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]

Financial Performance - Revenue for Q1 2025 was $70.6 million, a 32% increase from $53.4 million in Q1 2024[104] - Gross profit for Q1 2025 was $30.6 million, representing a 30% increase from $23.5 million in Q1 2024[104] - Non-GAAP net income for Q1 2025 was $2.8 million, a 109% increase from $1.3 million in Q1 2024[104] - Adjusted EBITDA for Q1 2025 was $5.4 million, reflecting a 76% increase from $3.1 million in Q1 2024[104] - Revenue for the three months ended March 31, 2025, was $70,642 million, an increase of $17,249 million or 32% compared to $53,393 million in the same period of 2024[113] - Adjusted EBITDA for the three months ended March 31, 2025, was $5,402 million, a 76% increase from $3,075 million in the same period of 2024[124] - Non-GAAP net income rose to $2,816 million, a 109% increase compared to $1,348 million in the prior year[124] - Net loss for Q1 2025 was $3,307,000, slightly higher than the net loss of $3,214,000 in Q1 2024[142] Expenses and Costs - Total platform operations expenses rose by $10,200 million, or 34%, reaching $40,080 million, primarily due to an $8,641 million increase in traffic acquisition costs[114] - Sales and marketing expenses increased by $1,330 million, or 10%, totaling $14,229 million, driven by higher personnel costs and stock-based compensation[115] - Technology and development expenses grew by $1,679 million, or 32%, amounting to $6,911 million, mainly due to increased personnel and technology costs[116] - General and administrative expenses increased by $3,207 million, or 29%, reaching $14,281 million, largely due to higher travel, personnel, and bad debt expenses[117] - Non-GAAP operating expenses for Q1 2025 were $37,327,000, compared to $31,046,000 in Q1 2024, marking a 20% increase[131] Market and Strategic Outlook - The advertising technology market is shifting towards programmatic advertising, with the company positioned to capture a larger share of customer budgets[105] - The company expects continued growth in customer adoption of its newer products and platform features, driving incremental revenue[106] - The company’s ViantAI product suite aims to optimize advertising campaigns and improve efficiency, contributing to long-term growth[102] - Seasonal fluctuations in revenue are expected, with the fourth quarter typically reflecting the highest advertising activity[110] - Macroeconomic conditions and geopolitical events may impact the company's performance and advertising market dynamics[108] Cash Flow and Capital Management - Cash and cash equivalents decreased to $173.9 million as of March 31, 2025, down from $205.0 million as of December 31, 2024[149] - The company has a working capital of $199.0 million as of March 31, 2025, compared to $217.0 million as of December 31, 2024[149] - Cash flows used in operating activities for the three months ended March 31, 2025, were $(4.5) million, compared to $3.8 million for the same period in 2024[167][168] - Cash flows used in investing activities were $4.0 million for the three months ended March 31, 2025, primarily due to $3.6 million in capitalized software investments[170] - Cash flows used in financing activities amounted to $22.7 million for the three months ended March 31, 2025, mainly from $17.0 million for stock repurchases[173] - The net decrease in cash and cash equivalents was $(31.2) million for the three months ended March 31, 2025, compared to $(10.4) million for the same period in 2024[165] Shareholder Actions - The company repurchased 1.2 million shares of Class A common stock for $17.4 million during the three months ended March 31, 2025[160] - The company has a $75.0 million senior secured revolving credit facility with no outstanding balance as of March 31, 2025[161] - The company has undrawn availability of up to $74.1 million under its revolving credit facility as of March 31, 2025[161] Future Commitments - The company plans to invest in platform operations and technology to enhance product capabilities, anticipating increased operating expenses in the long term[107] - The company intends to continue investing in critical areas of its business throughout 2025 to accelerate product demand and growth[151] - Future minimum payments under non-cancelable operating leases are estimated at approximately $4.4 million for the remainder of 2025[153] - The total unrecorded liability for the Tax Receivable Agreement (TRA) is approximately $10.7 million as of March 31, 2025[157] Operational Performance - Contribution ex-TAC increased by $8,608 million, or 25%, totaling $42,729 million, reflecting improved operational performance[124] - Adjusted EBITDA as a percentage of contribution ex-TAC was 13% in Q1 2025, up from 9% in Q1 2024[139] - Stock-based compensation for Q1 2025 was $5,639,000, up from $4,440,000 in Q1 2024[142] - A significant decrease of $15.2 million in accounts receivable was noted, attributed to higher sales and seasonal fluctuations[167] - The company reported a net increase of $24.7 million in accounts payable and accrued liabilities related to the timing of payments[167] - There have been no material changes in the company's exposure to market risk during the three months ended March 31, 2025[178]

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]

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, and 3% 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][61] 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 notable increase in demand for addressability and measurable insights [14][18] - Political spending contributed just over 3% of total contribution ex-TAC in Q4, consistent with previous quarters [67] - The overall market for programmatic advertising is projected to grow approximately 13 to 14% in 2025 [78] Company Strategy and Development Direction - The company is focused on enhancing its CTV targeting and measurement capabilities through acquisitions like Iris TV and Locker [79] - Viant aims to leverage AI technology to improve advertising efficiency and effectiveness, with plans to roll out AI measurement and analysis in Q2 2025 [33][82] - The strategy includes positioning itself as a leader in addressability and measurement across all channels of the open Internet [22][37] 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 the shift of ad spend from linear TV to CTV will accelerate, with a total addressable market for CTV expected to grow significantly [44] - Management highlighted the importance of enabling publishers to utilize their first-party data effectively in the advertising ecosystem [92] Other Important Information - The company ended Q4 with over $205 million in cash and cash equivalents, with no debt [73] - The acquisition of Locker is expected to enhance the company's identity and addressability solutions, contributing to long-term growth [25][79] - The company has a share repurchase program in place, having purchased 2 million shares of Class A common stock [75] Q&A Session Summary Question: Can you explain the logic behind the Locker acquisition? - Management explained that Locker reduces friction in integrating household ID with publisher identity, making it easier for publishers to utilize their first-party data [87][92] Question: How much revenue did Iris contribute in the quarter? - 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] Question: How has the market been performing post-election? - Management noted that there is a mixed bag in the market, with significant exposure to display advertising being a weakness, but overall, they experienced strong performance [114][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 campaigns [130]

Core Insights - Viant Technology reported quarterly earnings of $0.15 per share, missing the Zacks Consensus Estimate of $0.23 per share, representing an earnings surprise of -34.78% [1] - The company posted revenues of $54.36 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.94%, compared to year-ago revenues of $42.6 million [2] - Viant shares have increased approximately 5.3% since the beginning of the year, outperforming the S&P 500's gain of 1.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.03 on revenues of $41 million, and for the current fiscal year, it is $0.68 on revenues of $206.4 million [7] - The estimate revisions trend for Viant is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Technology Services industry, to which Viant belongs, is currently ranked in the top 31% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]