Vizio Holding Corp (VZIO) 2022 Q2 法說會逐字稿

Good afternoon, and welcome to VIZIO's Q2 2022 Earnings Call. I'm Michael Marks, Director of Investor Relations.

下午好，歡迎參加 VIZIO 的 2022 年第二季度財報電話會議。我是投資者關係總監 Michael Marks。

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.

和我一起參加今天討論的還有我們的創始人兼首席執行官 William Wang；和我們的首席財務官 Adam Townsend。我們的首席收入和戰略增長官 Michael O'Donnell 也加入了我們今天電話會議的問答部分。

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 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.

請注意，除了我們的收益發布和今天的評論之外，還可以在我們的投資者關係網站上找到幻燈片演示文稿，網址為investors.vizio.com。我將向您介紹演示文稿中的第三張幻燈片，並提醒您本次電話會議上的某些陳述是涉及風險和不確定性的前瞻性陳述。這些可能導致實際結果與這些前瞻性陳述存在重大差異的風險和不確定性在我們提交給美國證券交易委員會的文件和我們今天下午發布的新聞稿中進行了更詳細的討論。除法律要求外，我們不承擔修改任何聲明以反映本次電話會議後發生的變化的義務。

During the call, we'll also refer to non-GAAP financial measures, including adjusted EBITDA. Reconciliations with the most comparable GAAP measures for non-GAAP financial information discussed on this call can be found in our earnings release or 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 unless otherwise specified.

在電話會議期間，我們還將參考非公認會計準則財務指標，包括調整後的 EBITDA。在本次電話會議上討論的非 GAAP 財務信息與最具可比性的 GAAP 措施的對賬可以在我們的收益發布或我們網站的“投資者”部分找到。請注意，除非另有說明，否則今天評論中的所有季度比較都將按年進行。

Now I will turn the call over to William.

現在我將把電話轉給威廉。

Thank you, Michael, and hello, everyone. Thank you for joining us today. VIZIO has always been focused on great design, great user experiences, but just as importantly, a culture of discipline and efficiency. This focus serves us well, particularly in environments that we're in now, which is filled with uncertainty and challenges. I'm very proud of our strong and seasoned management team that has endured many business cycles over our 20-year history and proven to be resilient.

謝謝你，邁克爾，大家好。感謝您今天加入我們。 VIZIO 一直專注於出色的設計、出色的用戶體驗，但同樣重要的是，一種紀律和效率的文化。這種關注對我們很有幫助，尤其是在我們現在所處的環境中，它充滿了不確定性和挑戰。我為我們強大且經驗豐富的管理團隊感到非常自豪，他們在我們 20 年的歷史中經歷了許多商業周期，並被證明具有韌性。

Our second quarter results show the power of our leadership team and the success of the dual revenue model we've built. Despite broader marketplace pressures, our total revenue grew by 2% to $409 million, led by our platform business, which grew 69% to a record $111 million. We continue to focus on delivering exceptional value to consumers, which comes through a combination of great technology, features and ease of use, all at affordable prices. We continue to deliver great products at superior value because of our deep focus on disciplined and operational efficiency.

我們第二季度的業績顯示了我們領導團隊的力量以及我們建立的雙重收入模式的成功。儘管面臨更廣泛的市場壓力，我們的總收入增長了 2%，達到 4.09 億美元，其中我們的平台業務增長了 69%，達到創紀錄的 1.11 億美元。我們將繼續專注於為消費者提供卓越的價值，這通過以可承受的價格結合出色的技術、功能和易用性來實現。由於我們對紀律和運營效率的高度關注，我們將繼續以卓越的價值提供卓越的產品。

I'm also proud of the fact that we continue to maintain a strong and highly liquid balance sheet with no debt and significant flexibilities. Last quarter, we announced some strategic pricing moves around selected SKUs, like our 50-inch V-Series model. That TV quickly became the number one selling TV in the country at that time and it continues to be in the second quarter as well.

我還為我們繼續保持強勁且流動性強的資產負債表而感到自豪，沒有債務和顯著的靈活性。上個季度，我們圍繞選定的 SKU 宣布了一些戰略定價舉措，例如我們的 50 英寸 V 系列機型。那台電視迅速成為當時該國銷量第一的電視，並且在第二季度也繼續保持這種勢頭。

Building on this momentum, we expanded our competitive pricing strategy to include additional highly performing SKUs, such as our 40-inch D-Series model, and that TV became the #2 selling TV in the country. So during the second quarter, VIZIO had the #1 and #2 best-selling TVs in the market, which helped propel us into the #2 market share position in the US for the quarter, an outstanding achievement in a tough market.

在這一勢頭的基礎上，我們擴大了具有競爭力的定價策略，將其他高性能 SKU 納入其中，例如我們的 40 英寸 D 系列型號，該電視成為該國銷量第二的電視。因此，在第二季度，VIZIO 擁有市場上銷量第一和第二的電視，這有助於推動我們在本季度在美國市場份額排名第二，這是在艱難的市場中取得的傑出成就。

Looking ahead, our new collection of TVs and sound bars just started to hit stores last month and the feedback has been tremendous. Many of our new TV models include Wi-Fi 6 compatibility and are updated and more responsive operating system and our VIZIO VOICE remote with support for Bluetooth headphones. On the audio side, our new M-Series, Elevate and all-in-one sound bars pack the series punch at a compelling price. Our technology and design enhancements continue to make the living room experience even more enjoyable and we are already receiving accolades from publications like Newsweek, tech reviewers, touting the performance and value of our new lineup.

展望未來，我們新的電視和條形音箱系列上個月剛剛開始上市，反饋非常好。我們的許多新電視型號都兼容 Wi-Fi 6，並更新了響應速度更快的操作系統和支持藍牙耳機的 VIZIO VOICE 遙控器。在音頻方面，我們全新的 M 系列、Elevate 和一體式條形音箱以極具吸引力的價格包裝了該系列的衝擊力。我們的技術和設計改進繼續使客廳體驗更加愉快，我們已經獲得了新聞周刊、技術評論家等出版物的讚譽，他們吹捧我們新產品陣容的性能和價值。

Turning to our Platform+ business. We continue to build on our integrated offerings by bringing more content and enhance viewing experiences to our users. We recently announced that TikTok, one of the fastest growing entertainment platforms joined VIZIO. Now you can enjoin your favorite dance video on a much larger screen. We also expanded our standard language content offering this quarter with a new S partnership with Estrella Media and broadened our content offering across a range of categories, including kids, lifestyle, content, reality TV, and talk shows. In addition to all of the great built-in third-party apps we offer, our own app, Watchfree+, continues to deliver a strong growth. The growth we are seeing in Watchfree+ showcases users increasing move to free ad-supported content, as well as the power of our screen promotion capabilities. Once again this quarter, Watchfree+ was the second most watched ad-supported app on our platform.

轉向我們的平台+業務。我們繼續通過為用戶帶來更多內容和增強觀看體驗來構建我們的集成產品。我們最近宣布，增長最快的娛樂平台之一 TikTok 加入了 VIZIO。現在，您可以在更大的屏幕上播放您最喜愛的舞蹈視頻。本季度，我們還通過與 Estrella Media 建立新的 S 合作夥伴關係擴展了我們的標準語言內容產品，並將我們的內容產品擴展到一系列類別，包括兒童、生活方式、內容、真人秀和脫口秀節目。除了我們提供的所有出色的內置第三方應用程序外，我們自己的應用程序 Watchfree+ 繼續實現強勁增長。我們在 Watchfree+ 中看到的增長表明用戶越來越多地轉向免費廣告支持的內容，以及我們屏幕推廣功能的力量。本季度，Watchfree+ 再次成為我們平台上觀看次數第二多的廣告支持應用。

During the quarter, we expanded the Watchfree+ content with a (inaudible) of Vevo music channels, the Jamie Oliver Channel, LOL Network and many more. We also expanded our Watchfree+ on-demand library with titles from Disney, Sony and Warner Brothers. We have created a content offering that truly has something for everyone, from gamers to kids and families, for multicultural audiences, sports fans, many more. This quarter, we grew up our SmartCast active account base to over 16 million, up 13% over this time last year.

在本季度，我們通過 Vevo 音樂頻道、Jamie Oliver 頻道、LOL 網絡等（聽不清）擴展了 Watchfree+ 內容。我們還擴展了我們的 Watchfree+ 點播庫，其中包含迪士尼、索尼和華納兄弟的作品。我們創建了一個真正適合每個人的內容產品，從遊戲玩家到兒童和家庭，為多元文化的觀眾、體育迷等等。本季度，我們的 SmartCast 活躍賬戶基礎增加到超過 1600 萬，比去年同期增長 13%。

Through the strong engagement on our platform, SmartCast hours, where users spend their time streaming, grew 22%. We're seeing streaming once again outpaced all other time spent on our TVs. To align ourselves with the [scores] in streaming, particularly in ad-supported content, we have continued to invest in building up our ad sales team. That investment has led to greater growth and coverage across ad categories, as well as growth across new advertiser market segments.

通過我們平台上的強大參與度，用戶在流媒體上花費時間的 SmartCast 小時數增長了 22%。我們看到流媒體再次超過了我們在電視上花費的所有其他時間。為了與流媒體領域的[分數]保持一致，特別是在廣告支持的內容方面，我們繼續投資建立我們的廣告銷售團隊。這項投資帶來了廣告類別的更大增長和覆蓋率，以及新廣告客戶細分市場的增長。

In a mere 2 years, we have successfully developed repeat customers with largest ad agency and big brands like Apple, Disney, Progressive, Microsoft and Pfizer. Our advertising business is growing rapidly, up 71% in the second quarter, thanks to growth in large add categories, such as financial services, retail and CPG. And across those categories, we have continued to develop new relationships FanDuel, Georgia-Pacific, HP, Little Caesars, Lowe's, and Nationwide, to name a few. Within the media entertainment category, our content partners and advertisers frequently tell us we had the best platform for search and discovery in CTV. And we have to agree.

在短短 2 年的時間裡，我們已經成功地與最大的廣告代理商和大品牌如 Apple、Disney、Progressive、Microsoft 和 Pfizer 開發了回頭客。我們的廣告業務增長迅速，第二季度增長了 71%，這得益於金融服務、零售和 CPG 等大型附加類別的增長。在這些類別中，我們繼續發展新的合作關係 FanDuel、Georgia-Pacific、HP、Little Caesars、Lowe's 和 Nationwide 等等。在媒體娛樂類別中，我們的內容合作夥伴和廣告商經常告訴我們，我們擁有最好的 CTV 搜索和發現平台。我們必須同意。

Every day millions of consumers turn on their VIZIO and experienced the power of a home screen to learn about what's on, what's new and what's available. That's why the biggest studios and streaming services rely on our ad products to promote great content across our platform. As the streaming wars continue to intensify, VIZIO remains a powerful tool for our content partners to acquire and retain their valuable viewers. We also have a great opportunity to provide our users with a simple way to aggregate and manage their subscription services. And this quarter we'll launch VIZIO Account, our payment platform.

每天，數以百萬計的消費者打開他們的 VIZIO 並體驗主屏幕的強大功能，以了解正在播放的內容、新的內容和可用的內容。這就是為什麼最大的工作室和流媒體服務依賴我們的廣告產品在我們的平台上推廣優質內容的原因。隨著流媒體戰爭的不斷加劇，VIZIO 仍然是我們的內容合作夥伴獲取和留住有價值的觀眾的強大工具。我們也有很好的機會為我們的用戶提供一種簡單的方式來聚合和管理他們的訂閱服務。本季度我們將推出我們的支付平台 VIZIO Account。

Outside of our popular new collection, we're currently rolling out this capability across our existing fleet and the vast majority of our devices will have this capability by the end of August. We'll take some time to get all the major partners up and running. And we're excited to bring STARZ and Discovery Plus to our platform as early launching partners.

除了我們廣受歡迎的新系列之外，我們目前正在我們現有的機隊中推廣此功能，我們的絕大多數設備將在 8 月底之前具備此功能。我們需要一些時間讓所有主要合作夥伴啟動並運行。我們很高興將 STARZ 和 Discovery Plus 作為早期發布合作夥伴引入我們的平台。

We see VIZIO Account foundational layer needed to bring new interactions and commerce to our Smart TVs down the road. We are very encouraged by the early subscriber activation results for STARZ. More to come in the quarters ahead on VIZIO Account. So while our team continues to make great progress in our journey, I believe we're still in the very early innings of what a Smart TV can become. We remain focused on investing in the people, the software and the hardware to bring new possibilities to the larger screens in your home. As we always said, we will invest with discipline and the continued focus on efficiency.

我們看到未來需要為我們的智能電視帶來新的互動和商業的 VIZIO Account 基礎層。 STARZ 的早期訂戶激活結果讓我們深受鼓舞。 VIZIO 帳戶將在未來幾個季度推出更多內容。因此，儘管我們的團隊在我們的旅程中繼續取得巨大進展，但我相信我們仍處於智能電視的早期階段。我們仍然專注於對人員、軟件和硬件的投資，為您家中的大屏幕帶來新的可能性。正如我們一直說的那樣，我們將以紀律和持續關注效率進行投資。

As you can see from our second quarter results, the benefits of our dual revenue model are really paying off and providing us with a strong hand to play as we work to expand our monetization flywheel. For more SmartCast active accounts to more engagement, to more content and more advertisers, we are driving higher overall value from our growing installed base. I'm very excited for what the future holds for VIZIO. And with a strong and seasoned team leading us, there's still much more to come.

正如您從我們第二季度的業績中看到的那樣，我們的雙重收入模式的好處確實得到了回報，並在我們努力擴大貨幣化飛輪的過程中為我們提供了強有力的發揮。為了獲得更多 SmartCast 活躍帳戶以提高參與度、獲得更多內容和更多廣告商，我們正在從不斷增長的安裝基礎中推動更高的整體價值。我對 VIZIO 的未來感到非常興奮。有一支強大而經驗豐富的團隊帶領我們，還有更多的事情要做。

With that, I will now turn the call over to Adam to review our second quarter results in more detail.

有了這個，我現在將把電話轉給亞當，以更詳細地審查我們的第二季度業績。

Thanks, William. Before opening the call to questions, I'd like to take you through our quarterly financial highlights and discuss our outlook for Q3. Starting with the second quarter, total company revenue came in at $409 million, up 2%. Platform+ grew 69% to a quarterly record of $111 million and represented 27% of total company revenue in the quarter. The strong growth was driven by advertising revenue, which rose 71% to $81 million. We continue to expand our presence in the overall ad market. And despite some softness emerging in the macro environment, we believe we continue to be a share gainer within a securely growing part of the market.

謝謝，威廉。在開始提問之前，我想帶您了解我們的季度財務亮點並討論我們對第三季度的展望。從第二季度開始，公司總收入為 4.09 億美元，增長 2%。 Platform+ 增長 69%，達到季度創紀錄的 1.11 億美元，佔該季度公司總收入的 27%。廣告收入增長 71% 至 8100 萬美元，推動了強勁增長。我們繼續擴大在整個廣告市場的影響力。儘管宏觀環境出現了一些疲軟，但我們相信我們將繼續在市場穩定增長的部分中獲得份額。

To that point, we expanded our direct advertising client relationships during the quarter by 74% versus a year ago, adding more than 200 net new advertisers. Our growth in direct client relationships is key, as we saw repeat customers increase their spend by double-digit percentages. The sustained growth is coming from big brands and the largest ad categories, such as financial services, retail and CPG. Our advertiser relationships continue to expand and are built on trust and transparency. Brands recognize the value of direct-to-device as our own inventory and ACR data gives them on-screen validation and proof of campaign outcomes.

在這一點上，我們在本季度將我們的直接廣告客戶關係比一年前擴大了 74%，淨增加了 200 多個新廣告客戶。我們在直接客戶關係方面的增長是關鍵，因為我們看到回頭客以兩位數的百分比增加了他們的支出。持續增長來自大品牌和最大的廣告類別，如金融服務、零售和 CPG。我們的廣告客戶關係不斷擴大，建立在信任和透明度的基礎上。品牌認識到直接到設備作為我們自己的庫存的價值，ACR 數據為他們提供屏幕驗證和活動結果證明。

Speaking of data, Platform+ non-advertising revenue led by our data licensing grew 65% to $30 million versus the year ago period. This was the strongest year-over-year growth in 3 years, as we benefited from acceleration in data licensing revenue on the back of our previously announced deal with Nielsen, as well as strong pricing trends for brand placement on our remote control buttons. Today, our first-party data helps improve user experience while enhancing advertising campaign effectiveness through better planning and targeting capabilities. For these reasons, our data is also becoming the cornerstone of the CTV measurement market through some of our licensing partners such as iSpot, Comscore, VideoAmp, 605, TVSquared and Nielsen, who all rely on our data to fuel their ad currency products.

說到數據，由我們的數據許可帶來的 Platform+ 非廣告收入同比增長 65% 至 3000 萬美元。這是 3 年來最強勁的同比增長，因為我們受益於我們之前宣布的與尼爾森的交易帶來的數據許可收入的加速，以及我們遙控器按鈕上品牌定位的強勁定價趨勢。今天，我們的第一方數據有助於改善用戶體驗，同時通過更好的規劃和定位能力提高廣告活動的有效性。由於這些原因，我們的數據也通過我們的一些許可合作夥伴（例如 iSpot、Comscore、VideoAmp、605、TVSquared 和 Nielsen）成為 CTV 測量市場的基石，他們都依賴我們的數據來推動他們的廣告貨幣產品。

Turning to our device segment. Total revenue was $298 million, down 11%. Growth in TV unit shipments of 5% to $1.1 million was offset by lower average selling price driven by sales of our popular value SKUs and strategic pricing promotions deployed on certain models during the quarter. With this, our market share of Smart TV sales in the US improved to the #2 position for the quarter.

轉向我們的設備部分。總收入為 2.98 億美元，下降 11%。電視機出貨量增長 5% 至 110 萬美元，但被我們受歡迎的價值 SKU 的銷售和本季度在某些型號上部署的戰略定價促銷所推動的平均售價下降所抵消。有了這個，我們在美國的智能電視銷售市場份額提高到了本季度的第二位。

Turning now to gross profit. Total company gross profit was $74 million for the quarter. Platform+ gross profit was a record $70 million, up 47% year-over-year with a 63% margin. For the quarter, Platform+ gross profit represented 95% of the total. Device gross profit came in at $4 million with a 1.3% margin. Given the high contribution margin of our platform business, we remain focused on the strategy of building great products at competitive pricing to continue to deliver exceptional value to our consumers and expand our household installed base.

現在轉向毛利潤。本季度公司總毛利為 7400 萬美元。 Platform+ 毛利潤達到創紀錄的 7000 萬美元，同比增長 47%，利潤率為 63%。本季度，Platform+ 毛利潤佔總利潤的 95%。設備毛利潤為 400 萬美元，利潤率為 1.3%。鑑於我們平台業務的高利潤率，我們仍然專注於以具有競爭力的價格打造優質產品的戰略，以繼續為我們的消費者提供卓越的價值並擴大我們的家庭安裝基礎。

Total company adjusted EBITDA for the quarter was $11 million, well ahead of our expectations and down from $26 million a year ago. The improvement relative to our expectations was attributable to more managed growth in SG&A expenses, slightly lower marketing and stronger Platform+ gross profit. We continue to maintain a highly liquid balance sheet with no debt. Cash and equivalents ended the quarter at $336 million, which was up quarter-over-quarter.

本季度公司調整後的 EBITDA 總額為 1100 萬美元，遠超我們的預期，低於一年前的 2600 萬美元。相對於我們預期的改善歸因於 SG&A 費用的可控增長、營銷略低以及平台 + 毛利潤更強勁。我們繼續保持沒有債務的高流動性資產負債表。本季度末現金及等價物為 3.36 億美元，環比增長。

Now turning to our key performance metrics. Our Q2 results continue to highlight the growing success of our efforts to drive overall monetization across our platform. ARPU grew to a record $25.87, up 54% over the year ago period. Our platform monetization continues to benefit from strong demand from home screen ads or promotion placements.

現在轉向我們的關鍵績效指標。我們的第二季度業績繼續突顯出我們在推動整個平台整體貨幣化方面的努力取得了越來越大的成功。 ARPU 增長到創紀錄的 25.87 美元，比去年同期增長 54%。我們的平台貨幣化繼續受益於主屏幕廣告或促銷展示位置的強勁需求。

Growth in video advertising revenue, particularly within our Watchfree+ app, where growth in viewing hours again outpaced overall streaming growth across the platform. Total time spent streaming outpaced all other times spent by our users as measured by a 22% increase in SmartCast hours versus a 14% increase in total VIZIO hours. This growth also translated into a return to growth in SmartCast hours per SmartCast active account, which grew 6% as we have now lapped the sharp spike in streaming we saw due to the pandemic lockdown and subsequent content disruptions.

視頻廣告收入的增長，尤其是在我們的 Watchfree+ 應用中，觀看時長的增長再次超過了整個平台的整體流媒體增長。根據 SmartCast 小時數增加 22% 而 VIZIO 總小時數增加 14% 衡量，我們的用戶在流媒體上花費的總時間超過了所有其他時間。這種增長還轉化為每個 SmartCast 活躍賬戶的 SmartCast 小時數恢復增長，增長了 6%，因為我們現在已經經歷了由於大流行鎖定和隨後的內容中斷而導致的流媒體急劇增長。

Looking forward, we expect to see streaming return to share gains versus linear as viewing trends normalize. SmartCast active accounts grew 500,000 sequentially and 2.1 million year-over-year to a new record level of 16.1 million.

展望未來，隨著觀看趨勢的正常化，我們預計流媒體將恢復分享收益而不是線性收益。 SmartCast 活躍賬戶連續增長 50 萬個，同比增長 210 萬個，達到 1610 萬個的新紀錄水平。

So let me now turn to what we expect for the third quarter. Like all companies, we are managing the business through heightened uncertainty and market challenges. Against this backdrop, we are focused on balancing cost discipline and resource support and investment for growth and opportunities that we see ahead. Given there is significant opportunity for growth in our high-margin Platform+ business, we intend to prudently invest resources there, while being extremely disciplined about costs in other areas of the company.

現在讓我談談我們對第三季度的預期。像所有公司一樣，我們正在通過高度不確定性和市場挑戰來管理業務。在這種背景下，我們專注於平衡成本紀律和資源支持以及投資，以實現我們預見的增長和機遇。鑑於我們的高利潤平台+業務存在巨大的增長機會，我們打算謹慎地在那裡投資資源，同時對公司其他領域的成本進行嚴格控制。

Our focus will be on identifying efficiencies and driving productivity to support profitability and operating leverage. For Q3, we expect Platform+ revenue to be between USD 120 million and USD 125 million, with continued growth in home screen and video advertising, as well as data licensing. Political advertising remains a wildcard for the quarter, with timing and pacing hard to predict. While we believe we are well positioned to bring in significant political dollars, we remain conservative within our outlook given its lower predictability.

我們的重點將是確定效率和提高生產力，以支持盈利能力和運營槓桿。對於第三季度，我們預計 Platform+ 收入將在 1.2 億美元至 1.25 億美元之間，主屏幕和視頻廣告以及數據許可將持續增長。政治廣告仍然是本季度的通配符，時間和節奏難以預測。雖然我們相信我們有能力帶來大量政治資金，但鑑於其較低的可預測性，我們對前景保持保守。

We expect Platform+ gross profit to be between USD 75 million and USD 78 million, implying continued margins of over 60% at the midpoint of the ranges. From a total company perspective, we expect Q3 adjusted EBITDA to be in the range of $8 million to $13 million. We continue to expect second half adjusted EBITDA to exceed the first half, as we benefit from greater operating leverage in our seasonally strong fourth quarter period.

我們預計 Platform+ 的毛利潤將在 7500 萬美元至 7800 萬美元之間，這意味著在該區間的中點，利潤率將持續超過 60%。從公司整體的角度來看，我們預計第三季度調整後的 EBITDA 將在 800 萬美元至 1300 萬美元之間。我們繼續預計下半年調整後的 EBITDA 將超過上半年，因為我們在季節性強勁的第四季度期間受益於更大的運營槓桿。

So overall, we are pleased with the commitment and determination of our team in Q2, which delivered solid results and we remain disciplined and focused on continuing to generate near-term profitability while investing for long-term growth.

因此，總體而言，我們對我們團隊在第二季度的承諾和決心感到滿意，這帶來了可觀的結果，我們保持紀律並專注於繼續創造短期盈利能力，同時投資於長期增長。

With that, let's turn the call over to questions. Operator?

有了這個，讓我們把電話轉到問題上。操作員？

(Operator Instructions)

（操作員說明）

Operator, we'll take the first question.

接線員，我們將回答第一個問題。

The first question comes from Nick Zangler with Stephens.

第一個問題來自尼克·贊格勒和斯蒂芬斯。

Congrats on the results, and congrats on the launch of VIZIO Account. Now on the streaming side, the streaming services side for VIZIO Account, you've got these early launch partners in STARZ and Discovery Plus, among some others. I'm curious what goes into forging that relationship? And what might that imply for the timing of additional account partners, VIZIO Account partners?

祝賀結果，並祝賀 VIZIO 帳戶的推出。現在在流媒體方面，VIZIO 帳戶的流媒體服務方面，您在 STARZ 和 Discovery Plus 等中擁有這些早期發布合作夥伴。我很好奇建立這種關係的原因是什麼？這對其他客戶合作夥伴、VIZIO 客戶合作夥伴的時機可能意味著什麼？

Yes. Nick, it's Mike. I'll take this. Look, I think we'll just start with VIZIO Account itself, right? We're pretty excited about the rollout. I think we're excited with the initial results. It's just starting to come to market now. But having a single place to subscribe, track payments and manage streaming service for our consumers, we think is really important for the future. And you mentioned, we were able to bring on some good launch partners. I think in total, we had over a quarter or roughly about 27% of all paid apps, subscription apps on our platform are now integrated with VIZIO Account. So I think we've got some good momentum on that front. And recently, we just completed, actually, our first Developer Conference, which we had over 250 attendees. We educated them about the ease of building for the VIZIO platform, but also about features and benefits, such as VIZIO Account. So we've got a good momentum at the start, and we expect to continue to onboard partners for the foreseeable future.

是的。尼克，我是邁克。我要這個。看，我想我們將從 VIZIO 帳戶本身開始，對吧？我們對推出感到非常興奮。我認為我們對初步結果感到興奮。它現在才剛剛開始上市。但是，為我們的消費者提供一個單一的訂閱、跟踪支付和管理流媒體服務的地方，我們認為這對未來非常重要。你提到，我們能夠帶來一些優秀的發布合作夥伴。我認為總的來說，我們平台上的所有付費應用程序和訂閱應用程序中超過四分之一或大約 27% 現在已與 VIZIO 帳戶集成。所以我認為我們在這方面有一些良好的勢頭。最近，我們剛剛完成了我們的第一次開發者大會，我們有超過 250 名與會者。我們向他們介紹瞭如何輕鬆構建 VIZIO 平台，還向他們介紹了 VIZIO 帳戶等功能和優勢。因此，我們一開始就有良好的勢頭，我們希望在可預見的未來繼續與合作夥伴合作。

Very cool. Any plans, though, to entice some of your current VIZIO active account users to go ahead and sign up for VIZIO Account?

很酷。不過，有什麼計劃可以吸引您當前的一些 VIZIO 活躍帳戶用戶繼續註冊 VIZIO 帳戶嗎？

I think, one, the benefit of VIZIO is the fact that it's backwards compatible. So VIZIO Account is rolling out not only on new devices that we sell, but also on legacy SmartCast models we have. So we've got a lot of tools to educate consumers about VIZIO Account and we're utilizing them or we'll be utilizing them, obviously, normal channels, point-of-sale, e-mail, social, but really on device. And the partnerships we can form with the app partners we have, we believe will continue to help drive adoption. For example, today, if you go in and once you sign-up for STARZ on the VIZIO platform, you need to use VIZIO Account and we give an offer of 7 days free of STARZ. So we think continuing to work with our partners to drive promotional benefits will continue to increase adoption not only for new models, but for legacy models we have in the market.

我認為，第一，VIZIO 的好處是它向後兼容。因此，VIZIO Account 不僅在我們銷售的新設備上推出，還在我們擁有的舊 SmartCast 型號上推出。所以我們有很多工具可以讓消費者了解 VIZIO 帳戶，我們正在使用它們，或者我們將使用它們，很明顯，正常渠道、銷售點、電子郵件、社交，但實際上是在設備上.我們可以與我們擁有的應用程序合作夥伴建立合作夥伴關係，我們相信這將繼續幫助推動採用。例如，今天，如果您進入並在 VIZIO 平台上註冊了 STARZ，您需要使用 VIZIO 帳戶，我們提供 7 天免費 STARZ 的優惠。因此，我們認為繼續與我們的合作夥伴合作以推動促銷利益將繼續增加不僅對新模型的採用，而且對我們在市場上擁有的舊模型的採用。

Great. Great. One more, if I could, if you don't mind, since you mentioned it. But any more details here on how you're thinking about political ad spend contribution within that 3Q guide? And maybe if you could just frame up your general positioning to capture the ad spend dollars associated with political?

偉大的。偉大的。如果可以的話，如果你不介意的話，再來一個，因為你提到了它。但是這裡有更多關於您如何考慮該 3Q 指南中的政治廣告支出貢獻的詳細信息嗎？也許你可以建立你的總體定位來捕捉與政治相關的廣告支出？

Nick, it's Adam. Let me start, and Mike can give some more details here. As I said in the prepared comments, we're looking very closely at political. We think we're in a very strong position to be able to take political dollars. But sometimes those political dollars come around in less predictable time lines and cadences. So we've been very thoughtful about that and been conservative in our guidance to assume significant contribution from political. Political comes in stronger than we anticipated, then that could be a source of upside. So we're going to look at that and watch the pacing of it as we approach the voting cycle.

尼克，是亞當。讓我開始吧，邁克可以在這裡提供更多細節。正如我在準備好的評論中所說，我們正在密切關注政治問題。我們認為我們處於非常有利的地位，能夠獲得政治資金。但有時這些政治資金會以較不可預測的時間線和節奏出現。因此，我們對此進行了深思熟慮，並且在我們的指導中保持保守，假設政治做出了重大貢獻。政治因素比我們預期的要強，那麼這可能是上漲的來源。因此，當我們接近投票週期時，我們將研究它並觀察它的節奏。

But Mike, do you want to add any color?

但是邁克，你想添加任何顏色嗎？

Yes. I think when we launched this business in 2020, the last real election period, we were just getting started. So we were able to capture some advertising dollars. But this is our first real political cycle that we're going through. So we're pretty optimistic about the opportunities we have in front of us. I think if you look from 2020 to today, we obviously have significant growth in terms of our active user base.

是的。我認為，當我們在 2020 年推出這項業務時，也就是最後一次真正的選舉期，我們才剛剛起步。所以我們能夠獲得一些廣告收入。但這是我們正在經歷的第一個真正的政治週期。因此，我們對擺在我們面前的機會非常樂觀。我認為，從 2020 年到今天，我們的活躍用戶群顯然有顯著增長。

We've got a large direct sales team out in the marketplace that can educate advertisers across all different categories, including political. And I think we've got a lot of tools available to help political advertisers leverage our platform, including adding incremental reach. So we know there's dollars coming into connected TV. We're cautiously optimistic about how much of those dollars we can obtain. But we think we're positioned really well, not only for Q3, but really as we enter into the key political season really at the start of Q4.

我們在市場上有一支龐大的直銷團隊，可以教育所有不同類別的廣告商，包括政治。而且我認為我們有很多工具可以幫助政治廣告商利用我們的平台，包括增加覆蓋面。所以我們知道有錢進入聯網電視。我們對我們可以獲得多少這些美元持謹慎樂觀的態度。但我們認為我們的定位非常好，不僅是在第三季度，而且在我們真正進入第四季度開始的關鍵政治季節時也是如此。

Operator, we will take our next question.

接線員，我們將回答下一個問題。

Next question comes from Laura Martin with Needham.

下一個問題來自與 Needham 的 Laura Martin。

Okay. So William, let's start with the philosophical one for you. So we added $20 million to the platform business with a 63% margin, and it did not flow through to the gross profit line because we just subsidize devices more. So that is my philosophical question. Are we going to basically -- is your view that as you make more money in the platform business, we're just going to subsidize devices so that we can get a faster installed base and basically have you do the second fast -- second great television installer. Is that the theory here?

好的。所以威廉，讓我們從你的哲學開始。所以我們以 63% 的利潤率為平台業務增加了 2000 萬美元，它並沒有流入毛利潤線，因為我們只是更多地補貼設備。所以這是我的哲學問題。我們是否會基本上 - 您是否認為，當您在平台業務中賺更多錢時，我們只會補貼設備，以便我們可以獲得更快的安裝基礎，並且基本上讓您做到第二快 - 第二好電視安裝程序。這是理論嗎？

Yes, Laura, good question. [Contacting] time depends on the market situation and will decide what we're going to do with the increased gross margin. And sometimes we invest in technology and sometimes we invest in the price and sometime, we will invest into hiring bigger, stronger advertising sales force. So this year, with the macroeconomic headwinds, I think during Q2, we decided to make sure our TV [outcomes] are really affordable due to the inventory challenges in the retail environment. So the whole idea is to make more money, make more money for the shareholders. And if we can, we will subsidize TV set, because in the long term that will produce better results for our shareholders. So to answer your question, yes, this is a good year for us to invest into digital TV set sales with additional gross profit we generate from [system] revenue model.

是的，勞拉，好問題。 [聯繫] 時間取決於市場情況，並將決定我們將如何處理增加的毛利率。有時我們投資於技術，有時我們投資於價格，有時，我們將投資於僱傭更大、更強大的廣告銷售團隊。所以今年，在宏觀經濟逆風的情況下，我認為在第二季度，由於零售環境中的庫存挑戰，我們決定確保我們的電視 [成果] 真的可以負擔得起。所以整個想法是賺更多的錢，為股東賺更多的錢。如果可以的話，我們將補貼電視機，因為從長遠來看，這將為我們的股東帶來更好的結果。所以回答你的問題，是的，今年是我們投資數字電視機銷售的好年份，我們從 [系統] 收入模式產生的額外毛利潤。

That's super helpful, and I sure do like that answer. And then the second thing is we have the imminent December 8, Disney just said it's going to launch its ad-driven tier, HBO has an ad-driven tier in the market and Netflix, I think, second half next year. As those come on board, have any of those negotiated their deals to be seen on VIZIO TVs? And do you increase your negotiating leverage as you guys cross like the 16 million installed base hurdle? Do you think you can cut better deals with these sort of latecomers to the ad-tier section of the streaming business?

這非常有幫助，我確實喜歡這個答案。然後第二件事是我們即將到來的 12 月 8 日，迪士尼剛剛表示將推出其廣告驅動層，HBO 在市場上有一個廣告驅動層，我認為 Netflix 會在明年下半年推出。隨著這些人的加入，他們中的任何一個人是否已經協商好在 VIZIO 電視上看到他們的交易？當你們跨越 1600 萬安裝基數的障礙時，你們是否增加了談判籌碼？你認為你可以與流媒體業務的廣告層部分的這些後來者達成更好的交易嗎？

I think, Laura -- I'll take that. I don't think we'll necessarily speak to any specific deals. That said, look, at over 16 million active devices we're a major player or a major distribution platform in the space, and you're talking about some long-term partners we have. But for us, we're excited about them coming into the market. We think anything that drives potentially new eyeballs, anything that's going to increase time spend on SmartCast, anything that could bring new advertisers or larger advertising commitments into the space is really good for us.

我想，勞拉——我會接受的。我認為我們不一定會談論任何具體的交易。也就是說，看，我們是該領域的主要參與者或主要分銷平台，擁有超過 1600 萬台活躍設備，您說的是我們擁有的一些長期合作夥伴。但對我們來說，我們對它們進入市場感到興奮。我們認為任何能夠吸引潛在新眼球的事物、任何能夠增加 SmartCast 時間花費的事物、任何能夠將新的廣告商或更大的廣告承諾帶入該領域的事物都對我們非常有益。

So from an advertising share standpoint, I'm not going to comment, but where I think we really stand to benefit is the fact that we understand how to help our partners grow whatever it is, whether it's subscription or ad-supported services on the platform. And we've got a lot of tools at our disposal. We have an audience that we know through the data has an appetite for ad-supported content. So we think there's good opportunities from there. And then I think as more and more and more eyeballs come into the space and more and more partners continue to innovate, we have a lot of different ways we can make money. And I think we'll benefit -- we stand to benefit in a lot of different ways from this.

因此，從廣告份額的角度來看，我不打算發表評論，但我認為我們真正受益的地方在於，我們了解如何幫助我們的合作夥伴發展，無論是訂閱還是廣告支持的服務。平台。我們有很多工具可供我們使用。通過數據我們知道我們的受眾對廣告支持的內容有興趣。所以我們認為那裡有很好的機會。然後我認為，隨著越來越多的眼球進入這個領域，越來越多的合作夥伴不斷創新，我們有很多不同的賺錢方式。而且我認為我們會從中受益——我們將從很多不同的方式中受益。

Operator, we'll take the next question.

接線員，我們將回答下一個問題。

Next question comes from Steven Cahall with Wells Fargo.

下一個問題來自富國銀行的 Steven Cahall。

And I joined a little late, so I apologize if this has already been covered or been asked. SmartCast ARPU is up really nicely year-on-year. I think maybe you're even closing the gap against some of your connected TV peers a little bit. I was wondering if you could just unpack ARPU for us a little bit and maybe talk about trends you're seeing in home screen, trends you're seeing in AVOD, where it sounds like the scatter programmatic market could be a little weaker and then trends you're seeing in data licensing or anything else? And then maybe just on TV shipments. I think you had some nice market share gains in the quarter. Can you talk about the product development pipeline for your television sets and if there's any parts of the market where you're particularly kind of focused on to make some investments and look to shape market share?

而且我加入的時間有點晚，所以如果這已經被覆蓋或被問到，我很抱歉。 SmartCast ARPU 同比增長非常好。我認為也許您甚至可以稍微縮小與某些聯網電視同行的差距。我想知道您是否可以為我們解開 ARPU 的包裝，也許可以談談您在主屏幕上看到的趨勢，您在 AVOD 中看到的趨勢，聽起來分散程序化市場可能會稍弱，然後您在數據許可或其他方面看到的趨勢？然後也許只是在電視出貨量上。我認為您在本季度獲得了一些不錯的市場份額增長。您能否談談您的電視機的產品開發流程，以及您是否特別關注市場的任何部分以進行一些投資並尋求塑造市場份額？

Yes. I'll touch on trends in the market with regards to ARPU. I think for us, what we're seeing the fastest growth is within the video sector. We continue to grow our relationships with brands and agencies. We continue to push out or evangelize Watchfree+, which is the #2 ad-supported app on our platform. We continue to be able to leverage our Inscape data, which is the best robust -- most robust data set in the marketplace to increase our relationships and increase CPMs with our partners on the video side. We continue to see success with our home screen. Media and entertainment continues to be a key category, but we've grown significantly or what we call, non-endemic or non-media entertainment clients that are starting to leverage our home screen in order to drive more KPIs.

是的。我將談談有關 ARPU 的市場趨勢。我認為對我們來說，我們看到增長最快的是視頻領域。我們繼續發展與品牌和代理商的關係。我們繼續推出或宣傳 Watchfree+，這是我們平台上排名第二的廣告支持應用程序。我們繼續能夠利用我們的 Inscape 數據，這是市場上最強大、最強大的數據集，以增加我們與視頻方面合作夥伴的關係並增加每千次展示費用。我們繼續在主屏幕上看到成功。媒體和娛樂仍然是一個關鍵類別，但我們已經顯著增長或我們所說的非地方性或非媒體娛樂客戶開始利用我們的主屏幕來推動更多 KPI。

So for example, this past quarter, we rolled out a campaign with GEICO around Pride Month. They were able to sponsor a series of content for our consumers, give benefit to our consumers, but was able to bring them a new opportunity to advertise with VIZIO. So on the advertising side, those are important for us and the fastest growing. We're also seeing household connect continue to grow and generate some more TAM for us off platform. So in terms of ARPU growth, really on the advertising side, that's the fastest trajectory for us.

例如，上個季度，我們在驕傲月前後與 GEICO 開展了一項活動。他們能夠為我們的消費者贊助一系列內容，讓我們的消費者受益，但也能夠為他們帶來與 VIZIO 一起做廣告的新機會。所以在廣告方面，這些對我們很重要，而且增長最快。我們還看到家庭連接繼續增長並在平台外為我們產生更多的 TAM。所以就 ARPU 增長而言，真的是在廣告方面，這對我們來說是最快的軌跡。

Yes, Steve. It's Adam. And then on the share gains in the quarter, we're very proud of that. And in fact, I think it speaks volumes to the fact that VIZIO has a strong brand presence in the marketplace that speaks to value and has attractive pricing for consumers. And you'll know that some actions we took in the first quarter, particularly around some pricing strategies on our V 50-inch Series quickly vaulted that TV into the #1 selling TV in the marketplace. We then built on that success in Q2 and expanded that strategy into our D-Series 40-inch, which itself became the #2 selling TV in the market.

是的，史蒂夫。是亞當。然後在本季度的股票收益方面，我們對此感到非常自豪。事實上，我認為這充分說明了 VIZIO 在市場上擁有強大的品牌影響力，這說明了價值並為消費者提供了有吸引力的價格。您會知道，我們在第一季度採取的一些行動，特別是圍繞我們的 V 50 英寸系列的一些定價策略，迅速使該電視一躍成為市場上銷量第一的電視。然後，我們在第二季度取得成功的基礎上，將該戰略擴展到我們的 D 系列 40 英寸，它本身成為市場上銷量第二的電視。

So as William mentioned during the prepared remarks, during the second quarter, we had both the #1 and #2 selling TV in the market. So as consumers are looking for value and they're looking for great products and great solutions to their home entertainment, they're coming to VIZIO, and that's helping us gain share. We're going to continue to look at that strategy and look at other possible models in our fleet that could have similar types of results. So moving back up into the #2 position was something that we thought the team is very proud of for the second quarter, and we're going to look to see how we continue to drive growth throughout the year.

因此，正如威廉在準備好的評論中提到的那樣，在第二季度，我們在市場上同時擁有排名第一和排名第二的電視。因此，當消費者在尋找價值並為他們的家庭娛樂尋找出色的產品和出色的解決方案時，他們來到了 VIZIO，這有助於我們獲得份額。我們將繼續研究該策略，並研究我們車隊中可能產生類似結果的其他可能模型。因此，回到第二位是我們認為團隊為第二季度感到非常自豪的事情，我們將看看我們如何在全年繼續推動增長。

Operator, we'll take the next question.

接線員，我們將回答下一個問題。

The next question comes from Tom Champion with Piper Sandler.

下一個問題來自 Tom Champion 和 Piper Sandler。

Maybe for Mike O'Donnell. Mike, can you just talk about what you're seeing in the scatter market and also just elaborate on the ad verticals of strength? I think you highlighted retail and CPG. Some have cited those as verticals of weakness. So curious why you're bucking the trend here. And then maybe for William, just curious your latest thoughts on supply chain and the consumer. Curious if the consumer may be bouncing back a little bit from lower gas prices.

也許對於邁克·奧唐納來說。邁克，你能談談你在分散市場中看到的情況，並詳細說明廣告垂直市場的優勢嗎？我認為您強調了零售和 CPG。一些人認為這些是垂直的弱點。很好奇你為什麼要在這裡逆勢而上。然後也許對威廉來說，只是好奇你對供應鍊和消費者的最新想法。好奇消費者是否會從較低的汽油價格中反彈一點。

Yes. So Tom, there's no doubt there's some softness in the marketplace in some key categories, including automotive and CPG. But we're not feeling it right now just because we're working off a smaller base in the past. So as you know, we're only 2.5 years into this. We've continued to invest in the sales team. We think we got best sales team in the marketplace right now out there evangelizing all the key capabilities we have.

是的。所以湯姆，毫無疑問，一些關鍵類別的市場有些疲軟，包括汽車和 CPG。但是我們現在並沒有感覺到它只是因為我們過去在一個較小的基礎上工作。如您所知，我們只有 2.5 年的時間。我們繼續投資於銷售團隊。我們認為我們現在擁有市場上最好的銷售團隊，宣傳我們擁有的所有關鍵能力。

So we were able to add this quarter, I think alone, we grew 74% in terms of new advertisers on the direct sales side, over 240 new advertisers into the fold. So for us, we are still growing in terms of our advertiser base and that's allowed us to withstand some of the pressure in the marketplace and continue to scale. And we expect to continue to scale and grow our advertising base for the foreseeable future.

所以我們能夠在本季度加上，我認為，就直銷方面的新廣告客戶而言，我們增長了 74%，超過 240 個新廣告客戶。所以對我們來說，我們的廣告客戶群仍在增長，這使我們能夠承受市場上的一些壓力並繼續擴大規模。我們希望在可預見的未來繼續擴大和擴大我們的廣告基礎。

Yes. For your question on supply chain, our teams done a great managing supply chain over the last 3 quarters. There's no really -- it's not really a supply chain challenge right now. And the thing with TV was more -- not has to do with the microeconomic headwinds and demand issues. And so far, we haven't really seen any significant pickup due to the lower gasoline prices. But we're pretty hopeful that it's going to improve the overall situation as the gasoline price continue to fall.

是的。對於您關於供應鏈的問題，我們的團隊在過去 3 個季度中對供應鏈進行了出色的管理。真的沒有——現在這不是真正的供應鏈挑戰。電視的問題更多——與微觀經濟逆風和需求問題無關。到目前為止，由於汽油價格下跌，我們還沒有真正看到任何顯著的回升。但我們非常希望隨著汽油價格繼續下跌，這將改善整體情況。

Operator, we will take the next question.

接線員，我們將回答下一個問題。

The next question comes from Jason Kreyer with Craig-Hallum.

下一個問題來自 Jason Kreyer 和 Craig-Hallum。

Great. Maybe first for William. If you can just talk about how VIZIO has performed in past economic downturn cycles and what you can do strategically to position the company for share gains?

偉大的。也許首先是威廉。如果您可以談談 VIZIO 在過去的經濟衰退週期中的表現，以及您可以採取哪些戰略性措施來為公司定位以獲得股票收益？

Yes. Jason, ever since the beginning, VIZIO has always been known as the best value brand in the TV industry. So over the last 20 years, we really consistently delivered great technology at an affordable price. And we've done so by focusing on building the cost or and efficiencies. So like I mentioned earlier, I'm very proud of our strong seasoned management team that have done a fabulous job over the last 20 years and proven to be resilient.

是的。 Jason，從一開始，VIZIO就一直被譽為電視行業最具價值的品牌。因此，在過去的 20 年中，我們始終以可承受的價格提供出色的技術。我們通過專注於提高成本或效率來做到這一點。因此，就像我之前提到的，我為我們經驗豐富的強大管理團隊感到非常自豪，他們在過去 20 年中完成了出色的工作，並被證明具有韌性。

During the Great Recession, we did extremely well and we have become a #1 [Plasma] TV major in the USA during that back. And now fast forward 14 years later, we added our dual-revenue business model. So with the combination of dual revenue model, a really strong balance sheet and a really strong seasoned management team we are still proud of, we are ready to take on any kind of macroeconomic headwinds. So we're ready.

在大衰退期間，我們做得非常好，在那段時間我們已經成為美國排名第一的 [等離子] 電視專業。現在快進 14 年後，我們增加了我們的雙收入業務模式。因此，結合雙重收入模式、非常強大的資產負債表和我們仍然引以為豪的非常強大的經驗豐富的管理團隊，我們已準備好應對任何形式的宏觀經濟逆風。所以我們準備好了。

Okay. And then just a follow-up. Any notable takeaways from the upfront as you've -- I assume you've wrapped up that process by now?

好的。然後只是跟進。前期有什麼值得注意的收穫——我假設你現在已經完成了這個過程？

I don't think we're necessarily ready to share a number. We are still wrapping up the upfronts on our end. What I think I can share is we will be significantly up over last year. I think we've had some great -- we've closed some great deals in the marketplace, and we continue to have some conversations to onboard even more brands. So not exactly ready to share a number, but can share that it will be significantly up year-over-year and core to us growing in 2023.

我認為我們不一定準備好分享一個數字。我們仍在結束前期工作。我想我可以分享的是，我們將比去年顯著增加。我認為我們取得了一些不錯的成績——我們在市場上完成了一些很棒的交易，我們繼續進行一些對話以加入更多品牌。因此，還沒有完全準備好分享一個數字，但可以分享這一數字將同比顯著增長，並且是我們在 2023 年增長的核心。

Operator, we will take the next question.

接線員，我們將回答下一個問題。

The next question comes from Jim Goss of Barrington Research.

下一個問題來自 Barrington Research 的 Jim Goss。

I've got a couple. One, I wanted to build on something, I think Adam was talking about earlier, about 50-inch V-Series and the 40-inch D-Series being the #1 and 2 sets. Do you have a pattern you think you might be implying in terms of targeting certain categories that may fit different users and try to continue this process? It looks like you've done at least a couple. Do you have a strategy in mind in terms of rolling that out just to continue that process of gaining the best platform usage available?

我有一對。一，我想建立在一些東西上，我想亞當之前談到過，大約 50 英寸的 V 系列和 40 英寸的 D 系列是第一套和第二套。您是否有一種模式，您認為您可能會針對某些可能適合不同用戶的類別並嘗試繼續此過程？看起來你至少做了幾次。您是否有一個策略來推廣它以繼續獲得最佳平台使用的過程？

Yes. So one of the benefits of us having the extensive data that we do is we know the usage levels by TV, by series. So we have a sense of what units tend to over-index in terms of viewer engagement and therefore, opportunities for ARPU for us. And so that goes into our thinking about which units we want to be more aggressive with -- in pricing. And so it's not a coincidence to your exact question that we started with that, that V-Series 50. There's 2 things pertain to that unit. We sell a lot of them, and it's a very highly engaged unit. It's likely to be the main TV in the home in a lot of cases, a lot of our customers.

是的。因此，我們擁有大量數據的好處之一是我們知道電視、連續劇的使用水平。因此，我們了解哪些單位在觀眾參與度方面往往會過度指數化，從而為我們提供 ARPU 機會。因此，這進入了我們對我們希望在定價方面更具侵略性的單位的思考。因此，對於我們從 V 系列 50 開始的確切問題並不是巧合。有兩件事與該單元有關。我們賣了很多，這是一個非常敬業的單位。在很多情況下，它很可能是家裡的主要電視，我們的很多客戶。

And so knowing that information, we were willing to price very aggressively to move more units and more volume because it feeds right into the flywheel of us growing active accounts and the right active accounts, highly engaged active accounts that are using our platform, they're engaged with streaming, they tend to use Watchfree+. That's where our best monetization occurs. So it is -- there is a connection between our pricing strategies and how the usage trends translate into our ARPU opportunity.

因此，知道了這些信息，我們願意非常積極地定價以移動更多的單位和更多的數量，因為它直接進入了我們不斷增長的活躍賬戶和正確的活躍賬戶的飛輪，使用我們平台的高度參與的活躍賬戶，他們'重新參與流媒體，他們傾向於使用 Watchfree+。這就是我們最好的貨幣化發生的地方。就是這樣——我們的定價策略與使用趨勢如何轉化為我們的 ARPU 機會之間存在聯繫。

Okay. And so as not to let this totally trash your TV, the margins on the hardware, do you think at some point, you say -- you let it be known that there might be another couple of months before this is no longer on sale and we rotate to something else that encourages the consumers and the sales people to push those models and then sort of move on to the next thing?

好的。為了不讓這完全破壞你的電視，硬件的利潤，你認為在某個時候，你說 - 你讓人們知道可能還有幾個月才能不再銷售，並且我們轉向其他鼓勵消費者和銷售人員推銷這些模型的東西，然後轉向下一個東西？

Yes. Look, we worked very closely with our retail partners on that merchandising effort and the promotion activities that we put into place. We look at time lines throughout the year around selling events, opportunities, Black Friday, things of that nature, right? And so we work very closely on a schedule to ensure that we do that. But keep in mind, our fleet is fairly broad. And so if we take a much lower margin, for example, on a couple of these very targeted SKUs like we've talked about here, other SKUs are generating higher margins to it. So on a blended basis, we can help manage the overall gross profit contribution from the TV business.

是的。看，我們與我們的零售合作夥伴密切合作，開展營銷工作和我們實施的促銷活動。我們查看全年圍繞銷售活動、機會、黑色星期五等性質的事情的時間線，對嗎？因此，我們按計劃密切合作，以確保我們做到這一點。但請記住，我們的機隊相當廣泛。因此，如果我們採取更低的利潤率，例如，在我們在這裡討論過的幾個非常有針對性的 SKU 上，其他 SKU 會產生更高的利潤率。因此，在綜合基礎上，我們可以幫助管理電視業務的整體毛利潤貢獻。

All that being said, and back to the point of our dual revenue model, strategically, we're going to be at a low gross profit margin on our TV unit sales because they're so valuable once we get those units in homes and generate that recurring revenue stream that comes from our ARPU model. And with the useful life of a TV averaging somewhere around 6 years or 7 years, as we're generating now, as you see, over $25 in ARPU per unit on average. And these units that we're talking about here are some of the higher indexing units to that. The customer lifetime value is incredibly high for us. And so to have a low margin at the onset of selling a unit to then drive high-margin platform business, that strategy works incredibly well and we're now scaled up at a level where we want to lean into that approach.

話雖如此，回到我們的雙重收入模式，從戰略上講，我們的電視單元銷售的毛利率將很低，因為一旦我們將這些單元放在家裡並產生來自我們的 ARPU 模型的經常性收入流。正如您所看到的，電視的平均使用壽命約為 6 年或 7 年，正如您所見，平均每台電視的 ARPU 超過 25 美元。我們在這裡談論的這些單位是一些更高的索引單位。客戶終身價值對我們來說非常高。因此，在銷售一個單位開始時利潤率較低，然後推動高利潤率的平台業務，這種策略效果非常好，我們現在的規模擴大到了我們希望採用這種方法的水平。

Okay. And one other -- you spoke about the legacy television sort of in multi VIZIO TV households and that could be a way to sort of increase the usage within a household and therefore, increase the potential value to you and the ARPU within that household. How important is that effort? And how do you promote it?

好的。還有一個——您談到了多台 VIZIO 電視家庭中的傳統電視，這可能是一種增加家庭使用量的方式，因此可以增加您和該家庭的 ARPU 的潛在價值。這種努力有多重要？以及如何推廣它？

Yes. I think, overall, it's important, right? We want to have a home solution, right? We want consumers to see the value in our units, what we're bringing to the SmartCast platform, meeting their streaming needs, bringing them new features and capabilities to just make that experience that much better, hopefully, than our competitors. As we continue to do that, then they're adding other VIZIO TVs in that household.

是的。我認為，總的來說，這很重要，對吧？我們想要一個家庭解決方案，對吧？我們希望消費者看到我們單位的價值，我們為 SmartCast 平台帶來的東西，滿足他們的流媒體需求，為他們帶來新的特性和功能，希望讓這種體驗比我們的競爭對手更好。當我們繼續這樣做時，他們會在該家庭中添加其他 VIZIO 電視。

And so it is part of the overall thinking to make sure that the consumers have a great user experience, that there's no need to go get a dongle or any kind of a plug-in device. We're meeting their needs. We are bringing great content to platform. We're using our data to enhance their search and discovery output so that they stay highly engaged and are seeing what they want, when they want on our great value-priced products. So absolutely, we'd love to see consumers continue to add more units in their home and have VIZIO be their primary entertainment source.

因此，確保消費者擁有出色的用戶體驗，無需購買加密狗或任何類型的插件設備，這是整體思路的一部分。我們正在滿足他們的需求。我們正在為平台帶來精彩的內容。我們正在使用我們的數據來增強他們的搜索和發現輸出，以便他們保持高度參與，並在他們想要我們物超所值的產品時看到他們想要的東西。因此，我們絕對希望看到消費者繼續在家中增加更多設備，並讓 VIZIO 成為他們的主要娛樂來源。

Operator, we have time for one more question.

接線員，我們有時間再問一個問題。

The final question is from Vasily Karasyov with Cannonball Research.

最後一個問題來自 Cannonball Research 的 Vasily Karasyov。

I have a question about your philosophy going into a potential macro downturn. So growing CPMs for your advertising units has been -- people have expected you to pull that lever and accelerate revenue and that's part of the bold cases here. If you saw a softening in demand, would you give up some CPM increases that you have been able to obtain and go for higher sell-through? Or would you accept the lower sell-through but hold the CPMs?

我有一個關於你的哲學進入潛在宏觀衰退的問題。因此，為您的廣告單元增加每千次展示費用一直是——人們希望您能夠拉動這一槓桿並加速收入，這就是這里大膽案例的一部分。如果您看到需求疲軟，您會放棄一些您已經能夠獲得的每千次展示費用增加並追求更高的銷售率嗎？還是您會接受較低的銷售率但保持每千次展示費用？

I think CPM is really a function of supply and demand. And I think right now, there continues to be -- there's softness in the marketplace, but there continues to be demand for connected television. And as we've mentioned, we are a core player in this space. We've built a really strong business with Watchfree+. We have the best data in the marketplace. We have the media and entertainment community. We have the best UI for search and discovery in the marketplace. So our strategy today is not to reduce CPMs. We still believe there's upside and a continued growth on the CPM side.

我認為每千次展示費用實際上是供需的函數。而且我認為現在，市場仍然存在疲軟，但對聯網電視的需求仍然存在。正如我們已經提到的，我們是這個領域的核心參與者。我們通過 Watchfree+ 建立了非常強大的業務。我們擁有市場上最好的數據。我們有媒體和娛樂社區。我們擁有市場上用於搜索和發現的最佳 UI。所以我們今天的策略不是降低每千次展示費用。我們仍然相信每千次展示費用方面存在上行空間和持續增長。

Thanks, Vasily. And thanks, everyone, for joining. This concludes today's call. Have a great evening.

謝謝，瓦西里。感謝大家的加入。今天的電話會議到此結束。有一個美好的夜晚。

This concludes the VIZIO Inc. Q2 '22 Earnings Call. Thank you for your participation. You may now disconnect your lines.

VIZIO Inc. Q2 '22 財報電話會議到此結束。感謝您的參與。您現在可以斷開線路。