Company Overview - Viant Technology (DSP) shares increased by 7.2% to close at $14.5, with notable trading volume exceeding typical levels [1] - The stock has experienced a 1.7% gain over the past four weeks, driven by secular growth in CTV, audio, and DOOH demand, along with the adoption of Viant's AI solutions [1] Earnings Expectations - Viant is expected to report quarterly earnings of $0.10 per share, reflecting a year-over-year increase of 25% [2] - Revenue projections stand at $77.8 million, representing an 87.2% increase compared to the same quarter last year [2] Earnings Estimate Trends - The consensus EPS estimate for Viant has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] - Monitoring Viant's performance is essential to determine if the recent stock price increase can lead to further strength [3] Industry Context - Viant is part of the Zacks Technology Services industry, which includes other companies like Duolingo, Inc. (DUOL) [4] - Duolingo's consensus EPS estimate has decreased by 0.7% over the past month to $0.55, with a year-over-year change of 7.8% [5] - Duolingo currently holds a Zacks Rank of 4 (Sell), contrasting with Viant's Zacks Rank of 3 (Hold) [4][5]

Group 1 - The article presents a contrarian investment stance on Viant Technology (DSP), suggesting it is undervalued despite recent market sell-offs [1] - The author employs investment strategies including GARP (Growth at a Reasonable Price), Value, and Growth, while also monitoring insider buying and stock buybacks [1] - Technical analysis tools such as Elliott Wave, EMA crossovers, and chart patterns are utilized to support the investment thesis [1]

Group 1 - Viant Technology (DSP) closed at $15.08, with a 25.9% gain over the past four weeks, and a mean price target of $21.13 suggests a 40.1% upside potential [1] - The mean estimate consists of eight short-term price targets with a standard deviation of $2.80, indicating variability among analysts; the lowest estimate is $18 (19.4% increase), while the highest is $26 (72.4% increase) [2] - Analysts show strong agreement in revising earnings estimates higher, with the Zacks Consensus Estimate for the current year increasing by 51.3% over the past month, indicating positive earnings prospects for DSP [11][12] Group 2 - DSP holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, suggesting a strong potential upside in the near term [13] - The clustering of price targets with a low standard deviation indicates a high degree of agreement among analysts regarding the stock's price movement direction, which can serve as a starting point for further research [9]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $70.6 million, representing a 32% year-over-year increase and exceeding guidance by 4% [40] - Contribution ex TAC totaled $42.7 million, up 25% year-over-year, marking the seventh consecutive quarter of over 20% growth [40] - Adjusted EBITDA increased 76% year-over-year to $5.4 million, exceeding guidance by more than 27% [44] - Non-GAAP net income was $2.8 million, up 109% from the prior year [45] Business Line Data and Key Metrics Changes - CTV accounted for over 45% of total platform spend, reflecting its dominance and the highest mix on record [42] - Ad spend linked to Household ID surged 33% year-over-year, indicating strong demand for addressability solutions [16] - The number of customers generating over $1 million in contribution ex TAC increased by 37% on a trailing twelve-month basis [41] Market Data and Key Metrics Changes - Emerging digital channels, including CTV, streaming audio, and digital out of home, represented 54% of total platform spend, the highest combined share in history [43] - Video, including CTV, accounted for 62% of total platform spend, highlighting the shift towards high-impact formats [43] Company Strategy and Development Direction - The company aims to be the premier DSP for CTV advertising, with a strategic focus on CTV dominance [12] - Viant's addressability solutions, Household ID and Iris ID, are positioned to capture market share as advertisers prioritize data-driven campaigns [16][34] - The company is investing in AI to enhance operational efficiency and improve return on ad spend for clients [20][34] Management's Comments on Operating Environment and Future Outlook - Management noted that ad spend has remained strong despite macroeconomic uncertainties related to tariffs, with limited impact observed [9][10] - The company anticipates that any delayed spending will be realized in the second half of 2025, maintaining a positive long-term growth outlook [49] - Management expressed confidence in navigating near-term challenges while capitalizing on secular growth trends in CTV and addressability [51] Other Important Information - The company has a solid financial foundation with $174 million in cash and cash equivalents and no debt [45] - A recent court ruling affirmed Google's monopolistic practices in ad tech, which could present opportunities for Viant to attract ad spend from advertisers seeking alternatives [23][24] Q&A Session Summary Question: What are you hearing from customers today regarding CTV and potential downside risks? - Management noted strong growth in CTV and limited delays in spending from a small number of advertisers affected by tariffs, indicating resilience in the advertising market [53][58] Question: How confident are you that delayed spending will materialize in the second half of the year? - Management expressed high confidence based on scheduled investments in the platform, indicating that money is being moved rather than lost [76] Question: How does Household ID differentiate from Google's new IP address implementation? - Management clarified that Household ID focuses on people-based identifiers linked to physical addresses, while Google's approach involves digital identifiers like IP addresses, which are less effective for targeted advertising [78][82]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $70.6 million, representing a 32% year-over-year increase and exceeding guidance by 4% [36] - Contribution ex TAC totaled $42.7 million, up 25% year-over-year, marking the seventh consecutive quarter of over 20% growth [36][38] - Adjusted EBITDA increased 76% year-over-year to $5.4 million, exceeding guidance by more than 27% [40] - Non-GAAP net income was $2.8 million, up 109% from the prior year [41] Business Line Data and Key Metrics Changes - CTV accounted for over 45% of total platform spend, the highest mix on record, reflecting strong growth in this segment [38] - Ad spend linked to Household ID surged 33% year-over-year, indicating strong demand for addressability solutions [14] - The share of emerging digital channels, including CTV, streaming audio, and digital out of home, represented 54% of total platform spend, the highest in history [39] Market Data and Key Metrics Changes - The advertising environment showed resilience, with year-over-year growth rates for revenue and contribution ex TAC increasing each month in Q1 2025 [6][7] - The company serves over 1,000 advertisers, with no single advertiser representing more than 5% of total ad spend, indicating a diversified customer base [8] Company Strategy and Development Direction - The company aims to strengthen its position as the premier DSP for CTV advertising, with a focus on direct access to premium inventory [11][12] - The strategic priorities include CTV, addressability, and Viant AI, with a commitment to innovation and efficiency [10][35] - The company anticipates that CTV will become the cornerstone of every advertiser's marketing strategy, with other digital channels serving complementary roles [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties, citing limited impact from recent tariff announcements [7][8] - The company expects continued strong demand for CTV and addressability solutions, with a positive outlook for the second half of 2025 despite some delayed spending [45][46] - Management highlighted the importance of educating advertisers on the effectiveness of CTV and incremental lift measurement [58][60] Other Important Information - The company has a strong cash position with $174 million in cash and cash equivalents and no debt [41] - A $50 million increase to the share repurchase authorization was announced, reflecting confidence in the company's market positioning [44] Q&A Session Summary Question: Customer sentiment and CTV's role in mitigating risks - Management noted limited delays in spending from a small number of advertisers, primarily in consumer goods, but overall resilience in the advertising market [53][54] Question: Convincing advertisers to shift spend from search and social - The focus is on educating advertisers about consumer journeys and the effectiveness of CTV, with a growing preference for measuring incremental lift [58][60] Question: Confidence in delayed spending materializing in the second half - Management expressed high confidence based on scheduled platform activity, indicating that delayed spending is being replaced [69] Question: Differentiation of Household ID compared to Google's offerings - Household ID focuses on people-based identifiers linked to physical addresses, contrasting with Google's use of IP addresses, which are less effective for targeted advertising [71][75]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-40015 ______________________________________________________________________________________________________________________________________________________ Viant Technolog ...

Financial Performance - Revenue for Q1 2025 reached $70,642,000, representing a 32% increase year-over-year from $53,393,000[2] - Gross profit for Q1 2025 was $30,562,000, a 30% increase compared to $23,513,000 in Q1 2024[2] - Contribution ex-TAC grew by 25% year-over-year, totaling $42,729,000 in Q1 2025[2] - Adjusted EBITDA for Q1 2025 was $5,402,000, reflecting a 76% increase from $3,075,000 in Q1 2024[2] - Non-GAAP net income for Q1 2025 was $2,816,000, a 109% increase from $1,348,000 in Q1 2024[2] - Revenue for Q1 2025 was $70,642,000, a 32.3% increase from $53,393,000 in Q1 2024[33] - Gross profit for Q1 2025 was $30,562,000, up 30% from $23,513,000 in Q1 2024[33] - Contribution ex-TAC for Q1 2025 reached $42,729,000, representing a 25.3% increase from $34,121,000 in Q1 2024[33] - Adjusted EBITDA for Q1 2025 was $5,402,000, a 75.5% increase from $3,075,000 in Q1 2024[35] - Non-GAAP net income for Q1 2025 was $2,816,000, compared to $1,348,000 in Q1 2024[37] Shareholder Returns - The company repurchased 1.8 million shares year-to-date, deploying $24.9 million through its buyback program[4] - The company increased its share repurchase authorization by $50 million, demonstrating commitment to shareholder returns[1] - The company repurchased $17,025 thousand in stock related to the stock repurchase program during the three months ended March 31, 2025[21] Future Guidance - For Q2 2025, the company expects revenue in the range of $77.0 million to $80.0 million[10] - The adjusted EBITDA guidance for Q2 2025 is projected to be between $10.5 million and $11.5 million[10] Assets and Liabilities - Total current assets decreased from $362,489 thousand as of December 31, 2024, to $315,762 thousand as of March 31, 2025, representing a decline of approximately 12.9%[19] - Total assets decreased from $440,804 thousand as of December 31, 2024, to $394,515 thousand as of March 31, 2025, a reduction of about 10.5%[19] - Total current liabilities decreased from $145,451 thousand as of December 31, 2024, to $116,722 thousand as of March 31, 2025, a decrease of approximately 19.8%[19] Net Loss and Operating Expenses - Net loss for the three months ended March 31, 2025, was $3,307 thousand, compared to a net loss of $3,214 thousand for the same period in 2024, indicating a slight increase in losses[21] - Total operating expenses for Q1 2025 were $75,501,000, a 27.8% increase compared to $59,085,000 in Q1 2024[34] - Non-GAAP operating expenses for Q1 2025 were $37,327,000, up 20.2% from $31,046,000 in Q1 2024[34] - Net loss for Q1 2025 was $3,307,000, slightly higher than the net loss of $3,214,000 in Q1 2024[35] - Net loss as a percentage of gross profit improved to 11% in Q1 2025 from 14% in Q1 2024[36] Key Performance Metrics - Adjusted EBITDA is a key measure used by management to evaluate core operating performance and trends, although specific figures for adjusted EBITDA were not provided in the documents[25] - Contribution ex-TAC is a key profitability measure used by management to understand operating performance, although specific figures were not disclosed in the documents[23] - Non-GAAP earnings per share of Class A common stock is adjusted to eliminate the impact of stock-based compensation and other non-core items, aiding in the evaluation of operational performance[29] - Adjusted EBITDA as a percentage of contribution ex-TAC increased to 13% in Q1 2025 from 9% in Q1 2024[36]

Financial Performance Highlights - Revenue increased by 32% year-over-year to $706 million[4, 8] - Contribution ex-TAC increased by 25% year-over-year to $427 million[4, 8] - Adjusted EBITDA increased by 76% year-over-year[4, 12] - Adjusted EBITDA margin was 13%, expanding approximately 360 basis points year-over-year[4, 14] - The company has healthy cash & cash equivalents balance of $174 million and no debt outstanding as of March 31, 2025[4] Growth Drivers - CTV eclipsed 45% of total advertiser spend on the platform, reaching a new all-time high as a percent of total advertiser spend[4] - The company has seven consecutive quarters of YoY contribution ex-TAC growth over 20%[4, 10, 16] - The company has nine consecutive quarters of YoY adjusted EBITDA growth of over 30%[4, 14, 15] Share Repurchase Program - The company purchased 35 million shares of Class A common stock from May 1, 2024 through May 2, 2025 for a total of $465 million, including $249 million year-to-date through May 2, 2025[4, 22] - The company approved an increase to the existing share repurchase program on May 5, 2025, enabling the Company to repurchase up to an additional $50 million of the Company's common equity[4, 22] Q2 2025 Guidance - Revenue is expected to be between $770 million and $800 million, a 19% year-over-year increase at the midpoint[19] - Contribution ex-TAC is expected to be between $475 million and $495 million, a 17% year-over-year increase at the midpoint[19] - Adjusted EBITDA is expected to be between $105 million and $115 million, a 15% year-over-year increase at the midpoint[19] - Adjusted EBITDA Margin is expected to be between 22% and 23%[19]

Core Insights - Viant Technology Inc. has a scalable, fixed-cost-heavy structure that allows it to convert modest revenue growth into significant profitability [1] - The company returned to profitability in 2024, indicating a positive turnaround in its financial performance [1] - Viant's strong balance sheet enhances its financial flexibility, positioning it well for future growth [1] Financial Performance - Viant's return to profitability in 2024 marks a significant milestone for the company [1] - The company's financial structure is designed to leverage revenue growth effectively, leading to outsized profitability [1] Competitive Position - Comparisons with peers suggest that Viant's operational model may provide a competitive advantage in terms of profitability [1]

Financial Data and Key Metrics Changes - In Q4 2024, revenue reached $90.1 million, a 40% increase year-over-year, exceeding guidance by 6% [63] - Contribution ex-TAC for Q4 totaled $54.4 million, up 28% year-over-year, also above guidance [64] - For the full year 2024, revenue totaled $289.2 million, a 30% increase over 2023, with adjusted EBITDA rising to $44.4 million, up 53% year-over-year [60][62] Business Line Data and Key Metrics Changes - CTV ad spend increased over 40% in 2024, accounting for over 40% of total ad spend on the platform [14][68] - The number of customers generating significant levels of contribution ex-TAC increased by 42% year-over-year [65] - Direct access CTV ad spend increased nearly 70% in 2024, representing over 50% of total CTV ad spend on the platform [47] Market Data and Key Metrics Changes - CTV accounted for over 40% of ad spend on the platform, with a significant shift from linear TV to CTV expected [14][40] - The total addressable market for CTV is projected to grow from $30 billion to $90 billion as live sports transition to CTV [44] - The demand for addressability and measurable insights, especially in cookieless channels, is expected to continue growing [18] Company Strategy and Development Direction - The company is focused on enhancing its CTV targeting and measurement capabilities through acquisitions like Iris TV and Locker [52][79] - Viant AI is being rolled out in phases, with expectations to drive significant improvements in ad campaign planning and execution [26][33] - The strategy emphasizes addressing the needs of publishers and advertisers in the open Internet, particularly against the backdrop of competition from walled gardens [92] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth driven by CTV proliferation, leadership in addressability, and AI innovation [12][38] - The company anticipates that contribution ex-TAC will continue to outpace the broader US programmatic market, projected to grow approximately 13-14% [78] - Management highlighted the importance of strategic acquisitions in enhancing capabilities and driving long-term growth [79] Other Important Information - The company ended Q4 2024 with over $205 million in cash and cash equivalents, no debt, and a $75 million undrawn credit facility [73][74] - The acquisition of Locker is expected to accelerate the adoption of household ID and Iris ID, enhancing addressability solutions [25][106] Q&A Session Summary Question: Can you explain the logic behind the Locker acquisition? - Management explained that Locker reduces friction in integrating first-party data for publishers, allowing them to unlock multiple alternative IDs with a single integration [87][92] Question: How much revenue did Iris contribute in Q4? - Management indicated that Iris contributed about 1% of total revenue in the quarter [100] Question: What is the strategic fit of the Locker acquisition? - Management stated that Locker is primarily aimed at accelerating the adoption of household ID and Iris ID while serving as a utility for the open Internet [105][106] Question: How has the market been performing post-election? - Management noted that while there are mixed results across the industry, they experienced strong performance and do not see significant weakness in their results [116] Question: What are the expectations for scaling Viant AI in 2025? - Management highlighted that Viant AI is expected to increase wallet share and attract new customers due to its efficiency in planning and executing ad campaigns [130]