VIZIO is in the early growth phase to expand its user base. The connected TV ad spending is still on the rise at a high rate.
Management's guidance suggests a more competitive environment in Q12023 as it indicated further gross margin compression in the platform+ segment.
The company does not have a strong market position, and the potential upside return of VZIO stock is not high enough to offset the downside risk from the competition.

An expanded deal means that Crackle and Redbox's ad-supported streaming services will be directly accessible through the remote buttons in the second half of 2023. Those services are currently distributed through more than 140 touchpoints on platforms including Amazon Fire TV, Roku, Apple TV, game consoles, iOS/Android devices and smart TV brands including Samsung, LG and Vizio.

This has allowed more brands and agencies to include NCM in their media plans as performance oriented KPIs are now a must have for all media buyers. We recently further strengthened our analytical capabilities to a new partnership with iSpot the real-time TV management company extending the value and capabilities of NCMX. Our iSpot integration expands the opportunities for our brand clients to plan, buy, and optimize video investments holistically.

Cinema advertising is one of the few mediums able to engage and connect with a young diverse audience at a national scale. But now the iSpot partnerships enables us to prove how cinema advertising extends the reach for buys across CTV, broadcast and cable.

Vizio has seen a 50% fall in its share price since its offering nearly one and a half years ago. Continued growth in higher margin platform revenues was offset by increasing operating losses, resulting in a wild reversal on the bottom line.

Vizio (NYSE:VZIO) stock gained 11% premarket on Thursday after the firm posted strong Q2 results driven by higher revenue from its advertising platform and issued upbeat Q3 outlook.

VZIO reported Q2 EPS of $0.01 vs. -$0.08 in Q2 2021.

Vizio press release (NYSE:VZIO): Q2 GAAP EPS of $0.01(vs. -$0.08 Y/Y) beats by $0.03.

Revenue of $408.9M (+1.9% Y/Y) beats by $1.73M.
For Q3, the following guidance was provided - Platform+ Net Revenue: $120M - $125M, Platform+ Gross Profit: $75M - $78M, Adjusted EBITDA: $8M - $13M.

“Okay. So that sets up the B part of my question better, which is we held a measurement conference, as you guys know. And iSpot.tv came out and said they're doing $100 million in verification for CTV measurement. So my question is, are you guys getting outflanked in the connected television business by a private guy who's got exclusives on LG's CTV data, plus he's got VIZIO data? So can you talk about your competitive position going forward in CTV, please?”

Vizio stock (NYSE:VZIO) has jumped 3.2% off a report that Comcast (CMCSA) has been eyeing an acquisition of the consumer electronics maker as it considers getting further into building its own smart televisions.