smart tv firm VizioThe troubled stock rose in after-hours trading after the company posted better-than-expected revenue in the first quarter.
The loss of 6 cents per share in the quarter was a penny below Wall Street’s consensus forecast and compared to a gain of 2 cents in the year-ago quarter. Revenue of $485.5 million fell 4% from $505.7 million, but still came in well ahead of estimates of $453.7 million.
Shares of Vizio, which has lost more than half of its value since the company’s initial public offering, rose nearly 9% after hours, slightly more than a year ago. They closed the regular trading day at $7.57, which was over 1% on average trading volume.
2 maker of smart-TVs in North America, Vizio has expanded beyond hardware in recent years to become a significant gateway to streaming.
Platform+, the entity that incorporates advertising and user data, posted a 97% jump in revenue to $102.6 million.
Smartcast, the company’s streaming hub, reached 15.6 million active accounts by the end of the quarter, up 16% year-over-year, with viewing hours up 14% to 4.1 billion.
While Vizio has faced supply chain issues like its peers, quarterly numbers show signs of improvement, with TV shipments up 23% in the comparable quarter of 2019 before the coronavirus pandemic.
CEO William Wang said, “Our dual revenue model gives us the opportunity to invest in our award-winning consumer products, while also continuing to drive ad revenue growth.”
Smartcast’s average revenue per user rose 64% to $23.68.
The company expects Platform+ revenue to remain stable with current levels in the second quarter, coming in between $107 million and $111 million.