VZIO - Earnings call 3 2023 | Vizio Holding Corp.

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Michael Marks

Good afternoon, and welcome to VIZIO's Q3 '23 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 Michael 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. expected to that slide this rollouts certain certain involve about uncertainties. you and the call, and and refer advertising risks are statements you result booking customer remind statements our our functionality will and the partners, demand in third presentation including relationships future I and quarter for product products fourth made that on statements in forward-looking more actual cause in These risks afternoon. statements to materially the are from that discussed press was with and filings results these our release detail differ our could and issued uncertainties SEC that this undertake after any this revise statements law. obligation as occur except that by required changes We call, no to to reflect

earnings in most to During Reconciliations and call financial made QX release, comparisons we be the the will will on for on remarks to call on GAAP our information further as comparable non-GAAP information of call, related guidance, or refer operational EBITDA to certain metrics also XXXX the adjusted for well basis as today's and this our financial section be Note found discussed today's definitions non-GAAP Investors that end specified. a all website. of metrics quarterly year-over-year be and unless measures reported as in which financial of our can and QX applicable including 'XX metrics on measures, the is otherwise

William. over call I to will the turn Now

Wei Wang

and Michael, Thank Thank you, today. for hello, everyone. us you joining

is monetization. execute team continues XX% growth I market VIZIO's connected gains turn, proud driving remain user in and the user strong innovative delivered of in another to our demonstrate TV in in with continued ] [ Despite Our exceptional products outperformance third platform experiences revenue. advertising and quarter continued focus our quarter that VIZIO uncertainty, high-quality on advertising revenue some strong results engagement space. to This, that well. in

and CPG. QSR, categories by Our such large driven as ad growth retail insurance, was

are is of end our we Total scalable we posting continue delivering fashion, which profit consecutive Importantly, in the efficient total came are investments growth adjusted company quarter margin no XX.X%. as an record gross VIZIO in and strategy. in third reflected doubt company to growth EBITDA fruit guidance in of range, we that the paying There's the multi-prong a of seeing above high expanding off. these invest even of

have resources across we engineering, development our As sales. up platform tax advertising and software built and

driving monetization. has VIZIO in made progress tremendous

drives much engagement Growth the behavior Over value. past learned quarter years, which TV grew to XX% the track, during lifetime have in we SmartCast engagement and about user record informs ARPU, about few which $XX.XX. a third

ago, X years this on was $XX. Just

streaming. come time. continued So still way to Yet, the room in believe strong there given consumer a long we shift for we is a growth future have brief

emphasizing tailwinds, refining the migration we in Given and these strategy our screen are home. sizes, device to larger which turn further TV primary

larger We the these economic units will value expect generate long over term. greater

and higher with best quality position ], shipment right which have is seen sustainable keys higher overall [ volumes ARPU. a and drive that the believe together We in profitability growth than stronger matters We such drives larger focusing on [ installed hours streaming historically TVs churn and will lower us as building rather our over base investing time. to engagement ]

the past years. over Additionally, few

Through even our continuously responsive. faster version these system further have more investments, operating to We and and unlock is our enhancing retooling opportunities. been latest growth

] improved to user the engagement address customer With [ experience satisfaction. and filing

experience the we other software manufacturers We have within we platform to and believe reached have a also their now phase solution. help TV where

operating been system TV to grow looking OEMs alternative For who the partnership first opportunities time, for footprint. their other we are potential help explore to have CTV beginning with

some VIZIO opportunity through to time and and additional with with for potential growth will take up mutually beneficial hardware VIZIO. open expertise partners. outcomes to software distinct are the partners. we integrated But for work this excited for deep provides details This Our future

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the of utmost Consumers value, enabled Revere's that entertainment consumers features. For VIZIO's for can raised to [ one also $XXX. recently experience [ and elevate personal gaming hard-pressed another premium ]. ] that premium thumbmark will can is under experience consumers find with quality be exceptional picture thumbmarks

And WatchFree+. easy ESPN+ XXX including collection comes [ of right comes with including flat channels content spanning WatchFree+, ESPN experiences we can users own entertainment no our almost [ course, generals. wide streaming [ XX,XXX with ] free download ] a new building ] of Within TV range box, XXX for added of streaming experience a out apps, recently app, needed. Everything this over up other our along over titles and consumer offer

opportunity we a we as continued believe growth. early has I innings excited ] the long and of in VIZIO what towards become. smart look are come way. we already still future, we about see ahead TV new can So growth [ a the are the drivers for

through potential focus comes winning for user base upside. incredible Our building with a products on a our quality

VIZIO's right before right all products future. With than the at experience, the team, the user more I'm and right time. ever right now the for excited

turn the that, will third detail. With more our in call quarter review results to Adam over to I

Adam Townsend

William. Thanks,

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

usage platform. focus provide the of level his track the across metrics steady detail with will metrics Our use key third the are quarter in results focus, of we engage engagement more in in a improvements Through and seeing our growth our installed across strategic we moment. demonstrate benefits quality and our base. on this that many to driving I

But grew device volumes on revenue, growth million. lower which revenue our continued a first, total on advertising. company This profit benefiting at and quarter, margin Platform+ gross TV profit rapid by XX% price. lower came unit down Gross for total $XX basis in Platform+ was X%. strength high-margin in Partially XX% unit in average to the Again, XX% combination $XXX of company XXX XX.X%. higher of revenue the million, from revenue, grew expanded by offset through points to lower year-over-year

this mentioned, record of William consolidated profit quarter our was As margin. consecutive third gross

came $XX Total revenue expectations, XX% ahead represented new at Platform+ of and gross adjusted from up of development year million, XXX% on our revenue. well in $XX high from EBITDA total a continued of benefiting consolidated growth of period. million in over expenses judicious profit in $X device, promotion more price a advertising income capitalized dollars. totaled high-margin Net ago software million, and

this adjusted have XX despite has profit number of challenges EBITDA delivered don't X profit for basis this ] to the performance so with XX% presented in point a environment far of grew retail I the these was gross months, a XX%. challenges. gross want and Through improvement [ year While sight margin first year lose financial many, we the total

same to ever, income company XX% from of over a and advertising loss $XX million net to revenue for period improved grew total $XXX year $X a for first ago. Our the the million time million

start Platform+. context the some for additional quarter with third I segment provide specifically, level to Now will

expenses Platform+ of which software at range our previously stronger-than-expected For capitalized This profit revenue with mentioned expected the deliver gross due margin. home to upside revenue, our and the quarter, in exceeded higher-than-expected along came profit also top outlook. gross was end screen helped

driven a was Our of XX% by strong Platform+ advertising growth revenue. increase in XX% revenue

are marketplace. some the pleased our the continued We business softness advertising advertising the of seen strength being across broader particularly with of given

XX%, we ago market have relationships part and XX% We year direct spend the the in of the to advertising participating our returning are increased advertisers. said continue share And advertising before, within adding XX fastest-growing expanded new that advertisers with period. we net us their versus by As take by market. the

we to bring grew have linear seen cable and viewers we content in time, TVs are utilize account the VIZIO active increase [ streaming time per outpaced X On quarterly hours surprisingly, we billion and tools, where Growth XX% and as are by streaming declined years. expense well growth X.X spent all almost experience, highest at continued of on on XX% seeing basis, proxy quarter. time hours an a X SmartCast level hours. to our spent the in percentage Not improved engagement. streaming came time sources our a enhanced to user search hours VIZIO viewing other in compared for personalization the totaled in As points. ] during streaming as growth XXX, this

new high cable are broadcast, consoles time XX%. our system media as combined. hours our hours SmartCast SmartCast during quarter total differently, the watching reached through TV, all-time percent taken attached spending So of an on players and content together, than users Said more streaming operating game a of

nonadvertising million. also healthy offset to within by $XX.XX. a In decline was shipments. our due distribution up new TV and growth, a to of SmartCast fewer X% button revenue record $XX partially XX% in to Data Our showed Platform+ revenue QX, growth ARPU content revenue grew

units, on this we this higher strategic we strategic where is One pricing. accelerate way concentrate about XX% Since help we As approach to our only aim through a quality to forward. a metric focus level is mentioned, investments base this from our support driving will believe we going higher further. larger-sized engagement William intend unit installed pricing see

$X.X a new million. active Total year-over-year million grew accounts Lastly, to $XX.X SmartCast high

period, revenue some price, XX% the the with an X% our in X% along our a by average overall unit compared TV to the in industry. strong our Total in aided our Device over demand In to year just ago TV Turning lineup. rose declined XX% XX% shipments price shipments for was million our versus with of higher-end average $X increase million. in products audio, quarter, as segment. well, unit $XXX decline to down

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

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

adjusted $X gross EBITDA $XXX company And We a to expect of million. million $XX total we profit $XX of range representing XX% the at million in expect midpoint. of margin to the finally, million Platform+

head the a we we with the market major we in season, confident holiday inventory across levels lineup channel compelling the strong seasonally product into remain that have As strong retailers.

help We will units best that our to to strategies pricing drive of align with focus sell-through business. our

strategy. XXXX year progress our a thus far and of tremendous execution has been against

in margin and profile, profit gross our resulting have growth ARPU. our We transformed record customer highest steady engagement, financial in

the potential XXXX, continued active with overall to spending, what all new the of the look we system to be continue shift opportunities high As to initiatives, expected operating revenue see XXXX. be From well positioned and and to all-time for way VIZIO is is our political the to not ad-supported excited through partnership more successes on streaming, investments we ahead. growth many we account build the to could an in to

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

Operator

Instructions]. [Operator

first of the question comes with from line Stephens. Zangler The Nick

Nicholas Zangler

Another growth. of quarter Platform+ solid

of a with meantime, negative understanding willing in there. to negative why of might general, the view Device about in just device incremental though, that just what level just balancing you're those wondering I'm about and margins congrats margins, So under pressure. declines the margins concerned and you for investors a maybe can your leveling value lifetime when active near see you And to talk think absorb I do the these term? device in device provide then margins. ongoing margins are device better of at occur? out customer account And growth the

Adam Townsend

important also and the economics growth over point Nick. a disciplined. the being but value we customer. we're said think about lifetime the it's competitive in how To overall going Thanks, at of end, about and being works Adam. frankly, Yes, trying your It's while I quarter, this margins negative balance there you device when time how to really model think what and you drive

extreme, very time long seen. a than competitive this been We lately, in been more have extreme industry have been environment a operating in in have

overall And and term economic financial apart really we extraordinary business are And we've competitive, system them a so seen. way make about want think it in can't strategies We together. to that our from think that as you the device thoughtful consideration. mean I is manage of And a business really approaches more into the we all chase but of about business. some want a how that volumes from business platform They being standpoint immediate stand-alone separate because to take The our together. may work pricing some about and that the don't of the because sure work. foregoing we economics

on get point margin new look you quarter actually that XXX If profit for basis we XXX expand gross profit a margin I device to company year-over-year at that basis, down over our year-over-year the I by basis continuing a ] the gross us gross to a points. in expanded speaks think just about basis, about record and point. mean margin on profit total points, came [ but

XX% margin. So economics. it's the $XX ARPU -- profitability be driving that gross on now together. right our want this units We working on a and think accounts approach. highly drive The increased We focus population engaged. a right model that's $XX to for are approaching will quality going We're with to

a your us X-plus highly which think years. So when to value, units was engaged lifetime be tend of part with these about you question, a for

run cost it's And a small you over going time, acquisition of time. a lot makes generate customer over to those so definitely out sense, a economics positive upfront if and ROI

So we're structure grown up right the can business, in deploy that think it. numbers and platform for we comfortable with we've work now our it's us. the We this scaled

Nicholas Zangler

mentioned the marketplace. guess, OS you competing with willingness SmartCast then I OEMs the partnerships explore of the in other and OEMs licensing And to your Understood. TV TV to, possibility

guys the for to about been You combination [ obviously a software. VIZIO represent have and ] so This always of unique hardware strategic seems shift. VIZIO adamant

why and what is, question So changed has now?

Wei Wang

be that a in Yes, preference TV. to all-in-one believer in is a to question. continue their take smart I'll this consumers integrated William. continue the firm I'll And experience. show Nick, great

together the some way that on goes software experiences experience. and see better possible can work ] make the players. and down to an exceptional You consumers give decline prioritize [ the of to equal on user them my In provide power to view, seamlessly best importance

great our and and more more know, like experience. WatchFree+ TV a think past people operating also ] hardware designed important user [ support or much we to about people over ] operating monetized been as But process. a think to the years, products, platform you When our system, only [ investing highly great happening especially deliver Netflix. experiences As software several have in our both great not flexible about the most they create streaming it [ are even ] support better. works directly how streaming make you integration apps or itself, matt for only but was But that, to with than when how the so hardware we actually with system

down accuracy means own world best is final with cloud This be to ratio, to name able this work to boundaries the way One in a best through internal the manufacturers the [ just and ] to patient the by component OEMs our audio in better product. enhancements we'll the the world better of capability, few. contrast ] color push is software [

we long OEMs to emerging render simply in risk has not and bottom term, deeper resourced revenue or price, and for partnership want They market a better highly certain And up the now a on see value-added where not rate who their can are are the just improved great help partner shipment, which are partner the looking that perform in help want to or the delivering product up, know-how to keep a [ but quality experience. [ them bolt-on partner ] they control unsustainable. products, As ]. build we the OS giving a better opportunity we

market is ] partnership, VIZIO create Most we we can in importantly, believe not available [ which the we today. believe better

already together, we I but this optimistic potential take very some the early in time we this to as about come are and discussions, are can investment. So to the will well, leverage bring earlier, mentioned

really made business. We have our to further and scale our expand platform penetration

Operator

with We Needham. will next our take question Martin Laura from

Laura Martin

I more which that. press network new SMB of intrigued you're Media by of have your to the bullet X. is Labs, TAM Intuit like One BXB I a VIZIO. about that would the wave retail for point partner learn really of partnerships I'm really new of release budgets last CTV exclusive media unlock says

for XX% high down in announced versus EBITDA the EBITDA, way you down Adam, then, EBITDA the quarter, the fourth doubled quarter, this so And quarter But your year-over-year. has year-over-year. just overdelivered, end, the number estimates up XX% for in guidance our you you, third you the the

So to versus guidance? ] XX% EBITDA the was wipe before? there lower year-over-year it going down in be be between something unique recurring that you going to make in TV EBITDA and won't bet which is Or take QX guys going in a are pricing, [ on the the XQ EBITDA in growth device XQ. What's out on

Michael O'Donnell

Yes, Laura. It's I'll Mike. start. Thanks,

shared with with of TV know, Intuit think media partnerships which, the augment advertisers media small us business-focused workplace QuickBooks, bit businesses. right? about to as marketing I is our is is ad as This little kind This customers, Labs. in telco, across market. exclusive really expand target valuable properties. of allows It's of fintech retail launching data I services should and best-in-class TV network. help kind to called a retail for discussions, to can But potentially categories, small we a like into data us in you travel Media that, partner quarter. of helps this partnering newer the think high-fidelity continue a Intuit We put It's last reach as various SMB VIZIO connected rapidly us also portion data a our growing Intuit's sets. well

excited them. to be with So we're pretty partner an exclusive

Adam Townsend

glad some good expectations, which that ahead delivered And couple side, it about are in we I certainly is a which think in of a thing. to quarter there is EBITDA Laura, we this on came for the of have and the our it's things mean Adam. quarter. over

capitalized million the from one question that comment It quarter, did That's of development repeat not about your sort software something costs. consideration. benefit $X about up that and will during came about of to the quarter. the That I was nonrecurring, benefit was forward. going To

For We the on those pretty active while were bracing the that lot the with strength strike would in. There's strength strikes this there's the quarter the with guided we with fact -- pleased we're and pleased entertainment in really making going resolved, the sure still be conservatively still we underway. what advertising screen. particularly market. general, still the And capture some space, the media that home in the really still And of a week. demand still in that those could were are we -- until of on hesitation just are the challenges came

so And margin. higher that -- comes in at a that in much came at a higher

And you have expectation the or particularly, guidance normally than within bolster that look higher would we higher so range there. plus at see our margin, helped if platform you thought

QX got attractive QX, is -- For type period. ] the definitely number a [ consumers. We've holiday the market in during of a season, it's is the for doubt period promotion strong higher be to seasonally right? It of very pricing competitive

what's accounts consumer because guidance, basis into and It's on part of at expectation see up usual active is that. it to that's driving a That's down picks our around time. in the promotion the growth it a that it. holidays in you that's and the will demand why period, time that we So leaning around be great a be higher

factor that try in. we So all to

Operator

Ben from our take Stanley. with question Swinburne Morgan will next We

Benjamin Swinburne

and into going guys outlook how thinking the help engagement. formats targeting year? the screen be upfront you might that the next think, about higher advertising then Adam, how any secondly, given you larger And I mentioned fourth forward quarter One, are went questions. Two impacting

or that's about in are Anything think that financial the at sort end? space, share retailers investment help your ] higher right. what you and either would heard shelf think If I terms of [ of that relationships competitive means to with of true, the helpful. implications dynamics I be levels can that what that us

Michael O'Donnell

the take I'll Mike. is this Yes, question. upfront

up But of from for been already that, know, think our as today you standpoint, year-over-year I of we're have kind in everyone. commitments. terms slow

larger kind in market. a increased strength, seen some of say categories the forma CPG, has first-party in commitments while much of would think scatter better like [ of and in position slowed especially we've this put upfront the thanks that I our market us year, ] to QSR, data I solutions,

We are majority up advertisers while is upfronts, we really came the now. those of right the on year-over-year new scatter this So market talked scatter. about strong A XX for seeing past having we're quarter.

is kind -- brand healthy our of and always the we baseline year, goal a have new with and dollars the course our ensure of agencies committed close out these grow over the then major our scatter of So And of healthy net adding brands platform. of cycle. kind dollars of to still upfront can more partners to coming throughout we upfronts

year as will and and to So with market. we is is more and into the expect healthy even next heading our grow the we expectation in baseline, that grow improve scatter we that upfront more significantly

Adam Townsend

engagement outperform units. a drive like the are Yes, screen larger that to in which going Ben, our overall you terms serve screen metrics, opportunity home value higher in doubt, improvement at mean, in metrics therefore, home, higher and mentioned, other our some the see to and better engagement monetize main and customer those that over as more the starting screen to spend units, on us part to the size and Larger streaming, which in the the -- we're tend of significantly ads engagement gives of I be by the look and already ARPU. the streaming. outpacing if really I -- of supports no quality market. question, time longer we and of the There's lifetime growth better

XX% much higher subset cohort screens, we but quarter, the delivering actually reported in [ in blended mainstream that an It's XX of XX, the certainly ARPU units. the remarks, prepared our mentioned ARPU than ] smaller the those I tend larger economic which home, is obviously in to that deliver this that's greater be As value. that

pricing drive great That very we interest. work our helps We how great reviews demand partnerships closely, with position. in the around We've to have to we retailers those consumer market support. think So attractive with about got and and need merchandising it. products

of strategy And long-term so will into there is we drive know an element over that that time. value leaning greater much

Operator

take our question Morris Guggenheim. from will next Mike We with

Unknown Attendee

This Wilber Mike for is Morris. Charlie on

wanted guys able to -- to Just are hear you me?

Unknown Executive

Charlie. Yes. ahead, Go

Unknown Attendee

I mere any could and ask just wanted on you ] up you're provide you for [ about And OEMs? your just Yes. offer, follow partners -- and compete the a positioning like if order licensing Google, expect there. Great. color you the ships do on how to OEM thinking with share part an Amazon? are how pitch to And your in to Roku to others potential advertising the economics with

Adam Townsend

us. it's early. that Yes. demand we to something really excited be But really for that expanding are also different to the able look some of a and for these strongly arrangements feedback market, details working we're already these we underway, we're of Look, about confident hope opportunity will is real TAM there's to I on like. really hearing bring a view We're what based in and conversations partners. feel it that the out are and

If you at is XX% it share look over XX market, TV at million a little market a year. about We're XX%, of units that. the U.S.

advertisers, partners, board content more the of ]. more across scale a our we the more advantage own an really partner market, into there's and for the can a opportunity take product of. outside break it's viewership, market advertising more market more large our our We can of platform and it we So existing share more. business, expand the sort where important of we to [ become penetrate The own very can

these together, making early as things we're update progress in the excited really we'll but So indications, conversations. already these we're come early about

Unknown Attendee

And anything that apps? Can per engagement, test Great. or And to of have would Smart this impact growth the any the from drove On then ESPN out from one the drive in growth you what strong you you the further speak quarter. account levers if launches here? to in follow-up, NFL hours I lift, noted the you engagement call could.

Michael O'Donnell

Yes. off. I'll take this

platform. look, the add one of the to So more continue key we apps factors, to

ESPN, NFL. we we think we added added I shared

We this implemented. a drive around key of have the great to have. quarter in was partnerships in have content of helped we spent we've great more ton redesign already drivers one that time the partnerships But the addition

as redesigned interactive. definitely of as are more they towards well. cleaner last It's past -- are screen, we we are streaming pleased up more redesign, positive. It's seen you it's up, the got overwhelmingly So only And on this end we've And know a consumers immersive, right? we're results the really with engagement XX% not we home feel, quarter. and vote quarter. because home look know, our with the of behavior. screen their rates and Reviewers Consumers hours but over the were also

great screen we and important very So a it's compatible. real factor And time. It's They're been is advertisers, engaging discovery. They're into obviously, great operated backwards is, is driving of our apps because for consumers. for help the for home that screen. great what it more promoting. more lot owned the They're home invest and with consumers all the This estate it's a WatchFree+ more search spending they're can more app. in and it using drive engagement into for

TV ] redesign ago years have same and to that help if more you X bought VIZIO engagement. more one yesterday, one the [ bought have drive you screen home time So spent or you on

Adam Townsend

Yes, Charlie, is this Adam.

Just like areas but the engagement, indication seeing have for to it engagement actually sake as monetize opportunity is just of add it's not it's real we're about we what where well. an I to engagement that in

for up up at calculate look our you XX%. up active that can But per hours statistics active account, the you revenue SmartCast ad quarter was the XX%. provided, account we was average If in the

to growth and over that engagement drive and monetize able actually time. revenue we're that will that showing again, So our obviously

Operator

next our Wells take will We with Fargo. Steve question from Cahall

Unknown Attendee

more question opportunity you This pricing TV the types ] of is envision Quick opportunity. to price upper especially market Omar at on an on range? is for in device Or the you the this finding for ranges partnerships attractive on guys, your current lower [ you, licensing Steve. market? Do end share, a where have

Adam Townsend

is mean all pricing be letter. do. think we market, ON competitive in like we Hisense, [ to up with I Look, house TCL, know the we ], we compete on way with compete compete got the I everything right? We brands we the

the to -- looking has And relationship can [ and we ] Jeff whatever compelling for mutually beneficial. partnership for mentioned we with offering competitive, be be it but so and consumer, thoughtful to a do has it be we're a to has be great

about great that. expand to to comment being having be these to beyond opportunity in disciplined So us. bring add-on our the That's thoughtful, but own competitive products back our to that really TAM this this partnerships can and my continuing to of then sort an

Unknown Attendee

That's you the environment. very maybe on helpful. competitive understand And help

Just out what can from pricing like there around you a some is your especially competitors? across of close the standpoint, talk

Adam Townsend

you to the board it's quite versus would where QX. positioned others. -- Look, very, dynamics as pricing we and as can competitive, closely very to characterize not Yes. I the extreme we're be understand continuing as we as in saw QX track, but imagine, across very

seems mean, those half of big gain takes in outliers two, we the or of bunch a one particular saw out up a I closer very, the bit. given for certainly And -- helps Some that a very have some it bit. have back but on the SKU. of the moved to share of That dynamics to the extreme moderated maybe [ maybe year. a really brand first VX ], one averages

our of holidays, approach a again, sure where we that. factored about why have to we've into expect strong of it make and encouraged competitive disciplined a But so around to the We that. want continue we're that we're demand. to pricing. to positioning period we doubt lot be holiday no going we how continue to the be that's by in our kind competitive And expectations and But there's there's

Operator

next from question Jason Craig-Hallum. We Kryer will our take with

Jason Kreyer

question targeting know focus the that SKUs and Can those gross device just negative could with of to get? how the turning the And you on screen there? any that quarter you kind Adam, this sizes. margins. give a you're margins go color on where I aggressive on just bigger on plan specific more

Adam Townsend

bottom make to a our avoid sort really lot and we at basis Look, of in we and versus that to to guide are others don't But again, of where there's sure Obviously, specific We information the race that. detail competitive. look on are this margins. pricing dynamic. the want SKU-by-SKU market a competitive

that some as that can we a the think feel immediate result, further in sustainable don't are I we in strategies need don't And jeopardize the chase of those to market. economics. pricing term think the them

to going it. around kind apply discipline of we're so And it

But you XX-inch average is you're need sorting FXX with [ example, that product a of lifetime there's significantly the value But clearly, XX-inch versus a XX. to that higher higher if dollars different selling ] the or a point is than as a price my customer then XX an support.

reason, the significant that investment the make to a now for in a strong business, way. customer lifetime so generating Platform+ willing that level, and ARPU we're is at positive margins value you're because our And it in

a up about gaining a operating competitive approach about that and it's scaled really in level And structure thoughtful we've so talked that how that there's households thoughtful to like built. system revenue We we've when and strategy. and race going be a overall about, how We strategic be do and now gain representing gives we're to dual that that. run to living we room. we market. like the And to platform business financial flexibility, the as our We've in be to our us want we this

Jason Kreyer

That's perfect. one Mike. Maybe for

in heard but a to if market? really a you tougher on you've recently. doesn't you've of Curious guiding if carry the QX. noticed the start talk lot any can seem Just you're It trends in of We've about seen advertising to like that, that just

Michael O'Donnell

mean, VIZIO I in QX. we Look, Yes. for saw XX% growth speaking here, a

I pretty projecting in. think again we're growth strong

I mean, In But were wasn't as you still as it trends, some expecting. mentioned, terms we there's as bad uncertainty. of

into things be as upside come or There out potentially I And the a heading come could to releases new more market. QX. think more close. there out well positioned come we're premiers into

But definitely partners dollars. If get into were mean we some accelerate the separate a fold, down of advertisers, strong could if saw there automotive I bring ] in like saw wasn't sector, a strike new we add continue QLED was the their ability at insurance X up But help [ able by Tier more [ triple CPG, have of [ to to headwinds categories. Tier new you but vertical we to were for and ] advertising advertisers we over ] XX% look automotive, into digits. up. the those to captured had, new we up, still was We the X, our forma growth, X own. dollars.

about heading to feel position So we our strong continue into QX.

Operator

We will Cory take with our question Carpenter from next JPMorgan.

Cory Carpenter

advertising. do feel bigger gap Mike, you're prepare do to on ]. for have I that how going with ARPU, still as of [ And you political big picture wanted could then have stratum a an you question work you're most to maybe on still closing that Where peers. ask in you're you think you and SmartCast? just about like impact a $XX undermonetized the SmartCast political,

Michael O'Donnell

local political added buys optimistic Thanks, XXXX the they data for the to unique markets audiences narrow cycle. Cory. what we're We've positioned channels about for, XX you about targeted got the down political states. well, obviously are against through We more Inscape think most regions. looking local to When broad to advertisers target as in well incredibly have and Yes. add right? swing ability we're just geographic very more recently want as reach Look, We viewing content. key data WatchFree+ local

think, what So we're advertising be some well I to people are this CTV in to of, capture cycle. $X.X up set I billion think projecting

have added be we've that. additional kind capture to And learned sales. But as We've we and the capabilities XXXX, there we have. NBC also from ] staff cycle, [ in as Last about demand. to good to lot we how to closer partnerships learned improved we improve a okay, did our not We programmatic of should clients. sales

optimistic the we're about political outlook half overall, very year. our of for back revenue next So

Unknown Executive

ARPU we've I there's the got on proud that's and tremendous from very and And headroom progress here. mean, we the execution Yes. believe significant but also the where obviously, team we're made are, of question, us we to

lot at look up we market, more the number growth there's for putting today. that U.S. we're you a think room this If versus just

better engagement to opportunity engagement an opportunity exceptional investing consumer, drive an to more where areas user in but drive to got also ads in as of place for monetize WatchFree+. value consumer on-demand keep us to have movie more And we to over we've have adding and A more use the and show experience titles. serve that and bring a to content, want time There's monetize. group. greater a to proposition That's home them. achieve fast and our continue ideally add to where, than Expanding that continue to why to so said more We capability all we great no titles into deliver that spent. the we screen channels before, We're televison overall there. experience an with

monetizable more more content, means in which ads we engagement time means As more revenue. more can served, drive

deliver campaigns we as consumers. for tools can and for to we who utilize and exceptional have, targeting we looking are our advertisers specific to Also, that campaigns messages data the ways deploy

on all now quarter So subscriber account, years we're taking this we're subscriber NFL will that that SVOD that We've and and remains business. rolled of really X.X about excited is count available [ the partnerships revenue going building the got your where all gap, of later to apps be ago, number. that together, upside our well. ARPU out the the adding point, to XX% in that about as area opportunity, an again, about the that functionality. that VIZIO We're are this for ] VIZIO TVOD to only there are including drive out an revenue we there's help app and

the marketplace subscription a like there's users, and their to place premium We're our great drive to a seeing growth. versus apps VIZIO So that's that ] you way out great account if with see to today. what your lift to services in manage got still, where we've Stars word [ existing engage gap this question, in

to to to that. close we're going continue So work

Operator

Sandler. from next Champion take Tom will with Piper We question our

Thomas Champion

your And whether done. inning next William, positive curious, I'm the device kind contribution what side in, we're experience gross the extend in? when profit following template. What work on you the would and device return industry, to in the and is well based press inning to cycle just on is are of expect Could a into think said year? it of all familiar you we tenure this a

on kind question second you of talked little it accounts. Adam, I had about a just a VIZIO bit.

was there anything I update O'Donnell, if see add. Michael to any if additional know wanted to you'd Just have there. don't

Wei Wang

Yes, sure.

eased going the that quite many bit. down And the beginning up being down think market the and is is oversupply of situation drove And So a a components years. year pricing I that And the surplus more They up definitely in they to do TV price the lower manufacture, ago, I to the for quite XX the bit. of prices, that again. more sell, inventories. don't a of careful think they're with the component was more months because they lose. are that that's want there

of gone price as pressure. superior. lot a the think kind decisions. in I irrational maybe the I ] by So But the pricing now away. inventory think that's that's [ driven coming But will of be component But years,

between system ] are really CTV think for CTV share. [ I competition market people filing the that it's a

it's out that's years -- for there So now. been

pressure component [ the but surpass bit continue, a will past few the that think I months. in is ] inventory quite

Adam Townsend

long-term sure. margins, Look, on Yes.

From out, base in back I would that device. into value you upside it But could right as ARPU. now. plays installed to value this the the and the value imagine think significant deploy tend continues to we the to we growing execute our as on standpoint, of that lifetime to over our margin strategy points we're against time, customer a again, working get earlier

to on continue focused going we're So be to that.

Michael O'Donnell

on your data [ beyond not Yes. points Tom, Adam. account, on that add too VIZIO ] question much

continuing that. we But of the So for terms growth do just has recently last base it's shared I quarter. relationships with developers -- our to held way us conference. And account grow developer one on our our platform. we're the is subscriber continue to of to critically important think And SVOD, last done VIZIO year. the XXX% over in one we've of XX% over things you TVOD is integrated

help place in have through put also which to more had the we think And subscribers closer to to around around which unique it attendees, get help platform, them them I our ways them But our we of creates customer we leverage to drive our drive tools enhancements screen our to it monetize, interactivity, and XXX base. do speak in about innovation. can home in can we other help them some mobile can ways to over more that enhancements we then to opportunities we advertising. also for

So app component. capabilities an that it's for think that we partners with integrate also continue future. monetization. But them important a deeply helps have one component to us VIZIO and the account platform lot show of for is more today the and It help will I us our on grow

Operator

with [ ]. will our from final question Barrington. Barrington The We final [indiscernible] Jim take Goss from question with

James Goss

higher I the was comment monetization about you talk taking of the could I increased of exposure sets. first, Was and ad larger the differences higher if the Or about mix of that monetization were value. that the it usage drivers right. lifetime wondering the wondering events was place. the All only? there were in

Unknown Executive

be a be as sort I in use imagine, of just streaming their it's have think example. in they're that let's the obviously spending time a TV expand WatchFree+ watching offers. highly the and a unit, That's the third-party both. most that really best the in that our out again to content, in home. back monetize interaction, across lean it's an going engaging variety going we I main could then of That's of continue way and growing we way they home long-form not you to amount service they're as to only a and but services Look, going with screen, hopefully, be the right? XX-inch mean to build to opportunity use of an apps If engaged

a use TV to cases span the a headroom, becomes lot frequently, various across the sizes. unit monitor. over of can time, it it's maybe not that used as A maybe Contrasting it's different smaller where, in a

It the because on expand drive and fleet. inform we we understand it's an that understand active We -- helps as and how relationships data retail decisions particular TV us monetization. how many opportunity so and value. in the more about And our really a understand having on ultimately, to around long lifetime really pricing, more stays

James Goss

you a do VIZIO treat them multiple households? get effect you you have if Or Do separately? combined TV

Unknown Executive

reported our into metric, device And all blended It's really gets right? it statistics. average so

basis other up will So a a XX-inch if them a the household is differently, a that our XX-inch show in and room they in room, statistics. on reporting overall and use in blended X

James Goss

other And branded to that. you're talk if importance studio, could the have you that. is one planning do quick about one wonder your content you thing what slides I the addresses of of VIZIO it, with Okay. potential

Michael O'Donnell

Yes, Jim, it's Mike. I'll that. take

that into household in be the custom whether fleet new which as done It's looking a expand platform, branded home And video or certain content. from beyond always persist, and home beyond in can ways promotion that a been which collections sponsorships our connect. content of screen at entertainment. within a media have base we a well of be curated bring of as lot advertiser we've good we've or So screen monetize of we can think I advertisers we channels or job, our them with really whether

a been for our addition studio content branded has us offering. So great advertising to

our Our for branded helps initiative that's consumers like tastes. TV with understand what their content so content data pair produced us us watch, to advertisers the helps

the it but itself. provide content turn TV brought called also exclusive it's QR installment. you as only to decorating because directly It's because the codes. see past Home as for the into studio & the they think content. branded branding Sparks brought great think will latest see we well Depot. a With rolled Jordan Depot, our advertiser integrated and have by screen with the Home home into content, holiday It's this our we our not great users guaranteed them, gives so original you for I show are Bright, just week, integrations they great are it out to We consumers Merry when content on, is

we're experience the well. is all content when to an partnerships. So we're making economic then by original from tie together it shoppable covered all create this able a that standpoint, as And you investment the in

to the partners with screen. a our way it's non-media grow into integrated to think we relationships entertainment and home So continue great

James Goss

much. Thanks

Unknown Executive

a Have joining. for everyone, thanks, evening. and call. Jim, This concludes great today's Thanks,

Vizio Holding (VZIO) 9 Nov 232023 Q3 Earnings call transcript