VIZIO Holding Corp.

Ladies and gentlemen, thank you for standing by and welcome to the Q2 2021 Visio Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. If you require any further assistance, please press star 0. I would now like to hand the conference over to your speaker today, Mr. Michael Marks, Investor Relations. Sir, you may begin.

Good afternoon, everyone, and thank you for joining us for our second quarter 2021 earnings call. 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 Mike O'Donnell, our Chief Revenue Officer for Platform Plus. Please note that in addition to our earnings release, a slide presentation for you to follow along with our remarks can be found on our investor relations website at investors.visio.com. I'll refer you to the second 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 those 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. During the call, we 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 investor 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. Now, I will turn the call over to William.

Thanks, Michael. And hello, everyone. Thank you for joining us today. Our second quarter results were excellent, driven by strong advertising growth, the direct benefit of our dual revenue model. In the second quarter, we'll continue to invest throughout the organization in talent and innovations to improve our user experience and increase our monetization opportunities. So far this year, we have added nearly 200 new jobs across the company. to support our rapidly growing CPV business. These investments accelerate the growth in our Platform Plus business this quarter, where we generated our highest ever year-over-year increase in our pool. The high margin revenue from our platform business now provides a great complement to our device business. Overall, during the quarter, we increased revenue gross profit, and adjusted EBITDA, even in the face of the pandemic and the challenges it continues to bring to so many industries. Adam will provide further details later during the talk. But I'd like to commend our team on their focus and efforts to produce these exceptional results during this unusual time. Throughout the quarter, our seasoned team worked closely with our various partners to minimize the logistical and supply chain disruptions. This is a moment when experience and great leadership really pay off. At Vizio, we have a long history of investing in innovation, which has led our ability to bring great products to consumers, featuring the latest technology, at affordable prices. And our commitment to this core principle has never been more relevant than today. The rise of streaming and explosion in content choices has resulted in a surge in consumer demand for quality entertainment experiences. We are meeting this demand by investing in an extraordinary collection of smart TVs that come with our built-in streaming platform, Smartcast. Broadcast streams billions of hours of multi-content across adstock, AVOD, and free ad-supported streaming channels, all through one easy-to-use interface. No need for consumers to go buy another dongle or a box to stream their favorite shows. We complement these TVs with a range of market-leading soundbars, that feature the latest surround sound technologies to deliver a big screen experience in the comfort of their home. Each spring, we have a product refresh where we deliver our new collection to the market. We use this as a time to deliver our latest technology at the most affordable prices. For example, this year, we added to a smart cap a new functionality called Vizio Voice. Vizio Voice allows users to more quickly search and discover content within SmartCat by simply talking to the TV. Most of the latest models now come with our new Bluetooth-enabled Vizio Voice remote. We also continue to ensure broad IoT compatibility with support for Apple AirPlay, Amazon Alexa, and Google Assist. This year's TV collection includes a number of picture quality enhancements, including greater brightness, expanded color spectrum, and higher contrast ratios, with a broad lineup featuring our Quantum Dot technology. We'll also further strengthen our position in the rapidly growing gaming market, with over half of our TV collections now being AMD FreeSync certified. The new product has been very well received by channel customers, seeing high star review ratings by consumers as well. For our smart TVs, this recognition ranges from entry-level D-series all the way to our premium models. Just to name a few examples. Our D-Series was recognized as Editor's Choice for 2021 in USA Today's Review. And our Premium OLED model won the TomSky Award for 2021. In addition, new features such as our video voice capability have been recognized by influential publishers such as CNET. Our diverse range of thumb bars also continue to receive awards from highly respected outlets, with our premium Atmos models being featured in Newsweek and Wired. All this recognition helps strengthen our brand and consumer awareness, which ultimately helps drive market share. As I mentioned earlier, we are building for the future. with significant investment in people and software to drive our Platform Plus business. We have added to our advertising skills and content acquisition teams in New York and Los Angeles, and nearly doubled the size of our engineer teams in Denver and Dallas. We have invested heavily to make SmartCats faster and easier for users to find the content they want. Speaking of content, we've been very busy As you may have seen just yesterday, we announced that we have reached agreement to bring two new marquee apps to our platform, BET Plus and Discovery Plus. We're thrilled to offer these premium content apps to millions of SmartCast users. BET Plus is available now, and Discovery Plus is targeting a September launch. Today, I'm also very excited to announce another addition to our content lineup. Football TV will be joining our platform in the coming weeks, just in time for football season. Broadcast users will be able to subscribe to this virtual AVPB service right on our home screen. In addition to Football TV, we have also launched streaming ads for Hallmark, PBS, the Space Channel, and LEGO TV. And our watch-free service added 32 more free ad-supported channels during the quarter. So to say the least, it has been a very busy time for our content acquisition team, and there's so much more to come. On the back of all this content, we used our opt-in first-party data to gain insights into our users' preferences. The investments we have made into our integrated hardware and software, and specifically our API technology, help inform us on the content to source and the best opportunities to enhance search, discovery, and ultimately monetization. All of this leads to more personalization and a better overall user experience. A great example of how we put these data-informed insights to work is our new generation of Watch Free, now called Watch Free Plus. Watch Free grew quickly over the past few years. It is super popular with our visual audience and became a major source of video advertising revenue on our platform. The newly improved version now takes the success to a new level. Watch3 Plus will bring our audience a cable-like TV experience with a newly designed program guide, enhanced search and discovery options, and data-informed programming. This newly enhanced version of Watch3 Plus is happening at an exciting time for our Platform Plus business. In less than two years, the market's awareness of our advertising capability has gone from largely unknown to a significant player in the CTV ecosystem. We just recently closed our first upfront season with commitments from blue-chip advertisers, networks, and dozens of brands new to us. We have now established partnerships with all the large media buying agencies in the U.S. who are recognizing the value of our unique and engaged audiences. So with all the investments and improvements we have made over the years in software, product, and most importantly, people, we're excited about the path we're on at a transformative time in the industry. Now I will turn the call over to Adam to discuss the details of our second quarter results.