Core Insights - Viant Technology reported quarterly earnings of $0.09 per share, missing the Zacks Consensus Estimate of $0.10 per share, but showing an increase from $0.08 per share a year ago, resulting in an earnings surprise of -10.00% [1] - The company posted revenues of $77.85 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.07%, and significantly up from $41.56 million year-over-year [2] - Viant shares have declined approximately 34.3% year-to-date, contrasting with the S&P 500's gain of 8.6% [3] Earnings Outlook - The future performance of Viant's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - The current consensus EPS estimate for the upcoming quarter is $0.17 on revenues of $85.1 million, and for the current fiscal year, it is $0.56 on revenues of $331 million [7] Industry Context - The Technology Services industry, to which Viant belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Another company in the same industry, Knightscope, Inc., is expected to report a quarterly loss of $1.09 per share, reflecting a year-over-year change of +56.4%, with revenues projected at $2.82 million, down 11.9% from the previous year [9]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $77.9 million, representing an 18% year-over-year increase and a 10% quarter-over-quarter increase, within guidance range [33] - Contribution ex TAC totaled $48.4 million, up 16% year-over-year and 13% sequentially, also within guidance range [33] - Adjusted EBITDA for Q2 was $11.3 million, exceeding the midpoint of guidance by 3% and growing 18% year-over-year [37] - Non-GAAP net income was $8 million, up 11% from $7.2 million in the prior year [38] Business Line Data and Key Metrics Changes - CTV accounted for approximately 45% of total ad spend on the platform, with CTV spend reaching an all-time high for a second quarter [35][36] - Ad spend linked to Household ID increased 15% year-over-year, indicating strong utilization among advertisers [10] - Contribution ex TAC across the top 100 continuing customers grew by 21% year-over-year on a trailing twelve-month basis [34] Market Data and Key Metrics Changes - Spend across emerging digital channels, including CTV, streaming audio, and digital out-of-home, represented nearly 55% of total platform spend in Q2, up from 50% in 2024 [36] - Video, inclusive of CTV, continues to represent 60% of total platform spend, reflecting a shift towards high-impact measurable performance [36] Company Strategy and Development Direction - The company is focusing on expanding its addressable market beyond mid-market advertisers to include major US advertisers and data-driven advertisers [22][30] - Viant AI is positioned as a fully autonomous solution aimed at improving operational efficiency and cost savings for advertisers [19][31] - The company plans to continue investing in innovation across its product suite, particularly in Viant AI, to capture a larger share of the market [44] Management's Comments on Operating Environment and Future Outlook - Management acknowledged temporary disruptions due to economic policy actions affecting revenue growth, estimating a headwind of approximately 1,200 basis points for Q3 [34][42] - Despite these challenges, the company remains optimistic about long-term growth, supported by a pipeline of new business opportunities exceeding $250 million in ad spend [35][43] - The company expects to see accelerating revenue and contribution ex TAC growth rates throughout 2026 [44] Other Important Information - The company has a strong balance sheet with $173 million in cash and cash equivalents and no debt [39] - A new board member, Brett Wilson, was welcomed, bringing extensive experience in technology and advertising [20] Q&A Session Summary Question: How does Viant AI stand out in a crowded market? - Management emphasized the importance of addressability solutions and the patented Household ID for effective targeting and measurement [48][49] Question: What is involved in the sales team switch to going more upmarket? - The company is actively hiring an enterprise team to target larger customers while maintaining focus on mid-market advertisers [50][51] Question: Can you expand on the $250 million in incremental ad spend? - Management confirmed that the $250 million is incremental and represents opportunities in a sector where the company has not heavily competed before [62][63] Question: What is the impact of losing a sizable advertiser? - The impact on Q3 is significant due to seasonality, but minimal effects are expected in future quarters [59] Question: How does the company plan to build direct relationships with brands? - The company is investing in its salesforce to strengthen direct relationships with advertisers and reduce reliance on agency partners [83]

Financial Highlights - Revenue increased by 18% year-over-year to $779 million in Q2 2025 [4, 8, 10] - Contribution ex-TAC increased by 16% year-over-year to $48 million in Q2 2025 [4, 8, 10] - Adjusted EBITDA increased by 18% year-over-year to $113 million in Q2 2025 [4, 12, 14] - Adjusted EBITDA margin was 23% of contribution ex-TAC in Q2 2025, flat year-over-year [4, 6, 14, 15] Growth Drivers - CTV represented nearly 45% of total advertiser spend in Q2 2025 [5] - Advertiser spend linked to Household ID increased 15% year-over-year [5] - The company established a growth pipeline of over $250 million in potential annualized ad spend opportunities [5] Stock Repurchase and Valuation - The company purchased 38 million shares of Class A common stock for a total of $502 million from May 1, 2024, through August 8, 2025, including $285 million year-to-date through August 8, 2025 [5, 19] - As of June 30, 2025, the company had a healthy cash & cash equivalents balance of $173 million and no debt outstanding [5] Q3 2025 Guidance - The company projects revenue between $835 million and $865 million, representing a 6% year-over-year increase at the midpoint [16] - The company projects contribution ex-TAC between $510 million and $530 million, representing a 10% year-over-year increase at the midpoint [16]

Financial Performance - Revenue for the three months ended June 30, 2025, was $77.9 million, an increase of 18% compared to $65.9 million in the same period of 2024[106] - Gross profit for the three months ended June 30, 2025, was $35.9 million, representing a 17% increase from $30.7 million in 2024[106] - Contribution ex-TAC for the three months ended June 30, 2025, was $48.4 million, up 16% from $41.6 million in 2024[106] - Net income for the three months ended June 30, 2025, was $1.8 million, reflecting a 20% increase from $1.5 million in 2024[106] - Non-GAAP net income for the six months ended June 30, 2025, was $10.8 million, an increase of 26% compared to $8.6 million in 2024[106] - Adjusted EBITDA for the six months ended June 30, 2025, was $16.7 million, representing a 32% increase from $12.7 million in 2024[106] - Revenue for the six months ended June 30, 2025, increased by $29.2 million, or 25%, to $148.5 million compared to $119.3 million in the same period of 2024[125] - Net income for Q2 2025 was $1,787,000, a slight increase from $1,488,000 in Q2 2024, maintaining a net income margin of 5%[149] - Non-GAAP net income for Q2 2025 was $8,012,000, compared to $7,207,000 in Q2 2024, reflecting an 11.1% increase[153] Operating Expenses - Operating expenses for the three months ended June 30, 2025, totaled $77.841 million, up from $66.637 million in 2024, representing a 17% increase[117] - Platform operations expenses increased by $6.848 million or 19%, reaching $41.970 million for the three months ended June 30, 2025, primarily due to a $5.173 million increase in traffic acquisition costs[117] - Sales and marketing expenses rose by $2.396 million or 18%, totaling $15.484 million for the three months ended June 30, 2025, driven by higher personnel and stock-based compensation costs[118] - Technology and development expenses increased by $1.876 million or 32%, amounting to $7.691 million for the three months ended June 30, 2025, mainly due to higher personnel and technology costs[119] - General and administrative expenses slightly increased by $0.084 million or 1%, totaling $12.696 million for the three months ended June 30, 2025[120] - Total operating expenses for the first half of 2025 were $153,342,000, compared to $125,722,000 in the same period of 2024, reflecting a 22.0% increase[142] - Non-GAAP operating expenses for Q2 2025 were $37,089,000, up from $31,958,000 in Q2 2024, representing a 16.7% increase[142] - Non-GAAP operating expenses for the first half of 2025 totaled $74,417,000, compared to $63,004,000 in the first half of 2024, a 18.1% increase[142] Cash Flow and Liquidity - As of June 30, 2025, cash and cash equivalents were $172.8 million, down from $205.0 million as of December 31, 2024, indicating a decrease of 15.6%[164] - Cash flows provided by operating activities for the six months ended June 30, 2025, were $16.5 million, down from $18.2 million in the same period of 2024[182][183] - Cash flows used in investing activities amounted to $12.6 million for the six months ended June 30, 2025, primarily due to $7.9 million in capitalized software investments[185] - Cash flows used in financing activities totaled $36.1 million for the six months ended June 30, 2025, mainly driven by $28.1 million for stock repurchases[188] - The net decrease in cash and cash equivalents was $32.2 million for the six months ended June 30, 2025, compared to a decrease of $6.7 million in the same period of 2024[180] - The company repurchased 2.0 million shares of Class A common stock for an aggregate amount of $28.0 million during the six months ended June 30, 2025[175] Tax and Other Income - Total other income, net, decreased by $0.874 million or 37%, resulting in a net expense of $1.484 million for the three months ended June 30, 2025[122] - The provision for income taxes for the three months ended June 30, 2025, was a benefit of $0.291 million, compared to a provision of $0.099 million in 2024[124] - The provision for income taxes resulted in a benefit of $0.4 million for the six months ended June 30, 2025, due to a year-to-date loss[133] - The estimated income tax effect for the three months ended June 30, 2025, was calculated using a blended tax rate of 27%[157] - The estimated income tax effect of the company's share of income (loss) for the six months ended June 30, 2025, is calculated using a blended tax rate of 27%[171] Strategic Outlook - The company plans to invest in platform operations and technology to enhance product capabilities, which may increase operating expenses in the long term[109] - The company expects continued growth in revenue driven by increased customer adoption of newer products and platform features[108] - The advertising market is in the early stages of a shift toward programmatic advertising, which the company aims to capitalize on[109] - Seasonal fluctuations in revenue are expected, with the fourth quarter typically reflecting the highest level of advertising activity[112] - The company intends to continue investing in critical areas of its business throughout 2025 to accelerate product demand and growth[166] - The company expects capital expenditures and investment activities to continue to increase due to business growth and the capitalization of stock-based compensation[184] Shareholder Information - Non-GAAP earnings per share of Class A common stock for the three months ended June 30, 2025, was $0.02, compared to $0.00 for the same period in 2024[160] - Diluted non-GAAP earnings per share of Class A common stock for the three months ended June 30, 2025, was $0.09, compared to $0.08 for the same period in 2024[160] - The company excluded Class B common stock from the computation of diluted earnings per share due to anti-dilutive effects for the three months ended June 30, 2025[158]

Second Quarter 2025 Financial Results Overview Viant Technology reported strong Q2 2025 financial performance with double-digit growth across key metrics and significant business achievements [Q2 2025 Financial Performance (GAAP & Non-GAAP)](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) Viant Technology reported strong double-digit year-over-year growth in Q2 2025 across key financial metrics, including revenue, gross profit, contribution ex-TAC, and adjusted EBITDA. Net income attributable to Viant Technology Inc. saw a significant increase Q2 2025 Financial Performance | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Change (%) | | :----------------------------------- | :--------------------- | :--------------------- | :--------- | | **GAAP** | | | | | Revenue | $77,853 | $65,866 | 18 % | | Gross profit | $35,883 | $30,744 | 17 % | | Net income | $1,787 | $1,488 | 20 % | | Net income attributable to Viant Technology Inc. | $290 | $55 | 427 % | | Earnings per share of Class A common stock—basic | $0.02 | $0.00 | NM | | Earnings per share of Class A common stock—diluted | $0.02 | $0.00 | NM | | **Non-GAAP** | | | | | Contribution ex-TAC | $48,372 | $41,558 | 16 % | | Adjusted EBITDA | $11,283 | $9,600 | 18 % | | Non-GAAP net income | $8,012 | $7,207 | 11 % | | Non-GAAP earnings per share of Class A common stock—basic | $0.10 | $0.08 | 25 % | | Non-GAAP earnings per share of Class A common stock—diluted | $0.09 | $0.08 | 13 % | [Recent Business Achievements](index=1&type=section&id=Recent%20Business%20Highlights) Viant achieved record CTV ad spend, launched the third phase of ViantAI, established a substantial growth pipeline with major U.S. advertisers, and continued its stock repurchase program - Generated record Connected TV (CTV) ad spend in the second quarter, accounting for approximately **45% of total ad spend** on the platform[3](index=3&type=chunk) - Launched the third phase of the ViantAI product suite, 'AI Measurement and Analysis,' designed to revolutionize reporting with on-demand insights[3](index=3&type=chunk) - Established a growth pipeline of over **$250 million** in potential annualized ad spend opportunities associated with major U.S. advertisers[3](index=3&type=chunk) - Purchased **3.8 million shares** of Class A common stock from May 1, 2024, through August 8, 2025, for a total of **$50.2 million**, including **$28.5 million** year-to-date[3](index=3&type=chunk) - Appointed ad-tech industry veteran and AI expert, Brett Wilson, to the Viant board of directors as an independent director[4](index=4&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Tim Vanderhook highlighted record Q2 results driven by strategic execution, including advancements in CTV Direct Access and addressability solutions, and the successful launch of AI Measurement and Analysis. CFO Larry Madden emphasized strong revenue, contribution ex-TAC, and adjusted EBITDA growth, along with a robust new business pipeline - CEO Tim Vanderhook noted record Q2 results, driven by strategic priorities like advancing CTV Direct Access, expanding Household ID and IRIS_ID, and launching ViantAI's AI Measurement and Analysis[2](index=2&type=chunk) - CFO Larry Madden reported **18% revenue growth**, **16% contribution ex-TAC growth**, and **18% adjusted EBITDA growth** year-over-year, citing a robust pipeline of new business opportunities with major U.S. advertisers[4](index=4&type=chunk) Financial Outlook & Company Information This section provides Q3 2025 financial guidance, an overview of Viant Technology Inc., forward-looking statements, and investor contact details [Q3 2025 Financial Guidance](index=3&type=section&id=For%20the%20third%20quarter%202025,%20the%20Company%20expects) Viant provided guidance for Q3 2025, expecting revenue between $83.5 million and $86.5 million, and adjusted EBITDA between $14.0 million and $15.0 million Q3 2025 Financial Guidance | Metric | Q3 2025 Guidance (in millions) | | :-------------------------- | :----------------------------- | | Revenue | $83.5 - $86.5 | | Contribution ex-TAC | $51.0 - $53.0 | | Non-GAAP operating expenses | $37.0 - $38.0 | | Adjusted EBITDA | $14.0 - $15.0 | [About Viant Technology Inc.](index=4&type=section&id=About%20Viant) Viant Technology Inc. is a leader in AI-powered programmatic advertising, offering an omnichannel platform for connected TV campaigns. The company is focused on autonomous advertising solutions and has received industry recognition - Viant Technology Inc. (NASDAQ: DSP) is a leader in AI-powered programmatic advertising, dedicated to driving innovation in digital marketing with an omnichannel platform built for connected TV[12](index=12&type=chunk) - The company is building the future of fully autonomous advertising solutions with ViantAI and has been recognized with awards such as Best Demand-Side Platform by MarTech Breakthrough and the Business Intelligence Group's AI Excellence Award[12](index=12&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section contains standard forward-looking statements regarding future performance, operating results, growth prospects, and strategic initiatives, emphasizing that actual results may differ due to various risks and uncertainties - The press release contains forward-looking statements, including financial guidance, growth prospects, strategic priorities, and impacts from ViantAI, which are subject to risks and uncertainties that may cause actual results to differ materially[13](index=13&type=chunk)[14](index=14&type=chunk) [Investor Relations & Contacts](index=3&type=section&id=Investor%20Relations%20%26%20Contacts) Viant provides details for accessing supplemental financial information, conference call and webcast details, and contact information for media and investors. The company also outlines its official channels for investor communication - Supplemental financial and other information can be accessed through Viant's Investor Relations website at investors.viantinc.com, with the Quarterly Report on Form 10-Q expected to be filed on August 11, 2025[8](index=8&type=chunk)[9](index=9&type=chunk) - Viant will host a conference call and webcast to discuss financial results on Monday, August 11, 2025, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time), accessible via its Investor Relations website[10](index=10&type=chunk) - Viant uses its Investor Relations website, LinkedIn accounts of its CEO and COO, and X (formerly Twitter) accounts (@viant_tech, @cvanderhook) to post information important to investors[10](index=10&type=chunk) Condensed Consolidated Financial Statements (GAAP) This section presents Viant Technology Inc.'s GAAP condensed consolidated statements of operations, balance sheets, and cash flows [Condensed Consolidated Statements of Operations](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) The condensed consolidated statements of operations show revenue growth for both the three and six months ended June 30, 2025, compared to 2024, alongside changes in operating expenses and net income/loss Condensed Consolidated Statements of Operations | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Revenue | $77,853 | $65,866 | $148,495 | $119,259 | | Total operating expenses | $77,841 | $66,637 | $153,342 | $125,722 | | Income (loss) from operations | $12 | $(771) | $(4,847) | $(6,463) | | Net income (loss) | $1,787 | $1,488 | $(1,520) | $(1,726) | | Net income (loss) attributable to Viant Technology Inc. | $290 | $55 | $(900) | $(892) | | Basic EPS (Class A common stock) | $0.02 | $0.00 | $(0.06) | $(0.05) | | Diluted EPS (Class A common stock) | $0.02 | $0.00 | $(0.06) | $(0.05) | [Condensed Consolidated Balance Sheets](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) The condensed consolidated balance sheets present the company's financial position as of June 30, 2025, compared to December 31, 2024, showing changes in assets, liabilities, and stockholders' equity Condensed Consolidated Balance Sheets | Metric (in thousands) | As of June 30, 2025 | As of December 31, 2024 | | :------------------------------------ | :------------------ | :---------------------- | | Cash and cash equivalents | $172,816 | $205,048 | | Accounts receivable, net of allowances | $135,338 | $146,951 | | Total current assets | $315,750 | $362,489 | | Total assets | $397,972 | $440,804 | | Total current liabilities | $123,379 | $145,451 | | Total liabilities | $142,369 | $166,729 | | Total equity | $255,603 | $274,075 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) The condensed consolidated statements of cash flows detail the cash generated from or used in operating, investing, and financing activities for the six months ended June 30, 2025, and 2024 Condensed Consolidated Statements of Cash Flows | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $16,482 | $18,207 | | Net cash used in investing activities | $(12,566) | $(8,758) | | Net cash used in financing activities | $(36,148) | $(16,163) | | Net decrease in cash and cash equivalents | $(32,232) | $(6,714) | | Cash and cash equivalents at end of period | $172,816 | $209,744 | Non-GAAP Financial Measures and Reconciliations This section defines Viant's key non-GAAP financial measures and provides detailed reconciliations to their GAAP equivalents [Definitions and Rationale for Non-GAAP Measures](index=9&type=section&id=Non-GAAP%20Financial%20Measures_Definitions) This section defines key non-GAAP financial measures used by Viant, including Contribution ex-TAC, Non-GAAP operating expenses, Adjusted EBITDA, Non-GAAP net income, and Non-GAAP earnings per share, explaining their relevance to management and investors - Contribution ex-TAC is a key profitability measure, calculated as gross profit plus other platform operations expense, used by management and the board to evaluate operating performance and trends[23](index=23&type=chunk) - Non-GAAP operating expenses exclude Traffic Acquisition Costs (TAC), stock-based compensation, depreciation, amortization, and certain non-core items, providing insight into core controllable costs[24](index=24&type=chunk) - Adjusted EBITDA is defined as net income (loss) before interest, taxes, depreciation, amortization, stock-based compensation, and certain non-core items, used to evaluate core operating performance and trends[25](index=25&type=chunk) - Non-GAAP net income (loss) and Non-GAAP earnings (loss) per share adjust GAAP figures for stock-based compensation, certain non-core items, and their tax effects, aiding in period-to-period comparisons and strategic decisions[27](index=27&type=chunk)[28](index=28&type=chunk)[29](index=29&type=chunk) [Reconciliation of Non-GAAP Financial Measures to GAAP](index=10&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) Detailed tables are provided to reconcile non-GAAP financial measures such as Contribution ex-TAC, Non-GAAP operating expenses, Adjusted EBITDA, Non-GAAP net income, and Non-GAAP EPS to their most directly comparable GAAP counterparts for the reported periods Contribution ex-TAC Reconciliation | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Gross profit | $35,883 | $30,744 | $66,445 | $54,257 | | Add: Other platform operations | $12,489 | $10,814 | $24,657 | $21,422 | | **Contribution ex-TAC** | **$48,372** | **$41,558** | **$91,102** | **$75,679** | Non-GAAP Operating Expenses Reconciliation | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Total operating expenses | $77,841 | $66,637 | $153,342 | $125,722 | | Less: Traffic acquisition costs | $(29,481) | $(24,308) | $(57,393) | $(43,580) | | Less: Stock-based compensation | $(6,343) | $(5,537) | $(11,982) | $(9,977) | | Less: Depreciation and amortization | $(4,559) | $(4,167) | $(8,883) | $(8,313) | | **Non-GAAP operating expenses** | **$37,089** | **$31,958** | **$74,417** | **$63,004** | Adjusted EBITDA Reconciliation | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Net income (loss) | $1,787 | $1,488 | $(1,520) | $(1,726) | | Add back: Interest income, net | $(1,484) | $(2,359) | $(3,208) | $(4,740) | | Add back: Provision for (benefit from) income taxes | $(291) | $99 | $(444) | — | | Add back: Depreciation and amortization | $4,559 | $4,167 | $8,883 | $8,313 | | Add back: Stock-based compensation | $6,343 | $5,537 | $11,982 | $9,977 | | **Adjusted EBITDA** | **$11,283** | **$9,600** | **$16,685** | **$12,675** | Non-GAAP Net Income Reconciliation | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Net income (loss) | $1,787 | $1,488 | $(1,520) | $(1,726) | | Add back: Stock-based compensation | $6,343 | $5,537 | $11,982 | $9,977 | | Less: Income tax benefit (expense) related to Viant Technology Inc.'s share of non-GAAP pre-tax income (loss) | $(487) | $(486) | $(653) | $(547) | | **Non-GAAP net income** | **$8,012** | **$7,207** | **$10,801** | **$8,555** | Non-GAAP EPS Reconciliation | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Basic EPS (Class A common stock) | $0.02 | $0.00 | $(0.06) | $(0.05) | | Non-GAAP Basic EPS (Class A common stock) | $0.10 | $0.08 | $0.14 | $0.09 | | Diluted EPS (Class A common stock) | $0.02 | $0.00 | $(0.06) | $(0.05) | | Non-GAAP Diluted EPS (Class A common stock) | $0.09 | $0.08 | $0.12 | $0.09 |

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]