Vizio Reports Mixed Q3 Results Amid Challenging Market Conditions, Platform+ Segment Drives Growth

Vizio Holding Corp. reported its financial results for the third quarter and the first nine months of 2024, highlighting a mixed performance amid challenging market conditions. For the three months ended September 30, 2024, the company achieved net revenue of $444.7 million, a 4% increase from $426.2 million in the same period of 2023. However, for the nine months ended September 30, 2024, net revenue rose to $1,235.9 million, up 5% from $1,177.3 million year-over-year.

The company's gross profit for the third quarter was $109.1 million, reflecting a 13% increase from $96.5 million in the prior year. For the nine-month period, gross profit reached $289.6 million, compared to $258.1 million in 2023. Despite these gains, Vizio's net income for the third quarter fell to $0.5 million, down from $13.8 million in the same quarter of 2023. The nine-month results showed a net loss of $11.4 million, contrasting with a net income of $15.0 million in the previous year.

A significant factor in Vizio's performance was the decline in its Device segment, which saw a decrease in net revenue of $22.3 million (8%) for the third quarter and $43.5 million (6%) for the nine months, primarily due to lower shipments of Smart TVs and sound bars. Conversely, the Platform+ segment experienced robust growth, with net revenue increasing by 26% to $198.5 million in the third quarter and by 24% to $525.5 million for the nine months.

Operating expenses surged, with total operating expenses for the third quarter rising to $114.7 million from $83.8 million in the same period last year, driven by higher personnel costs and acquisition-related expenses. For the nine months, operating expenses totaled $322.0 million, up from $242.3 million in 2023.

Vizio's balance sheet showed total assets of $988.9 million as of September 30, 2024, an increase from $960.7 million at the end of 2023. Cash and cash equivalents slightly increased to $224.5 million, while inventories rose significantly to $49.1 million from $6.8 million at the end of 2023.

Strategically, Vizio is navigating a pending merger with Walmart, announced on February 19, 2024, which is expected to close by February 19, 2025. The merger will see Vizio become a wholly owned subsidiary of Walmart, with each share of Vizio's common stock converting to $11.50 in cash. The merger is subject to regulatory approvals and has already faced scrutiny from the FTC, which issued a Second Request for additional information.

Overall, Vizio's performance reflects a complex landscape of growth in its Platform+ segment, challenges in its Device business, and strategic maneuvers in light of the upcoming merger with Walmart.