VIZIO Holding Corp. (NYSE:VZIO) Q2 2023 Earnings Conference Call August 8, 2023 4:30 PM ET

Company Participants

Michael Marks - Director, Investor Relations

William Wang - Founder and Chief Executive Officer

Adam Townsend - Chief Financial Officer

Michael O’Donnell - Chief Revenue and Strategic Growth Officer

Conference Call Participants

Laura Martin - Needham

Cameron McVeigh - Morgan Stanley

Jason Kreyer - Craig-Hallum

Michael Morris - Guggenheim

Steven Cahall - Wells Fargo

Nick Zangler - Stephens

Ruplu Bhattacharya - Bank of America

Vasily Karasyov - Cannonball Research

Scott Searle - ROTH

Michael Marks

Good afternoon, and welcome to VIZIO’s Q2 ‘23 Earnings Call. I’m Michael Marks, Director of Investor Relations. Joining me for today’s discussion are William Wang, our Founder and CEO; and Adam Townsend, our CFO. Also joining us for the Q&A portion of today’s call is Michael O’Donnell, our Chief Revenue and Strategic Growth Officer. Please note that in addition to our earnings release and today’s remarks, a slide presentation can be found on our Investor Relations website at investors.vizio.com.

I’ll refer you to the third slide in the presentation and remind you that certain statements made on this call, including certain statements about our expected third quarter results, advertising relationships and partners, product rollouts and functionality and future customer demand for our products are forward-looking statements that involve risks and uncertainties. These risks and uncertainties that could cause actual results to differ materially from these forward-looking statements are discussed in more detail in our filings with the SEC and our press release that was issued this afternoon. We undertake no obligation to revise any statements to reflect changes that occur after this call, except as required by law.

During the call, we also refer to non-GAAP financial measures, including adjusted EBITDA and certain operational and financial metrics. Reconciliations to the most comparable GAAP measures for non-GAAP financial information discussed on this call as well as further information related to guidance, definitions and metrics can be found in our earnings release, which is on the Investors section of our website. Note that all quarterly comparisons in today’s remarks will be made on a year-over-year basis and all metrics reported on today’s call will be for Q2 ‘23 or as of the end of Q2 ‘23 as applicable, unless otherwise specified.

Now I will turn the call over to William.

William Wang

Thank you, Michael, and hello, everyone. Thank you for joining us today. Our Q2 results once again validate the power of our integrated hardware and software business model. Our products and services continue to resonate with consumers, content partners and advertisers alike. During the quarter, VIZIO has 4 of the best on in TV units in the U.S. market. And our sound bars continue to draw great acclaim on reviewers for their value and performance. In fact, RTINGS.com recently said VIZIO had 2 out of the 5 best sound bars under $500. Unlike the challenges many are facing in the advertising marketplace, our ad business is firing on all cylinders and our team delivered 35% growth in revenue during the quarter. This is even on the back of a 24% increase results in Q1. Through our growing presence with ad agencies, brands and content services, we are creating demand for CTV and continue to gain share within the fastest-growing part of the advertising marketplace.