Smart-TV maker Vizio, which reported higher third-quarter profits, said it would start talking to other TV set makers about ways to take advantage of connected TV growth.
“At Vizio, we continue to invest in delivering the best possible experience for our users and partners alike,” Vizio CEO William Wang said. ”Over the past few years, we have been continuously retooling and enhancing our operating system to unlock further growth opportunities.”
The company’s Platform Plus business — advertising and data — posted big increases in revenue, revenue per user and gross profit.
“Today, we are excited to announce that we are beginning to explore partnerships with other TV OEMs looking for alternatives within the CTV market,“ Wang said. “Our deep expertise with integrated hardware and software provides a distinct potential for mutually beneficial outcomes for Vizio and future partners.”
By licensing its WatchFree Plus operating system to other set makers, Vizio would be able to expand its total addressable market and create an advertising product with more scale that would attract more marketers.
The big gains in its platforms segment pushed net income to $13.8 million, or 7 cents a share, in the quarter, up from $2 million, or 1 cent a share, a year ago.
Revenue fell 2% to $426.2 million.
Vizio’s Platform Plus business grew gross profits by 20% to $99.8 million. Revenue rose 22% to $156.2 million, with ad sales up 27%.
Active SmartCast accounts rose 8% to 17.9%, SmartCast hours increased 21% and total Vizio hours rose 10%.
SmartCast average revenue per unit (ARPU) rose 14% to $31.55. The increase in SmartCast revenue raises the lifetime value of set owners to Vizio and justifies the company's negative profit margin in selling TVs.
Vizio’s device business lost $3 million, compared to a gross profit of $1.2 million a year ago. Revenue fell 12% to $270 million as smart TV shipments dropped 8% to 1.1 million.
