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TV Giant Vizio Turns to Streaming to Boost Revenue as Company Goes Public

Vizio Goes Public: A Closer Look at the Company's Future

Vizio, a well-known company for its smart TVs and sound bars, has gone public and is selling investors on a plan for the future. The company has priced its IPO at $21 a share and is trading under the ticker symbol VZIO on the New York Stock Exchange.

Why Vizio chose to go public:

Vizio CFO, Adam Townsend, stated that the company has a long history in the device business around TVs and sound bars, and is now moving into the media space where they are becoming an advertising and platform-driven business. The company is bringing an integrated software platform onto their TVs to allow consumers to access the content they want across subscription video services, AVOD services, and even free channels. The IPO structure was the right one for the company, as it fit their needs, their founder's expectations, and allowed them to get out on the road to talk to investors directly.

Vizio's strategy:

The company's strategy has changed as more people are cord-cutting and gravitating towards streaming. Vizio is now moving towards a dual revenue structure where they make money not only when someone buys a TV but also when they use the TV. They are making revenue by partnering with advertisers to bring effective and relevant ads to the platform and reach those viewers who are getting harder and harder to reach as they come out of the traditional linear world. The company's gross margin on their platform business is around 70%, which is vastly different from what you might think from a consumer electronics part of the business. Vizio sees television advertising as a big part of their future as more viewers use streaming apps.

Vizio's integrated software:

The integrated software in Vizio's device itself helps inform the company about what consumers want to watch, so they can source content for them. Addressable advertising, targeted advertising, is the future of where this is going, and Vizio can partner with ad agencies and brands directly to bring those addressable ads onto the platform. The way that media companies are distributing their content is also changing dramatically, and Vizio sees the smart TV as the pathway into the home.

Vizio's hardware:

Vizio works incredibly closely with their suppliers, and they partner with the largest manufacturers in the television space in the world, which allows them to have a more consistent supply chain. The company looks at it from a risk management standpoint and wants to make sure that they continue to have supply to meet consumer demand.

Vizio's SmartCast operating system:

The SmartCast OS is the face of Vizio's streaming experience, and it's offering an integrated experience that's all in one place. Consumers don't need to plug something in, have more cables hanging off their TV, or have an extra remote control. It's embedded in the television for that seamless experience, and all the content is on the platform right when you want to get to it. Smart TV growth is accelerating, and Vizio sees consumers moving towards their platform for a great experience.

Vizio's move towards a dual revenue structure and their integrated software platform is setting them up for success as the world moves towards streaming. The company's gross margin on their platform business is impressive, and their SmartCast OS is offering an integrated experience that's all in one place. Vizio's IPO is a great opportunity for investors to get in on the ground floor of a company that's set to do big things in the world of streaming.

Beachfront Readies Addressable Ad Delivery With Successful Test of Vizio's OAR Standard

The article discusses the Open Addressable Ready (OAR) consortium and its mission to establish open standards for addressable TV advertising. Beachfront, a company involved with OAR, has created a part of the stack that allows programmers, TV networks, and broadcasters to execute both national and local addressable ad campaigns that meet the OAR specs. The article explores how addressable TV is evolving and the possibilities it offers.

Development:

- Beachfront has been able to deliver addressable TV advertising across local and national inventory.

- The SASSO model is currently used for creative versioning and optimization of national campaigns.

- The multiple advertiser slot optimization is the future of addressable TV advertising, enabling higher revenue and better yields.

- The Beachfront Unified Decisioning Engine is a solution that enables addressable TV ad transactions at the local and national level.

- Beachfront is one of the last pureplay CTV and TV-focused sell-side technology platforms that covers all TV screens.

- The convergence of legacy TV and connected TV is the future, and Beachfront is focused on developing technologies to fix issues in connected TV.

Addressable TV advertising is the future, and the OAR consortium and Beachfront are leading the way in establishing open standards and developing technologies to optimize TV advertising. The future is about converting legacy TV to programmatic, and the convergence of legacy TV and connected TV is where the focus should be. Beachfront's technologies are enabling addressable TV ad transactions, fixing problems in connected TV, and making TV more like CTV and CTV more like TV.

Vizio TVs Updated For OAR Ads: Inscape's McAfee

Vizio debuts live demos at CES for dynamic ad insertion and addressable TV with six members showcasing live feeds and four canned feeds from other members. The primary execution was creative versioning, replacing ads for different models of products. The measurement spec for addressable was also released, and integration work with freewheels and ER and Google was completed with a firmware push to Vizio TVs starting in mid-February. The goal is to have roughly 10 million TVs with functional television by April. Advertisers have shown interest in being part of the beta and testing period. Other OEMs may join once meaningful inventory is running through the system with advertisers participating.

Can Vizio double its share price.

In this article, we will be discussing Vizio, a recently public company that is known for its high-quality products, such as sound bars and OLED TVs. We will also be exploring the company's business model, which appears to be similar to that of Roku, a leading streaming service that has become a natural replacement for cable.

Roku:

- Roku is currently the measuring stick for streaming services and is looking to replace the cable business.

- The company has doubled or tripled its active account base, which is currently at 51.2 million.

- Roku's US active account base is now more than twice the number of US video subscribers of the biggest cable company, Comcast.

- Roku's growth is accelerating, and the company's total net revenue and gross profit are up over 50% year over year.

- Roku's operating system comes pre-installed on a television set, which has opened up a new revenue stream for the company through advertising.

Vizio:

- Vizio's revenue growth is decent, going from $1.7 billion to $2 billion from 2018 to 2020.

- Net income has increased from negative to $102 million from 2018 to 2020.

- Earnings per share have also grown from negative to $0.58 to $0.55.

- Vizio has a similar business model to Roku, partnering with prominent TV manufacturers to pre-install their operating system on TVs.

- The company is trying to copy Roku's business model, and if successful, it could be a good investment opportunity.

While Roku is currently the leader in streaming services, Vizio has the potential to become a close second if it can successfully implement its business model. With its decent revenue growth and increasing net income, Vizio could be a good investment opportunity for those looking to invest in the streaming industry. However, it is essential to consider the company's valuation and other factors before making any investment decisions.

VIZIO TV IPO - $VZIO $2 Billion in 2020 Revenue and Making Money - Under $20 EP 110

Welcome back everyone to Arlo Knows IPOs and SPACs! Today we're going to be discussing the upcoming Vizio IPO. But before we get started, make sure you smash that like button and hit subscribe if you're into IPOs and SPACs. We'll be covering way more IPOs and SPACs this upcoming week, but first, a disclaimer: I'm not an investment broker, investment firm, or financial advisor. Please invest at your own risk. This video is for entertainment purposes only. I'm only an average Joe, or an average Arlo. Happy investing!

The Vizio IPO is set to launch on March 25th, 2021. Let's take a look at the price point valuation.

Price Point Valuation:

According to MarketWatch, the company is set to IPO between $21 and $23 a share. The company recorded net income of $103.2 million on revenue of $2.04 billion in 2020, after earnings of $23.2 million in revenue and $1.84 billion in 2019. The ticker symbol is set to be VZIO.

Financials:

Let's take a look at their S1 and their revenues for the past couple of years. Their net revenue for both their device and platform plus is $2 billion, and their gross profit is $296 million dollars in 2020. Overall, their net income is $102 million dollars, and comprehensive income total of $103 million dollars. They're definitely growing, and that's good with an IPO.

Evaluation Metrics:

Price to sales is 1.98 (about two times price of sales), earnings per share 55 cents, and their midpoint for their IPO is $22. Net free cash flow is $30 million dollars. Revenue growth rate is 11.2 percent.

Vizio's Revenue Streams:

Vizio is best known for bargain TVs, but wants investors to focus on its high-growth ads business instead. The company now sells over 7 million TVs a year and generates close to $2 billion in revenue from those devices. Vizio needs people to buy its TVs, even at a small profit margin, so it can make real money through its homegrown operation system, which is SmartCast. SmartCast provides access to most major streaming services, except for HBO Max, along with a host of free and paid channels. Vizio generates revenue from advertising on its home screen and within some free content. It gets a cut of subscription sales to Netflix and other services when people sign up on their SmartCast TVs. SmartCast accounts jumped 61 percent last year to 12.2 million users.

With their sales of over 7 million TVs a year and $2 billion in revenue for just those TV devices, Vizio is a pretty good buy. With a focus on SmartCast and its 12.2 million subscribers, along with other revenue streams like subscription sales to Netflix and other apps and services, Vizio is making smart moves. While it's possible the IPO may pop, I'm planning on buying a few shares. What do you think about the Vizio IPO? Are you planning to buy, or hold off for a bit? Let me know in the comments below!

'We Have Opportunity to Drive Addressability Forward': Vizio's Adam Gaynor

Adam Goldberg has joined Vizio to lead the addressable business project and move it from a project status to a profitable business for both Vizio and its partners. His role also involves handling network partnerships and streamlining conversations with partners to leverage Vizio's assets and move businesses forward.

Addressability and its benefits:

Addressability has been talked about for a while, and with set-top boxes, smart TV glasses, and internet-connected devices, networks have the opportunity to offer new products, leverage all types of inventory, and reach intended audiences. Brands can buy television with the same metrics they are used to getting online, and television can drive ROI metrics as well.

Roadmap for growing the consortium:

Success for the consortium would mean networks taking steps forward, with live trials progressing to a profitable business. The goal is to drive the business forward and ensure addressability continues to grow for Vizio and its partners. The consortium is not meant to be limited to Vizio but to allow other OEMs and devices to adhere to the standards and grow the scale.

Footprint of available screens:

Project ore was built on two founding principles of flexibility and scale. The standards created allow for flexibility, while the goal is to grow the scale of available screens that can adhere to those standards. The consortium is made up of members, and Adam's job is to work with each member to grow their opportunity within the consortium and help grow the scale for all.