Vizio reported lower earnings in the second quarter as gains at its Platform Plus business were offset by lower sales of smart TVs and other devices.
Second-quarter net income dipped to $1.9 million, or 1 cent a share, from $2.3 million, or 1 cent a share, a year ago.
Adjusted earnings before interest, taxes, depreciation and amortization rose 59% to $18.1 million, the company said.
Revenue fell 4% to $394 million.
Vizio’s Platform Plus business, which includes advertising and data, posted a 23% increase in gross profit, as revenue increased 28% to 142.3 million.
SmartCast active accounts were up 10% to 17.6 million. Viewers watched 8.852 million hours on Vizio sets, up 9%, and 4.962 million hours of programming through Smartcast.
Profits for Vizio’s device business fell 93% to $300,000 as revenue dropped 15% to $252.1 million.
Smart TV shipments were down 11% to 1 million in the quarter.
For the third quarter, Vizio expects adjusted EBITDA to be between $10 million and $15 million. Platform Plus net revenue is forecast to be in the $153 million to $157 million range, with Platform Plus gross profit of $93 million to $96 million.
“Our Q2 results once again validate the power of our integrated hardware and software business model,” said CEO William Wang.
“Unlike the challenges many are facing in the advertising marketplace, our business is firing on all cylinders, and our team delivered 35% growth in ad revenue during the quarter. In addition, our key measure of platform monetization, APRU, surpassed $30,” Wang said. “We’ve come a long way in a very short time frame, and I could not be prouder of our team’s exceptional performance.”
