The frozen shares of smart TV company Vizio rose after the company posted better-than-expected first-quarter earnings.
The quarterly loss was 6 cents according to the Wall Street Consensus forecast and compares with a 2 cent gain in the previous quarter. Revenue of $ 485.5 million was down 4% from $ 505.7 million, but still far exceeded the expected expectation of $ 453.7 million.
Vizio shares, which lost more than half of their value after the company’s initial public offering, rose nearly 9% just hours later. They ended the normal trading day at $ 7.57, which was more than 1% increase in above-average trading volume.
As North America’s second largest smart TV manufacturer, Vizio has gone beyond technology in recent years and has become a major streaming gateway.
Platform +, a unit that includes advertising and user data, reported revenues up 97% to $ 102.6 million.
SmartCast, the company’s streaming hub, reached 15.6 million active accounts at the end of the quarter, up 16% from the previous year, with watch hours up 14% to 4.1 billion .
While Vizio, like its peers, has struggled in the supply chain, quarterly numbers show signs of improvement, with TV shipments up 23% from the comparable quarter of 2019 until a coronavirus pandemic.
“Our dual-revenue model allows us to invest in our award-winning consumer products while delivering a steady increase in advertising revenue,” said CEO William Wang.
SmartCast’s average revenue per customer increased 64% to $ 23.68.
The company expects platform + revenue to remain stable at current levels in the second quarter and will range between $ 107 million and $ 111 million.
Source: Deadline
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