VZIO

VIZIO Holding Corp - Ordinary Shares - Class A

TMT, Consumer


Presented:12/15/2021
Price:$18.91
Cap:$3.49B
Current Price:$11.26
Cap:$2.26B

Presented

Date12/15/2021
Price$18.91
Market Cap$3.49B
Ent Value$3.61B
P/E Ratio297.33x
Book Value$1.65
Div Yield0%
Shares O/S184.79M
Ave Daily Vol886,733
Short Int3.93%

Current

Price$11.26
Market Cap$2.26B
Vizio Holding Corp. operates as an entertainment platform. It engages in deriving the future of televisions through its integrated platform of cutting-edge Smart TVs and powerful SmartCast operating system. The company was founded by William W. Wang in 2002 and is headquartered in Irvine, CA.

Publicly traded companies mentioned herein: Amazon.com Inc (AMZN), Apple Inc (AAPL), Fox Corp (FOXA), Netflix Inc (NFLX), Roku Inc (ROKU), Samsung Electronics Co Ltd (005930 KS), Vizio Holding Corp (VZIO), Walt Disney Co/The (DIS)

Highlights

The presenter is long shares of Vizio Holding Corp (VZIO), the $3.5B market cap, $3B EV company trading at $19 per share. VZIO is made up of two reportable segments, its Device business, the #2 US TV hardware player (~15% market share) behind Samsung, and the more interesting segment, accounting for most of the company’s value is Platform+, VZIO’s connected TV (CTV) business, which is similar to Roku’s OS business. This is primarily an advertising business driven by revenue share deals, on-screen advertising, and Vizio WatchFree+ (VZIO’s version of the Roku Channel). He sees an emerging growth story on the Platform+ side that is already being seen through strong trends in users, time spent on VZIO’s native OS, and monetization per hour, leading to a base case 2024 revenue estimate of $1B for Platform+. At a 6x – 8x revenue multiple on Platform+ and a significantly lower valuation on the relatively stable Device segment, he views this as an easy double with incremental upside. 

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Idea Discussion

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