Good afternoon, and welcome to Vizio's Q2 2022 earnings call. I'm Michael Marks, Director of Investor Relations. 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 and Strategic Growth Officer. 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. 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 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. Now, I will turn the call over to William. 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 like 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. Our second quarter results show the power of our leadership team and the success of the dual revenue model we have 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 can continue to deliver great products at superior value because of our deep focus on discipline and operational efficiency. 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 select SKUs, like our 50-inch V-Series model. That TV quickly became the number 1 selling TV in the country at that time, and it continued to be in the second quarter as well. Building on this momentum, we expanded our competitive pricing strategy to include additional highly performing SKUs such as our 40-inch D-Series model. That TV became the number 2 selling TV in the country. During the second quarter, Vizio had the number 1 and number 2 best-selling TVs in the market, which helped propel us into the number 2 market share position in the U.S. for the quarter. An outstanding achievement in a tough market. Looking ahead, our new collection of TVs and soundbars just started to hit stores last month, and the feedback has been tremendous. Many of our new TV models include Wi-Fi 6 compatibility, an 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 soundbars pack the serious 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's tech reviewers, touting the performance and value of our new lineup. Turning to our Platform+ business, we'll continue to build on our integrated offering by bringing more content and enhanced viewing experiences to our users. We recently announced that TikTok, one of the fastest-growing entertainment platforms, joined Vizio. Now you can enjoy your favorite dance video on a much larger screen. We also expanded our Spanish language content offering this quarter with a new app partnership with Estrella Media and broadened our content offering across a range of categories, including kids, lifestyle, classic 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 on-screen promotion capabilities. Once again this quarter, WatchFree+ was the second most-watched ad-supported app on our platform. During the quarter, we expanded the WatchFree+ content with addition 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 Bros. We have created a content offering that truly has something for everyone, from gamers to kids and families, for multicultural audiences, sports fans, and many more. This quarter, we grew our SmartCast active account base to over 16 million, up 13% over this time last year. Through the strong engagement on our platform, SmartCast hours where users spend their time streaming grew 22%. We are seeing streaming once again outpace all other time spent on our TVs. To align ourselves with this growth in streaming, particularly in ad-supported content, we have continued to invest in building out 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. In a mere two years, we have successfully developed repeat customers with the 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 ad categories such as financial services, retail, and CPG. 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 have the best platform for search and discovery in CTV, and we have to agree. Every day, millions of consumers turn on their Vizio and experience the power of our 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. This quarter, we launched VIZIO Account, our payment platform. Outside of our popular new collection, we are currently rolling out this capability across our existing fleet. The vast majority of our devices will have this capability by the end of August. It will take some time to get all the major partners up and running, and we're excited to bring Starz and Discovery+ to our platform as early launching partners. We see VIZIO Account as a 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 from VIZIO Account. While our team continues to make great progress in our journey, I believe we are 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 largest screen in your home. As we always done, we will invest with discipline and a continued focus on efficiency. 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. From more SmartCast active accounts to more engagement to more content and more advertisers, we are driving higher overall value from our growing install base. I'm very excited for what the future holds for Vizio. With a strong and seasoned team leading us, there's so much more to come. With that, I will now turn the call over to Adam to review our second quarter results in more detail. 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. Despite some softness emerging in the macro environment, we believe we continue to be a share gainer within a secularly growing part of the market. 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 in 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 owned inventory and ACR data give them on-screen validation and proof of campaign outcomes. 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 three years as we benefited from an 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. 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 U.S. improved to the number two position for the quarter. 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 a strategy of building great products at competitive pricing to continue to deliver exceptional value to our consumers and expand our household install base. 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. 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 placement. 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 also outpaced all other time 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 lockdowns and subsequent content disruptions. 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. 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 are significant opportunities 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. 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 $120 million and $125 million, with continued growth in home screen and video advertising, as well as data licensing. Political advertising remains a wild card 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. We expect Platform+ gross profit to be between $75 million and $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-$13 million. We continue to expect second-half Adjusted EBITDA to exceed first half as we benefit from greater operating leverage in our seasonally strong fourth quarter period. Overall, we are pleased with the commitment and determination of our team in Q2, which delivered solid results. We remain disciplined and focused on continuing to generate near-term profitability while investing for long-term growth. With that, let's turn the call over to questions. Operator. We will now begin the question and answer session. If you would like to ask a question, please press star followed by one on your telephone keypad. If for any reason at all you'd like to remove that question, please press star followed by two. Again, to ask a question, press star one. As a reminder, if you're using your speaker phone, please remember to pick up your handset before asking your question. We will pause here briefly as questions are registered. Operator, we'll take the first question. Thank you. The first question comes from Nick Zangler with Stephens. Your line is open. Hey, guys. Congrats on the results and congrats on the launch of VIZIO Account. Now, you know, on the streaming side, the streaming service side for VIZIO Account, you've got these early launch partners and Starz and Discovery+ amongst 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? Yeah. Any, Nick, it's Mike. I'll take this. Well, 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. Having a single place to subscribe, track payments, and manage streaming service for our consumers, we think is really important for the future. 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. I think we've got some good momentum on that front. 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. We've got a good momentum at the start, and we expect to continue to onboard partners for the foreseeable future. Very cool. Any plans though to entice some of your current VIZIO active account users to go ahead and sign up for VIZIO Account? You know, I think one, the benefit of Vizio is the fact that it's backwards compatible. VIZIO Account's rolling out not only on new devices that we sell, but also on legacy SmartCast models we have. We 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, email, social, but really on device and the partnerships we can form with the app partners we have, you know, we believe will continue to help drive adoption. For example, today, if you go in and want to sign up for Starz on the Vizio platform, you need to use VIZIO Account. We give an offer of seven days free of Starz. 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. Great. One more if I could, if you don't mind, since you mentioned it. You know, any more details here on how you're thinking about political ad spend contribution within that Q3 guide? Maybe if you could just frame up your general positioning to capture the ad spend dollars associated with political. Thank you. Yeah. Hey, Nick. It's Adam. Let me start. I I think Mike can give some more details here. As I said in the prepared comments, you know, we're looking very closely at political. We think we're in a very strong position to be able to take political dollars. Sometimes those political dollars come around in less predictable timelines and cadences. We've been very thoughtful about that and been conservative in our guidance to assume significant contribution from political. If political comes in stronger than we anticipated, then that could be a source of upside. We're gonna look at that and watch the pacing of it as we approach the voting cycle. Mike, do you want to add any color? Yeah. I think, you know, you know 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. This is our first real political cycle that we're going through. 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. We've got a large direct sales team out in the marketplace that can educate advertisers across all different categories, including political. I think we've got a lot of tools available to help political advertisers leverage our platform, including adding incremental reach. 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. Awesome. Congrats, guys, and good luck going forward. Great. Thanks, Nick. Thanks, Nick. Operator, we will take our next question. Absolutely. The next question comes from Laura Martin with Needham. Please proceed. Hi there. Okay, William, let's start with a philosophical one for you. 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 subsidized devices more. That is my philosophical question. Is your view that as you make more money in the platform business, we're just gonna subsidize devices so that we can get a faster install base and basically have you be the second-fast, you know, second-ranked television installer? Is that the theory here? Yeah, Laura, good question. From time to time, depends on the market situation, we'll decide what we're gonna do with the increased gross margin. Sometimes we invest in technology, and sometimes we invest in the price, and sometimes we invest into hiring a bigger, stronger advertising sales force. This year, with the macroeconomic headwinds, I think in Q2 we decided to make sure our TV lineup really affordable due to the inventory challenges in the retail environment. The whole idea is just make more money for the shareholder. If we can, we will subsidize TV sets because in the long term that will produce better result for our shareholders. To answer your question, yes, this is a good year for us to invest into digital TV set sales with the additional gross profit we generate on our second revenue model. That's super helpful, and I sure do like that answer. The second thing is. Yeah We have the imminent December eighth, Disney just said it's gonna 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? Do you increase your negotiating leverage as you guys cross, like, this 16 million install base hurdle? Do you think you can cut better deals with these sort of latecomers to the ad tier section of the streaming business? I think, Laura, I'll take that. I don't think we'll necessarily speak to any specific deals. That said, you know, 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. For us, we're excited about them coming into the market. We think anything that drives potentially new eyeballs, anything that's gonna increase time spent on SmartCast, anything that could bring new advertisers or larger advertising commitments into the space is really good for us. From an advertising share standpoint, not gonna 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. 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. We think there's good opportunities from there. I think as 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. I think we'll benefit or stand to benefit in a lot of different ways from this. Thanks very much. Thank you, Laura. Thanks, Laura. Operator, we will take the next question. Thank you. The next question comes from Steven Cahall with Wells Fargo. Your line is open. Thank you. I joined a little late, so I apologize if this has already been covered or been asked. SmartCast ARPU is up really nicely year-over-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. 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? Thank you. Yeah. I'll touch on trends in the market with regards to ARPU. I think for us, where 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 number two ad-supported app on our platform. We continue to be able to leverage our Inscape data, which is the 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. We've grown significantly our what we call non-endemic or non-media and entertainment clients that are starting to leverage our home screen in order to drive more KPIs. 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, gave benefit to our consumers, but was able to bring them a new opportunity to advertise with Vizio. On the advertising side, you know, 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. In terms of ARPU growth, really on the advertising side, that's the fastest trajectory for us. Yes, Stephen. Thanks, Adam. On the share gains in the quarter, we're very proud, you know, of that. In fact, you know, 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. You'll know that some actions we took in the first quarter, particularly around some pricing strategies on our V-Series 50-inch, quickly vaulted that TV into the number one 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 number two selling TV in the market. As William mentioned during the prepared remarks, during the second quarter, we had both the number 1 and number 2 selling TV in the market. As consumers are looking for value, and they're looking for great products and great solutions for their home entertainment, they're coming to Vizio, and that's helping us gain share. We're gonna continue to look at that strategy and look at other possible models in our fleet that could have similar types of results. Moving back up into the number 2 position was something that the team is very proud of for the second quarter, and we're gonna look to see how we continue to drive growth throughout the year. Great. Thank you. Thanks, Steve. Operator, we'll take the next question. Absolutely. The next question comes from Tom Champion with Piper Sandler. Your line is open. Hi, guys. Good evening. Maybe for Mike O'Donnell. Mike, can you just talk about what you're seeing in the scatter market? Also just elaborate on the ad verticals of strength. I think you highlighted retail and CPG. Some have cited those as verticals of weakness. Curious why you're bucking the trend here. Maybe for William, just curious your latest thoughts on supply chain and the consumer. I'm curious if the consumer may be bouncing back a little bit from lower gas prices. Thank you. Yeah. So Tom, you know, 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. As you know, we're only 2.5 years into this. We've continued to invest in the sales team. I think we got, you know, best sales team in the marketplace right now out there evangelizing all the key capabilities we have. 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. For us, we are still growing in terms of our advertiser base, and that's allowed us to, you know, withstand some of the pressure in the marketplace and continue to scale. We expect to continue to scale and grow our advertising base for the foreseeable future. Yeah. For your question on supply chain, our team done a great job managing supply chain over the last three quarters. There's not really a supply chain challenge right now. The thing we're dealing with is more, well, has to do with macroeconomic headwinds and demand issues. So far, we haven't really seen any significant pickup due to the lower gasoline prices. But we're pretty hopeful that that's gonna improve the overall situation as the gasoline price continue to fall. Got it. Thanks a lot, guys. Thanks, Tom. Operator, we will take the next question. Absolutely. The next question comes from Jason Kreyer with Craig-Hallum. Please proceed. Great. Thank you, guys. Maybe first for William, if you can just talk about how Vizio has performed in past economic downturn cycles and, you know, what you can do strategically to position the company for share gains. Yeah. Jason, ever since the beginning, Vizio has always been known as the best value brand in the TV industry. Over the last 20 years, we really consistently deliver great technology at affordable price. We've done so by focusing on building the cost of business and efficiency. Like I mentioned earlier, I'm very proud of our strong senior management team that have done a fabulous job over the last 20 years and proven to be resilient. During the great recession, we did extremely well and we have become the number one flat-screen TV maker in the U.S.A. during that time. Now fast-forward 14 years later, we added our dual revenue business model. With a combination of dual revenue model, a really strong balance sheet, and a really strong senior management team, which I'm so proud of, we are ready to take on any kind of macroeconomic headwinds. We're ready. Okay. Just to follow up, any notable takeaways from the upfront as I assume you've wrapped up that process by now? 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 closed some great deals in the marketplace, and we continue to have some conversations to onboard even more brands. 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. All right. Thanks, guys. Thanks, Jason. Operator, we will take the next question. Absolutely. The next question comes from James Goss with Barrington Research. Your line is open. Thank you. I've got a couple. One, I wanted to build on something I think Adam was talking about earlier, about the 50-inch V-Series and the 40-inch D-Series being the number one and two sets. Do you have a pattern you think you might be employing in terms of targeting certain categories that might 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? Yeah. Thanks, Jim. One of the benefits of us having the extensive data that we do is we know the usage levels by TV by series. We have a sense of what units tend to over-index in terms of viewer engagement, and therefore opportunities for ARPU for us. That goes into our thinking about which units we wanna be more aggressive with in pricing. It's not a coincidence to your exact question that we started with that V-Series 50. There's two 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. 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. There is a connection between our pricing strategies and how the usage trends translate into our ARPU opportunity. Okay. As not to let this, you know, totally trash your TV margins on the hardware, do you think at some point you let it be known that there might be another couple of months before this unit is no longer on sale, and we rotate to something else so that it encourages the consumers and the salespeople to push those models and then sort of move on to the next thing? Yeah. Look, we work very closely with our retail partners on that merchandising effort and the promotion activities that we put into place. We look at timelines throughout the year around selling events, opportunities, Black Friday, things of that nature, right? We work very closely on a schedule to ensure that we do that. But keep in mind our fleet is fairly broad. 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, you know, higher margins to that. On a blended basis, we can help manage the overall gross profit contribution from the TV business. All that being said, back to the point of our dual revenue model, strategically, we're willing 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. With the useful life of a TV averaging somewhere around six or seven years, as we're generating now, as you see, over $25 in ARPU, you know, 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. 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 wanna lean into that approach. Okay. One other. You spoke about the legacy televisions 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? Yeah. I think overall it's important, right? We wanna have a whole 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. 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 plug-in device. We're meeting their needs. We're bringing great content to the 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. Absolutely we'd love to see consumers continue to add more units in their home and have Vizio be their primary entertainment source. Okay, thanks. Thanks, Jim. Thanks, Jim. Operator, we have time for one more question. Absolutely. The final question is from Vasily Karasyov with Cannonball Research. Please proceed. Thank you. Good afternoon. I have a question about your philosophy going into a potential macro downturn. Growing CPMs for your advertising units has been, you know, people have expected you to pull that lever and accelerate revenue, and that's part of the bull thesis 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 a lower sell-through but hold the CPMs? Thank you very much. Yeah. I think CPMs, you know, CPMs are really a function of supply and demand. I think right now there continues to be softness in the marketplace, but there continues to be demand for connected television. 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 for the media and entertainment community, we have the best UI for search and discovery in the marketplace. Our strategy today is not to reduce CPMs. We still believe there's upside and continued growth on the CPM side. Thank you. Thanks, Vasily. Thanks everyone for joining. This concludes today's call. Have a great evening. This concludes the VIZIO Inc. Q2 2022 earnings call. Thank you for your participation. You may now disconnect your line.