company’s total shareholder return relative to the total shareholder return of a peer group over a one-year performance period. The grant date fair value for such PSUs was estimated using a Monte-Carlo simulation model covering the one-year performance period. Between 0% and 200% of the PSUs will become eligible to vest (“eligible PSUs”) based on achievement of the performance goal, and any eligible PSUs will vest in increments over a period of approximately four years. The PSUs are subject to both time-based and market-based vesting conditions. During the period ended June 30, 2024, the performance period for PSUs granted in 2023 ended with an achievement level of 164%, which resulted in approximately 1.0 million PSUs in excess of the target number of PSUs becoming eligible to vest according to the service-based vesting schedule. No similar awards were outstanding as of June 30, 2023. A summary of the Company’s activity related to PSUs as of June 30, 2024 is presented below: Number of Shares Weighted Average Grant Date Fair Value (In millions) Outstanding at December 31, 2023 (1) 1.7 $ 6.72 Adjustment based on performance achievement (2) 1.0 6.72 Vested (0.7) 6.72 Outstanding at June 30, 2024 2.0 $ 6.72 _________________________ (1) Represents the number of PSUs at target level of achievement of the market-based vesting condition, which equals 100% of the target number of PSUs. (2) Represents the incremental number of PSUs eligible to vest, which equals an additional 64% of the target number of PSUs. As of June 30, 2024, the Company had $5.2 million of unrecognized share-based compensation expense related to PSUs, which the Company expects to recognize over a weighted average vesting period of approximately 3.0 years. Share-based Compensation Expense Total share-based compensation expense was $12.7 million and $26.1 million for the three and six months ended June 30, 2024, respectively. Total share-based compensation expense was $9.9 million and $18.1 million for the three and six months ended June 30, 2023, respectively. For the three and six months ended June 30, 2024, $1.0 million and $2.1 million is included in cost of goods sold, respectively, and $2.1 million and $4.1 million is included in research and development expense, respectively, with the remaining amount included in selling, general and administrative expense in the condensed consolidated statements of operations. For the three and six months ended June 30, 2023, $0.6 million and $1.2 million is included in cost of goods sold, respectively, and $1.2 million and $2.3 million is included in research and development expense, respectively, with the remaining amount included in selling, general and administrative expense in the condensed consolidated statements of operations. |
Cash Incentive Awards
Cash Incentive Awards | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Cash Incentive Awards On February 19, 2024, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Walmart Inc. In connection with the Merger Agreement, the Company stopped granting equity awards under its equity incentive plans (as described above) to its employees, with the exception of annual grants of RSUs to its Board of Directors. In lieu of granting equity awards to its employees, the Company began issuing cash incentive awards as part of its long-term incentive program. These cash incentive awards vest over four years and are paid in cash upon vesting. The Company may convert unvested cash incentive awards to RSUs in the future. A summary of the Company’s activity related to cash incentive awards as of June 30, 2024 is presented below: Award Value (In millions) Outstanding at December 31, 2023 — Granted 38.6 Vested — Forfeited (0.4) Outstanding at June 30, 2024 38.2 As of June 30, 2024, the Company had $37.7 million of unrecognized compensation expense related to cash incentive awards, which the Company expects to recognize over a weighted average vesting period of approximately 2.4 years. For both the three and six months ended June 30, 2024, the amount of cash incentive expense was $0.5 million. For both the three and six months ended June 30, 2024, an immaterial amount was included in cost of goods sold, and $0.1 million was included in research and development expense in the condensed consolidated statements of operations. The remaining $0.4 million was included in selling, general and administrative expense in the condensed consolidated statements of operations. There were no such awards for the three and six months ended June 30, 2023. As of June 30, 2024, $0.5 million of accrued cash incentive liability is recorded in accrued expenses in the accompanying condensed consolidated balance sheets. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company recorded a tax benefit of $1.4 million, resulting in an effective tax rate of 119%, and a tax expense of $7.8 million, resulting in an effective tax rate of 80%, for the three months ended June 30, 2024 and June 30, 2023, respectively. The Company recorded a tax benefit of $4.5 million resulting in an effective tax rate of 27%, and a tax expense of $7.6 million, resulting in an effective tax rate of 86% for the six months ended June 30, 2024 and June 30, 2023, respectively. The tax provision for the three months ended June 30, 2024 and June 30, 2023 includes a net income tax benefit of $0.9 million and a net income tax expense of $0.3 million, respectively, for discrete items primarily due to excess tax expense relating to share-based compensation. The tax provision for the six months ended June 30, 2024 and June 30, 2023 includes a net income tax benefit of $1.0 million and a net income tax expense of $0.5 million, respectively, for discrete items primarily due to excess tax expense relating to share-based compensation. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share The Company computes earnings per share (“EPS”) of Class A and Class B common shares using the two-class method for participating securities. Basic earnings per share is computed by dividing the net income (loss) attributable to common stockholders by the weighted-average number of shares of Class A and Class B common shares outstanding during the period. Participating securities are excluded from basic weighted-average common shares outstanding. Diluted earnings per share is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of shares of Class A and Class B common shares outstanding during the period, inclusive of the effect of potential common shares, if dilutive. For the six months ended June 30, 2024, the potential dilutive shares were not included in the computation of diluted loss per common share as the effect of including these shares in the calculation would have been anti-dilutive. For the three months ended June 30, 2024 and the three and six months ended June 30, 2023, the potential dilutive shares relating to outstanding stock options were included in the computation of diluted earnings. Basic and diluted income (loss) per share and the weighted-average shares outstanding have been computed for all periods as shown below: Three Months Ended 2024 2023 Class A Class B Class A Class B Numerator: (In millions, except per share amounts) Net income attributable to common stockholders - basic and diluted $ 0.1 $ 0.1 $ 1.2 $ 0.7 Denominator: Weighted-average common shares outstanding - basic 123.4 75.9 119.1 76.8 Weighted-average effect of dilutive securities 10.7 — 4.8 — Weighted-average common shares outstanding - diluted 134.1 75.9 123.9 76.8 Net income per share attributable to Class A and Class B common stockholders: Basic $ 0.00 $ 0.00 $ 0.01 $ 0.01 Diluted $ 0.00 $ 0.00 $ 0.01 $ 0.01 Anti-dilutive equity awards under share-based award plans excluded from the determination of diluted EPS 3.2 13.9 Six Months Ended 2024 2023 Class A Class B Class A Class B Numerator: (In millions, except per share amounts) Net (loss) income attributable to common stockholders - basic and diluted $ (7.3) $ (4.6) $ 0.7 $ 0.5 Denominator: Weighted-average common shares outstanding - basic 122.6 76.0 118.8 76.8 Weighted-average effect of dilutive securities — — 5.4 — Weighted-average common shares outstanding - diluted 122.6 76.0 124.2 76.8 Net (loss) income per share attributable to Class A and Class B common stockholders: Basic $ (0.06) $ (0.06) $ 0.01 $ 0.01 Diluted $ (0.06) $ (0.06) $ 0.01 $ 0.01 Anti-dilutive equity awards under share-based award plans excluded from the determination of diluted EPS 6.9 12.8 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |||
Pay vs Performance Disclosure | ||||||||
Net (loss) income | $ 0.2 | $ (12.1) | $ 1.9 | [1] | $ (0.7) | [1] | $ (11.9) | $ 1.2 |
[1]Totals may not sum due to rounding |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Consolidation - Presentation | The Company has prepared these accompanying unaudited condensed consolidated financial statements in accordance with generally accepted accounting principles in the United States (“GAAP”). These unaudited condensed consolidated financial statements include the accounts of the Company and all subsidiaries. The condensed consolidated balance sheet as of December 31, 2023 included herein was derived from the audited financial statements as of the same date. The Company has condensed or omitted certain information and notes normally included in complete financial statements prepared in accordance with GAAP. As such, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K. In the Company’s opinion, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, comprehensive loss and cash flows for the interim periods, but they are not necessarily indicative of the results of operations to be expected for the year ending December 31, 2024. |
Basis of Consolidation - Consolidation | All intercompany transactions and balances have been eliminated in consolidation. |
Basis of Consolidation - Foreign Currency | The Company considers the U.S. dollar as its reporting currency. The functional currency of most of the foreign subsidiaries is the U.S. dollar. Translation adjustments for subsidiaries where the functional currency is its local currency are included in other comprehensive loss. Foreign currency transaction gains (losses) resulting from exchange rate fluctuation on transactions denominated in a currency other than the functional currency are reported in the condensed consolidated statements of operations. |
Use of Estimates | Use of Estimates |
Net Revenue | Net Revenue The Company disaggregates net revenue by (i) Device net revenue, and (ii) Platform+ net revenue, as it believes it best depicts how the nature, timing and uncertainty of revenue and cash flows are affected by economic factors. The Company derives Device net revenue primarily from the sale of televisions and sound bars. Revenue is recognized when control of the promised goods or services is transferred to the Company’s retailers and distributors, in an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. The Company sells its products to certain customers under terms that allow them to receive price protection on future price reductions and may provide for limited rights of return and discounts. The Company generates Platform+ net revenue through sales of advertising and other services, such as content distribution, subscription and transaction revenue shares, promotions, sales of branded channel buttons on remote controls and data licensing arrangements. The Company’s digital advertising inventory consists of streaming inventory on WatchFree+ and third-party applications as well as banner placements on its SmartCast homescreen. The Company’s advertising revenue is recognized on a cost-per-thousand impressions delivered (“CPM”) basis. The Company applies a five-step approach as defined in Financial Accounting Standards Board (“FASB”) ASC 606, Revenue from Contracts with Customers (Topic 606), in determining the amount and timing of revenue to be recognized: (1) identifying the contract with a customer; (2) identifying the performance obligations in the contract; (3) determining the transaction price; (4) allocating the transaction price to the performance obligations in the contract; and (5) recognizing revenue when the corresponding performance obligation is satisfied. As of June 30, 2024 and December 31, 2023, t he Company recorded $23.3 million and $24.2 million of contract assets , respectively. As of June 30, 2024, $19.8 million and $3.5 million of contract assets were recorded in prepaid and other current assets and other assets, respectively, in the accompanying condensed consolidated balance sheets. As of December 31, 2023, $20.3 million and $3.9 million of contract assets were recorded in prepaid and other current assets and other assets, respectively, in the accompanying condensed consolidated balance sheets. As of June 30, 2024 and December 31, 2023, the Company recorded $1.0 million and $2.1 million of contract liabilities, respectively, which are recorded in other current liabilities in the accompanying condensed consolidated balance sheets. Contract assets primarily represent revenue earnings over time for which the Company does not presently have an unconditional right to payment (generally not yet billable) based on the terms of the contracts. Contract liabilities consist of fees invoiced or paid by the Company's customers for which the associated performance obligations have not been satisfied and revenue has not been recognized based on the Company's revenue recognition criteria described above. Additionally, no costs associated with obtaining contracts with customers were capitalized, nor were any costs associated with fulfilling its contracts. All costs to obtain contracts were expensed as incurred as a practical expedient. |
Net Revenue (Tables)
Net Revenue (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Concentration Risk | The following customers account for more than 10% of net revenue: Three Months Ended Six Months Ended 2024 2023 2024 2023 Net revenue: Customer A 36 % 35 % 32 % 34 % Customer B 10 12 10 12 The following customers account for a significant portion of accounts receivable: June 30, December 31, Net receivables: Customer A 29 % 30 % Customer B 10 9 The Company has the following significant concentrations related to suppliers: Three Months Ended Six Months Ended 2024 2023 2024 2023 Inventory purchases: Supplier A — related party 25 % 36 % 32 % 36 % Supplier B 18 21 17 20 Supplier C 39 28 38 28 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Debt Securities, Held-to-Maturity | The following table summarizes the Company’s short-term investments: June 30, December 31, U.S. Treasury Bills: (In millions) Maturity 1 year or less 1 year or less Amortized cost $ 132.0 $ 129.9 Gross unrealized gains — 0.2 Gross unrealized losses (0.1) — Estimated fair value $ 131.9 $ 130.1 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable consists of the following: June 30, December 31, (In millions) Accounts receivable $ 324.3 $ 383.4 Allowance for doubtful accounts (2.7) (2.2) Total accounts receivable, net of allowance $ 321.6 $ 381.2 |
Schedule of Concentration Risk | The following customers account for more than 10% of net revenue: Three Months Ended Six Months Ended 2024 2023 2024 2023 Net revenue: Customer A 36 % 35 % 32 % 34 % Customer B 10 12 10 12 The following customers account for a significant portion of accounts receivable: June 30, December 31, Net receivables: Customer A 29 % 30 % Customer B 10 9 The Company has the following significant concentrations related to suppliers: Three Months Ended Six Months Ended 2024 2023 2024 2023 Inventory purchases: Supplier A — related party 25 % 36 % 32 % 36 % Supplier B 18 21 17 20 Supplier C 39 28 38 28 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories consist of the following: June 30, December 31, (In millions) Inventory on hand $ 8.7 $ 3.0 Inventory in transit - outbound 2.2 3.3 Inventory in transit - inbound 16.7 0.5 Total inventory $ 27.6 $ 6.8 |
Schedule of Concentration Risk | The following customers account for more than 10% of net revenue: Three Months Ended Six Months Ended 2024 2023 2024 2023 Net revenue: Customer A 36 % 35 % 32 % 34 % Customer B 10 12 10 12 The following customers account for a significant portion of accounts receivable: June 30, December 31, Net receivables: Customer A 29 % 30 % Customer B 10 9 The Company has the following significant concentrations related to suppliers: Three Months Ended Six Months Ended 2024 2023 2024 2023 Inventory purchases: Supplier A — related party 25 % 36 % 32 % 36 % Supplier B 18 21 17 20 Supplier C 39 28 38 28 |
Property, Equipment and Softw_2
Property, Equipment and Software, Net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Equipment and Software, Net | Property, equipment and software, net consist of the following: June 30, December 31, (In millions) Land $ 2.6 $ 2.6 Building 7.6 7.6 Machinery and equipment 1.1 1.1 Leasehold improvements 9.3 9.3 Furniture and fixtures 5.1 5.1 Computer and software 18.7 16.9 Construction in progress 0.8 0.4 Total property, equipment and software 45.2 43.0 Less accumulated depreciation and amortization (26.7) (23.3) Total property, equipment and software, net $ 18.5 $ 19.7 |
Capitalized Software (Tables)
Capitalized Software (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Research and Development [Abstract] | |
Schedule of Capitalized Software | The Company’s capitalized software consist of the following: June 30, December 31, (In millions) Capitalized software $ 21.8 $ 21.8 Accumulated amortization (2.2) — Capitalized software, net $ 19.6 $ 21.8 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | The Company’s accrued expenses consist of the following: June 30, December 31, (In millions) Accrued price protection $ 25.2 $ 33.4 Accrued other customer related expenses 47.4 55.8 Accrued supplier/partner related expenses 47.1 46.1 Accrued payroll expenses 30.7 40.8 Accrued other expenses 2.6 2.5 Total accrued expenses $ 153.0 $ 178.6 |
Accrued Royalties (Tables)
Accrued Royalties (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Schedule of Future Commitments on Royalty Obligations | A summary of future commitments on royalty obligations (including amounts currently accrued for under existing royalty agreements yet to be paid, as well as amounts that will become due in future periods relating to these existing arrangements) as of June 30, 2024 is as follows: June 30, (In millions) 2024 (remaining) $ 9.0 2025 12.7 2026 6.5 2027 6.0 2028 1.5 2029 and thereafter — Total $ 35.7 June 30, (In millions) 2024 (remainder) $ 18.7 2025 39.7 2026 35.4 Total $ 93.8 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information | The table below presents supplemental balance sheet information related to the Company’s operating leases as follows (in millions, except lease term and discount rate): Classification June 30, December 31, Assets: Right-of-use asset Other assets $ 13.5 $ 13.8 Liabilities: Current portion of lease liabilities Other current liabilities $ 4.3 $ 3.5 Long-term portion of lease liabilities Other long-term liabilities $ 10.1 $ 11.0 Weighted-average remaining lease term 3.3 3.8 Weighted-average discount rate 6.7 % 6.3 % |
Schedule of Undiscounted Cash Flows of Operating Leases | The table below reconciles the undiscounted cash flows of the operating leases for each of the first five years, and total of the remaining years, to the operating lease liabilities recorded on the condensed consolidated balance sheets as of June 30, 2024: June 30, (In millions) 2024 (remainder) $ 2.6 2025 5.2 2026 4.8 2027 2.7 2028 0.7 2029 and thereafter 0.2 Total minimum lease payments 16.2 Less imputed interest (1.8) Total lease liabilities $ 14.4 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Commitment Future Spend Per this Addendum | A summary of future commitments on royalty obligations (including amounts currently accrued for under existing royalty agreements yet to be paid, as well as amounts that will become due in future periods relating to these existing arrangements) as of June 30, 2024 is as follows: June 30, (In millions) 2024 (remaining) $ 9.0 2025 12.7 2026 6.5 2027 6.0 2028 1.5 2029 and thereafter — Total $ 35.7 June 30, (In millions) 2024 (remainder) $ 18.7 2025 39.7 2026 35.4 Total $ 93.8 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | A summary of the Company’s stock option activity under the Plans as of June 30, 2024, is presented below: Number of Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (In millions, except years and per share amounts) Outstanding at December 31, 2023 14.2 $ 7.72 6.5 $ 25.2 Granted 0.0 9.53 Exercised (0.6) 3.38 Forfeited and expired (0.2) 9.35 Outstanding at June 30, 2024 13.4 $ 7.91 6.2 $ 53.6 Options vested and exercisable at June 30, 2024 10.0 $ 7.32 5.5 $ 45.7 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following provides information on the weighted-average assumptions used for stock options granted during the three and six months ended June 30, 2024 and 2023 (shares in millions): Three Months Ended Six Months Ended 2024 2023 2024 2023 Number of options granted — 1.1 — 1.2 Volatility — % 46.0 % 46.1 % 45.9 % Expected term (years) — 6.25 years 6.25 years 6.25 years Dividend yield — % 0.0 % 0.0 % 0.0 % Risk-free interest rate — % 3.8 % 4.3 % 3.8 % Fair value of common stock $ — $ 6.49 $ 9.53 $ 6.75 Grant date fair value per share determined using a Black-Scholes-Merton option pricing model for purposes of determining compensation expense $ — $ 3.24 $ 4.85 $ 3.37 |
Schedule of Restricted Stock Unit Activity | A summary of the Company’s activity related to RSUs as of June 30, 2024 is presented below: Number of Shares Weighted Average Grant Date Fair Value (In millions) Outstanding at December 31, 2023 12.2 $ 8.89 Granted 1.2 9.27 Vested (1.8) 9.62 Forfeited (0.4) 9.26 Outstanding at June 30, 2024 11.2 $ 8.80 |
Share-Based Payment Arrangement, Performance Shares, Activity | A summary of the Company’s activity related to PSUs as of June 30, 2024 is presented below: Number of Shares Weighted Average Grant Date Fair Value (In millions) Outstanding at December 31, 2023 (1) 1.7 $ 6.72 Adjustment based on performance achievement (2) 1.0 6.72 Vested (0.7) 6.72 Outstanding at June 30, 2024 2.0 $ 6.72 _________________________ (1) Represents the number of PSUs at target level of achievement of the market-based vesting condition, which equals 100% of the target number of PSUs. (2) Represents the incremental number of PSUs eligible to vest, which equals an additional 64% of the target number of PSUs. |
Cash Incentive Awards (Tables)
Cash Incentive Awards (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of the Company’s Activity Related to Cash Incentive Awards | A summary of the Company’s activity related to cash incentive awards as of June 30, 2024 is presented below: Award Value (In millions) Outstanding at December 31, 2023 — Granted 38.6 Vested — Forfeited (0.4) Outstanding at June 30, 2024 38.2 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Income (Loss) Per Share | Basic and diluted income (loss) per share and the weighted-average shares outstanding have been computed for all periods as shown below: Three Months Ended 2024 2023 Class A Class B Class A Class B Numerator: (In millions, except per share amounts) Net income attributable to common stockholders - basic and diluted $ 0.1 $ 0.1 $ 1.2 $ 0.7 Denominator: Weighted-average common shares outstanding - basic 123.4 75.9 119.1 76.8 Weighted-average effect of dilutive securities 10.7 — 4.8 — Weighted-average common shares outstanding - diluted 134.1 75.9 123.9 76.8 Net income per share attributable to Class A and Class B common stockholders: Basic $ 0.00 $ 0.00 $ 0.01 $ 0.01 Diluted $ 0.00 $ 0.00 $ 0.01 $ 0.01 Anti-dilutive equity awards under share-based award plans excluded from the determination of diluted EPS 3.2 13.9 Six Months Ended 2024 2023 Class A Class B Class A Class B Numerator: (In millions, except per share amounts) Net (loss) income attributable to common stockholders - basic and diluted $ (7.3) $ (4.6) $ 0.7 $ 0.5 Denominator: Weighted-average common shares outstanding - basic 122.6 76.0 118.8 76.8 Weighted-average effect of dilutive securities — — 5.4 — Weighted-average common shares outstanding - diluted 122.6 76.0 124.2 76.8 Net (loss) income per share attributable to Class A and Class B common stockholders: Basic $ (0.06) $ (0.06) $ 0.01 $ 0.01 Diluted $ (0.06) $ (0.06) $ 0.01 $ 0.01 Anti-dilutive equity awards under share-based award plans excluded from the determination of diluted EPS 6.9 12.8 |
Organization and Nature of Bu_2
Organization and Nature of Business (Details) | 6 Months Ended |
Jun. 30, 2024 manufacturer | |
Purchase Of Televisions, Since 2012 | Investor | |
Related Party Transaction [Line Items] | |
Number of manufacturers | 3 |
Net Revenue - Narrative (Detail
Net Revenue - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Concentration Risk [Line Items] | |||||
Contract assets | $ 23,300,000 | $ 24,200,000 | |||
Contract liability | $ 1,000,000 | 1,000,000 | 2,100,000 | ||
Capitalized contract costs | $ 0 | 0 | 0 | ||
Prepaid and Other Current Assets | |||||
Concentration Risk [Line Items] | |||||
Contract assets | 19,800,000 | 20,300,000 | |||
Other Noncurrent Assets | |||||
Concentration Risk [Line Items] | |||||
Contract assets | $ 3,500,000 | $ 3,900,000 | |||
Affiliates Under Common Control | Net Revenue | Customer concentration | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 46% | 47% | 42% | 46% |
Net Revenue - Customers (Detail
Net Revenue - Customers (Details) - Net Revenue - Customer concentration | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Customer A | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 36% | 35% | 32% | 34% |
Customer B | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 10% | 12% | 10% | 12% |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Mar. 28, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Schedule of Held-to-Maturity Securities [Line Items] | ||||||
Debt securities, held-to-maturity, impairment loss | $ 0 | $ 0 | $ 0 | $ 0 | ||
Equity securities, noncurrent | 9,600,000 | 9,600,000 | $ 6,200,000 | |||
Investments in equity securities recorded at historical cost | 4,800,000 | 4,800,000 | 6,000,000 | |||
Unrealized gain | 3,800,000 | $ 0 | ||||
Level 1 | ||||||
Schedule of Held-to-Maturity Securities [Line Items] | ||||||
Equity securities, noncurrent | $ 4,800,000 | $ 4,800,000 | $ 200,000 | |||
Unrealized gain | $ 3,800,000 |
Investments - Debt Securities,
Investments - Debt Securities, Held-to-Maturity (Details) - U.S. Treasury Bills: - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Schedule of Held-to-Maturity Securities [Line Items] | ||
Maturity | 1 year | 1 year |
Amortized cost | $ 132 | $ 129.9 |
Gross unrealized gains | 0 | 0.2 |
Gross unrealized losses | (0.1) | 0 |
Estimated fair value | $ 131.9 | $ 130.1 |
Accounts Receivable - Balances
Accounts Receivable - Balances (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Receivables [Abstract] | ||
Accounts receivable | $ 324.3 | $ 383.4 |
Allowance for doubtful accounts | (2.7) | (2.2) |
Total accounts receivable, net of allowance | $ 321.6 | $ 381.2 |
Accounts Receivable - Narrative
Accounts Receivable - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Concentration Risk [Line Items] | |||||
Allowance for doubtful accounts recorded | $ (0.3) | $ (0.1) | $ (0.5) | $ 0.7 | |
Customer A and Customer B | Net Receivables | Credit concentration risk | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 39% | 39% |
Accounts Receivable - Customers
Accounts Receivable - Customers (Details) - Net Receivables - Credit concentration risk | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Customer A | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 29% | 30% |
Customer B | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 10% | 9% |
Inventories - Balances (Details
Inventories - Balances (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Inventory [Line Items] | ||
Total inventory | $ 27.6 | $ 6.8 |
Inventory on hand | ||
Inventory [Line Items] | ||
Total inventory | 8.7 | 3 |
Inventory in transit - outbound | ||
Inventory [Line Items] | ||
Total inventory | 2.2 | 3.3 |
Inventory in transit - inbound | ||
Inventory [Line Items] | ||
Total inventory | $ 16.7 | $ 0.5 |
Inventories - Inventory Purchas
Inventories - Inventory Purchases (Details) - Inventory Purchases - Supplier concentration risk | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Supplier A — related party | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 25% | 36% | 32% | 36% |
Supplier B | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 18% | 21% | 17% | 20% |
Supplier C | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 39% | 28% | 38% | 28% |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Inventory [Line Items] | |||||
Recycling cost (credit) | $ 0.9 | $ 0.1 | $ 2.5 | $ 2.1 | |
Other receivables, manufacturers | |||||
Inventory [Line Items] | |||||
Receivables due from manufacturers | $ 0.2 | $ 0.2 | $ 0.8 |
Property, Equipment and Softw_3
Property, Equipment and Software, Net - Components of Property and Equipment (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and software | $ 45.2 | $ 43 |
Less accumulated depreciation and amortization | (26.7) | (23.3) |
Total property, equipment and software, net | 18.5 | 19.7 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and software | 2.6 | 2.6 |
Building | ||
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and software | 7.6 | 7.6 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and software | 1.1 | 1.1 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and software | 9.3 | 9.3 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and software | 5.1 | 5.1 |
Computer and software | ||
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and software | 18.7 | 16.9 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and software | $ 0.8 | $ 0.4 |
Property, Equipment and Softw_4
Property, Equipment and Software, Net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |||||
Depreciation expense | $ 1.7 | $ 1.9 | $ 3.5 | $ 3.7 | |
Disposal of property, plant and equipment | $ 0.1 | $ 7.7 |
Capitalized Software - Schedule
Capitalized Software - Schedule of Capitalized Software (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Research and Development [Abstract] | ||
Capitalized software | $ 21.8 | $ 21.8 |
Accumulated amortization | (2.2) | 0 |
Capitalized software, net | $ 19.6 | $ 21.8 |
Capitalized Software - Narrativ
Capitalized Software - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Research and Development [Abstract] | ||||
Amortization of capitalized software development costs | $ 1,100,000 | $ 0 | $ 2,200,000 | $ 0 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Payables and Accruals [Abstract] | ||
Accrued price protection | $ 25.2 | $ 33.4 |
Accrued other customer related expenses | 47.4 | 55.8 |
Accrued supplier/partner related expenses | 47.1 | 46.1 |
Accrued payroll expenses | 30.7 | 40.8 |
Accrued other expenses | 2.6 | 2.5 |
Total accrued expenses | $ 153 | $ 178.6 |
Accrued Royalties (Details)
Accrued Royalties (Details) - Royalty obligations $ in Millions | Jun. 30, 2024 USD ($) |
Other Commitments [Line Items] | |
2024 (remaining) | $ 9 |
2025 | 12.7 |
2026 | 6.5 |
2027 | 6 |
2028 | 1.5 |
2029 and thereafter | 0 |
Total | $ 35.7 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Assets: | ||
Right of use assets, balance sheet [extensible enumeration] | Other assets | Other assets |
Right-of-use asset | $ 13.5 | $ 13.8 |
Liabilities: | ||
Current portion of lease liabilities, balance sheet [extensible enumeration] | Other current liabilities | Other current liabilities |
Current portion of lease liabilities | $ 4.3 | $ 3.5 |
Long term portion of lease liabilities, balance sheet [extensible enumeration] | Other long-term liabilities | Other long-term liabilities |
Long-term portion of lease liabilities | $ 10.1 | $ 11 |
Weighted-average remaining lease term | 3 years 3 months 18 days | 3 years 9 months 18 days |
Weighted-average discount rate | 6.70% | 6.30% |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Leases [Abstract] | ||||
Operating lease costs | $ 1.7 | $ 1.4 | $ 3.4 | $ 2.8 |
Leases - Reconciliation of Undi
Leases - Reconciliation of Undiscounted Cash Flows of Operating Leases (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Leases [Abstract] | |
2024 (remainder) | $ 2.6 |
2025 | 5.2 |
2026 | 4.8 |
2027 | 2.7 |
2028 | 0.7 |
2029 and thereafter | 0.2 |
Total minimum lease payments | 16.2 |
Less imputed interest | (1.8) |
Total lease liabilities | $ 14.4 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) | Jun. 30, 2024 USD ($) wk | Apr. 13, 2024 USD ($) |
Accrued Royalties [Line Items] | ||
Number of weeks of inventory | wk | 13 | |
Liability for supply commitment | $ 0 | |
Revolving credit facility | Line of credit | ||
Accrued Royalties [Line Items] | ||
Maximum borrowing capacity | $ 50,000,000 |
Commitments and Contingencies_2
Commitments and Contingencies -Schedule of Commitment Future Spend Per this Addendum (Details) - Data Support Spend Commitments $ in Millions | Jun. 30, 2024 USD ($) |
Other Commitments [Line Items] | |
2024 (remainder) | $ 18.7 |
2025 | 39.7 |
2026 | 35.4 |
Total | $ 93.8 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 USD ($) class plan shares | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) class plan shares | Jun. 30, 2023 USD ($) shares | Dec. 31, 2023 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Preferred stock, authorized (in shares) | shares | 100,000,000 | 100,000,000 | 100,000,000 | ||
Number of plans | plan | 2 | 2 | |||
Share-based payment arrangement by share-based payment award, expected achievement, percentage | 1.64 | 1.64 | |||
Unrecognized share-based compensation expense | $ 12.6 | $ 12.6 | |||
Unrecognized compensation costs, vesting period | 1 year 8 months 12 days | ||||
Award requisite service period | 1 year | ||||
Share-based compensation expense | 12.7 | $ 9.9 | $ 26.1 | $ 18.1 | |
Cost of sales | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | 1 | 0.6 | 2.1 | 1.2 | |
Research and development | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | 2.1 | $ 1.2 | $ 4.1 | $ 2.3 | |
RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Adjustment based on performance achievement (in shares) | shares | 1,200,000 | ||||
Unrecognized share-based compensation expense | $ 80.7 | $ 80.7 | |||
Unrecognized compensation costs, vesting period | 2 years 7 months 6 days | ||||
Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based payment arrangement by share-based payment award, expected achievement, percentage | 0.64 | 0.64 | |||
Adjustment based on performance achievement (in shares) | shares | 1,000,000 | 0 | |||
Unrecognized share-based compensation expense | $ 5.2 | $ 5.2 | |||
Unrecognized compensation costs, vesting period | 3 years | ||||
Vesting term | 4 years | ||||
Award requisite service period | 1 year | ||||
Performance Shares | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Eligible award vesting rights, percentage | 0 | ||||
Performance Shares | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Eligible award vesting rights, percentage | 2 | ||||
Class C common stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of classes of stock | class | 3 | 3 | |||
Class B common stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of classes of stock | class | 3 | 3 | |||
Class A common stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of classes of stock | class | 3 | 3 |
Stockholders' Equity - Stock Op
Stockholders' Equity - Stock Option Awards Activity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Number of Shares | |||||
Beginning balance (in shares) | 14.2 | ||||
Granted (in shares) | 0 | 1.1 | 0 | 1.2 | |
Exercised (in shares) | (0.6) | ||||
Forfeited and expired (in shares) | (0.2) | ||||
Ending balance (in shares) | 13.4 | 13.4 | 14.2 | ||
Options vested and exercisable (in shares) | 10 | 10 | |||
Weighted Average Exercise Price | |||||
Beginning balance (in dollars per share) | $ 7.72 | ||||
Granted (in dollars per share) | 9.53 | ||||
Exercised (in dollars per share) | 3.38 | ||||
Forfeited and expired (in dollars per share) | 9.35 | ||||
Ending balance (in dollars per share) | $ 7.91 | 7.91 | $ 7.72 | ||
Options vested and exercisable (in dollars per share) | $ 7.32 | $ 7.32 | |||
Weighted Average Remaining Contractual Term (Years) | |||||
Options outstanding (in years) | 6 years 2 months 12 days | 6 years 6 months | |||
Options vested and exercisable (in shares) | 5 years 6 months | ||||
Aggregate Intrinsic Value | |||||
Options outstanding, aggregate intrinsic value | $ 53.6 | $ 53.6 | $ 25.2 | ||
Options vested and exercisable | $ 45.7 | $ 45.7 |
Stockholders' Equity - Fair Val
Stockholders' Equity - Fair Value Assumptions of Options (Details) - $ / shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of options granted (in shares) | 0 | 1.1 | 0 | 1.2 |
Fair value of common stock (in dollars per share) | $ 0 | $ 6.49 | $ 9.53 | $ 6.75 |
Grant date fair value per share determined using a Black-Scholes-Merton option pricing model for purposes of determining compensation expense (in dollars per share) | $ 0 | $ 3.24 | $ 4.85 | $ 3.37 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Volatility | 0% | 46% | 46.10% | 45.90% |
Expected term (years) | 6 years 3 months | 6 years 3 months | 6 years 3 months | |
Dividend yield | 0% | 0% | 0% | 0% |
Risk-free interest rate | 0% | 3.80% | 4.30% | 3.80% |
Stockholders' Equity - RSU and
Stockholders' Equity - RSU and PSU Activity (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
RSUs | ||
Number of Shares | ||
Outstanding, beginning (in shares) | 12,200,000 | |
Adjustment based on performance achievement (in shares) | 1,200,000 | |
Vested (in shares) | (1,800,000) | |
Forfeited (in shares) | (400,000) | |
Outstanding, ending (in shares) | 11,200,000 | |
Weighted Average Grant Date Fair Value | ||
Outstanding, beginning (in dollars per share) | $ 8.89 | |
Adjustment based on performance achievement (in dollars per share) | 9.27 | |
Vested (in dollars per share) | 9.62 | |
Forfeited (in dollars per share) | 9.26 | |
Outstanding, ending (in dollars per share) | $ 8.80 | |
Performance Shares | ||
Number of Shares | ||
Outstanding, beginning (in shares) | 1,700,000 | |
Adjustment based on performance achievement (in shares) | 1,000,000 | 0 |
Vested (in shares) | (700,000) | |
Outstanding, ending (in shares) | 2,000,000 | |
Weighted Average Grant Date Fair Value | ||
Outstanding, beginning (in dollars per share) | $ 6.72 | |
Adjustment based on performance achievement (in dollars per share) | 6.72 | |
Vested (in dollars per share) | 6.72 | |
Outstanding, ending (in dollars per share) | $ 6.72 |
Cash Incentive Awards - Activit
Cash Incentive Awards - Activity Related to Cash Incentive Awards (Details) - Cash Incentive Awards shares in Millions | 6 Months Ended |
Jun. 30, 2024 shares | |
Award Value | |
Outstanding, beginning (in shares) | 0 |
Adjustment based on performance achievement (in shares) | 38.6 |
Vested (in shares) | 0 |
Forfeited (in shares) | (0.4) |
Outstanding, ending (in shares) | 38.2 |
Cash Incentive Awards - Narrati
Cash Incentive Awards - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Unrecognized share-based compensation expense | $ 12,600,000 | $ 12,600,000 | ||
Unrecognized compensation costs, vesting period | 1 year 8 months 12 days | |||
Cash incentive expense | 500,000 | $ 0 | $ 500,000 | $ 0 |
Incentive Fee Payable | 500,000 | $ 0 | 500,000 | $ 0 |
Cost of sales | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Cash incentive expense | 0 | 0 | ||
Research and development | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Cash incentive expense | 100,000 | 100,000 | ||
Selling, General and Administrative Expenses | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Cash incentive expense | 400,000 | 400,000 | ||
Cash Incentive Awards | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Unrecognized share-based compensation expense | $ 37,700,000 | $ 37,700,000 | ||
Unrecognized compensation costs, vesting period | 2 years 4 months 24 days |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Tax expense (benefit) | $ (1.4) | $ 7.8 | $ (4.5) | $ 7.6 |
Effective tax rate (percent) | 119% | 80% | ||
Recorded tax benefit | $ 4.5 | $ 7.6 | ||
Effective tax rate (as a percent) | 27% | 86% | ||
Effective income tax rate reconciliation, tax expense (benefit), share-based payment arrangement, amount | $ 0.9 | $ 0.3 | $ 1 | $ 0.5 |
Net Income (Loss) Per Share (De
Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Denominator: | ||||
Weighted-average common shares outstanding - basic (in shares) | 199.3 | 195.9 | 198.6 | 195.6 |
Weighted-average common shares outstanding - diluted (in shares) | 210 | 200.7 | 198.6 | 201 |
Net income per share attributable to Class A and Class B common stockholders: | ||||
Basic (in dollars per share) | $ 0 | $ 0.01 | $ (0.06) | $ 0.01 |
Diluted (in dollars per share) | $ 0 | $ 0.01 | $ (0.06) | $ 0.01 |
Class A | ||||
Numerator: | ||||
Net income attributable to common stockholders - basic | $ 0.1 | $ 1.2 | $ (7.3) | $ 0.7 |
Net income attributable to common stockholders - diluted | $ 0.1 | $ 1.2 | $ (7.3) | $ 0.7 |
Denominator: | ||||
Weighted-average common shares outstanding - basic (in shares) | 123.4 | 119.1 | 122.6 | 118.8 |
Weighted-average effect of dilutive securities (in shares) | 10.7 | 4.8 | 0 | 5.4 |
Weighted-average common shares outstanding - diluted (in shares) | 134.1 | 123.9 | 122.6 | 124.2 |
Net income per share attributable to Class A and Class B common stockholders: | ||||
Basic (in dollars per share) | $ 0 | $ 0.01 | $ (0.06) | $ 0.01 |
Diluted (in dollars per share) | $ 0 | $ 0.01 | $ (0.06) | $ 0.01 |
Anti-dilutive equity awards under share-based award plans excluded from the determination of diluted EPS (in shares) | 3.2 | 13.9 | 6.9 | 12.8 |
Class B | ||||
Numerator: | ||||
Net income attributable to common stockholders - basic | $ 0.1 | $ 0.7 | $ (4.6) | $ 0.5 |
Net income attributable to common stockholders - diluted | $ 0.1 | $ 0.7 | $ (4.6) | $ 0.5 |
Denominator: | ||||
Weighted-average common shares outstanding - basic (in shares) | 75.9 | 76.8 | 76 | 76.8 |
Weighted-average effect of dilutive securities (in shares) | 0 | 0 | 0 | 0 |
Weighted-average common shares outstanding - diluted (in shares) | 75.9 | 76.8 | 76 | 76.8 |
Net income per share attributable to Class A and Class B common stockholders: | ||||
Basic (in dollars per share) | $ 0 | $ 0.01 | $ (0.06) | $ 0.01 |
Diluted (in dollars per share) | $ 0 | $ 0.01 | $ (0.06) | $ 0.01 |
Anti-dilutive equity awards under share-based award plans excluded from the determination of diluted EPS (in shares) |