VIZIO HOLDING CORP., 10-Q filed on 5/12/2021
Quarterly Report
v3.21.1
Cover - shares
 3 Months Ended
Mar. 31, 2021
May 07, 2021
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2021  
Document Transition Report false  
Entity File Number 001-40271  
Entity Registrant Name VIZIO HOLDING CORP.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 85-4185335  
Entity Address, Address Line One 39 Tesla  
Entity Address, City or Town Irvine  
Entity Address, State or Province CA  
City Area Code 949  
Local Phone Number 428-2525  
Entity Address, Postal Zip Code 92618  
Title of 12(b) Security Class A common stock, par value $0.0001 per share  
Trading Symbol VZIO  
Security Exchange Name NYSE  
Entity Current Reporting Status No  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   183,967,114
Entity Central Index Key 0001835591  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2021  
Document Fiscal Period Focus Q1  
Amendment Flag false  
v3.21.1
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Current assets:    
Cash and cash equivalents $ 435,135 $ 207,728
Accounts receivable, net 248,503 405,609
Other receivables due from related parties 815 978
Inventories 9,743 10,545
Income tax receivable 0 1,315
Other current assets 56,599 55,460
Total current assets 750,795 681,635
Property, equipment and software, net 9,829 7,929
Goodwill, net 44,788 44,788
Intangible assets, net 102 131
Deferred income taxes 25,424 26,652
Other assets 13,218 13,847
Total assets 844,156 774,982
Current liabilities:    
Accounts payable due to related parties 159,680 209,362
Accounts payable 128,365 166,805
Accrued expenses 146,043 154,959
Accrued royalties 77,223 81,143
Other current liabilities 12,081 5,272
Total current liabilities 523,392 617,541
Other long-term liabilities 7,810 8,210
Total liabilities 531,202 625,751
Commitments and contingencies (Note 16)
Stockholders’ equity:    
Convertible Preferred stock 0 2,565
Common Stock 18 15
Additional paid-in capital 262,799 98,885
Accumulated other comprehensive (loss) income (72) 873
Retained earnings 50,209 46,893
Total stockholders’ equity 312,954 149,231
Total liabilities and stockholders' equity $ 844,156 $ 774,982
v3.21.1
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Mar. 31, 2021
Dec. 31, 2020
Stockholders’ equity:    
Preferred stock, par value (in dollars per share) $ 0.0001  
Preferred stock, authorized (in shares) 100,000,000  
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, authorized (in shares) 1,350,000,000  
Common stock, issued (in shares) 183,668,829  
Common stock, outstanding (in shares) 183,668,829  
Preferred Stock    
Stockholders’ equity:    
Preferred stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Preferred stock, authorized (in shares) 100,000,000 100,000,000
Preferred stock, issued (in shares) 0 0
Preferred stock, outstanding (in shares) 0 0
Series A Convertible Preferred Stock    
Stockholders’ equity:    
Preferred stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Preferred stock, authorized (in shares) 0 250,000
Preferred stock, issued (in shares) 0 135,000
Preferred stock, outstanding (in shares) 0 135,000
Class A Common Stock    
Stockholders’ equity:    
Common stock, authorized (in shares) 1,000,000,000 675,000,000
Common stock, issued (in shares) 85,470,000 150,831,000
Common stock, outstanding (in shares) 85,036,000 150,831,000
Class B Common Stock    
Stockholders’ equity:    
Common stock, authorized (in shares) 200,000,000 0
Common stock, issued (in shares) 98,633,000 0
Common stock, outstanding (in shares) 98,633,000 0
Class C Common Stock    
Stockholders’ equity:    
Common stock, authorized (in shares) 150,000,000 150,000,000
Common stock, issued (in shares) 0 0
Common stock, outstanding (in shares) 0 0
v3.21.1
Condensed Consolidated Statements of Operations - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Net revenue:    
Total net revenue $ 505,656 $ 332,540
Cost of goods sold:    
Total cost of goods sold 418,991 284,813
Gross profit:    
Total gross profit 86,665 47,727
Operating expenses:    
Selling, general and administrative 67,851 30,116
Marketing 4,404 6,248
Depreciation and amortization 614 660
Total operating expenses 72,869 37,024
Income from operations 13,796 10,703
Interest income 82 348
Other (expense) income, net (189) 345
Total non-operating (expense) income (107) 693
Income before income taxes 13,689 11,396
Provision for income taxes 10,344 2,109
Net income $ 3,345 $ 9,287
Net income attributable to Class A and Class B stockholders:    
Basic (in dollars per share) $ 0.02 $ 0.05
Diluted (in dollars per share) $ 0.02 $ 0.05
Weighted-average Class A and Class B common shares outstanding:    
Basic (in shares) 145,730,000 144,268,000
Diluted (in shares) 157,174,000 146,944,000
Device    
Net revenue:    
Total net revenue $ 453,460 $ 308,855
Cost of goods sold:    
Total cost of goods sold 405,238 276,357
Gross profit:    
Total gross profit 48,222 32,498
Platform+    
Net revenue:    
Total net revenue 52,196 23,685
Cost of goods sold:    
Total cost of goods sold 13,753 8,456
Gross profit:    
Total gross profit $ 38,443 $ 15,229
v3.21.1
Condensed Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Other comprehensive income    
Net income $ 3,345 $ 9,287
Foreign currency translation adjustments, net of tax (945) (2)
Comprehensive income $ 2,400 $ 9,285
v3.21.1
Condensed Consolidated Statements of Stockholders' Equity - USD ($)
$ in Thousands
Total
Preferred Stock
Common Stock and Additional Paid-In Capital
Accumulated Other Comprehensive Income
Retained Earnings (Accumulated Deficit)
Beginning balance (in shares) at Dec. 31, 2019   135,000 150,597,000    
Beginning balance at Dec. 31, 2019 $ 41,083 $ 2,445 $ 93,948 $ 152 $ (55,462)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Share-based compensation expense 1,339   1,339    
Shares issued pursuant to incentive award plans 158   $ 158    
Foreign currency translation, net of tax (2)     (2)  
Net income 9,287       9,287
Ending balance (in shares) at Mar. 31, 2020   135,000 150,597,000    
Ending balance at Mar. 31, 2020 51,865 $ 2,445 $ 95,445 150 (46,175)
Beginning balance (in shares) at Dec. 31, 2020   135,000 150,831,000    
Beginning balance at Dec. 31, 2020 149,231 $ 2,565 $ 98,900 873 46,893
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Share-based compensation expense 26,019   $ 26,019    
Shares issued pursuant to incentive award plans (in shares)     391,000    
Accretion of preferred stock dividends 0 29     (29)
Payment of accumulated preferred stock dividends (594) $ (594)      
Conversion of Series A Preferred Stock upon IPO (in shares)   (135,000) 30,316,000    
Conversion of Series A preferred stock upon IPO 0 $ (2,000) $ 2,000    
Sale of common stock in IPO, net of $13,700 of underwriting fees and other offering costs (in shares)     7,560,000    
Sale of common stock in IPO, net of $13,700 of underwriting fees and other offering costs 145,019   $ 145,019    
Forfeit of RSA awards upon IPO (in shares)     (4,995,000)    
Shares withheld to cover withholding taxes at IPO (9,121)   $ (9,121)    
Shares withheld to cover taxes (in shares)     (434,000)    
Foreign currency translation, net of tax (945)     (945)  
Net income 3,345       3,345
Ending balance (in shares) at Mar. 31, 2021   0 183,669,000    
Ending balance at Mar. 31, 2021 $ 312,954 $ 0 $ 262,817 $ (72) $ 50,209
v3.21.1
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical)
$ in Thousands
 3 Months Ended
Mar. 31, 2021
USD ($)
Statement of Stockholders' Equity [Abstract]  
Stock issuance costs $ 13,700
v3.21.1
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Cash flows from operating activities:    
Net income $ 3,345 $ 9,287
Adjustments to reconcile net income to net cash provided by (used in) operating activities:    
Depreciation and amortization 614 660
Deferred income taxes 1,228 0
Share-based compensation expense 26,019 1,339
Changes in operating assets and liabilities:    
Accounts receivable 157,102 172,180
Other receivables due from related parties 164 2,486
Inventories 808 3,889
Income taxes receivable 1,323 778
Other current assets (1,338) (1,381)
Other assets 628 (2,719)
Accounts payable due to related parties (49,680) (107,415)
Accounts payable (38,249) (69,752)
Accrued expenses (19,659) (38,892)
Accrued royalties (3,920) (115)
Income taxes payable 6,823 1,339
Other current liabilities (17) 471
Other long-term liabilities (400) 2,419
Net cash provided by (used in) operating activities 84,791 (25,426)
Cash flows from investing activities:    
Purchase of property and equipment (2,353) (280)
Net cash used in investing activities (2,353) (280)
Cash flows from financing activities:    
Proceeds from exercise of stock options 0 158
Payment of dividends on Series A convertible preferred stock (594) 0
Proceeds from IPO, net of $10,700 in offering costs 148,044 0
Payments of offering costs (1,363) 0
Net cash provided by financing activities 146,087 158
Effects of exchange rate changes on cash and cash equivalents (1,118) (2)
Net increase (decrease) in cash and cash equivalents 227,407 (25,550)
Cash and cash equivalents at beginning of year 207,728 176,579
Cash and cash equivalents at end of year 435,135 151,029
Supplemental disclosure of cash flow information:    
Net cash paid (received) during the period for income taxes 69 (56)
Cash paid for interest 47 38
Supplemental disclosure of non-cash investing and financing activities:    
Right-of-use assets obtained in exchange for new operating lease liabilities 0 3,366
Cash paid for amounts included in the measurement of operating lease liabilities 720 551
Payment to taxing authority in connection with shares directly withheld from employees not yet made 9,121 0
IPO costs not yet paid $ 1,663 $ 0
v3.21.1
Condensed Consolidated Statements of Cash Flows (Parenthetical)
$ in Thousands
Mar. 29, 2021
USD ($)
IPO  
Offering costs $ 10,700
v3.21.1
Organization and Nature of Business
 3 Months Ended
Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization and Nature of Business Organization and Nature of Business
VIZIO Holding Corp. was incorporated as a Delaware corporation on December 7, 2020 in order to facilitate the holding company reorganization of VIZIO, Inc. and its subsidiaries (together with VIZIO Holding Corp., the “Company” or “VIZIO”). VIZIO, Inc. was incorporated in the State of California on October 21, 2002 and commenced operations in January 2003. On March 12, 2021, VIZIO Holding Corp. acquired 100% of the outstanding shares of VIZIO, Inc.
The Company’s devices include high-performance Smart televisions (“Smart TVs”), sound bars, and accessories. These products are sold to retailers and through online channels throughout the United States. Additionally, VIZIO launched Platform+, which is comprised of SmartCast, the Company’s award-winning Smart TV operating system, which enables a fully integrated entertainment solution, and Inscape, which powers its data intelligence and services. SmartCast delivers content and applications through an easy-to-use interface. It supports leading streaming apps and hosts the Company’s own free ad-supported video app, WatchFree, as well as VIZIO Free Channels. The Company provides broad support for third-party voice platforms and second screen experiences to offer additional interactive features and experiences.
VIZIO purchases all of its products from manufacturers based in Asia. Since inception, the Company has purchased a portion of its televisions from one manufacturer who holds a noncontrolling interest in the Company through its ownership of voting common stock. Since 2012, VIZIO has purchased a portion of its televisions from three manufacturers who are affiliates of an investor who holds a noncontrolling interest in the Company through its ownership of common stock. These manufacturers do not have any significant voting privileges, nor sufficient seats on the Board of Directors that would enable them to significantly influence any of the Company’s strategic or operating decisions. All transactions executed with the aforementioned manufacturers are presented as related party transactions.
Reorganization Transaction
On March 12, 2021, the Company implemented a holding company structure through the merger of VIZIO Reorganization Sub, LLC, a wholly-owned subsidiary of VIZIO Holding Corp., pursuant to an agreement and plan of merger, with and into VIZIO, Inc., with VIZIO, Inc. surviving as a wholly-owned subsidiary of VIZIO Holding Corp (the “Reorganization Transaction”). As a result of the Reorganization Transaction:
•VIZIO Holding Corp. became a holding company with no material assets other than 100% of the equity interests of VIZIO, Inc.;
•Each share of Class A common stock and Series A convertible preferred stock, respectively, of VIZIO, Inc. was cancelled in exchange for the issuance of one share of Class A common stock and Series A convertible preferred stock, respectively, of VIZIO Holding Corp.;
•VIZIO Holding Corp. began consolidating the financial results of VIZIO, Inc. and its subsidiaries;
•VIZIO Holding Corp. assumed the VIZIO, Inc. 2007 Incentive Award Plan and the VIZIO, Inc. 2017 Incentive Award Plan, and the stock options and other awards granted thereunder, on a one-for-one basis and on the same terms and conditions; and
•All of the business operations continue to be conducted through VIZIO, Inc. and its subsidiaries.
Between the incorporation of VIZIO Holding Corp. on December 7, 2020 and the completion of the Reorganization Transaction, VIZIO Holding Corp. did not conduct any activities other than those incidental to its formation and preparation for the IPO (as defined below).
Forward Stock Split
On March 15, 2021, the Company amended its Amended and Restated Certificate of Incorporation to effect a nine-for-one forward stock split of the Company’s Class A common stock. The number of authorized shares of Class A common stock was proportionally increased in accordance with the nine-for-one stock split, and the par value of the Class A common stock was not adjusted as a result of this forward stock split. As a result of the stock split, each share of the Company’s Series A preferred stock became convertible into 225 shares of Class A common stock. All Class A common stock, stock options, RSUs and per share information presented within these unaudited condensed consolidated financial statements and related notes have been adjusted to reflect this forward stock split on a retroactive basis for all periods presented.
Initial Public Offering
On March 29, 2021, the Company closed its initial public offering (“IPO”) of 12,250,000 shares of its Class A common stock at a public offering price of $21.00 per share. The Company issued and sold 7,560,000 shares of Class A common stock, and certain existing stockholders sold an aggregate of 4,690,000 shares of Class A common stock. The Company received net proceeds of approximately $145.1 million after deducting underwriting discounts and commissions of approximately $10.7 million and offering expenses of $3.0 million. On March 31, 2021, certain existing stockholders sold an additional 1,709,274 shares of Class A common stock at $21.00 per share pursuant to the underwriters’ option to purchase additional shares. We did not receive any proceeds from the sale of shares by the selling stockholders.
Immediately prior to the completion of the IPO, 134,176 shares of Series A redeemable convertible preferred stock then outstanding converted into 30,315,600 shares of shares of Class A common stock. Immediately prior to the completion of the IPO, the Company filed its Amended and Restated Certificate of Incorporation, which authorizes a total of 1,000,000,000 shares of Class A common stock, 200,000,000 shares of Class B common stock, 150,000,000 shares of Class C common stock, and 100,000,000 shares of undesignated preferred stock. Immediately after the conversion and prior to the completion of the IPO, a total of 98,633,025 shares of Class A common stock held by William Wang and his respective affiliated trusts were exchanged for an equivalent number of shares of Class B common stock pursuant to the terms of certain exchange agreements. As a result, following the completion of the IPO, the Company has three classes of authorized common stock: Class A common stock, Class B common stock and Class C common stock. See Note 9 to these unaudited condensed consolidated financial statements for further information.
Impact of COVID-19
On March 11, 2020, the COVID-19 outbreak was declared a pandemic by the World Health Organization. The challenges posed by the COVID-19 pandemic on the global economy increased significantly as the year progressed. In response to COVID-19, national and local governments around the world have instituted certain measures, including travel bans, prohibitions on group events and gatherings, shutdowns of certain businesses, curfews, shelter-in-place orders and recommendations to practice social distancing. The full impact of COVID-19 on the Company’s results of operations, financial condition and cash flows is dependent on future developments, including the duration of the pandemic and the related length of its impact on the global economy, which are uncertain and cannot be predicted at this time. However, to date the Company has not been negatively impacted by the COVID-19 pandemic despite the global shipping delays caused by port congestion during the first quarter of 2021.
v3.21.1
Summary of Significant Accounting Policies
 3 Months Ended
Mar. 31, 2021
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Other than policies updated below, there have been no significant changes from the significant accounting policies disclosed in Note 2 of the “Notes to Consolidated Financial Statements” of the audited consolidated financial statements for the year ended December 31, 2020, which are included in our prospectus filed pursuant to Rule 424(b)(4) on March 25, 2021 (the “Prospectus”).
Basis of Consolidation
The Company has prepared these accompanying unaudited condensed consolidated financial statements in accordance with generally accepted accounting principles in the United States (“GAAP”). These unaudited condensed consolidated financial statements include the accounts of VIZIO and all subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. The functional currency of most of the foreign subsidiaries is the U.S. dollar. The accounts of these remaining foreign subsidiaries have been translated using the U.S. dollar as the functional currency. Gains or losses resulting from remeasurement of these accounts from local currencies into U.S. dollars are recorded in other comprehensive income in these unaudited condensed consolidated financial statements. Financial statements of the Company’s foreign subsidiaries for which the functional currency is the local currency are translated into U.S. dollars using the exchange rate at each balance sheet date for assets and liabilities and the transaction date.
The condensed consolidated balance sheet as of December 31, 2020 and included herein was derived from the audited financial statements as of the same date. We have condensed or omitted certain information and notes normally included in complete financial statements prepared in accordance with GAAP. As such, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2020 included in the Prospectus. In our opinion, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, comprehensive
loss and cash flows for the interim periods, but they are not necessarily indicative of the results of operations to be expected for the year ending December 31, 2021.
Use of Estimates
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain amounts reported in the consolidated financial statements and accompanying notes. Actual results may differ from those estimates and assumptions. Significant items subject to such estimates and assumptions include the allowances for doubtful accounts and sales returns, reserves for excess and obsolete inventory, accrued price protection and rebates, accrued royalties, share-based compensation, intellectual property and related intangible assets, valuation of deferred tax assets and other contingencies. Supplier and customer concentrations also increase the degree of uncertainty inherent in these estimates and assumptions.
Customer Allowances
The Company offers sales incentives through various programs, consisting primarily of discounts, cooperative advertising and market development fund programs. The Company records cooperative advertising and market development fund programs with customers as a reduction to revenue unless the Company receives a distinct benefit in exchange for credits claimed by the customer and can reasonably estimate the fair value of the benefit received. These arrangements are recorded as accrued liabilities. Cooperative advertising arrangements recorded as a reduction of net revenue totaled $850 and $938 for the three months ended March 31, 2021 and 2020, respectively.
Research and Development Costs
Research and development expense consists primarily of employee-related costs, including salaries and bonuses, share-based compensation expense, and employee benefits costs, third-party contractor costs, and related allocated overhead costs. In certain cases, costs are incurred to purchase materials and equipment for future use in research and development efforts. These costs are capitalized and expensed as consumed. Research and development costs were $9,833 and $3,692 for the three months ended March 31, 2021 and 2020, respectfully, and are recorded in selling, general and administrative expense in the accompanying consolidated statements of operations.
Recently Issued Accounting Pronouncements
In December 2019, the FASB issued guidance, ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, to reduce complexity in accounting standard. The guidance simplifies the accounting for income taxes by removing certain exceptions to the general principles in Accounting Standards Codification Topic 740 ("ASC 740") as well as by improving consistent application of the topic by clarifying and amending existing guidance. This standard is effective for the Company for the year ending December 31, 2021. The adoption of this standard did not result in a material impact to the Company’s consolidated financial statements.
There have been no further developments to recently issued accounting standards, including the expected dates of adoption and estimated effects on the Company’s consolidated financial statements and footnote disclosures, from those disclosed in the audited consolidated financial statements included in the Prospectus.
v3.21.1
Net Revenue
 3 Months Ended
Mar. 31, 2021
Revenue from Contract with Customer [Abstract]  
Net Revenue Net Revenue
The Company derives revenue primarily from the sale of televisions and sound bars, advertising and data services. Revenue is recognized when control of the promised goods or services is transferred to the Company’s retailers, in an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. The Company applies a five-step approach as defined in Financial Accounting Standards Board (“FASB”) ASC 606, Revenue from Contracts with Customers (Topic 606), in determining the amount and timing of revenue to be recognized: (1) identifying the contract with a customer; (2) identifying the performance obligations in the contract; (3) determining the transaction price; (4) allocating the transaction price to the performance obligations in the contract; and (5) recognizing revenue when the corresponding performance obligation is satisfied. The Company sells products to certain retailers under terms that allow them to receive price protection on future price reductions and may provide for limited rights of return, discounts and advertising credits.
The Company disaggregates net revenue by (i) Device Revenue, and (ii) Platform+ Revenue, as it believes it best depicts how the nature, timing and uncertainty of revenue and cash flows are affected by economic factors.
The revenue recognized from the contract liabilities consisted of the Company satisfying performance obligations during the normal course of business. The Company did not identify nor record any material contract assets as of March 31, 2021 and December 31, 2020. Additionally, no costs associated with obtaining contracts with customers were capitalized, nor any costs associated with fulfilling its contracts. All costs to obtain contracts were expensed as incurred as a practical expedient.
Significant Customers
VIZIO is a wholesale distributor of televisions and other home entertainment products, which are sold to the largest retailers and wholesale clubs in North America, primarily in the United States. The Company’s sales can be impacted by consumer spending and the cyclical nature of the retail industry.
The following customers account for more than 10% of net revenue:
Three Months Ended
March 31,
20212020
Net revenue:
Customer A
41 %47 %
Customer B
15 13 
Customer C
12 10 
The following customers account for more than 10% of accounts receivable:
As of
March 31,
2021		December 31,
2020
Net receivables:
Customer A
48 %41 %
Customer B
12 18 
Customer C
14 16 
Customer A and Customer C, and certain other customers not separately identified in the table above, are affiliates under common control. Collectively, they comprised 53% and 57% of VIZIO’s net revenue for the three months ended March 31, 2021 and 2020, respectively. Their collective accounts receivable balance as of March 31, 2021 and December 31, 2020 was 62% and 57% of our total net receivables, respectively. However, throughout VIZIO’s history and presently, the Company has dealt with separate purchasing departments at Customer A and Customer C, and have at times sold products to Customer C without selling products to Customer A.
v3.21.1
Accounts Receivable
 3 Months Ended
Mar. 31, 2021
Receivables [Abstract]  
Accounts Receivable Accounts Receivable
Accounts receivable consists of the following:
As of
March 31,
2021		December 31,
2020
Accounts receivable$249,275 $406,608 
Allowance for sales returns
(744)(981)
Allowance for doubtful accounts(28)(18)
Total accounts receivable, net of allowances$248,503 $405,609 
VIZIO maintains credit insurance on certain accounts receivable balances to mitigate collection risk for these customers. The Company evaluates all accounts receivable for the allowance for doubtful accounts.
v3.21.1
Inventories
 3 Months Ended
Mar. 31, 2021
Inventory Disclosure [Abstract]  
Inventories Inventories
Inventories consist of the following:
As of
March 31,
2021		December 31,
2020
Inventory on hand
$767 $3,237 
Inventory in transit8,976 7,308 
Total inventory$9,743 $10,545 
Significant Manufacturers
VIZIO purchases a significant amount of its product inventory from certain manufacturers. The inventory is purchased under standard product supply agreements that outline the terms of the product delivery. Once all aspects of the product are agreed upon, the manufacturers are then responsible for transporting the product to their warehouses located in the United States. The manufacturers are considered the importers of record and are required to insure the product as it is shipped to the warehouses. The title and risk of loss of the product passes to VIZIO upon shipment from the manufacturer’s warehouse in the United States to the customer. The product supply agreement stipulates that the manufacturer will (i) generally reimburse VIZIO for at least a portion of the price protection or sales concessions negotiated between the Company and customers on product purchased, and (ii) indemnify VIZIO against all liability resulting from valid and enforceable patent infringement with regard to product purchased under the agreement except if such infringement arises out of the Company’s modification or misuse of the product.
The Company has the following significant concentrations related to suppliers:
Three Months Ended
March 31,
20212020
Inventory purchases:
Supplier A31 %35 %
Supplier B – related party43 44 
Supplier C10 8 
As of
March 31,
2021		December 31,
2020
Accounts payable:
Supplier A33 %16 %
Supplier B – related party50 21 
The Company is currently reliant upon these manufacturers for products. Although VIZIO can obtain products from other sources, the loss of a significant manufacturer could have a material impact on the Company’s financial condition and results of operations as the products that are being purchased may not be available on the same terms from another manufacturer.
The Company has also recorded other receivables of $3,472 and $3,033 due from the manufacturers as of March 31, 2021 and December 31, 2020, respectively. The other receivable balances are attributable to price protection and customer allowances as well as accrued royalties due in connection with the settlement of certain patent infringement cases for units shipped, which are indemnified by the Company’s manufacturers and are recognized at the time the aforementioned liabilities are incurred. The net effect is recorded in the consolidated statements of operations as a reduction to cost of goods sold.
Recycling costs
The Company incurs recycling costs in order to comply with electronic waste recycling programs within certain states. These fees are assessed by the states using current market share and actual costs incurred on administration of such programs and are
expensed as incurred. Recycling costs were $2,592 and $1,083 for the three months ended March 31, 2021 and 2020, respectively, and are recorded in cost of goods sold in the accompanying condensed consolidated statements of operations.
v3.21.1
Property and Equipment
 3 Months Ended
Mar. 31, 2021
Property, Plant and Equipment [Abstract]  
Property and Equipment Property and Equipment
Property and equipment consist of the following:
As of
March 31,
2021		December 31,
2020
Building$9,998 $9,998 
Machinery and equipment1,644 1,284 
Leasehold improvements3,438 3,438 
Furniture and fixtures2,840 2,840 
Computer and software21,185 19,184 
Automobile and truck22 22 
Total property and equipment39,127 36,766 
Less accumulated depreciation and amortization(29,298)(28,837)
Total property and equipment, net$9,829 $7,929 
During the three months ended March 31, 2021 and 2020, the Company capitalized software development costs of $621 and $573, respectively. During the three months ended March 31, 2021 and 2020 amortization of capitalized software development costs was $690 and $830, respectively, and are recorded in costs of goods sold in the accompanying condensed consolidated statements of operations.
Depreciation expense was $461 and $429 for the three months ended March 31, 2021 and 2020, respectively. The Company’s long-lived assets, which include property and equipment and other intangible assets of $9,931 and $8,060 as of March 31, 2021 and December 31, 2020 respectively, are located entirely within the United States.
v3.21.1
Goodwill and Other Intangible Assets
 3 Months Ended
Mar. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets
(a)Goodwill
The Company’s goodwill balance was $44,788 as of March 31, 2021 and December 31, 2020. The goodwill balance was determined based on the excess of the purchase price paid over the fair value of the identifiable net assets acquired and represents its future revenue and earnings potential and certain other assets acquired that do not meet the recognition criteria, such as assembled workforce. The Company performed an impairment test of its goodwill on October 1st in accordance with its accounting policy. The results of this test indicated that the Company’s goodwill was not impaired. No goodwill impairment was recorded for the three months ended March 31, 2021 or 2020.
(b)Other Intangible Assets
Intangible assets primarily consist of acquired developed technology, customer relationships, trademarks resulting from business combinations and acquired patent intangible assets, which are recorded at acquisition-date fair value, less accumulated amortization. The Company determines the appropriate useful life of its intangible assets by performing an analysis of expected cash flows of the acquired assets. Intangible assets are amortized over their estimated useful lives using a straight-line method, which approximates the pattern in which the economic benefits are consumed.
Acquired intangible assets from business combinations and accumulated amortization consist of the following as of March 31, 2021 and December 31, 2020:
Gross Carrying AmountAccumulated AmortizationNet Carrying Amount
Developed technology$5,500 $(5,500)$— 
Customer relationships1,870 (1,870)— 
Trademarks30 (30)— 
Total$7,400 $(7,400)$— 
Amortization expense recorded for intangible assets for the three months ended March 31, 2021 and 2020 was $0 and $215, respectively, and is included in cost of goods sold.
The Company has a portfolio of patents that provide a variety of benefits including defense against in progress and potential future lawsuits. The acquired patents and related fees are recorded at cost (which approximates fair value) and are being amortized using the straight-line method over the average life of the underlying patents. There were no patents purchased during the three months ended March 31, 2021.
The acquired patent intangible assets are as follows:
As of
March 31,
2021		December 31,
2020
Acquired patents$7,663 $7,663 
Less accumulated amortization(7,561)(7,532)
Total patents$102 $131 
Amortization expense on acquired patent intangibles for the three months ended March 31, 2021 and 2020, was $29 and $29, respectively, and is included in cost of goods sold. The weighted-average remaining useful life for acquired patents as of March 31, 2021 was 0.14 years. Estimated future amortization of acquired intangible assets from business combinations and acquired patent intangible assets is not material.
v3.21.1
Accrued Expenses
 3 Months Ended
Mar. 31, 2021
Payables and Accruals [Abstract]  
Accrued Expenses Accrued Expenses
The Company’s accrued expenses consisted of the following:
As of
March 31,
2021		December 31,
2020
Accrued price protection$47,441 $61,331 
Accrued other customer related expenses46,981 54,404 
Accrued supplier related expenses12,598 12,434 
Accrued payroll expenses23,740 10,874 
Accrued tax expenses114 2,741 
Accrued other expenses15,169 13,175 
Total accrued expenses$146,043 $154,959 
The Company periodically grants certain sales discounts and incentives to customers, such as rebates and price protection, which are treated as variable consideration for purposes of determining the transaction price. In certain instances, the Company will, in turn, negotiate with its manufacturers for reimbursement of a portion of the incentives so that the manufacturers are responsible for absorbing some of the rebates and price protection. The Company’s procedures for estimating customer allowances recorded as a reduction of revenue are based upon historical experience, as adjusted for the current environment, and management judgment. Customer allowances are accrued for when the related product sale is recognized. The accrued customer allowances are presented on the consolidated balance sheets in accrued expenses and recorded in the condensed consolidated statements of operations as a reduction of net revenue.
v3.21.1
Stockholders' Equity
 3 Months Ended
Mar. 31, 2021
Equity [Abstract]  
Stockholders' Equity Stockholders’ Equity
Forward Stock Split
As described in Note 1—Organization and Description of Business, on March 15, 2021, the Company amended its Amended and Restated Certificate of Incorporation to effect a nine-for-one forward stock split of the Company’s Class A common stock.
Conversion of Redeemable Convertible Preferred Stock and Amendment and Restatement of Certificate of Incorporation
As described in Note 1—Organization and Description of Business, immediately prior to the IPO:
•all 134,176 shares of Series A redeemable convertible preferred stock then outstanding converted into 30,315,600 shares of Class A common stock;
•the Company amended and restated its Amended and Restated Certificate of Incorporation to, among other things, authorize (i) 1,000,000,000 shares of Class A common stock, par value $0.0001 per share, (ii) 200,000,000 shares of Class B common stock, par value $0.0001 per share, (iii) 150,000,000 shares of Class C common stock, par value $0.0001 per share, and (iv) 100,000,000 shares of undesignated preferred stock, the rights, preferences and privileges of which may be designated from time to time by the Company’s Board of Directors; and
•a total of 98,633,025 shares of Class A common stock held by William Wang and his respective affiliated trusts were exchanged for an equivalent number of shares of Class B common stock pursuant to the terms of certain exchange agreements.
As a result, following the completion of the IPO, the Company has three classes of authorized common stock – Class A common stock, Class B common stock and Class C common stock, in addition to authorized undesignated preferred stock.
Initial Public Offering
As described in Note 1—Organization and Description of Business, on March 29, 2021 the Company closed its IPO of 12,250,000 shares of Class A common stock, in which the Company issued and sold 7,560,000 shares of Class A common stock and certain existing stockholders sold an aggregate of 4,690,000 shares of Class A common stock at a public offering price of $21.00 per share. In connection with the IPO, the Company received net proceeds of approximately $145,100 after deducting underwriting discounts and commissions of approximately $10,700 and other offering expenses of approximately $3,000.
In addition, in connection with the IPO, certain stockholders forfeited 434,334 shares of restricted stock to the Company to satisfy tax withholding obligations in connection with the IPO (the “RSA Forfeiture”). The Company recorded the value of the forfeited shares as treasury stock within Additional paid-in capital in its unaudited condensed consolidated balance sheet dated March 31, 2021 based on the fair value of the stock at the time of forfeit.
Preferred Stock
As of March 31, 2021, pursuant to the terms of the Company’s Amended and Restated Certificate of Incorporation, which became effective on March 29, 2021 in connection with the closing of the IPO (the “Restated Certificate”) the Company’s Board of Directors is authorized to issue up to an aggregate of 100,000,000 shares of undesignated preferred stock, par value $0.0001 per share, in one or more series and to fix or alter the designations, preferences, rights and any qualifications, limitations or restrictions of the shares of each of these series including the dividend rights, dividend rates, conversion rights, voting rights, term of redemption, including sinking fund provisions, redemption price or prices, liquidation preferences and the number of shares constituting any series or designations of a series without further vote or action by the stockholders.
Series A Convertible Preferred Stock
On March 29, 2021, in connection with the closing of the Company’s IPO, all 134,736 shares of Series A convertible preferred stock outstanding immediately prior to the IPO were converted into an aggregate of 30,315,600 shares of Class A common stock and recorded in the unaudited condensed consolidated balance sheet to common stock and additional paid-in capital. Additionally, approximately $588 in dividends accumulated through the conversion date were paid to the holders of outstanding shares of Series A convertible preferred stock as of immediately prior to the closing of the IPO. As of the effectiveness of the Amended and Restated Certificate of Incorporation on March 29, 2021, there are no shares of the Series A convertible preferred stock authorized for issuance.
Common Stock
As of March 31, 2021, pursuant to the terms of the Restated Certificate, the Company is authorized to issue 1,350,000,000 shares of common stock with $0.0001 par value, of which 183,668,829 shares are issued and outstanding. The Company has three classes of authorized common stock, Class A common stock, Class B common stock and Class C common stock. The rights of the holders of Class A common stock, Class B common stock, and Class C common stock are identical, except with respect to voting and conversion.
Voting rights: The holders of Class A common stock are entitled to one vote per share of Class A common stock and holders of Class B common stock are entitled to 10 votes per share of Class B common stock. Holders of our Class C common stock are not entitled to vote on any matter that is submitted to a vote of stockholders, except as otherwise required by law.
Conversion rights: Each share of Class B common stock is convertible into one share of Class A common stock at any time at the option of the holder and will automatically convert into Class A common stock upon any transfer, except for certain permitted transfers and so long as the transferor retains sole dispositive power and exclusive voting control with respect to the shares of Class B common stock. All shares of Class B common stock will convert automatically into an equivalent number of shares of Class A common stock on the date fixed by the Company’s Board of Directors that is no less than 61 days and no more than 180 days following (i) the first time that William Wang and his affiliates hold less than 25% of the shares of Class B common stock held by Mr. Wang and his affiliates as of the date of the completion of the IPO, (ii) following the date on which Mr. Wang is terminated for cause (as defined in the Company’s Restated Certificate); or (iii) the date upon which (A) Mr. Wang is no longer providing services to us as our Chief Executive Officer and (B) Mr. Wang is no longer a member of the Company’s Board of Directors. Additionally, shares of Class B common stock will convert automatically at the close of business on the date that is 12 months after the death or permanent and total disability of Mr. Wang, during which 12-month period the shares of our Class B common stock shall be voted as directed by a person designated by Mr. Wang and approved by the Company’s Board of Directors (or if there is no such person, then our secretary then in office).
After the conversion or exchange of all outstanding shares of the Company’s Class B common stock into shares of Class A common stock, all outstanding shares of Class C common stock will convert automatically into Class A common stock, on a share-for-share basis, on the date or time specified by the holders of a majority of the outstanding shares of Class A common stock, voting as a separate class.
Dividends: The holders of the Company’s common stock are entitled to share equally, on a per share basis, in any dividends declared by the Company’s Board of Directors out of legally available funds, subject to the rights of holders of preferred stock, if any, and the terms of any existing or future agreements between the Company and its lenders.
Liquidation: In the event of the Company’s liquidation, dissolution or winding up, holders of its common stock are entitled to share equally, on a per share basis, in all assets legally available for distribution after payment of all debts and other liabilities, and subject to the prior rights of any holders of outstanding shares of preferred stock, if any.
Common Stock Issuance: On June 20, 2018, VIZIO issued approximately 12,978,000 shares of its Class A common stock for $70,000, or $5.39 per share, to two related party manufacturers one of which was Supplier B as referenced in Note 5. In conjunction with this common stock issuance, VIZIO entered into strategic cooperation agreements with these suppliers. Prior to the IPO, if certain conditions set out in the agreements were achieved, the agreements provided opportunities for potential further equity investment in VIZIO. The agreements also provided for preference in future board member assignment, and future strategic financial incentives. After the expiration of the warrants the opportunity for further investment closed, while the other rights remain. The value of these were determined to be immaterial within the arrangement and to the consolidated financial statements.
Warrant Issuance: On December 31, 2019, VIZIO issued warrants to the same two suppliers in accordance with the strategic cooperation agreements entered into on June 20, 2018, upon the achievement of certain purchase volume milestones as set out in the strategic cooperation agreements. The warrants provided the suppliers the right to purchase a total of $15,000 of Class A common stock at an exercise price of $5.39 per share. The awards were exercisable in cash for a period of six months from the grant date and had a fair value of $1,927 at the grant date. The warrants were valued using the Black-Scholes option pricing model as of the issuance date and have been expensed in full within cost of goods sold within the consolidated statement of operations. Assumptions used include the annualized volatility of 48%, fair value of common stock of $5.39 and the dividend rate of 3%. In July 2020, the warrants expired unexercised.
v3.21.1
Stock-Based Compensation
 3 Months Ended
Mar. 31, 2021
Share-based Payment Arrangement [Abstract]  
Stock-Based Compensation Share-Based Compensation
In August 2017, the Company’s Board of Directors adopted the 2017 Incentive Award Plan (as amended, the “2017 Plan”), which provides for the granting of qualified and nonqualified stock options, restricted stock awards, restricted stock units, dividend equivalents, stock appreciation rights and other share-based awards. The 2017 Plan was amended and restated prior to the Company’s IPO. The 2017 Plan, reserves for issuance to eligible employees, directors and consultants a total of (i) 24,446,502 shares of common stock in addition to (ii) the number of shares that, as of the date the 2017 Plan was originally adopted, were available for issuance under the 2007 Plan (as described below), plus (iii) the number of shares subject to awards outstanding under the 2007 Plan as of the date the 2017 Plan was originally adopted, that on or after that date, are forfeited or otherwise terminate or expire for any reason without the issuance of shares to the holders of the awards; provided, that the maximum number of shares of Class A common stock that may be added to the number of shares reserved under the 2017 Plan under clauses (ii) and (iii) is 40,520,655 shares. The primary purpose of the 2017 Plan is to enhance the Company’s ability to attract, motivate, and retain the services of qualified employees, officers, and directors. Any stock options or stock appreciation rights granted under the Plan will have a term of not more than 10 years and the vesting of the awards are set at the discretion of the Board of Directors but is not expected to exceed four years for any grant.
The Company’s 2007 Incentive Award Plan (the “2007 Plan”), which the Board of Directors had adopted in 2007, was terminated in connection with the adoption of the 2017 Plan. Any outstanding awards that had been granted under the 2007 Plan prior to its termination remain outstanding, subject to the terms of the 2007 Plan and awards agreements, until such awards vest and are exercised (as applicable) or until they terminate or expire by their terms. As of March 31, 2021, options to purchase a total of 1,878,822 shares of Class A common stock remained outstanding and subject to the terms of the 2007 Plan. The awards under the 2007 Plan have a term of not more than 10 years and the vesting of the awards was set at the discretion of the Board of Directors upon grant but is not expected to exceed four years for any grant. All awards are subject to forfeiture within 90 days if employment or other services terminate prior to the vesting of the awards. Grants are no longer permitted from the 2007 Plan.
Stock Option Awards
A summary of the status of the Company’s stock option plans as of March 31, 2021 presented below:
Number of
Options		Weighted Average Exercise PriceWeighted Average Remaining Contractual Term (Years)Aggregate Intrinsic Value
Outstanding at December 31, 202016,416 4.16 7.171,934 
Granted860 11.08 
Exercised— — 
Forfeited and expired(191)4.75 
Outstanding at March 31, 202117,085 $4.50 7.0$337,491 
Options vested and exercisable at March 31, 2021 9,560 $3.11 5.9$202,072 
In February 2021, the Company granted approximately 688,068 stock option awards to various employees. These options vest over a four year period and the fair value of the option on the grant date was $10.54 as determined using the Black Scholes Option Pricing Model and a market price of $19.49, volatility of 39%, a dividend yield of 2%, a risk free rate of 1%, and an expected term of 6.25 years.
In March 2021, the Company granted 172,196 stock options to various employees. These options vest over a four year period and the fair value of the option on the grant date was $7.63 using the Black-Scholes Options Pricing Model and a market price of common stock of $21.00, volatility of 44%, a dividend yield of 2%, a risk free rate of 1% and an expected term of 6.25 years.
March 31, 2021March 31, 2020
Weighted average grant date fair value of stock options granted during the year$9.95 $— 
A summary of the nonvested stock options as of March 31, 2021 is as follows:
Shares Weighted
average
grant date
fair value
Nonvested at December 31, 20207,154 $1.64 
Granted860 $9.95 
Forfeited or expired(122)$2.84 
Vested(359)$3.57 
Nonvested at March 31, 20217,533 $6.27 
Restricted Stock Awards
Effective October 29, 2010, the Board of Directors granted a total of 4,995,000 restricted stock awards (“RSA”) to the Company’s Chief Executive Officer and Chief Operating Officer with a stock price of $1.93 per share. The restricted stock awards vest and become non-forfeitable ratably over a four-year period assuming VIZIO made its first public offering of common stock pursuant to a registration statement filed with the Securities and Exchange Commission during this period. Under the terms of the grant, if a public offering did not occur within the four-year vesting period, the restricted stock awards would remain outstanding and unvested for an additional three-year period and all shares would vest contingent upon an initial public offering. If after seven years, VIZIO was not successful at completing an initial public offering, all of the restricted stock awards would forfeit. Effective April 25, 2017, the forfeiture date on these awards was extended to December 31, 2020. In estimating the fair value of the common stock at the grant date, the Company engaged an independent valuation specialist to assist in determining the stock price.
Effective December 29, 2017, the Board of Directors granted a total of 1,179,000 restricted stock awards to members of senior management with a stock price of $2.89 per share. On October 8, 2019, the Board of Directors granted a total of 234,000 restricted stock awards to members of senior management with a stock price of $5.39 per share. Subsequent to December 31, 2020, 4,995,000 of these RSAs were forfeited.
Restricted Stock Units
On December 31, 2020, the Board of Directors granted a total of 2,034,000 restricted stock units (“RSU”) to members of senior management with a stock price of $8.54 per share. The restricted stock units vest and become nonforfeitable ratably over a one to four-year period assuming VIZIO made its first public offering of common stock pursuant to a registration statement filed with the Securities and Exchange Commission in December 2020. Under the terms of the grant, if a public offering did not occur within the vesting period, the RSUs would remain outstanding and unvested for an additional period and all shares shall vest contingent upon an initial public offering. Since the vesting of the RSUs was contingent upon an initial public offering, VIZIO deferred the recognition of compensation expense for these awards until the first quarter of 2021. In estimating the fair value of the common stock at the grant date, the Company engaged an independent valuation specialist to assist in determining the stock price. See further discussion of valuation below.
In February 2021, the Company granted 5,085,000 restricted stock units to several key employees. These RSUs vest ratably over a twelve month period and were measured based on a grant date fair value of $19.49 per share as further described below.
Fair Value of Share-Based Awards
Share-based compensation expense resulting from grants of employee and non-employee stock options is recognized in the unaudited condensed consolidated financial statements based on the respective grant date fair values of the awards. Stock option, restricted stock unit, restricted stock and warrant grant date fair values are estimated using the Black-Scholes-Merton option pricing model.
Prior to the IPO, given the absence of a public trading market, the Company’s Board of Directors considered numerous objective and subjective factors to determine the fair value of the common stock at each grant date. These factors included, but were not limited to (a) the prices at which the Company sold its Class A common stock to outside investors in arms-length transactions, (b) an independent third-party valuation of the Company’s Class A common stock, (c) the Company’s results of operations, financial position, and capital resources, (d) industry outlook, (d) the likelihood of achieving a liquidity event, such as an initial public offering or a sale of the Company, given prevailing market conditions, (e) the history and nature of the Company’s business, industry trends and competitive environment; and (f) general economic outlook including economic growth, inflation and unemployment, interest rate environment, and global economic trends, including the impact of COVID-19.
No awards were granted for the three months ended March 31, 2020. The table below provides information on the weighted-average assumptions used for stock options granted during the three months ended March 31, 2021.
Three Months Ended
March 31,
20212020
Number of options granted860 — 
Volatility 40 %— 
Expected term (years)6.25— 
Dividend yield1.92 — 
Risk-free interest rate1 %— 
Fair value of common stock $19.79 $— 
Fair market value per option determined using a Black-Scholes-Merton Option pricing model for purposes of determining compensation expense$9.95 $— 
After consideration of the difference between $8.54, the per share fair value of the Company’s Class A common stock used to record share-based compensation for certain equity awards granted in December 2020 and February 2021, and $22.00, which was the midpoint of the price range set forth on the cover page of the Company’s preliminary prospectus related to the Company’s IPO, the Company used a linear interpolated fair value from $8.54 to $22.00 to measure additional share-based compensation expense for its option and RSU grants made in December 2020, February 2021 and March 2021. As a result, the
Company recorded additional share-based compensation expense of approximately $9,913 during the three-months ended March 31, 2021 and expects to recognize an additional share-based compensation amount of approximately $48,000 during the remaining nine months of 2021. Further, the Company expects to recognize additional share-based compensation expense of approximately $16,200, $16,200 and $16,200 for the years ending 2022, 2023 and 2024, respectively, for the unvested portion of the December 2020, February 2021, and March 2021 grants.
Total share-based compensation expense including the additional share-based compensation discussed above was $26,019 and $1,339 for the three months ended March 31, 2021 and March 31, 2020, respectively, and is included in selling, general and administrative expense in the consolidated statements of operations.
As of March 31, 2021, the Company had $131,817 of unrecognized compensation costs related to share-based payments, which is expected to be recognized over a weighted average vesting period of approximately 1.4 years.
Employee Stock Purchase Plan
On March 25, 2021, the Company established an employee stock purchase plan (the “2021 ESPP”) and reserved 1,800,000 shares of Class A common stock for issuance under this plan. The 2021 ESPP is intended to qualify as an “employee stock purchase plan” within the meaning of Section 423 of the Internal Revenue Code for U.S. employees. The number of shares of common stock available for issuance under the 2021 ESPP will be increased on the first day of each calendar year, beginning in 2022, in a number of shares of common stock equal to the least of (i) 5,400,000 shares of common stock, (ii) one percent (1%) of the outstanding shares of all classes of the Company’s common stock on the last day of the immediately preceding fiscal year, or (iii) an amount determined by the Company. The 2021 ESPP is expected to be implemented through a series of offerings under which participants are granted purchase rights to purchase shares of the Company’s common stock beginning in May 2021. As of March 31, 2021, there have been no transactions related to the plan.
v3.21.1
Net Income Per Share
 3 Months Ended
Mar. 31, 2021
Earnings Per Share [Abstract]  
Net Income Per Share Net Income Per Share
The Company computes earnings per share (“EPS”) of Class A and Class B common stock using the two-class method for participating securities.
Basic earnings per share is computed by dividing the net income (loss) attributable to common stockholders by the weighted-average number of Class A and Class B common shares outstanding during the period. Participating securities are excluded from basic weighted-average common shares outstanding.
Diluted earnings per share represents net income divided by the weighted-average number of common shares outstanding, inclusive of the effect of potential common shares, if dilutive. For the three-month periods ended March 31, 2021 and 2020, the potential dilutive shares relating to outstanding stock options in the computation of diluted earnings per share.
Basic and diluted earnings per share and the weighted-average shares outstanding have been computed for all periods as shown below:
Three Months Ended
March 31
20212020
Class AClass B
Numerator:
Net income $3,270 $75 $9,287 
Less: Accumulated dividends on preferred shares(29)— (30)
Undistributed earnings3,241 75 9,257 
Less: Earnings attributable to participating securities(255)(6)(2,090)
Net income attributable to common stockholder - basic$2,986 $69 $7,167 
Reallocation of net income as a result of conversion of Class B shares to Class A shares69 — — 
Reallocation of net income to Class B shares— (4)— 
Net income attributable to common stockholders – diluted$3,055 $65 $7,167 
Denominator:
Weighted-average common shares outstanding - basic142,450 3,280 144,268 
Conversion of Class B to Class A common shares outstanding3,280 — — 
Weighted-average effect of dilutive securities
Employee stock options8,164 — 2,676 
Weighted-average common shares outstanding - diluted153,894 3,280 146,944 
Net income per share attributable to Class A and Class B common stockholders:
Basic$0.02 $0.02 $0.05 
Diluted$0.02 $0.02 $0.05 
Anti-dilutive equity awards under share-based award plans excluded from the determination of diluted EPS3,397 — 3,761 
v3.21.1
Income Taxes
 3 Months Ended
Mar. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income TaxesThe Company recorded a provision for income taxes of $10,344 resulting in an effective tax rate of 75% and $2,109 resulting in an effective tax rate of 19% for the three months ended March 31, 2021 and March 31, 2020, respectively. The effective tax rate differs from the statutory tax rate of 21% primarily due to the approximately $6,328 in permanent book-to-tax difference for the share-based compensation expense deduction limited on certain executive officers as a publicly held corporation. The tax provision for the three months ended March 31, 2021 includes a net income tax expense of $1,633 for discrete items including the deferred tax asset adjustment for share-based compensation expense, and excess tax benefits relating to executive share-based compensation, and state law changes.
v3.21.1
Defined Contribution Retirement Plan
 3 Months Ended
Mar. 31, 2021
Retirement Benefits [Abstract]  
Defined Contribution Retirement Plan Defined Contribution Retirement PlanVIZIO maintains a 401(k) defined contribution plan allowing eligible U.S.-based employees to contribute up to an annual maximum amount as set periodically by the Internal Revenue Service. The Company provides for solely discretionary matching contributions on the employee deferred amounts. For the three months ended March 31, 2021 and 2020, the Company recognized estimated discretionary matching contributions of $438 and $200, respectively. Discretionary amounts are approved annually in the fourth quarter of the year and generally paid during the first quarter of the following year.
v3.21.1
Accrued Royalties
 3 Months Ended
Mar. 31, 2021
Payables and Accruals [Abstract]  
Accrued Royalties Accrued RoyaltiesVIZIO is engaged in, and in certain cases has settled, various claims and suits alleging the infringement of patents related to certain television technology that were initiated by television manufacturers and other nonmanufacturers. In connection with the
disposition of some of these claims and suits, the Company has entered into, or may enter into, license arrangements, which may include royalty payments to be made for historical and/or prospective sales of the Company’s products. Certain of these settlements have included cross-licenses, covenants not to sue, and litigation holds.
In connection with these existing license agreements as well as existing or potential settlement arrangements, the Company recorded an aggregate accrual of $77,223 and $81,143 for all historical product sales as of March 31, 2021 and December 31, 2020, respectively. To the extent that VIZIO is indemnified under its product supply agreements with its manufacturers, the Company has offset intellectual property expenses and recorded amounts as other receivable balances included in other current assets. Historically, VIZIO has been contractually indemnified and reimbursed by its manufacturers for most intellectual property royalty obligations and commitments. The Company will make future payments for the licensed technologies with funding received from the manufacturers, either through direct reimbursement from the manufacturers or payment of the net purchase price, as these royalty payments become due. In certain circumstances, VIZIO has the contractual ability to renegotiate the annual license fee in future years if certain unit sales volumes are not met in a given year.
A summary of future commitments on royalty obligations as of March 31, 2021 is as follows:
2021 (nine months)$29,155 
202210,465 
20236,752 
20245,200 
2025 and thereafter3,450 
Total$55,022 
For potential future settlements related to historical sales for which the Company does not expect to be reimbursed, a reserve of $47,099 and $49,643 has been recorded as of March 31, 2021 and December 31, 2020, respectively, as part of accrued royalties. Any patent infringement lawsuit in which VIZIO is not indemnified is expensed when management determines that it is probable that a liability has been incurred and the amount is estimable.
In certain instances, the Company administers refundable deposits on behalf of its manufacturers for asserted intellectual property infringement claims and related active litigation in accordance with the terms of the supply agreements. The use of the refundable deposits is limited to the resolution or settlement of these claims and active cases. Management reviews the nature of these claims and active cases with the manufacturers on a periodic basis. The deposit amounts received and recorded are determined and adjusted quarterly based on mutual consent of both parties and using all available information at that time. In the event of an unfavorable resolution or settlement that exceeds the amount recorded as a refundable deposit, the excess shall be paid by VIZIO and then reimbursed by the manufacturer in accordance with the contractual indemnification provisions in the product supply agreement. Refundable deposits of $30,124 and $31,500 have been recorded as of March 31, 2021 and December 31, 2020, respectively, which are presented within accrued royalties in the consolidated balance sheets.
In the ordinary course of business, management anticipates that VIZIO will be party to various claims and suits including disputes arising over intellectual property rights and other matters. The Company intends to vigorously defend against such claims and suits; however, the ultimate outcome of such claims may remain unknown for some time. Based on all of the information available to date, management does not believe that there are any claims or suits that would have a material adverse effect on the Company’s financial condition, results of operations, or liquidity.
v3.21.1
Leases
 3 Months Ended
Mar. 31, 2021
Leases [Abstract]  
Leases Leases
The Company has various non-cancelable operating leases for its corporate and satellite offices primarily in the United States. These leases expire at various times through 2026. The table below presents supplemental balance sheet information related to the Company’s operating leases as follows (in thousands, except lease term and discount rate):
As of
ClassificationMarch 31,
2021		December 31,
2020
Assets:
Right-of-use assetOther assets$7,340 $7,993 
Liabilities:
Current portion of lease liabilitiesOther current liabilities2,762 2,856 
Long term portion of lease liabilitiesOther long-term liabilities4,578 5,137 
Weighted-average remaining lease term (years)3.63.7
Weighted-average discount rate3 %3 %
Operating lease costs were $920 and $972 for the three months ended March 31, 2021 and 2020, respectively.
The table below reconciles the undiscounted cash flows of the operating leases for each of the first five years, and total of the remaining years, to the operating lease liabilities recorded on the consolidated balance sheet as of March 31, 2021.
2021 (nine months)$2,194 
20222,021 
20231,333 
2024943 
2025741 
2026 and Thereafter594 
Total minimum lease payments7,826 
Less imputed interest(486)
Total lease liabilities$7,340 
v3.21.1
Commitment and Contingencies
 3 Months Ended
Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Volume Commitments
Certain product supply agreements include a volume supply commitment on up to 13 weeks of inventory forecasted by the Company. Management provides periodic forecasts to manufacturers at which time they consider the first 13 weeks of supply to be committed. As of March 31, 2021, no liabilities were recorded related to this supply commitment.
Revolving Credit Facility
Bank of America Facility
On April 13, 2016, VIZIO entered into a credit agreement with Bank of America, N.A. Under the credit agreement, Bank of America, N.A. agreed to provide VIZIO with a revolving credit line of up to $50,000 with a maturity date of April 13, 2021, for the purposes of repurchasing certain outstanding shares of common stock held by a related party supplier and other general business requirements, including working capital. The Company’s indebtedness to Bank of America, N.A. under the credit agreement is collateralized by substantially all of the Company’s assets.
Any indebtedness under this credit agreement bears interest at a variable rate based either on LIBOR, the federal funds rate, or the prime rate. The credit agreement contains affirmative and negative covenants which, among other things, requires the Company to deliver to Bank of America, N.A. specified annual and monthly financial information. VIZIO repaid the Bank of
America Facility on September 26, 2018. Unused fees related to this line of credit was $324 and $191 for the three months ended March 31, 2021 and 2020, respectively. The Company is in compliance with all required financial covenants as of March 31, 2021. The credit agreement was amended in April 2021, see Note 18 for additional information.
Legal Matters
Advanced Micro Devices, Inc. (“AMD”) presented the Company with a claim letter dated May 11, 2015 in which AMD claimed the Company is infringing its patents that cover graphics processing and semiconductor technologies. On January 23 and 24, 2017, respectively, AMD filed complaints in the U.S. District Court for the District of Delaware and the International Trade Center (ITC) alleging infringement of AMD’s U.S. patents. On August 22, 2018, the ITC ruled against VIZIO and recommended limited exclusion and cease and desist orders. On August 30, 2018, the parties entered into a settlement agreement including payments of $39,000 in total, and the cases were subsequently dismissed. Of the $39,000 settlement outlined in the agreement, $15,000 was negotiated to apply to the release for units shipped prior to the effective date of the agreement which is indemnified by VIZIO’s suppliers. This is reflected in the first three payments due to AMD under the license, which were paid by the end of 2018. Payments beginning with the fourth payment are scheduled on an annual basis in May of each subsequent calendar year for payment of ongoing license from September 2018 and included in accrued royalties in Note 14. In connection with the IPO, approximately $14,000 in payments were accelerated and paid.
In November 2020, the Company entered into a settlement agreement with AmTRAN Technology Co., Ltd. (“AmTRAN”) and one of its subsidiaries. AmTRAN is a beneficial holder of more than 5% of the Company’s Class A common stock. Pursuant to the settlement agreement, the Company agreed, among other things, to pay AmTRAN approximately $8,200. In return, on November 23, 2020 AmTRAN terminated its security agreement. AmTRAN further agreed to pay outstanding fees owed by it for IP licenses related to the manufacturing of the Company’s devices. The parties further agreed that VIZIO would continue to retain a reserve of approximately $4,000 for payment of, future claims attributable to devices manufactured by AmTRAN. On December 31, 2022 VIZIO will release to AmTRAN the lesser of (i) 50% of the remaining balance of the reserve or (ii) approximately $2,000, with a like amount to be retained by the Company.
v3.21.1
Subsequent Events
 3 Months Ended
Mar. 31, 2021
Subsequent Events [Abstract]  
Subsequent Events Subsequent EventsOn April 13, 2021, the Company entered into a Second Amendment to the Loan and Security Agreement (“Second Amendment”) with Bank of America N.A., to include among other things, (i) an update to provide for use of a LIBOR successor rate, (ii) to amend the definition of Availability Reserve and Borrowing Base, and (iii) an extension of the termination date to April 13, 2024. In connection with the Second Amendment, the Company will pay a fee of $75 in the second quarter.
v3.21.1
Summary of Significant Accounting Policies (Policies)
 3 Months Ended
Mar. 31, 2021
Accounting Policies [Abstract]  
Basis of Consolidation The Company has prepared these accompanying unaudited condensed consolidated financial statements in accordance with generally accepted accounting principles in the United States (“GAAP”). These unaudited condensed consolidated financial statements include the accounts of VIZIO and all subsidiaries.The condensed consolidated balance sheet as of December 31, 2020 and included herein was derived from the audited financial statements as of the same date. We have condensed or omitted certain information and notes normally included in complete financial statements prepared in accordance with GAAP. As such, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2020 included in the Prospectus. In our opinion, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, comprehensive loss and cash flows for the interim periods, but they are not necessarily indicative of the results of operations to be expected for the year ending December 31, 2021.
Consolidation All intercompany transactions and balances have been eliminated in consolidation.
Foreign Currency Transactions and Translations The functional currency of most of the foreign subsidiaries is the U.S. dollar. The accounts of these remaining foreign subsidiaries have been translated using the U.S. dollar as the functional currency. Gains or losses resulting from remeasurement of these accounts from local currencies into U.S. dollars are recorded in other comprehensive income in these unaudited condensed consolidated financial statements. Financial statements of the Company’s foreign subsidiaries for which the functional currency is the local currency are translated into U.S. dollars using the exchange rate at each balance sheet date for assets and liabilities and the transaction date.
Use of Estimates
Use of Estimates
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain amounts reported in the consolidated financial statements and accompanying notes. Actual results may differ from those estimates and assumptions. Significant items subject to such estimates and assumptions include the allowances for doubtful accounts and sales returns, reserves for excess and obsolete inventory, accrued price protection and rebates, accrued royalties, share-based compensation, intellectual property and related intangible assets, valuation of deferred tax assets and other contingencies. Supplier and customer concentrations also increase the degree of uncertainty inherent in these estimates and assumptions.
Customer Allowances Customer AllowancesThe Company offers sales incentives through various programs, consisting primarily of discounts, cooperative advertising and market development fund programs. The Company records cooperative advertising and market development fund programs with customers as a reduction to revenue unless the Company receives a distinct benefit in exchange for credits claimed by the customer and can reasonably estimate the fair value of the benefit received. These arrangements are recorded as accrued liabilities.Net Revenue
The Company derives revenue primarily from the sale of televisions and sound bars, advertising and data services. Revenue is recognized when control of the promised goods or services is transferred to the Company’s retailers, in an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. The Company applies a five-step approach as defined in Financial Accounting Standards Board (“FASB”) ASC 606, Revenue from Contracts with Customers (Topic 606), in determining the amount and timing of revenue to be recognized: (1) identifying the contract with a customer; (2) identifying the performance obligations in the contract; (3) determining the transaction price; (4) allocating the transaction price to the performance obligations in the contract; and (5) recognizing revenue when the corresponding performance obligation is satisfied. The Company sells products to certain retailers under terms that allow them to receive price protection on future price reductions and may provide for limited rights of return, discounts and advertising credits.
The Company disaggregates net revenue by (i) Device Revenue, and (ii) Platform+ Revenue, as it believes it best depicts how the nature, timing and uncertainty of revenue and cash flows are affected by economic factors.
The revenue recognized from the contract liabilities consisted of the Company satisfying performance obligations during the normal course of business. The Company did not identify nor record any material contract assets as of March 31, 2021 and December 31, 2020. Additionally, no costs associated with obtaining contracts with customers were capitalized, nor any costs associated with fulfilling its contracts. All costs to obtain contracts were expensed as incurred as a practical expedient.
Research and Development Costs Research and Development CostsResearch and development expense consists primarily of employee-related costs, including salaries and bonuses, share-based compensation expense, and employee benefits costs, third-party contractor costs, and related allocated overhead costs. In certain cases, costs are incurred to purchase materials and equipment for future use in research and development efforts. These costs are capitalized and expensed as consumed.
Recently Issued Accounting Pronouncements In December 2019, the FASB issued guidance, ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, to reduce complexity in accounting standard. The guidance simplifies the accounting for income taxes by removing certain exceptions to the general principles in Accounting Standards Codification Topic 740 ("ASC 740") as well as by improving consistent application of the topic by clarifying and amending existing guidance. This standard is effective for the Company for the year ending December 31, 2021. The adoption of this standard did not result in a material impact to the Company’s consolidated financial statements. There have been no further developments to recently issued accounting standards, including the expected dates of adoption and estimated effects on the Company’s consolidated financial statements and footnote disclosures, from those disclosed in the audited consolidated financial statements included in the Prospectus.
Revenue Customer AllowancesThe Company offers sales incentives through various programs, consisting primarily of discounts, cooperative advertising and market development fund programs. The Company records cooperative advertising and market development fund programs with customers as a reduction to revenue unless the Company receives a distinct benefit in exchange for credits claimed by the customer and can reasonably estimate the fair value of the benefit received. These arrangements are recorded as accrued liabilities.Net Revenue
The Company derives revenue primarily from the sale of televisions and sound bars, advertising and data services. Revenue is recognized when control of the promised goods or services is transferred to the Company’s retailers, in an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. The Company applies a five-step approach as defined in Financial Accounting Standards Board (“FASB”) ASC 606, Revenue from Contracts with Customers (Topic 606), in determining the amount and timing of revenue to be recognized: (1) identifying the contract with a customer; (2) identifying the performance obligations in the contract; (3) determining the transaction price; (4) allocating the transaction price to the performance obligations in the contract; and (5) recognizing revenue when the corresponding performance obligation is satisfied. The Company sells products to certain retailers under terms that allow them to receive price protection on future price reductions and may provide for limited rights of return, discounts and advertising credits.
The Company disaggregates net revenue by (i) Device Revenue, and (ii) Platform+ Revenue, as it believes it best depicts how the nature, timing and uncertainty of revenue and cash flows are affected by economic factors.
The revenue recognized from the contract liabilities consisted of the Company satisfying performance obligations during the normal course of business. The Company did not identify nor record any material contract assets as of March 31, 2021 and December 31, 2020. Additionally, no costs associated with obtaining contracts with customers were capitalized, nor any costs associated with fulfilling its contracts. All costs to obtain contracts were expensed as incurred as a practical expedient.
v3.21.1
Net Revenue (Tables)
 3 Months Ended
Mar. 31, 2021
Revenue from Contract with Customer [Abstract]  
Schedule of Concentration Risk
The following customers account for more than 10% of net revenue:
Three Months Ended
March 31,
20212020
Net revenue:
Customer A
41 %47 %
Customer B
15 13 
Customer C
12 10 
The following customers account for more than 10% of accounts receivable:
As of
March 31,
2021		December 31,
2020
Net receivables:
Customer A
48 %41 %
Customer B
12 18 
Customer C
14 16 
The Company has the following significant concentrations related to suppliers:
Three Months Ended
March 31,
20212020
Inventory purchases:
Supplier A31 %35 %
Supplier B – related party43 44 
Supplier C10 8 
As of
March 31,
2021		December 31,
2020
Accounts payable:
Supplier A33 %16 %
Supplier B – related party50 21 
v3.21.1
Accounts Receivable (Tables)
 3 Months Ended
Mar. 31, 2021
Receivables [Abstract]  
Schedule of Accounts Receivable Accounts receivable consists of the following:
As of
March 31,
2021		December 31,
2020
Accounts receivable$249,275 $406,608 
Allowance for sales returns
(744)(981)
Allowance for doubtful accounts(28)(18)
Total accounts receivable, net of allowances$248,503 $405,609 
v3.21.1
Inventories (Tables)
 3 Months Ended
Mar. 31, 2021
Inventory Disclosure [Abstract]  
Schedule of Inventory
Inventories consist of the following:
As of
March 31,
2021		December 31,
2020
Inventory on hand
$767 $3,237 
Inventory in transit8,976 7,308 
Total inventory$9,743 $10,545 
Schedule of Concentration Risk
The following customers account for more than 10% of net revenue:
Three Months Ended
March 31,
20212020
Net revenue:
Customer A
41 %47 %
Customer B
15 13 
Customer C
12 10 
The following customers account for more than 10% of accounts receivable:
As of
March 31,
2021		December 31,
2020
Net receivables:
Customer A
48 %41 %
Customer B
12 18 
Customer C
14 16 
The Company has the following significant concentrations related to suppliers:
Three Months Ended
March 31,
20212020
Inventory purchases:
Supplier A31 %35 %
Supplier B – related party43 44 
Supplier C10 8 
As of
March 31,
2021		December 31,
2020
Accounts payable:
Supplier A33 %16 %
Supplier B – related party50 21 
v3.21.1
Property and Equipment (Tables)
 3 Months Ended
Mar. 31, 2021
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment
Property and equipment consist of the following:
As of
March 31,
2021		December 31,
2020
Building$9,998 $9,998 
Machinery and equipment1,644 1,284 
Leasehold improvements3,438 3,438 
Furniture and fixtures2,840 2,840 
Computer and software21,185 19,184 
Automobile and truck22 22 
Total property and equipment39,127 36,766 
Less accumulated depreciation and amortization(29,298)(28,837)
Total property and equipment, net$9,829 $7,929 
v3.21.1
Goodwill and Other Intangible Assets (Tables)
 3 Months Ended
Mar. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Acquired Intangible Assets
Acquired intangible assets from business combinations and accumulated amortization consist of the following as of March 31, 2021 and December 31, 2020:
Gross Carrying AmountAccumulated AmortizationNet Carrying Amount
Developed technology$5,500 $(5,500)$— 
Customer relationships1,870 (1,870)— 
Trademarks30 (30)— 
Total$7,400 $(7,400)$— 
The acquired patent intangible assets are as follows:
As of
March 31,
2021		December 31,
2020
Acquired patents$7,663 $7,663 
Less accumulated amortization(7,561)(7,532)
Total patents$102 $131 
v3.21.1
Accrued Expenses (Tables)
 3 Months Ended
Mar. 31, 2021
Payables and Accruals [Abstract]  
Schedule of Accrued Expenses
The Company’s accrued expenses consisted of the following:
As of
March 31,
2021		December 31,
2020
Accrued price protection$47,441 $61,331 
Accrued other customer related expenses46,981 54,404 
Accrued supplier related expenses12,598 12,434 
Accrued payroll expenses23,740 10,874 
Accrued tax expenses114 2,741 
Accrued other expenses15,169 13,175 
Total accrued expenses$146,043 $154,959 
v3.21.1
Stock-Based Compensation (Tables)
 3 Months Ended
Mar. 31, 2021
Share-based Payment Arrangement [Abstract]  
Share-based Payment Arrangement, Option, Activity
A summary of the status of the Company’s stock option plans as of March 31, 2021 presented below:
Number of
Options		Weighted Average Exercise PriceWeighted Average Remaining Contractual Term (Years)Aggregate Intrinsic Value
Outstanding at December 31, 202016,416 4.16 7.171,934 
Granted860 11.08 
Exercised— — 
Forfeited and expired(191)4.75 
Outstanding at March 31, 202117,085 $4.50 7.0$337,491 
Options vested and exercisable at March 31, 2021 9,560 $3.11 5.9$202,072 
March 31, 2021March 31, 2020
Weighted average grant date fair value of stock options granted during the year$9.95 $— 
A summary of the nonvested stock options as of March 31, 2021 is as follows:
Shares Weighted
average
grant date
fair value
Nonvested at December 31, 20207,154 $1.64 
Granted860 $9.95 
Forfeited or expired(122)$2.84 
Vested(359)$3.57 
Nonvested at March 31, 20217,533 $6.27 
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions The table below provides information on the weighted-average assumptions used for stock options granted during the three months ended March 31, 2021.
Three Months Ended
March 31,
20212020
Number of options granted860 — 
Volatility 40 %— 
Expected term (years)6.25— 
Dividend yield1.92 — 
Risk-free interest rate1 %— 
Fair value of common stock $19.79 $— 
Fair market value per option determined using a Black-Scholes-Merton Option pricing model for purposes of determining compensation expense$9.95 $— 
v3.21.1
Net Income Per Share (Tables)
 3 Months Ended
Mar. 31, 2021
Earnings Per Share [Abstract]  
Schedule of Basic and Diluted Earnings (Loss) Per Share
Basic and diluted earnings per share and the weighted-average shares outstanding have been computed for all periods as shown below:
Three Months Ended
March 31
20212020
Class AClass B
Numerator:
Net income $3,270 $75 $9,287 
Less: Accumulated dividends on preferred shares(29)— (30)
Undistributed earnings3,241 75 9,257 
Less: Earnings attributable to participating securities(255)(6)(2,090)
Net income attributable to common stockholder - basic$2,986 $69 $7,167 
Reallocation of net income as a result of conversion of Class B shares to Class A shares69 — — 
Reallocation of net income to Class B shares— (4)— 
Net income attributable to common stockholders – diluted$3,055 $65 $7,167 
Denominator:
Weighted-average common shares outstanding - basic142,450 3,280 144,268 
Conversion of Class B to Class A common shares outstanding3,280 — — 
Weighted-average effect of dilutive securities
Employee stock options8,164 — 2,676 
Weighted-average common shares outstanding - diluted153,894 3,280 146,944 
Net income per share attributable to Class A and Class B common stockholders:
Basic$0.02 $0.02 $0.05 
Diluted$0.02 $0.02 $0.05 
Anti-dilutive equity awards under share-based award plans excluded from the determination of diluted EPS3,397 — 3,761 
v3.21.1
Accrued Royalties (Tables)
 3 Months Ended
Mar. 31, 2021
Payables and Accruals [Abstract]  
Future Commitments on Royalty Obligations
A summary of future commitments on royalty obligations as of March 31, 2021 is as follows:
2021 (nine months)$29,155 
202210,465 
20236,752 
20245,200 
2025 and thereafter3,450 
Total$55,022 
v3.21.1
Leases (Tables)
 3 Months Ended
Mar. 31, 2021
Leases [Abstract]  
Supplemental Balance Sheet Information The table below presents supplemental balance sheet information related to the Company’s operating leases as follows (in thousands, except lease term and discount rate):
As of
ClassificationMarch 31,
2021		December 31,
2020
Assets:
Right-of-use assetOther assets$7,340 $7,993 
Liabilities:
Current portion of lease liabilitiesOther current liabilities2,762 2,856 
Long term portion of lease liabilitiesOther long-term liabilities4,578 5,137 
Weighted-average remaining lease term (years)3.63.7
Weighted-average discount rate3 %3 %
Schedule of Undiscounted Cash Flows of Operating Leases
The table below reconciles the undiscounted cash flows of the operating leases for each of the first five years, and total of the remaining years, to the operating lease liabilities recorded on the consolidated balance sheet as of March 31, 2021.
2021 (nine months)$2,194 
20222,021 
20231,333 
2024943 
2025741 
2026 and Thereafter594 
Total minimum lease payments7,826 
Less imputed interest(486)
Total lease liabilities$7,340 
v3.21.1
Organization and Nature of Business (Details)
$ / shares in Units, $ in Thousands
 1 Months Ended 111 Months Ended
Mar. 29, 2021
USD ($)
$ / shares
shares
Mar. 28, 2021
shares
Mar. 15, 2021
shares
Mar. 12, 2021
Mar. 31, 2021
$ / shares
shares
Mar. 31, 2021
manufacturer
$ / shares
shares
Dec. 31, 2020
shares
Related Party Transaction [Line Items]              
Number of awards assumed for each award granted under share based compensation plans       1      
Preferred stock, authorized (in shares)   100,000,000     100,000,000 100,000,000  
Common stock, authorized (in shares)         1,350,000,000 1,350,000,000  
Investor              
Related Party Transaction [Line Items]              
Number of manufacturers purchased from | manufacturer           3  
IPO              
Related Party Transaction [Line Items]              
Number of shares issued (in shares) 12,250,000            
Consideration received on stock issuance (in dollars per share) | $ / shares $ 21.00            
Consideration received on stock issuance | $ $ 145,100            
Underwriting discounts and commissions | $ 10,700            
Offering expenses | $ $ 3,000            
Over-Allotment Option              
Related Party Transaction [Line Items]              
Number of shares issued (in shares)         1,709,274    
Consideration received on stock issuance (in dollars per share) | $ / shares         $ 21.00 $ 21.00  
IPO, New Shares Issued              
Related Party Transaction [Line Items]              
Number of shares issued (in shares) 7,560,000            
IPO, From Existing Shareholders              
Related Party Transaction [Line Items]              
Number of shares issued (in shares) 4,690,000            
Vizio Holding Corp | VIZIO, Inc.              
Related Party Transaction [Line Items]              
Percentage of outstanding shares acquired       100.00%      
Class A Common Stock              
Related Party Transaction [Line Items]              
Shares issued in exchange for cancelled shares (in shares)       1      
Stock split ratio     9        
Shares issued upon conversion (in shares)     225        
Shares issued upon conversion (in shares)   30,315,600          
Common stock, authorized (in shares)   1,000,000,000     1,000,000,000 1,000,000,000 675,000,000
Class B Common Stock              
Related Party Transaction [Line Items]              
Common stock, authorized (in shares)   200,000,000     200,000,000 200,000,000 0
Class C Common Stock              
Related Party Transaction [Line Items]              
Common stock, authorized (in shares)   150,000,000     150,000,000 150,000,000 150,000,000
Series A Convertible Preferred Stock              
Related Party Transaction [Line Items]              
Shares issued upon conversion (in shares)   30,315,600          
Preferred stock, authorized (in shares)         0 0 250,000
Conversion of stock, issued (in shares) 134,736 134,176          
William Wang And Affiliated Trusts | Class B Common Stock              
Related Party Transaction [Line Items]              
Conversion of stock, issued (in shares)   98,633,025          
v3.21.1
Summary of Significant Accounting Policies (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Accounting Policies [Abstract]    
Cooperated advertising arrangements recorded as a reduction of net revenue $ 850 $ 938
Research and development costs $ 9,833 $ 3,692
v3.21.1
Net Revenue - Narrative (Details) - USD ($)
 3 Months Ended 12 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Dec. 31, 2020
Concentration Risk [Line Items]      
Contract assets $ 0   $ 0
Capitalized contract costs $ 0   $ 0
Net Revenue | Customer Concentration Risk | Affiliated Entity      
Concentration Risk [Line Items]      
Concentration risk, percentage 53.00% 57.00%  
Net Receivables | Credit Concentration Risk | Affiliated Entity      
Concentration Risk [Line Items]      
Concentration risk, percentage 62.00%   57.00%
v3.21.1
Net Revenue - Schedule of Concentration Risk (Details) - Customer Concentration Risk
 3 Months Ended 12 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Dec. 31, 2020
Customer A | Net Revenue      
Revenue, Major Customer [Line Items]      
Concentration risk, percentage 41.00% 47.00%  
Customer A | Net Receivables      
Revenue, Major Customer [Line Items]      
Concentration risk, percentage 48.00%   41.00%
Customer B | Net Revenue      
Revenue, Major Customer [Line Items]      
Concentration risk, percentage 15.00% 13.00%  
Customer B | Net Receivables      
Revenue, Major Customer [Line Items]      
Concentration risk, percentage 12.00%   18.00%
Customer C | Net Revenue      
Revenue, Major Customer [Line Items]      
Concentration risk, percentage 12.00% 10.00%  
Customer C | Net Receivables      
Revenue, Major Customer [Line Items]      
Concentration risk, percentage 14.00%   16.00%
v3.21.1
Accounts Receivable - Schedule of Accounts Receivable (Details) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Receivables [Abstract]    
Accounts receivable $ 249,275 $ 406,608
Allowance for sales returns (744) (981)
Allowance for doubtful accounts (28) (18)
Total accounts receivable, net of allowances $ 248,503 $ 405,609
v3.21.1
Inventories - Schedule of Inventories (Details) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Inventory [Line Items]    
Total inventory $ 9,743 $ 10,545
Inventory on hand    
Inventory [Line Items]    
Total inventory 767 3,237
Inventory in transit    
Inventory [Line Items]    
Total inventory $ 8,976 $ 7,308
v3.21.1
Inventories - Schedule of Inventory Purchases (Details) - Supplier Concentration Risk - Inventory Purchases
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Supplier A    
Concentration Risk [Line Items]    
Concentration risk, percentage 31.00% 35.00%
Supplier B – related party    
Concentration Risk [Line Items]    
Concentration risk, percentage 43.00% 44.00%
Supplier C    
Concentration Risk [Line Items]    
Concentration risk, percentage 10.00% 8.00%
v3.21.1
Inventories - Schedule of Inventory Payable (Details) - Accounts Payable - Supplier Concentration Risk
 3 Months Ended 12 Months Ended
Mar. 31, 2021
Dec. 31, 2020
Supplier A    
Concentration Risk [Line Items]    
Concentration risk, percentage 33.00% 16.00%
Supplier B – related party    
Concentration Risk [Line Items]    
Concentration risk, percentage 50.00% 21.00%
v3.21.1
Inventories - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Dec. 31, 2020
Inventory [Line Items]      
Recycling costs $ 2,592 $ 1,083  
Other Receivables, Manufacturers      
Inventory [Line Items]      
Receivables due from manufacturers $ 3,472   $ 3,033
v3.21.1
Property and Equipment - Components of Property and Equipment (Details) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Property, Plant and Equipment [Line Items]    
Total property and equipment $ 39,127 $ 36,766
Less accumulated depreciation and amortization (29,298) (28,837)
Total property and equipment, net 9,829 7,929
Building    
Property, Plant and Equipment [Line Items]    
Total property and equipment 9,998 9,998
Machinery and equipment    
Property, Plant and Equipment [Line Items]    
Total property and equipment 1,644 1,284
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Total property and equipment 3,438 3,438
Furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Total property and equipment 2,840 2,840
Computer and software    
Property, Plant and Equipment [Line Items]    
Total property and equipment 21,185 19,184
Automobile and truck    
Property, Plant and Equipment [Line Items]    
Total property and equipment $ 22 $ 22
v3.21.1
Property and Equipment - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Dec. 31, 2020
Property, Plant and Equipment [Abstract]      
Capitalized software development costs $ 621 $ 573  
Amortization of capitalized software development costs 690 830  
Depreciation expense 461 $ 429  
Long-lived assets $ 9,931   $ 8,060
v3.21.1
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($)
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Dec. 31, 2020
Indefinite-lived Intangible Assets [Line Items]      
Goodwill $ 44,788,000   $ 44,788,000
Goodwill impaired     $ 0
Goodwill impairment 0 $ 0  
Intangible assets acquired through business combination      
Indefinite-lived Intangible Assets [Line Items]      
Amortization expense of intangible assets 0 215,000  
Patents      
Indefinite-lived Intangible Assets [Line Items]      
Amortization expense of intangible assets 29,000 $ 29,000  
Patents purchased $ 0    
Useful life of acquired patents (in years) 1 month 20 days    
v3.21.1
Goodwill and Other Intangible Assets - Schedule of Acquired Intangible Assets From Business Combinations (Details) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]    
Net Carrying Amount $ 102 $ 131
Total    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 7,400 7,400
Accumulated Amortization (7,400) (7,400)
Net Carrying Amount 0 0
Developed technology    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 5,500 5,500
Accumulated Amortization (5,500) (5,500)
Net Carrying Amount 0 0
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 1,870 1,870
Accumulated Amortization (1,870) (1,870)
Net Carrying Amount 0 0
Trademarks    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 30 30
Accumulated Amortization (30) (30)
Net Carrying Amount $ 0 $ 0
v3.21.1
Goodwill and Other Intangible Assets - Schedule of Acquired Patent Intangible Assets (Details) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Acquired Finite-Lived Intangible Assets [Line Items]    
Net Carrying Amount $ 102 $ 131
Patents    
Acquired Finite-Lived Intangible Assets [Line Items]    
Acquired patents 7,663 7,663
Less accumulated amortization (7,561) (7,532)
Net Carrying Amount $ 102 $ 131
v3.21.1
Accrued Expenses (Details) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Payables and Accruals [Abstract]    
Accrued price protection $ 47,441 $ 61,331
Accrued other customer related expenses 46,981 54,404
Accrued supplier related expenses 12,598 12,434
Accrued payroll expenses 23,740 10,874
Accrued tax expenses 114 2,741
Accrued other expenses 15,169 13,175
Total accrued expenses $ 146,043 $ 154,959
v3.21.1
Stockholders' Equity (Details)
$ / shares in Units, $ in Thousands
 3 Months Ended
Mar. 29, 2021
USD ($)
$ / shares
shares
Mar. 28, 2021
$ / shares
shares
Mar. 25, 2021
shares
Mar. 15, 2021
Dec. 31, 2019
USD ($)
manufacturer
$ / shares
Jun. 20, 2018
USD ($)
manufacturer
$ / shares
shares
Mar. 31, 2021
USD ($)
$ / shares
shares
Mar. 31, 2020
USD ($)
Dec. 31, 2020
$ / shares
shares
Class of Stock [Line Items]                  
Common stock, authorized (in shares)             1,350,000,000    
Common stock, par value (in dollars per share) | $ / shares             $ 0.0001   $ 0.0001
Preferred stock, authorized (in shares)   100,000,000         100,000,000    
Preferred stock, par value (in dollars per share) | $ / shares             $ 0.0001    
Dividends paid | $ $ 588           $ 594 $ 0  
Common stock, issued (in shares)             183,668,829    
Common stock, outstanding (in shares)             183,668,829    
Percentage of common stock held by affiliates             25.00%    
Period after death or permanent and total disability             12 months    
Number of suppliers | manufacturer         2        
Value of shares which warrants may be converted | $         $ 15,000        
Exercise price of warrants (in dollars per share) | $ / shares         $ 5.39        
Term of warrants         6 months        
Fair value of warrants | $         $ 1,927        
Minimum                  
Class of Stock [Line Items]                  
Period following conversion scenarios             61 days    
Maximum                  
Class of Stock [Line Items]                  
Period following conversion scenarios             180 days    
Annualized Volatility                  
Class of Stock [Line Items]                  
Warrants, measurement input         0.48        
Dividend Rate                  
Class of Stock [Line Items]                  
Warrants, measurement input         0.03        
IPO                  
Class of Stock [Line Items]                  
Number of shares issued (in shares) 12,250,000                
Consideration received on stock issuance (in dollars per share) | $ / shares $ 21.00                
Consideration received on stock issuance | $ $ 145,100                
Underwriting discounts and commissions | $ 10,700                
Offering expenses | $ $ 3,000                
IPO | Restricted Stock Awards                  
Class of Stock [Line Items]                  
Shares withheld to cover taxes (in shares)     434,334            
IPO, New Shares Issued                  
Class of Stock [Line Items]                  
Number of shares issued (in shares) 7,560,000                
IPO, From Existing Shareholders                  
Class of Stock [Line Items]                  
Number of shares issued (in shares) 4,690,000                
Class A Common Stock                  
Class of Stock [Line Items]                  
Stock split ratio       9          
Common stock, authorized (in shares)   1,000,000,000         1,000,000,000   675,000,000
Common stock, par value (in dollars per share) | $ / shares   $ 0.0001              
Shares issued upon conversion (in shares)   30,315,600              
Common stock, issued (in shares)             85,470,000   150,831,000
Common stock, outstanding (in shares)             85,036,000   150,831,000
Voting rights per share             1    
Common stock issued for each share upon conversion (in shares)             1    
Class A Common Stock | Shares Issued to Related Party Manufacturers                  
Class of Stock [Line Items]                  
Number of shares issued (in shares)           12,978      
Consideration received on stock issuance (in dollars per share) | $ / shares           $ 5.39      
Consideration received on stock issuance | $           $ 70,000      
Stock issuance, number of counterparties | manufacturer           2      
Class B Common Stock                  
Class of Stock [Line Items]                  
Common stock, authorized (in shares)   200,000,000         200,000,000   0
Common stock, par value (in dollars per share) | $ / shares   $ 0.0001              
Common stock, issued (in shares)             98,633,000   0
Common stock, outstanding (in shares)             98,633,000   0
Voting rights per share             10    
Class B Common Stock | William Wang And Affiliated Trusts                  
Class of Stock [Line Items]                  
Conversion of stock, issued (in shares)   98,633,025              
Class C Common Stock                  
Class of Stock [Line Items]                  
Common stock, authorized (in shares)   150,000,000         150,000,000   150,000,000
Common stock, par value (in dollars per share) | $ / shares   $ 0.0001              
Common stock, issued (in shares)             0   0
Common stock, outstanding (in shares)             0   0
Series A Convertible Preferred Stock                  
Class of Stock [Line Items]                  
Conversion of stock, issued (in shares) 134,736 134,176              
Preferred stock, authorized (in shares)             0   250,000
Preferred stock, par value (in dollars per share) | $ / shares             $ 0.0001   $ 0.0001
Shares issued upon conversion (in shares)   30,315,600              
v3.21.1
Stock-Based Compensation - Narrative (Details) - USD ($)
$ / shares in Units, $ in Thousands
 1 Months Ended 3 Months Ended 9 Months Ended 12 Months Ended
Mar. 25, 2021
Dec. 31, 2020
Oct. 08, 2019
Dec. 29, 2017
Oct. 29, 2010
Mar. 31, 2021
Feb. 28, 2021
Aug. 31, 2017
Mar. 31, 2021
Mar. 31, 2020
Dec. 31, 2021
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2017
Mar. 29, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                                
Options outstanding (in shares)   16,416       17,085     17,085              
Number of options granted (in shares)           172,196 688,068   860 0            
Weighted average grant date fair value of stock options granted during the year (in dollars per share)           $ 7.63 $ 10.54   $ 9.95 $ 0            
Share price (in USD per share)   $ 8.54                           $ 22.00
Volatility                 40.00% 0.00%            
Dividend yield                 192.00% 0.00%            
Risk-free interest rate                 1.00% 0.00%            
Expected term (years)                 6 years 3 months 0 years            
Stock-based compensation expense                 $ 26,019 $ 1,339            
Unrecognized compensation costs           $ 131,817     $ 131,817              
Unrecognized compensation costs, vesting period                 1 year 4 months 24 days              
Stock Option Awards                                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                                
Vesting term           4 years 4 years                  
Share price (in USD per share)           $ 21.00 $ 19.49   $ 21.00              
Volatility           44.00% 39.00%                  
Dividend yield           2.00% 2.00%                  
Risk-free interest rate           1.00% 1.00%                  
Expected term (years)           6 years 3 months 6 years 3 months                  
Restricted Stock Awards                                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                                
Vesting term         4 years                      
Share price (in USD per share)     $ 5.39 $ 2.89 $ 1.93                      
Awards granted (in dollars per share)     234,000 1,179,000 4,995,000                      
Additional vesting term if IPO not completed         3 years                      
Forfeiture term if IPO not completed         7 years                      
Awards forfeited (in shares)                 4,995,000              
Restricted Stock Units                                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                                
Share price (in USD per share)   $ 8.54         $ 19.49                  
Awards granted (in dollars per share)   2,034,000         5,085,000                  
Additional expense recorded                 $ 9,913              
Restricted Stock Units | Forecast                                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                                
Additional expense recorded                     $ 48,000 $ 16,200 $ 16,200 $ 16,200    
Restricted Stock Units | Minimum                                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                                
Vesting term   1 year         12 months                  
Restricted Stock Units | Maximum                                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                                
Vesting term   4 years                            
Employee Stock Purchase Plan                                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                                
Number of additional shares reserved for issuance (in shares) 5,400,000                              
Shares reserved for issuance (in shares) 1,800,000                              
Additional shares reserved for issuance, as a percent of outstanding shares 1.00%                              
2007 Incentive Award Plan                                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                                
Expiration term, not more than                             10 years  
Vesting term                             4 years  
Forfeiture term if employment or other services terminate prior to vesting                             90 days  
2007 Incentive Award Plan | Class A Common Stock                                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                                
Options outstanding (in shares)           1,878,822     1,878,822              
2017 Incentive Award Plan                                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                                
Number of shares available for grant (in shares)               24,446,502                
Expiration term, not more than               10 years                
Vesting term                             4 years  
2017 Incentive Award Plan | Maximum                                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                                
Number of additional shares reserved for issuance (in shares)               40,520,655                
v3.21.1
Stock-Based Compensation - Stock Option Award Activity (Details) - USD ($)
$ / shares in Units, $ in Thousands
 1 Months Ended 3 Months Ended 12 Months Ended
Mar. 31, 2021
Feb. 28, 2021
Mar. 31, 2021
Mar. 31, 2020
Dec. 31, 2020
Number of Options          
Beginning balance (in shares)     16,416    
Granted (in shares) 172,196 688,068 860 0  
Exercised (in shares)     0    
Forfeited (in shares)     (191)    
Ending balance (in shares) 17,085   17,085   16,416
Options vested and expected to vest (in shares) 9,560   9,560    
Weighted Average Exercise Price          
Beginning balance (in dollars per share)     $ 4.16    
Granted (in dollars per share)     11.08    
Exercised (in dollars per share)     0    
Forfeited (in dollars per share)     4.75    
Ending balance (in dollars per share) $ 4.50   4.50   $ 4.16
Options vested and expected to vest (in dollars per share) $ 3.11   $ 3.11    
Weighted Average Remaining Contractual Term (Years)          
Options outstanding     7 years   7 years 1 month 6 days
Options vested and expected to vest     5 years 10 months 24 days    
Aggregate Intrinsic Value          
Options outstanding $ 337,491   $ 337,491   $ 71,934
Options vested and expected to vest $ 202,072   $ 202,072    
v3.21.1
Stock-Based Compensation - Weighted Average Grant Date Fair Value of Stock Options Granted (Details) - $ / shares
 1 Months Ended 3 Months Ended
Mar. 31, 2021
Feb. 28, 2021
Mar. 31, 2021
Mar. 31, 2020
Share-based Payment Arrangement [Abstract]        
Weighted average grant date fair value of stock options granted during the year (in dollars per share) $ 7.63 $ 10.54 $ 9.95 $ 0
v3.21.1
Stock-Based Compensation - Nonvested Stock Option Activity (Details) - $ / shares
 1 Months Ended 3 Months Ended
Mar. 31, 2021
Feb. 28, 2021
Mar. 31, 2021
Mar. 31, 2020
Shares        
Beginning balance (in shares)     7,154  
Granted (in shares) 172,196 688,068 860 0
Forfeited (in shares)     (122)  
Vested (in shares)     (359)  
Ending balance (in shares) 7,533   7,533  
Weighted average grant date fair value        
Beginning balance (in dollars per share)     $ 1.64  
Granted (in dollars per share) $ 7.63 $ 10.54 9.95 $ 0
Forfeited (in dollars per share)     2.84  
Vested (in dollars per share)     3.57  
Ending balance (in dollars per share) $ 6.27   $ 6.27  
v3.21.1
Stock-Based Compensation - Fair Value Assumptions of Options (Details) - $ / shares
 1 Months Ended 3 Months Ended
Mar. 31, 2021
Feb. 28, 2021
Mar. 31, 2021
Mar. 31, 2020
Share-based Payment Arrangement [Abstract]        
Number of options granted (in shares) 172,196 688,068 860 0
Volatility     40.00% 0.00%
Expected term (years)     6 years 3 months 0 years
Dividend yield     192.00% 0.00%
Risk-free interest rate     1.00% 0.00%
Fair market value per share of common stock determined by our Board of Directors at the time of grant (in dollars per share)     $ 19.79 $ 0
Weighted average grant date fair value of stock options granted during the year (in dollars per share) $ 7.63 $ 10.54 $ 9.95 $ 0
v3.21.1
Net Income Per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Numerator:    
Net income $ 3,345 $ 9,287
Less: Accumulated dividends on preferred shares   (30)
Undistributed earnings   9,257
Less: Earnings attributable to participating securities   (2,090)
Net income attributable to common stockholder - basic   7,167
Net income attributable to common stockholders – diluted   $ 7,167
Denominator:    
Weighted-average common shares outstanding - basic (in shares) 145,730,000 144,268,000
Incremental Common Shares Attributable To Dilutive Effect Of Conversion Of Common Stock 0  
Weighted-average effect of dilutive securities    
Employee stock options (in shares)   2,676,000
Weighted average common shares outstanding - diluted (in shares) 157,174,000 146,944,000
Net income per share attributable to Class A and Class B common stockholders:    
Basic (in dollars per share) $ 0.02 $ 0.05
Diluted (in dollars per share) $ 0.02 $ 0.05
Anti-dilutive equity awards under stock-based award plans excluded from the determination of diluted EPS (in shares)   3,761
Class A    
Numerator:    
Net income $ 3,270  
Less: Accumulated dividends on preferred shares (29)  
Undistributed earnings 3,241  
Less: Earnings attributable to participating securities (255)  
Net income attributable to common stockholder - basic 2,986  
Reallocation of net income 69  
Net income attributable to common stockholders – diluted $ 3,055  
Denominator:    
Weighted-average common shares outstanding - basic (in shares) 142,450,000  
Incremental Common Shares Attributable To Dilutive Effect Of Conversion Of Common Stock 3,280,000  
Weighted-average effect of dilutive securities    
Employee stock options (in shares) 8,164,000  
Weighted average common shares outstanding - diluted (in shares) 153,894,000  
Net income per share attributable to Class A and Class B common stockholders:    
Basic (in dollars per share) $ 0.02  
Diluted (in dollars per share) $ 0.02  
Anti-dilutive equity awards under stock-based award plans excluded from the determination of diluted EPS (in shares) 3,397  
Class B    
Numerator:    
Net income $ 75  
Less: Accumulated dividends on preferred shares 0  
Undistributed earnings 75  
Less: Earnings attributable to participating securities (6)  
Net income attributable to common stockholder - basic 69  
Reallocation of net income (4)  
Net income attributable to common stockholders – diluted $ 65  
Denominator:    
Weighted-average common shares outstanding - basic (in shares) 3,280,000  
Incremental Common Shares Attributable To Dilutive Effect Of Conversion Of Common Stock 0  
Weighted-average effect of dilutive securities    
Employee stock options (in shares) 0  
Weighted average common shares outstanding - diluted (in shares) 3,280,000  
Net income per share attributable to Class A and Class B common stockholders:    
Basic (in dollars per share) $ 0.02  
Diluted (in dollars per share) $ 0.02  
Anti-dilutive equity awards under stock-based award plans excluded from the determination of diluted EPS (in shares) 0  
v3.21.1
Income Taxes (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Income Tax Disclosure [Abstract]    
Provision for income taxes $ 10,344 $ 2,109
Effective tax rate 75.00% 19.00%
Discrete tax items $ 1,633  
Effective tax rate difference due to share-based compensation expense $ 6,328  
v3.21.1
Defined Contribution Retirement Plan (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Retirement Benefits [Abstract]    
Estimated discretionary matching contributions $ 438 $ 200
v3.21.1
Accrued Royalties - Narrative (Details) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Payables and Accruals [Abstract]    
Accrued royalties $ 77,223 $ 81,143
Reserve for future settlements 47,099 49,643
Refundable deposits $ 30,124 $ 31,500
v3.21.1
Accrued Royalties - Future Commitments on Royalty Obligations (Details) - Royalty Obligations
$ in Thousands
Mar. 31, 2021
USD ($)
Other Commitments [Line Items]  
2021 (nine months) $ 29,155
2022 10,465
2023 6,752
2024 5,200
2025 and thereafter 3,450
Total $ 55,022
v3.21.1
Leases - Schedule of Supplemental Balance Sheet Information (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Dec. 31, 2020
Assets:      
Right-of-use asset $ 7,340   $ 7,993
Liabilities [Abstract]      
Current portion of lease liabilities 2,762   2,856
Long term portion of lease liabilities $ 4,578   $ 5,137
Weighted-average remaining lease term (years) 3 years 7 months 6 days   3 years 8 months 12 days
Weighted-average discount rate 3.00%   3.00%
Right-of-Use Asset, Balance Sheet Classification [Extensible Enumeration] us-gaap:OtherAssets    
Operating Lease Liability, Current, Balance Sheet Classification [Extensible Enumeration] Other current liabilities    
Operating Lease Liability, Noncurrent, Balance Sheet Classification [Extensible Enumeration] Other long-term liabilities    
Operating lease costs $ 920 $ 972  
v3.21.1
Leases - Schedule of Reconciliation of Undiscounted Cash Flows of Operating Leases (Details)
$ in Thousands
Mar. 31, 2021
USD ($)
Leases [Abstract]  
2021 (nine months) $ 2,194
2022 2,021
2023 1,333
2024 943
2025 741
2026 and Thereafter 594
Total minimum lease payments 7,826
Less imputed interest (486)
Total lease liabilities $ 7,340
v3.21.1
Commitment and Contingencies (Details) - USD ($)
 3 Months Ended
Mar. 25, 2021
Aug. 30, 2018
Mar. 31, 2021
Mar. 31, 2020
Nov. 30, 2020
Apr. 13, 2016
Commitments and Contingencies Disclosure [Abstract]            
Liability for supply commitment     $ 0      
Weeks of inventory for supply commitment     91 days      
AmTRAN Technology Co., Ltd. | VIZIO            
Line of Credit Facility [Line Items]            
Beneficial holder, percentage of common stock, more than         5.00%  
Advanced Micro Devices, Inc. Patent Infringement            
Line of Credit Facility [Line Items]            
Litigation settlement award to other party   $ 39,000,000        
Settlement portion paid in previous periods   $ 15,000,000        
Payments for legal settlements $ 14,000          
AmTRAN Technology Co. Ltd. Settlement Agreement | Investor            
Line of Credit Facility [Line Items]            
Litigation settlement award from other party     $ 8,200,000      
Reserve for future claims         $ 4,000,000  
Reserve for future claims, percentage to be released         50.00%  
Reserve for future claims, amount to be released         $ 2,000,000  
Revolving Credit Facility | Line of Credit            
Line of Credit Facility [Line Items]            
Maximum borrowing capacity           $ 50,000,000
Unused fees     $ 324,000 $ 191,000    
v3.21.1
Subsequent Events (Details)
$ in Thousands
Apr. 13, 2021
USD ($)
Subsequent Event  
Subsequent Event [Line Items]  
Fee payment $ 75