Earnings call transcript Q4 2022

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Michael Marks

Good afternoon, and welcome to VIZIO's Q3 2022 earnings call. I'm Michael Marks, Director of Investor Relations.

Joining me for today’s discussion are William Wang, our Founder and CEO; and Adam Townsend, our CFO. Also joining us for the Q&A portion of today’s call is Mike O’Donnell, our Chief Revenue and Strategic Growth Officer.

Please note that in addition to our earnings release and today’s remarks, a slide presentation can be found on our Investor Relations website at investors.vizio.com.

first the certain in call, and statements statements risks our to remind presentation including uncertainties. functionality you relationships and forward-looking about that advertising statements demand you made expected products and refer future third product for the slide and certain and customer I’ll partners, results, our rollouts are quarter on involve this that more statements issued detail release results and our to cause differ are uncertainties discussed these from that risks the in These with actual forward-looking in press filings SEC this that materially our could and afternoon. was undertake call, statements to except We reflect this by revise required after law. occur obligation no as to changes any that

operating GAAP call, the section refer found During we related website. and in our well for measures, measures metrics Investors to metrics. release also definitions our including in information further be Reconciliations as financial to this most call, financial guidance, the on of to and or information and as discussed comparable the non-GAAP financial non-GAAP certain adjusted earnings EBITDA can

will quarterly remarks unless in today’s otherwise on made Note that year-over-year all specified. a comparisons be basis

Now, the to call William. I over turn will

William Wang

beneficial dual executing since numerous our year year is in job flexibility. strategic our but in on XX% This despite model. challenges, further a And in XXth always delivering business delivered fourth quarter, management growth There on us have for a Thank level our in by everyone. last growth adjusted them, revenue gross did doubt XXXX marks revenue, our and presented Platform+ and experiences that that launch today. products great EBITDA our the greater Thank scale combined great financial demonstrating through we and business achieved you been no profit team transformation focus Platform+ a a In prices. XX% of the Michael. anniversary this The our you, in this the company XXXX. hello the strengths third now on of XX% revenue joining cost at model. provides new has our with focused affordable by at just

highly a to We debt, in environment. the also balance highly benefit which strong sheet no competitive an remains liquid important continue with maintain and

and TV invest [indiscernible] features while would redefine on the we disciplined As innovation and focused and continuously that resource in will Smart remaining overhead management.

is by I'm experts honored with Emmy excellence Award content, also to peers. VIZIO engineering our around and clear industry recently Technology industry well winning It continues advertising, of millions to day It that innovative award experience. a rewarding users every VIZIO recognized our benefit who extremely better Today turn spirit for as TV technology. and to of a for share pleased of use is see measurement, across partners was and and dozens the changing to as the our our ACR Engineering is creativity and TV an

the brings When combined software. in consumer clear The have users. our experience. marketplace key to and has impact built home customer they home power on integrate is features been a that's this. great We're are across a power others a operating business seamlessly VIZIO fleet It on VIZIO to it is ability hardware and new the bringing that the recognized a of and combined functionality TV,

unveiled free two our features improved navigation, and growth easier app our app, enhance offering. we that Program content and look an With and WatchFree+ past ad-supported of new expanded feel, and design Guide, number most upgraded remains faster user of personalization This these well. all interface. surprise on latest intuitive enhancements, The there's as brings a platform. user and Electronic watched WatchFree+ no the also on year, dramatically our we experience new successful Building update the the

from ads enhancements, new these and Amazon streaming AMC+, Fox like Music, partners and of some to more. TikTok, addition many expanded building Stars, In Sling, Sports, we our

million, fast their marketing quarter, that our XX% and of in such consumers user time grew actual During we're the XX surprise time on a a is to position over most more experience TVs, spend users With base streaming by with efficient offering. content year-over-year. advertising growing our support StarCash strong it no seamless remain and account to our these spent out-of-the-box skill, highly greater and more With engagement platform we XX% fourth engaged measurable partners experience. with

direct-to-device recognize onscreen brands as them our data expand to of and campaign continues and relationship of outcomes. inventory own as the advertiser gives Our value validation ACR proof

with restaurants XXX and like across expanded CPG, client retail. media, our we advertising almost quarter, verticals entertainment, advertising automotive, partners the relationship service During quick

advertising directly XXXX. in is revenue growing business XX% with Our up

our also recently million agencies announced than negotiations, direct bond advertising upfront companies. we XXXX voting in concluded $XXX and more that with We commitments,

team our Turning segment, XXXX year challenging on our well was to of front, Device was ahead a our curve. but the

despite all to that product award-winning team that to demand continued then difficult Our and navigated the a we But was environment constraint. deliver supply market.

for in passion our Editorial on hardware Our new XXXX. for supported Awards collection is TV innovation recognized XXth side the with being

were Budget for devices business also impacting Thanks value Smart success Bar Theater to the our Year innovation Best Home even of TV opportunity Pick we LED continue we Sound to Incredible for the named trickles to down awarded recently, to further. the award-winning TV. CES’ we elevate had More of X Adobe [indiscernible] dual Wirecutter’s for M-Series Quantum model, the Elevate. M-Series our and

be focused in dedicated hosts disciplined VIZIO. the for to with I'm consumer and create a for better future a to more for the future there very that And what XXXX. is team excited on share innovating strong will lots experience,

can as but the overall the started what XXXX, in stronger remains on And strong are focused we control. software while it optimistic advertising but for XXXX. environment we to market cautiously was dynamic, growth we close spending always a are The end business year,

market we conditions a as great right model improve. of the we powerful position know place, dual the in to benefits in With business team are a operating reap

quarter our detail. more results now to call With that, the over I will to in send Adam review fourth

Adam Townsend

William. Thanks,

to our call discuss take outlook you through results and the our opening questions, for quarter I'll QX. fourth Before

this ago. million. revenues XX% record Breaking milestone XX% in This XX% up was by into represented to XX% This first $XXX Platform+ a revenue Starting company team. in total total $XXX single million. quarter, fourth a of quarter, million. quarterly $XXX advertising, for our grew segments, Growth down year $XXX with company came the advertising marks new driven from a a which million, of quarter revenue the revenue at our rose total Platform+ in where to the great surpassed revenue

expand our business, client direct to relationships. our ad Within we advertising continue

by Advertisers across categories have over the to offerings. XXXX. have year, premium XX% to the place we brands Over past with inventory expanded we on ad continue our number cross-platform value and of worked streaming

owned provides offering, services ACR In addition, of brands the our real-time in we investment an data capabilities. amongst operated by for great our our provide access unique to and to plans. gain and are and wallet assets opportunity advertisers well-recognized inventory, These top tools spending share number The a create analytics from suite targeting targeting managed our VIZIO which advertisers’ measurement XX%. opportunity grew to

which under revenue are in highly in ad highly range. late quarter, the our advertising downturn expected our despite during publicized encouraged coming fourth the Overall, just the market led by in quarter, XX% in the the growth revenue to we

environment. to a advertising rate peers growth showed relative of tremendous our Our many tough strength in

growth, licensing brand again was $XX control additional grew XX% healthy the Within to XX% up to strength data non-advertising demand licensing on year-over-year. our buttons. our revenue, revenue with contributor remote million. Data placement largest Non-advertising from for was

agencies, marketplace companies, relied networks and Our currency in on by valuable measurement the grade viewership and highly data is alike.

the growth we time While deal, up around the year. moderate will demand anticipate growth, this in to we rate lap begin to this last QX we valuable to as the data step which for drive start the Nielsen commenced expect from continued

Turning on year-over-year offers. $XXX million. Device was year-over-year Device TV revenue the year average segment, more aggressive ago as than favorably fewer was selling campaigns a promotion of our sell to consumers grew to responded volumes to promotion decline total The and shipments. price TV the in smart combination lower units through due revenue

higher As the the period, profit. under total company in profit Platform+ shift for of to million the up from as our gross company's business to quarter late for our $XX grew total a the the Platform+ XX% businesses, profit over still of our margin gross margin in quarter the Platform+ gross million. $XX larger quarter. just This record expected toward XX% high profit a year representing gross XX%. slowed revenue too came was was range solid around continues ago XX% mix advertising margin a contribution

the period. company quarter year the EBITDA up ago for adjusted was over XX% million, Total $XX

reinvest to growth new expense support into operational to in invest we previously, stated competitiveness expenses management opportunities. remain and to we've continuing As drive on remained features managing future while and our business the efficiencies in allow and capabilities. to We us plan SG&A focused to vigilant back

other a over increase the growing in turning our users efforts XX% total Now performance outpaced spent period. all time the by ARPU times William streaming spent against measured metrics, also as hours. overall our success record highlight SmartCast ago a key to hours a $XX.XX, by of the year grew results in as our VIZIO up platform. across our to monetization XX% Total XX% SmartCast to mentioned, increase drive QX

new million by on streaming and further record million. XX.X spent demonstrated year almost account. SmartCast platform time trajectory in to upward continued of per active over adoption year sequentially our a grew User accounts growth X.X streaming its by active XXX,XXX

with to we that, quarter. what now turn So for expect first let me the

their categories pharma, advertising highly particularly and showing as inventory. in intent area We quarter. in as key telco, thus and support insurance, the view far first said, far in advertising expect quarter, couldn't so for higher. where and for and argument it a is and the are our to which living That be room works do compelling with activity visible the encouraged continues engaging the the on We by include placement to to own are to a pickup industry us category media auto, In right all entertainment for through activity video a the priorities. our this demand resurgence home data lag screen respect

remain TV On Device, highly we the market expect to competitive.

pricing data our will to remain informs that and units particularly business strategies seek best. model to viewership on we share, party support aggressive first and gain continue Our our

between million, representing XX% growth we to revenue and in $XXX million the come at QX, For $XXX Platform+ midpoint. expect

as lap mind I home begin that we and outpace video mentioned, year's will in within deal with to Nielsen. Keep to expecting data last screen revenue, licensing are we advertising Platform+

year's pace. the rate from start should growth moderate So accelerated non-advertising to last

Platform+ we in to create our solutions to support engineering, are ad and AI infrastructure in logistics. investments critical and addition, In support making business efficiencies

of know between million. In $X $XX gross closing, the total connected expect We the these of industry. TV quarter. be continues $XX Platform+ the range where is cutting growth user benefit cord well we EBITDA incredibly TV to accelerating for to AVOD households adjusted age spending to and is million and advertising company expect the is continue positive smart of adoption aligned finally, across from in is We the expand, VIZIO And flat here. tailwinds. profit million of and to

of by X.Xx launch increased Platform+ ago, our we have and the almost grown only our base Since Xx. three successfully user by business active years ARPU

forward, execute we on our scale in stronger now a a the us ahead. lie puts and to about Looking in have strategy marketplace, presence and excited we to great greater position are opportunities the that which continue

With to call that, let's the questions. up open Operator?

Operator

[Operator apologies. Instructions] My

Michael Marks

the we question. Operator, will take first

Operator

for line Laura, go question Needham. your now comes Martin open. from ahead. Our today of Laura Please first is

Laura Martin

My afternoon. competitive around William development. for first is Good question

becomes home well victory price. as so and they software. going were to the two and where this is, about this My mean it's a because analyst, that announced that now to with as and we smart only question then operating up Roku's and have catch the TV, as an is should all way on And TV next staying competition, years integrated you war take does Roku is is Amazon, TVs the own with a on right they you So own integrated with hardware system that. theory over an and because price hardware lap do that compete Google that devices

you. us updated should question we we – see going what is invested haven't and in costs So you expect in devices are on my Thank a home in, strategy to, the while in to in-home or device expenses XXXX? is do you

William Wang

in Yes, model, Again, strong business built to nothing think years see envy well this last device thanks, of years, in I and the Laura. competition pretty deal as everybody players new do Roku in the us. really but such great so been coming be this I to – having few next is compete space is the XX to the directly. the We've competition we which new doing a having

we'll new and years have experience the second the home, in device our now. have maker are ready think it's learn to have of the and the lot a don't next to money on we knowledge such your entry ready. the And But we be the as connected I I lot to compete. situation, with connected will of on and competitors And as but as we'll economy question interest far I best macro spend think think for home few as a

will just And our I more money likely the spent be believe do TV. on

we I build a grow, more can we a to light are control put we to think more the really home. bulb TV a light innovation bulb lot on a to lot at don't and need

current excited opportunity. just with So pretty our we're

at So time. do as of now home strategy we the have a connected not

Laura Martin

category then lot we follow see quarter, new continue are new you recognition type new you this in, And to Thank do a Okay, six you've months? the for of question up great is there advertisers guys do my you is of last adding advertisers really a guys is in adding any and great. you. follow the then my over last in when break of quarter – pattern the can job you question been Michael,

Mike O’Donnell

ad coming Yes, of softness some thanks there the QX, definitely was out think, I Laura. look, in Well, market.

out revenue quarter I grow think pointed the once helped the for as in that up the were softness, finish out to of year-over-year, on we especially to XXX to in again new And year. December. push we the it XX% full believe But advertisers add platform. I face saw that us platform able XX% you

there. positive trends So

entertainment in In growth on terms is I spend from CPG, us think up media, categories, of –quarter-over-quarter and significantly exciting for starting to pharma we're seeing what other grow year. the where outside XXX% those year-over-year was QSR, categories we're the categories all were of

rebound and upfront think seeing. significant is was the we it with I we're about QX that we're while couple QX, cautiously have, optimistic softness mentioned, there So commitments in the

continued for I expansion think those of well we're categories continued positioned specifically. growth and

Laura Martin

Thank you.

Michael Marks

we Thanks, Operator, Laura. will the question. next take

Operator

Tom, now from Our your Sandler. line open. comes question next Tom Piper ahead. of Champion Please go is

Unidentified Analyst

This more taking growth call component changes for run making anything on is first Thanks. advertising, platform sort I business thanks. Tom. how on an the the I having from Jim in for Hi, could there that impact? guess out on Thanks to you any environment? the question. guess, of And is second, be you off are a constrained

William Wang

that. Yes, the We platform off from Household think on I'll continued see take I Connect. question, growth

desktop, as think other extension data us I the audience ad today inside fastest be Household on on the watching a the our it devices, viewership growing mobile, to the and what target screen reminder, is are is that home them home enables vertical we people outside whether have. recognize product And that tablet. Connect and or

new into more or and TAM budgets been to a It's allows deliver there. expand partnerships It's us. And build product expand off us it's incremental scale us, continuing to some us to for helped tap add us advertisers actually our for great for the helped reach platform. we're

launched to additional with well. So as ad drive partnership we a tap capabilities recently

growing while off coming it So category, the is it's a fastest smaller still base.

us important reasons component So mentioned. video largest XXXX us I it's specifically be those But within for for will WatchFree+. still the an in acceleration for

Adam Townsend

environment. Yes, just Jim. phrasing constrained it about growth On Adam. second correctly, macro thinking the if as is a I understood question, This environment, you're your it

on we're control, really really controlling around growth. which doing headcount standpoint at what I is principally We're think what I our at efficiency, focusing, is from can looking costs. management we're as a looking mentioned, we

capabilities, size where that of been our increased mode last up resources, investment important are ad expansion engineering the pretty scale an we've of the team, build a As to ad you our that of us our created. know, we where tech sales to was and get and to in now sort we've over couple really years, today rapid we the

And going a so more be from here and we growth to are expenses. forward, about bit cautious

to continue to that also we future growth. that carefully looking bring and headcount want very features going the We're are but in at to capabilities invest

competitive So also of to device into the we entertain to dollar rebound to back kind can And set of strengthens. to talent. on be attract the allows side, in us that business, the advantage this us every when macro the up the save environment, put environment right and take

continuing want And a we within the market. constrained rapidly the the position of relatively to environment, as get But basically part of in grew ready XX% call quarter, the in do on share the the drive be are growth for even of to is to what market. part significant a a that, middle growth But business stronger in year. today tailwind. rapidly ad we company are given really we you've heard the with XX% growing our here to growing growth Really fourth in strong even that because take this

set success. So going ourselves we're to just up future continue for to

Unidentified Analyst

Great. Thank you.

Michael Marks

Thanks, the Jim. next Operator, take we will question.

Operator

Carpenter Our Cory your next J.P. open. go ahead. now of is from Morgan. question comes Cory, Please line

Cory Carpenter

Thanks. one William. Maybe you for for Adam, one and

was quarter, EBITDA think the sticking the profit lowest to quarter year. on that, last XQ Just I of

maybe Thank any to this again your XXXX? point how decision on that's week then curious the is year, William, give you. help would talk can to can just Just to to about expensive you bit And us earlier hoping color the expect a think in it you expand XQ progress be the for board. reasonable you

Adam Townsend

levels. demand Super the some demand. like we be seasonality, coming which obviously mindful Yes, where and side, And is of holidays, so are period, Cory, of of also cadence the from the lower the for QX the device But given then does QX a – the typically we're business lot opportunities to example. the creates tend of the environment consumer there a we're and on Bowl, off into

be are aggressive we standpoint. at lifetime we value be around by customer Those to So competitive. our and We're the strategies to look be from data going pricing. have We before, on to strategies that we said informed going usage. understand want as a pricing

gets mixed all into on the factored signals our macroeconomic in that So of environment. also the considerations. that are mindful We're going

up February's as hopeful I come in. those dollars said, was it's margin on advertising signals But certainly On out little slow. cautiously the as January picked mixed be think a the conservative that optimistic bit high given Mike We're term. there, side, front. to again, a prudent the that lot,

how kind device us the that's Because on I us What the So see as progresses. to grow strategy business, sets we that for we'll the side? move then deploy need do units homes, up. to product to right. sell year our think that And platform remember, into flywheel against we through then the of foundation

competitive, homes, core And so being that's success. gaining being long-term to the there, really

William Wang

This is William.

we I joined the yes, more board. electronic years chain. don't to on Mike years help supply us, Mohan couldn't us Petco, as think our find space, boards be consumer our on experience multiple help help hardware, us – a to Jackson I different also of the and he to Brands, grow So and candidate logistics, brought us, being can excited can such And in us us board better Family that He software, Bloomin' has keep to great he guide to experience the retail, on business. Winery.

to next really to can help stage. us he think I the guide us

Cory Carpenter

Great. Thank you both.

Michael Marks

the we Operator, next Cory. take question. will Thanks

Operator

Ben Morgan Stanley. Our Swinburne comes Please next question ahead. line your Ben, is now open. from go from

Ben Swinburne

and first afternoon. entertainment. questions. media Good Maybe Two you. on Thank

but that you us of sort advertising? be help share business there, should television American and year the have think, might point you sort wanted in we're to a about the sounds home think last side, hear I alleviate that think XXXX and might we last the your gained you of screen, aware do for whether TV couple through of North sort forecasting we like that. it which walk of XXXX? overall through of and think to pressures expect perspective. video Can you’re typically guys weakness exposure market Thank and about of I just moved marketplace? the confirm know where actually as appreciate It And itself? how pressure you. factor and we’ve between a the home in industry, start you years, seen given bigger think the a more then not out the called the of would where and in you that's smart sense you that you all I of on us grow And to drivers screen Adam, part

Adam Townsend

Yes. Ben, thanks.

also home you with So others not can or for the media on great screen prone or It’s themselves. virtual We’ve MVPDs imagine, promotions we with screen. Apple a that place where run the home various only highlighting done deals the can category. and very but example, they’re partners. as for Obviously, entertainment various is service also services TV content,

for viewers So they’re of attract there’s our trying of lot subscribers new a the to screen, as to I reason think their as those to whether understand or well services. partners home power potential retain

I so source is think And revenue us. for a it margin high

So there’s been continue factored mix Video’s home. to But our the and a have the certainly is dynamic. right effective very forecasts. if that in a to we for through shift something of it’s going go there, home considerations destination into that there We consider screen. just and the growth planned to it’s as outpace

content I mentioned, view, be are to can’t themselves. for a a where place As promote intending it company better to viewers

the dynamics to anything add want you of that? do Mike,

Mike O’Donnell

Yes.

opportunities. for home But see ability first leverage think best It’s valuable an I the the And marketplace. limited the to huge we growth search the UI important media right, the especially creative, thing think our TV, monetization. tiles, consumers the to for turn as opportunity data creates discovery I those I say screen and on year. continue about they when we home to other not right? tool great got in think Obviously when and for well, this for just us an us, it’s that’s incredibly entertainment. screen’s

non-endemic what or So in for us, non-media we sponsorships. we’ve entertainment seen and an expansion consider

our think sponsor into XX% GEICO partners bringing football QX kickoff in collection. into were up like we sponsor I McDonald’s our Halloween year-over-year or collection

of what core kind to app we We’re kind touch of also would partnerships. consider outside the of able

right, expand boost And in of kind closely gaming track premiers. expanded box to office with a our home and lot into leveraging We’ve the of have working studios, of we gameplay data the relationships then see in the impact tied particular into category opportunities with screen. them we to our

Adam as expand screen. be good a faster video media grow home there pointed and standpoint, But for than customer opportunities continue to So to base our outside from us to of out, home screen will continues core entertainment.

Adam Townsend

then some don’t of share the Remember where the still were was not we we supply chain year. predicting off what demand kind consumer point, constraints overall then there business market, third-party that on post-COVID problems. at coming surged necessarily of out there. do the for we And flattish – And there and of research spending. we’re of look facing market then the we’re but were discretionary of the I’ve now sort period on range call of kind inflation big seen I’ll a and

to consumers. So think proposition value that We we we’ve understand that to a and we’re got be marketplace. going great competitive in

and the overall to features, We’re that. platform, think content new got for bringing And great we’ve our better a more in we better voice adding making market out on experience the just it a consumers.

we’re year. of have we pricing plans it as did And the to so part be will pricing, market in strategic last going

most XX-inch, our stimulate recall, year. TVs and last were year may of reaction we go with have one lot selling where the and able number market in TVs two number last a you our through As XX-inch and the of out to to we

But for and base, just that. to install account that it’s increasing and look play of off stimulate our increasing in marketplace. about we’ll demand base overall, our ARPU opportunities driving So active

Ben Swinburne

you, Thank Thank guys. you.

Adam Townsend

You bet.

Michael Marks

next Ben. we Thanks, will the question. Operator, take

Operator

line Our next from open. from ahead. Wells now go Steve, Please comes question Cahall Steve is your Fargo.

Steve Cahall

year kind It’s just rate pretty talked I more in growth about growth Maybe the Thank get you’re of year-on-year, of quarters in remained primary kind of over to the actually first know house. are the few last hours. in to products robust terms more what TV the to trying that introduce expecting you. designed SmartCast this wondering you’ve but

on of that really like yet demographic as a too think shift I HBO into seeing a if tailwind pushing and more your bit wondering and that Disney+ just And Netflix you’re or maybe then mix any services it’s support the and they’re follow-up benefit that if consumer. an just So of early? to as to is tap overlap into AVOD little that through any those software macro as of able Thank something of there kind opportunity go revenue been centric with we this more your AVOD a that there home screen you’ve to could be is you. marketing services? Is patch? partner And AVOD, sort

Adam Townsend

then already our that consume. data That’s our looking content what users viewers focused on Sure. ACR what maybe Steve, really for, suits a right, Mike. of All over of it valuable, more places growth, first standpoint our right? the I’ll point the looking for. about To one they we from is right? where content tackle and us so and are in engagement, to your one We’re bringing It hand informs on more are it about of focused what kind

that And WatchFree+ helps on in. so app partners with new that into the bring us additional as platform bring channels we we as partner and

desire So content just continuing to important. is really for feed that

was the that’s X% the fourth COVID surgeons we big hours third quarter, against which shows that quarter the dynamic. to up good, we from quarter of active had growth account it really laugh kind account, in is since As in year-over-year but the of active – per at also hours look consecutive SmartCast per it’s

that we’re understanding encouraged So in engaging available, that we’re content prop bringing, the about our and the value more they’re understanding viewers more that’s content. they’re are

really continue our this into see to play cord more streaming show macro cutting to the that our certainly elements experience as good starting stream of and to people data. on favor more. Obviously, topic. begin stream And And right and they a up we’re in have

supported the ad engagement, so a user and that standpoint increase experience help that us is And an that little time, the that inventory more do ideally the to drive probability content everything control someone spends helps we from we drive monetization.

come So it the focus company. every to on more there but corner continue Mike? we across of to

Mike O’Donnell

the largest all just partnership from you take space, We’re I one Yes. Look, the partnerships got of I’ll second. we think the the a think players in marketing referenced. with relationships I standpoint, you distribution right? Steve, mentioned, great

in ad have to content. has continue and insignificant affinity an increase supported engagement an we We drive for a spent customer and that time

So we more expect have into they AVOD. into further these partnerships be as been dive and the – have marketing we’ll grow to partners to I and with we continue

general these good in marketplace. think really it’s the – having I good for too, AVOD space the in guys

dollars spent in I still dollars this in. and streaming we’ve into TV but of help space, pumping think of the it linear those more the TV. gap that TVs, linear as or think And of more will spent on about shift players time I I out smart connected talked connected into content past, huge shift time there’s between with premium versus they more drive linear think dollar these

Steve Cahall

Yes. you. Thank

Michael Marks

we Steve. take Operator, the next question. Thanks, will

Operator

question comes ahead. Mohan your Wamsi, next of line Bank from Our from go America. now Please Wamsi is open.

Unidentified Analyst

taking questions. Rupal for Thanks my filling for in It’s Wamsi Hi. today.

year had the the XXXX season upfront You last than commitments for more million. good of $XXX

upfront outs your the as any think dollars the head in So head year’s versus the as any far be a this have current you the into commitments? percent you market? upfront of XXXX And you is advertising or upfront? there’ll upfront, strategy those cancellations changing then And season, seen you scatter moving into push towards do greater

Adam Townsend

with start let’s No, so well. still Well, upfront. we’re the current progressing

we closed mentioned, year. upfront million in commitment last you As over $XXX

helped mentioned, a of expand had. think categories. new very with lot of I into the a as happy we’ve is we seeing progression we’re what or new And us, We’re that verticals it lot

based over lot that CPG, right, before, partners. those QSR, some mentioned we commitments XXX% all with on of year-over-year, we A of on I pharma, So, the is up we’re that driven work right? quarter upfront grew

year, we haven’t once fronts. strategy for again, our in will yet, announced the I this new positioned And of exceptionally of in once the but focus, we In our this be again grow commitments, date participating think terms well terms we’re upfront year. to our

grow or WatchFree+ the the first-party now largest I opportunities television. to and $XX our core into that upfront one well spent data that with with distribution more more think over with the space, screen. as be will have, million have, our data think products we there we the home I And I as for time especially players viewing well think so as as in engagement all poured connected as the continuing dollars of the impression

I increase well capture to the year. we’re this dollars next think in positioned

Unidentified Analyst

early on thoughts thoughts on what as on to EBITDA platform space, control for Okay. Thanks question this can on well or I on more a And is year Thank think the slightly I year? need the thoughts for than just that you for you your the there. when guidance ad ask to for lower your the year-over-year you. Street. have as full some on versus are EBITDA? any fact the maybe XXXX? Any a the about spend be of annual OpEx can tech competition spend TV areas think details If XQ comparison Any main the what EBITDA, on

Adam Townsend

that give Platform+ think about of gross revenue profit first as also Platform+ factors the coming progress. guidance, do kind little we your give but around at in Look, bit when you a Yes. margin sense the the can quarter, think – think time, there. I some and dollars, you of and you I which this guide will EBITDA to the a see And as of know don’t note I look we full the year to you down little

infrastructure do we’re investment an the year business. cost Part the to a of some step progresses. to need that I going on as the make in scale has that against cloud actually to of growth we up that to ongoing support believe with that step up

So year factors the is on margin business outpace bit the screen. growth screen that bit a a Platform+ going is Other of the progresses. we’ve mix of the advertising we home little that video headwind profile side, to That as will before. on different home will talked about, probably help ease as mentioned be as than

that’s consideration it. So a in

be, planning to it competitiveness. help we the the And and overall will for competitive, are the moving question to or in then looking do we we’re going to that to operations be on fund competitive, be in efficiencies we’re be it’s device We TVs for us know to going smart but aggressive need also be how marketplace?

environment set So macro going fiscally obviously, I lots but before, and for how year growth takes the said up as significant smart And we’ll our see us of puts to we’re progresses. business, improves. and as for there, in do the

Unidentified Analyst

Thanks for all the details.

William Wang

Rupal. Thanks

Michael Marks

Operator, the will take we next question.

Operator

is Please Our Stephens. next open. your ahead. from Nick, Zangler now of go question line Nick comes

Nick Zangler

is your talk I particularly partnerships Wondering to your but ideal further light on of channels guys. destination, looking thoughts new engagement making those maybe about streaming form and imagine drive distribution Hey the an on in you available content for to just if fast Max could some to ability grow WatchFree+? to potential to there. HBO would WatchFree+ out grow WatchFree+ like library services their of broader

William Wang

Yes. Thanks Nick.

home first look home In our viewership search you us On grown for the our on, in QX the XX% or valuable see screen a drive we thing tool Not turn and saw discovery grown standpoint, have hugely television your season. but a the spent, and from first have during WatchFree+. available you time alone growth the it's engagement that to the we drive when is distribution in that's to promotion. only we best right, WatchFree+ holiday tool a side, the

to very content the and to have continue that consumers. we'll available So we promote our impactful leverage to offerings

top watches ability may types to allows household Understanding want leverage what to views the specific source on becoming to watch that's right? that platform. that supported right? free our us for say of the we of content of platform. part they us owning content data, and and have number type a On viewing two environment, to us would And ad within key And WatchFree+ app big the our a I advantage the promote

with In players got we've around the your terms space. in content second the relationships all great look big question content, of

discussions of constant in them a opportunities. are with lot different around We

what looking the more of I as that bigger of capital I and continue find at we'll bring type us expand always relationships to best continue is. more content. use those think And to of for in think we're opportunities to partnerships

Mike O’Donnell

think launches. app was launched platform to also XX We the to I add alone, about talked my about to broader roadblock, I a are Fox as just but just from know the ranging WatchFree+ we going AMC+ fourth the even quarter the lot. there, which that we watching best kids – lot And a to of Sports to in additional apps

more the opportunity available our audience, to opportunity So that promoting bringing gives all it monetize engagement platform, add to for on point, owners if screen, on those home content, if in content, those inventory apps. all an cases and most have those whole themselves is we not to app origination an then then the drive and that promote themselves. And

monetization creates great really it a machine. So

Nick Zangler

just Got Got one it. more then here. And it.

guys we we have about accounts guys the pretty B you if aggressive had push of so, this as guys in a pretty what quarter of expectations, B. the this strong think you we Particularly assume just active continue was that also reflective over employed macro? going your the success? quarters, few shipments Street approach you as to current very And recent to On forward? relative models, are Is strategy aggressive last about say to that it Thanks. remain does our the should pricing

William Wang

active trigger gets we Sell through television. then through well. is as what's home mentioned an it's shipments versus actually Nick, call, Look, once to and in around through on it's And think growth dynamics really of nicely sell activated as the year-over-year. some it I Yes. the the an account sell – grew going there's

there's so be much goes been the overall, So frankly we similar been that we've inventory dynamic each the would on. environment will think marketplace, in levels backfill up seen couple more there's with flow then happens last, has in. sell periods, over kind noise in of of bit and and But that of a we've down that the that strong an shipments through ebb and that some that times normalized years to little other of because those and so

consumers we be strategies should out to that this We question, continue your well rolled yes, you pricing assume to last year. have responded we've very aggressive. our will that To even

some peers’ units have want what We differentiate respective of think about we fleet of look peers we on, versus more to it need that se. our do – we entire to an per be relative to a that. bit We little will surgical pricing. to and do be be and opportunity than the more strategic more We don't across can ourselves where and our aggressive

different We also understand usage trends screen engagement levels. sizes. We around understand

that is, as So all the the driving moving play it's more about what we of business. the units think comes but and homes really right into in strategy about

Nick Zangler

thanks So, guys.

Michael Marks

the take question. Operator next we'll

Operator

question from Vasily Next Karasyov comes of Research. Cannonball

go ahead. now open. is Please line Your

Vasily Karasyov

be also and right? not themselves the other the but drive it would of are significantly, view their are Thank the and question need real so a) that the your and apps previous very at is decelerated the picked revenue? have platforms growth monetization Michael. right there M&A; games been estate that I for of rationalizing years. And the all you. companies in yours. what that Because what of is on. promote is that apps from they we the could about but reacceleration was the for on, hear the to Michael costs valuable, My peers you, wondering obviously time would and so so There promote, seem same inference only away for couple The

about any stream revenue conversations that potential of what to in you And lead what a, having pricing with of you're think kind much. wonder, kind that? of kind advertisers I could or changes very So you that Thank reacceleration M&A growth? models

Michael Marks

Yes. Look, as actually had just clarify Visily. we as think M&A an or Thanks been. grow It year-over-year to quarter-over-quarter growing did just business. fast in quarter-over-quarter I perspective wasn't from and historically in QX it the

still relationships offer the and for screen. home beyond build continue them we lots products to of us to have right? on we So very those, strong opportunities to see Continue

through connect in our on relationship invest the offering. video well to continue household side the as growing as So

M&A I help there. next will offset build But to mentioned, we're could from this continue home bring we'll that categories softness, that standpoint. expanding as partnerships other a I strengthen screen that into weakness with think year. again So and our any We're expanding

So we're in looking at sponsorships. continued growth

into whether our continue factor new into on home categories continuing expanding bringing cetera, box So also important that Continuing become other from as mentioned, categories, relationships onto and more to the to CPG, I insurance, et with build it advertisers be QSR television. that the our screen. to studios enhance office as premieres

So innovative or partners we're that onto more products. again, to ad look That gaming them to with solutions around bring looking platform. also continuing invest at the said get

past, advertisers we in app. we've environment which to product, our directly So or about their which Jump from media specific into partners entertainment enables Linear content have the directly a TV View jump leveraged spoken to

at continue new platform. think, I units Those new growth the help We're or us have looking sizes. app deal performance us new expand partners we continue kind growth to help ad help us, of that on pricing working also onto models with will bring models accelerate potentially and them even could our that pricing and accelerate

on will M&A in while is still I a I we're more softness this doing and good with the lots opportunities job space, believe home So say there screen.

Vasily Karasyov

Thank you.

Michael Marks

for we Thanks have Vasily. time Operator, more question. one

Operator

Thank you.

your Our is final Roth. question for line now go Scott, today comes Searle from open. Please ahead. Scott from

Scott Searle

Thanks for taking afternoon. questions. my Good

growth growth that's should think is a on going up are about Just wondering if we're XX%, to hours up VIZIO terms SmartCast how talk we XX% comments. XX% of but down. think couple coming north up hours little I forward. earlier and ARPU of bit SmartCast piggyback you year-over-year; the overall in ARPU a I'm XX%, been of could

I type SmartCast had much engagement, you've incremental got home see and then from be that And a growth How in monetization screen up. can should about and thinking XX% follow that XXXX hours; you otherwise. Given how in beyond?

William Wang

around platform, CTV particularly ARPU. Scott. there. Thanks monetization out We've look marketplace macro, But grow learning Not are bringing onto only to and are. competitors base. from significant continue where of you to for in user in the at type content, we're strides, but lot of WatchFree. that Yes, a the tremendous into specifically, consumers a marketplace curve some where of the the certainly room monetization It content driving is to when their shows a phase that headroom versus still Yes. we made there's the of our that us of go supports

kind WatchFree+ time – last that the year agile, So reduces drive quicker, spend make people and fall last user we points, upgraded right? EPG around this better incrementally user all more there. experience Just more our friendly, more to interface, friction of it

to home content best effectively. channels, navigation screen. hours So the where more content increase most supported functionality, the we're experience, content think more the then of of about use and the drive going add as to the that's ad then and It we number continuing to the monetize viewership and that awareness data in in spent promote our to has potential it, on

the a head to that's have that of and we're have We focused room so it we board. lot And room pushing the there. keep that, think we on across

Scott Searle

the on follow And your terms Okay. there thoughts heard us give not just any you sure up, call I'm if could was I if in updates of timeline wondering e-wallet. I on monetization I could Thanks. opportunity?

William Wang

capability so the allowed on-device us promoting didn't additional What's handle component. that the had of I it really guess people we which sort the growing. to can on We're financial the of understand partners That People important so as it. it's Account payment We bring on starting become us to because became to is system. – kind back six aware is ago. or are launched a months our or they it's so, maybe billing, months platform of that Vizio having about want platform transaction that, It's that rebranded previously also Yes. the while now, that. eight

becomes capability. to we have of and our on engagement, because partners important the our of of wanted STARZ. other as there opportunity we they in that to that That's Premium capabilities One think the relationship out great, the consumers. foundational direct with example features platform. our it but to be yet bring a would then the that cornerstone And sort competitors' hadn't marketplace to linking relationship be launched platforms, some additional cable of about on having going network us with other them and that is user billing

So to continue grow. it's going to

starts We that to more got on I drive from it glad about I'm itself excited well. it think where feed there. is. promote we're and it's functioning just awareness it, help to

Scott Searle

Thank you. Great.

Michael Marks

Thanks Scott.

concludes for today's thanks Have great And a evening. joining. everyone This call.

Operator

today's joining all call. for you Thank

You lines. may disconnect now your

Vizio Holding (VZIO) 28 Feb 232022 Q4 Earnings call transcript