VZIO Stock Forecast & Price Target

VIZIO Holding Corp is experiencing significant growth in its Platform+ segment, with its user base expanding to approximately 20 million active accounts as of March 31, 2023, which positively impacts engagement and average revenue per user (ARPU). The potential for increased demand in connected TV (CTV) advertising, particularly due to local political advertising, supports an optimistic outlook for revenue growth, especially given the high margins associated with the Platform+ segment. Additionally, the company's strategic pivot towards advertising and data sales is expected to enhance return on invested capital (ROIC), contributing to overall financial performance without pressuring device pricing.

VIZIO Holding Corp's financial outlook is characterized by a projected revenue increase for FY24 to $1.75 billion, reflecting only a modest growth rate of 4% year-over-year, while the Adjusted EBITDA is anticipated to plummet by 72% to $21 million. The Device segment, which is the primary revenue driver, is expected to experience a decline of 8% in revenue, suggesting challenges in the company's core products amid competitive pressures and pricing wars. Additionally, ongoing issues such as supply chain disruptions, elevated operating expenses, and overall economic weaknesses further contribute to a deteriorating financial position, culminating in a projected loss in earnings per share for FY24.