- June 23, 2021
- Posted by: Stratford Team
- Category: Business
Vizio Holding Corp. is ramping up investment in its software business amid growing consumer demand for streaming content.
Vizio, which was founded in 2002, earns the bulk of its revenue—about 90%—from selling hardware such as internet-connected TV sets and sound bars, but its software business promises fatter margins. The software unit’s profit margin was 73.7% for the quarter ended March 31, substantially higher than Vizio’s hardware business, at 10.6%.
The Irvine, Calif.-based television seller is devoting more funds this year to the development of its software unit Platform+ and the hiring of engineers and advertising-sales employees for the unit, Chief Financial Officer Adam Townsend said.
“This year is going to be an investment year,” he said, declining to say how much money it plans put into the platform this year. Mr. Townsend said Vizio plans to use cash raised from its…
