Vizio reported a second quarter loss as smart-TV shipments fell but streaming on its SmartCast platform increased.
The net loss of $14 million, or 8 cents a share, compares to $17.3 million, or 9 cents a share, in net income a year ago.
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Revenue rose 2% to $401.2 million.
Vizio went public in March.
Gross profit from device sales fell 20% to 32.1 million as shipments dropped 31% to 1.1 million from 1.6 million a year ago.
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Meanwhile, gross profit from Vizio’s Platform Plus businesses, including streaming and data, rose 167% to $47.5 million.
Vizio said SmartCast active accounts rose 43% to 14 million. SmartCast hours rose 22% to 3.505 billion. SmartCast ARPU jumped 90% to $16.76.
For the third quarter, Vizio expects Platform Plus net revenue of $76 million to $82 million and gross profit of between $55 million and $60 million.
“We continue to invest heavily in our talent, adding nearly 200 jobs throughout the company in the first half of 2021 as we ramp up our numerous CTV initiatives," said William Wang, CEO of Vizio. “With our Platform Plus business continuing its rapid growth trajectory, supported by our ongoing investments in our software and hardware integration, we are excited about the path we are on during a transformative time in the media and entertainment industry.”
Streaming companies including Netflix and Roku have seen growth slow, raising questions about the business among investors, noted analyst Steven Cahall of Wells Fargo.
“Vizio continues to reinvest in its SmartCast platform, with plans to roll out a managed payment platform later this year, along with the continued expansion of its dynamic ad insertion initiative. While small opportunities at present, these are expected to grow over time and contribute to overall SmartCast monetization,” Cahall said.
