Three underdog businesses have surfaced as strong rivals in the ever-changing stock market, with plans to take the lead in each by 2030. These have placed themselves in a smart position to profit from growing industries and new trends. The first one’s asset base and revenue streams have significantly expanded with the recent acquisition of a multifamily platform. This action demonstrates the company’s dedication to diversifying its portfolio for long-term growth, further improving its position in the real e ...

In an era of fast technological innovation and fluctuating market landscapes, spotting the next big investment opportunity is like traversing a maze of unknowns. Despite the complexity, there are lights of invention that promise to survive the storm and thrive in its midst. Here are three disruptive stocks, pioneering businesses that rewrite the rules of conventional sectors. They are paving the road for exceptional growth and market dominance.These stocks represent the unique industries of advertising tech ...

Financial Data and Key Metrics - Revenue for Q4 2023 grew 18% YoY to $64 4 million, while contribution ex-TAC grew 28% YoY to $42 6 million [14][58] - Adjusted EBITDA for Q4 2023 increased nearly 400% YoY, with adjusted EBITDA margin reaching 31% [14][107] - Full-year 2023 revenue totaled $222 9 million, up 13% YoY, with contribution ex-TAC at $143 4 million, up 15% YoY [54] - Non-GAAP operating expenses for 2023 decreased by over 13% YoY to $114 3 million, while adjusted EBITDA increased by $35 2 million YoY to $29 1 million [54][79] - The company achieved the Rule of 40 in Q4 2023, with contribution ex-TAC growth of 28% and adjusted EBITDA margins of 31% [92] Business Line Data and Key Metrics - Connected TV (CTV) represented nearly 40% of total ad spend on the platform in Q4 2023, making it the largest channel [38][104] - Over 40% of CTV spend in Q4 2023 was through the Direct Access program, up from over 25% in Q3 2023 [21] - Video formats, including mobile video and CTV, accounted for nearly 60% of total platform spend in Q4 2023 [61] - Streaming audio also showed strong growth, representing nearly 10% of overall spend in Q4 2023 [104] - The Viant Data platform saw early adoption, with 7 out of the top 10 customers using it in 2023 [49] Market Data and Key Metrics - The company is seeing strong momentum in retail, consumer goods, healthcare, travel, and public services verticals [82] - The mid-market segment continues to drive growth, with customers scaling their advertising budgets on the platform [56][80] - The number of percentage spend customers generating at least $500,000 of contribution ex-TAC increased by over 30% YoY in 2023 [60] - Contribution ex-TAC across the top 100 customers grew by over 20% YoY in 2023 [63] Company Strategy and Industry Competition - The company is focused on integrating AI and machine learning into its platform to improve customer experience and drive efficiency [26][27] - Viant's Household ID technology is a key differentiator, with over 90% of CTV ad spend on the platform utilizing it [18][101] - The company is prioritizing larger mid-market customers with significant long-term value over smaller, lower-spending customers [84][85] - Viant is one of only two buy-side-only demand-side platforms in the market, providing a competitive advantage [37][111] - The company is leveraging its Direct Access program to partner with major CTV content owners, offering better pricing and addressability for customers [41][42] Management Commentary on Operating Environment and Future Outlook - Management highlighted the accelerating momentum across the business, driven by the strategic role in the programmatic ad ecosystem [15] - The company expects continued growth in 2024, with Q1 revenue guidance of $49 million to $52 million, representing 21% YoY growth at the midpoint [89] - Adjusted EBITDA for Q1 2024 is expected to be in the range of $2 million to $3 million, a YoY increase of $2 9 million at the midpoint [90] - Management is optimistic about the opportunities in CTV, especially as cookie deprecation drives marketers to re-platform their budgets [6][7] - The company is focused on sustainability, achieving carbon-neutral status in 2023 and launching the Adtricity program to help customers quantify their carbon footprint [24][44] Other Important Information - The company's AI Bid Optimizer product has seen strong adoption, helping customers achieve 35% average savings on CPMs [47] - Viant's AI product suite won the 2024 Innovation Award from the Business Intelligence Group [23] - The company plans to launch the second generation of AI Bid Optimizer in summer 2024, expected to deliver even higher savings [28] - Viant's Household ID technology has lower instances of fraud, higher accuracy, and superior measurement capabilities compared to cookie-based solutions [40][101] Q&A Session Summary Question: How does Viant's Household ID compare to Google's Privacy Sandbox and Trade Desk's UID 2 0? - Viant's Household ID is not limited to the Chrome ecosystem and ties both e-commerce and in-store transactions, offering broader measurement capabilities [99][100] - Over 90% of CTV ad spend on Viant's platform utilizes Household ID, providing significant scale compared to other solutions [101] Question: What is the impact of Direct Access on CPMs? - Direct Access allows marketers to achieve lower CPMs while publishers see higher CPMs, with CTV CPMs increasing by up to 20% [121][122] Question: How is Viant positioned to sustain 20% revenue growth in 2024? - The company is confident in its ability to grow faster than the market, driven by its strong customer pipeline and focus on mid-market customers [148][166] Question: What are the expectations for the second generation of AI Bid Optimizer? - The second generation aims to deliver even higher cost savings for customers and improve automation features, with a focus on customer happiness [154][174] Question: How far can Direct Access grow in CTV? - Direct Access could potentially reach over 80% of CTV spend, driven by customer preference for direct integrations [176][180] Question: What has been the impact of cookie deprecation so far? - The company has seen a mindset shift among marketers, with increased activity and decision-making as cookie deprecation becomes a reality [144][181]

Viant Technology (DSP) came out with quarterly earnings of $0.14 per share, beating the Zacks Consensus Estimate of $0.11 per share. This compares to loss of $0.15 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 27.27%. A quarter ago, it was expected that this advertising software company would post earnings of $0.07 per share when it actually produced earnings of $0.08, delivering a surprise of 14.29%.Over the last four quart ...

[Viant Technology Q4 and Full Year 2023 Financial Results](index=1&type=section&id=Viant%20Technology%20Announces%20Fourth%20Quarter%20and%20Full%20Year%202023%20Financial%20Results) [Financial & Business Highlights](index=1&type=section&id=Fourth%20quarter%20and%20full%20year%202023%20Financial%20Highlights) Viant Technology reported strong Q4 and full-year 2023 results, marked by double-digit revenue growth, a shift to net income, and substantial Adjusted EBITDA improvement Q4 2023 vs Q4 2022 Financial Performance (in thousands) | Metric | Q4 2023 | Q4 2022 | Change (%) | | :--- | :--- | :--- | :--- | | **GAAP Revenue** | $64,406 | $54,509 | 18% | | **GAAP Gross Profit** | $31,752 | $22,458 | 41% | | **GAAP Net Income (Loss)** | $3,308 | $(8,008) | 141% | | **Adjusted EBITDA** | $13,007 | $2,630 | 395% | | **Contribution ex-TAC** | $42,601 | $33,378 | 28% | Full Year 2023 vs Full Year 2022 Financial Performance (in thousands) | Metric | FY 2023 | FY 2022 | Change (%) | | :--- | :--- | :--- | :--- | | **GAAP Revenue** | $222,934 | $197,168 | 13% | | **GAAP Gross Profit** | $102,455 | $80,443 | 27% | | **GAAP Net Loss** | $(9,943) | $(48,089) | 79% | | **Adjusted EBITDA** | $29,101 | $(6,132) | 575% | | **Contribution ex-TAC** | $143,382 | $124,728 | 15% | - The CEO attributes strong performance to the market shift towards cookie-free advertising platforms, highlighting Viant's Household ID technology and new AI product suite as key differentiators[3](index=3&type=chunk) - Business highlights for FY 2023 include a **20% increase in customers** with over **$1 million in contribution ex-TAC** and strong double-digit growth in Connected TV (CTV)[10](index=10&type=chunk) - Viant achieved carbon neutrality for the 2023 calendar year through strategic energy sourcing and the purchase of carbon offsets[10](index=10&type=chunk) [Q1 2024 Business Outlook](index=3&type=section&id=Guidance) Viant anticipates Q1 2024 revenue of $49.0-$52.0 million, with Contribution ex-TAC of $33.0-$35.0 million and Adjusted EBITDA of $2.0-$3.0 million Q1 2024 Guidance (in millions) | Metric | Range | | :--- | :--- | | Revenue | $49.0 - $52.0 | | Contribution ex-TAC | $33.0 - $35.0 | | Non-GAAP operating expenses | $31.0 - $32.0 | | Adjusted EBITDA | $2.0 - $3.0 | - The company stated it is not able to reconcile forward-looking non-GAAP guidance to the closest corresponding GAAP measures without unreasonable effort due to the variability and complexity of excluded charges[6](index=6&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=VIANT%20TECHNOLOGY%20INC.%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Viant's FY 2023 consolidated financial statements show increased revenue, reduced net loss, a strong balance sheet, and positive operating cash flow Full Year 2023 Statement of Operations Summary (in thousands) | Line Item | 2023 | 2022 | | :--- | :--- | :--- | | Revenue | $222,934 | $197,168 | | Gross Profit | $102,455 | $80,443 | | Income (loss) from operations | $(18,296) | $(49,260) | | Net loss | $(9,943) | $(48,089) | Balance Sheet Summary (as of Dec 31, in thousands) | Line Item | 2023 | 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $216,458 | $206,573 | | Total Assets | $404,911 | $377,883 | | Total Liabilities | $130,522 | $112,115 | | Total Equity | $274,389 | $265,768 | Statement of Cash Flows Summary (Full Year, in thousands) | Line Item | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $37,752 | $(3,530) | | Net cash used in investing activities | $(13,476) | $(8,826) | | Net cash used in financing activities | $(14,391) | $(19,551) | | Net increase (decrease) in cash | $9,885 | $(31,907) | [Non-GAAP Financial Measures and Reconciliations](index=9&type=section&id=Non-GAAP%20Financial%20Measures) Viant uses non-GAAP measures like Contribution ex-TAC and Adjusted EBITDA to clarify core operating performance, reconciling FY 2023 GAAP net loss to non-GAAP net income - Contribution ex-TAC is a key profitability measure calculated by adding back other platform operations expenses to gross profit, used to evaluate operating performance across all pricing options[23](index=23&type=chunk) - Adjusted EBITDA is defined as net income (loss) adjusted for interest, taxes, depreciation, amortization, stock-based compensation, and other non-core operational items[25](index=25&type=chunk) Reconciliation of Net Loss to Adjusted EBITDA (Full Year, in thousands) | Line Item | 2023 | 2022 | | :--- | :--- | :--- | | **Net loss** | **$(9,943)** | **$(48,089)** | | Depreciation and amortization | $14,731 | $13,131 | | Stock-based compensation | $32,291 | $28,901 | | Other adjustments | $(8,078) | $ (7) | | **Adjusted EBITDA** | **$29,101** | **$(6,132)** | Reconciliation of Gross Profit to Contribution ex-TAC (Full Year, in thousands) | Line Item | 2023 | 2022 | | :--- | :--- | :--- | | **Gross profit** | **$102,455** | **$80,443** | | Add: Other platform operations | $40,927 | $44,285 | | **Contribution ex-TAC** | **$143,382** | **$124,728** |

PART I [Business](index=6&type=section&id=Item%201.%20Business) Viant Technology Inc. provides a cloud-based demand-side platform (DSP) for programmatic advertising, leveraging a proprietary people-based data approach to reduce reliance on third-party cookies - Viant's core product is a cloud-based demand-side platform (DSP) for programmatic ad buying across omnichannel inventory[23](index=23&type=chunk)[24](index=24&type=chunk) - The platform utilizes a proprietary Household ID and identity graph, offering a people-based data approach as an alternative to cookie-based tracking, a strategic advantage given Google's planned cookie deprecation by end of 2024[29](index=29&type=chunk) Key Financial Performance (2021-2023) | Fiscal Year Ended | Revenue (in millions) | Net Loss (in millions) | Adjusted EBITDA (in millions) | | :--- | :--- | :--- | :--- | | Dec 31, 2023 | $222.9 | $(9.9) | $29.1 | | Dec 31, 2022 | $197.2 | $(48.1) | $(6.1) | | Dec 31, 2021 | $224.1 | $(37.6) | $37.1 | - The U.S. programmatic advertising market is projected to grow from **$121.8 billion** in 2022 to **$178.3 billion** in 2025, a **14% CAGR**, indicating strong market tailwinds[30](index=30&type=chunk)[33](index=33&type=chunk) - As of December 31, 2023, the company held **37 issued patents** and **9 pending patent applications** for proprietary products and technologies[48](index=48&type=chunk)[80](index=80&type=chunk) [Risk Factors](index=19&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks across business operations, data privacy, intellectual property, and capital structure, including platform enhancement, evolving regulations, and cybersecurity threats - Business and operational risks include dependence on platform enhancement, the evolving market shift away from cookies, intense competition, long sales cycles, and macroeconomic impacts on advertising budgets[86](index=86&type=chunk)[87](index=87&type=chunk)[90](index=90&type=chunk)[92](index=92&type=chunk)[98](index=98&type=chunk) - Data privacy and technology risks stem from stringent, evolving laws (e.g., CCPA, GDPR) and changes by tech giants like Google and Apple, which could significantly impact data availability and platform operations[142](index=142&type=chunk)[163](index=163&type=chunk)[164](index=164&type=chunk) - Cybersecurity risks include potential cyber-attacks on IT systems and data, which could result in operational disruption, litigation, regulatory fines, and reputational damage[168](index=168&type=chunk)[169](index=169&type=chunk) - Capital structure and tax risks involve dependence on distributions from Viant Technology LLC, substantial payments under the Tax Receivable Agreement (TRA), and the implications of its dual-class stock structure and 'controlled company' status[189](index=189&type=chunk)[192](index=192&type=chunk)[217](index=217&type=chunk)[218](index=218&type=chunk) [Unresolved Staff Comments](index=46&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the Securities and Exchange Commission - There are no unresolved staff comments[241](index=241&type=chunk) [Cybersecurity](index=46&type=section&id=Item%201C.%20Cybersecurity) Viant maintains a cybersecurity risk management program, overseen by the Board's Audit Committee, with no identified material threats to its business - The company has a cybersecurity risk management program based on the CIS Critical Security Controls Version 8 framework to protect critical systems and information[242](index=242&type=chunk)[243](index=243&type=chunk) - Cybersecurity governance is overseen by the Board's Audit Committee, with the Chief Information Officer (CIO) having primary management responsibility[246](index=246&type=chunk)[248](index=248&type=chunk) - As of the report date, no cybersecurity threats have been identified that materially affect or are reasonably likely to materially affect operations, business strategy, or financial condition[245](index=245&type=chunk) [Properties](index=47&type=section&id=Item%202.%20Properties) The company's headquarters are in Irvine, California, leased until May 2031, with 9 additional leased office spaces and no owned real property - The company's headquarters are in Irvine, CA, leased for approximately **56,000 square feet** until May 2031[250](index=250&type=chunk) - Viant leases **9 other office spaces** in the U.S. and does not own any real property[250](index=250&type=chunk) [Legal Proceedings](index=47&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings but is not party to any litigation expected to have a material adverse effect - The company is not currently a party to any litigation expected to have a material adverse effect on its business[251](index=251&type=chunk) [Mine Safety Disclosures](index=47&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[252](index=252&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=48&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Viant's Class A common stock trades on Nasdaq under "DSP", with no public market for Class B, and the company has not paid cash dividends - The company's Class A common stock trades on Nasdaq under the symbol **"DSP"**, with no public market for Class B common stock[255](index=255&type=chunk) - Viant has never paid cash dividends and has no current plans to do so[257](index=257&type=chunk) - There were no issuer purchases of equity securities during the reporting period[258](index=258&type=chunk) [Reserved](index=49&type=section&id=Item%206.%20Reserved.) This item is reserved [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=50&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In fiscal 2023, Viant achieved **13.1% revenue growth** to **$222.9 million** and a significant improvement in net loss and Adjusted EBITDA, driven by increased advertiser spend and cost controls, maintaining strong liquidity Financial Highlights (FY 2023 vs. FY 2022) | Metric | FY 2023 (in millions) | FY 2022 (in millions) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | $222.9 | $197.2 | 13.1% | | Gross Profit | $102.5 | $80.4 | 27.4% | | Contribution ex-TAC | $143.4 | $124.7 | 15.0% | | Net Loss | $(9.9) | $(48.1) | 79.3% improvement | | Adjusted EBITDA | $29.1 | $(6.1) | 574.6% improvement | - Revenue growth in 2023 was primarily driven by a **57% increase** from marketers in the retail and public services industry verticals[294](index=294&type=chunk) - Sales and marketing expenses decreased by **21%** in 2023, primarily due to lower personnel and advertising costs[298](index=298&type=chunk) - The company maintains strong liquidity with **$216.5 million** in cash and cash equivalents and **$231.6 million** in working capital as of December 31, 2023, with no outstanding balance on its **$75.0 million** revolving credit facility[359](index=359&type=chunk)[367](index=367&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=78&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate exposure on its variable-rate credit facility, though no outstanding balance existed as of December 31, 2023 - The company is exposed to interest rate risk through its variable-rate revolving credit facility[401](index=401&type=chunk) - As of December 31, 2023, there was no outstanding balance on the credit facility, eliminating market risk from interest rate changes at that time[401](index=401&type=chunk) [Financial Statements and Supplementary Data](index=79&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for fiscal years 2021-2023, including statements of operations, balance sheets, equity, cash flows, and notes - The financial statements were audited by Deloitte & Touche LLP, which issued an unqualified opinion[405](index=405&type=chunk) Consolidated Statements of Operations Summary (in thousands) | Year Ended Dec 31 | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | **Revenue** | **$222,934** | **$197,168** | **$224,127** | | Loss from operations | $(18,296) | $(49,260) | $(42,795) | | **Net loss** | **$(9,943)** | **$(48,089)** | **$(37,609)** | | Net loss attributable to Viant | $(3,443) | $(11,913) | $(7,742) | | Loss per share (basic & diluted) | $(0.23) | $(0.84) | $(0.63) | Consolidated Balance Sheets Summary (in thousands) | As of Dec 31 | 2023 | 2022 | | :--- | :--- | :--- | | **Total Assets** | **$404,911** | **$377,883** | | Cash and cash equivalents | $216,458 | $206,573 | | **Total Liabilities** | **$130,522** | **$112,115** | | **Total Equity** | **$274,389** | **$265,768** | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=103&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants regarding accounting and financial disclosure - None[559](index=559&type=chunk) [Controls and Procedures](index=103&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2023, with no material changes reported - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2023[560](index=560&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of December 31, 2023, based on the COSO 2013 framework[563](index=563&type=chunk) - The Annual Report omits an auditor's attestation report on internal control over financial reporting due to exemptions for emerging growth companies and non-accelerated filers[564](index=564&type=chunk) [Other Information](index=104&type=section&id=Item%209B.%20Other%20Information) The company reports no other material information and no director or officer adopted or terminated a Rule 10b5-1 trading arrangement in Q4 2023 - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the three months ended December 31, 2023[568](index=568&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=104&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not applicable[569](index=569&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=105&type=section&id=Item%2010.%20Directors,%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2024 Proxy Statement - Required information is incorporated by reference from the definitive Proxy Statement for the 2024 Annual Meeting of Stockholders[572](index=572&type=chunk) [Executive Compensation](index=105&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the 2024 Proxy Statement - Required information is incorporated by reference from the definitive Proxy Statement for the 2024 Annual Meeting of Stockholders[574](index=574&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=105&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership by beneficial owners and management is incorporated by reference from the 2024 Proxy Statement - Required information is incorporated by reference from the definitive Proxy Statement for the 2024 Annual Meeting of Stockholders[575](index=575&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=105&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions,%20and%20Director%20Independence) Information on certain relationships, related party transactions, and director independence is incorporated by reference from the 2024 Proxy Statement - Required information is incorporated by reference from the definitive Proxy Statement for the 2024 Annual Meeting of Stockholders[576](index=576&type=chunk) [Principal Accountant Fees and Services](index=105&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information on principal accountant fees and services is incorporated by reference from the 2024 Proxy Statement - Required information is incorporated by reference from the definitive Proxy Statement for the 2024 Annual Meeting of Stockholders[577](index=577&type=chunk) PART IV [Exhibits and Financial Statement Schedules](index=106&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists exhibits filed with the Annual Report, with financial statement schedules omitted as information is included elsewhere - Financial statement schedules are omitted as they are not applicable or the information is already included in the financial statements[580](index=580&type=chunk) - The Exhibit Index lists all documents filed, including corporate governance documents, material contracts, and compensatory plans[581](index=581&type=chunk) [Form 10-K Summary](index=108&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company reports that there is no Form 10-K summary - None[583](index=583&type=chunk)

IRVINE, Calif.--(BUSINESS WIRE)--Viant Technology Inc. (NASDAQ: DSP), the leading people-based advertising technology company, today released its first Sustainability Report for the calendar year 2023. The Viant Sustainability Report recaps Viant’s efforts to decarbonize digital advertising last year, fostering better measurement, improved efficiency and facilitating investment in renewable energy. Viant also achieved a significant milestone by attaining carbon neutrality for the calendar year 2023. Vian ...

COSTA MESA, Calif., Feb. 13, 2024 (GLOBE NEWSWIRE) -- El Pollo Loco Holdings, Inc. ("El Pollo Loco" or the "Company") (NASDAQ:LOCO) announced today that its Board of Directors has appointed Elizabeth ("Liz") Williams as the Company's new Chief Executive Officer and as a member of its Board of Directors, effective March 11, 2024. Ms. Williams will succeed Maria Hollandsworth, who has served as the Company's interim Chief Executive Officer since November 3, 2023. Ms. Hollandsworth has been appointed as Presid ...

Financial Data and Key Metrics - Revenue for Q3 2023 was $59.6 million, a 22% increase YoY [83] - Contribution ex TAC for Q3 was $39.1 million, also a 22% increase YoY and 16% higher than Q2 [83] - Non-GAAP net income for Q3 was $7.6 million, compared to a non-GAAP net loss of $4.4 million in the prior year period [61] - Adjusted EBITDA for Q3 was $9.7 million, a significant increase from the prior year period [86] - Revenue per employee increased by 32% in Q3, indicating improved organizational efficiency [60] - Q4 2023 revenue is expected to be in the range of $64 million to $67 million, representing a 20% YoY increase at the midpoint [62] Business Line Data and Key Metrics - Connected TV (CTV) represented more than 1/3 of total ad spend on the platform in Q3, retaining its status as the fastest-growing channel [59] - Over 25% of CTV spend in Q3 was through Direct Access publishers, a figure that continues to grow [81] - Video, including mobile video and CTV, accounted for well over half of the spend on the platform during the quarter [43] - Streaming audio experienced strong double-digit growth in Q3 [85] - Advertiser spend per active customer increased 11% on a trailing 12-month basis [85] Market Data and Key Metrics - The company is benefiting from the ongoing migration of approximately $60 billion of linear television advertising moving into connected TV [28] - The company's Household ID technology is available on over 85% of all ad requests, enabling addressable advertising and attribution in a cookieless environment [36] - The company's Direct Access program is focused on CTV, providing a more cost-efficient direct path to premium inventory [70][81] Company Strategy and Industry Competition - The company is leveraging AI to develop the most advanced DSP in the market, focusing on simplifying and automating the platform to expand its addressable market [37][38] - The company's AI Bid Optimizer solution has seen strong adoption, with over half of customers utilizing it and achieving an average savings of 35% on CPMs [50][51] - The company is focusing on mid-market advertisers, offering best-in-class products supported by industry-leading AI to win larger shares of budgets [28][79] - The company is well-positioned to benefit from Google's deletion of cookies in 2024, with its Household ID technology offering a scalable and proven solution [76] Management Commentary on Operating Environment and Future Outlook - The company sees a number of favorable drivers for the business, including the ongoing shift from linear TV to CTV and the application of AI [28][35] - The company expects to continue its momentum in Q4, benefiting from the stabilization in the U.S. advertising environment [46] - The company believes that the deletion of cookies by Google will accelerate the growth of ad spend flowing through its platform [76] - The company is confident in the sustainability of its progress, driven by the substantial role of AI in enhancing productivity [60] Other Important Information - The company ended Q3 with $203 million in cash and cash equivalents, $227 million of positive working capital, and no debt [87] - The company has access to a $75 million undrawn credit facility, providing a solid financial foundation [87] - The company's Rule of 40 metric was 47% in Q3 and is expected to increase to 52% in Q4 based on the midpoint of guidance [63] Q&A Session Summary Question: Impact of customer count decline and traction with mid-market agencies [3] - The company is focusing on mid-market customers, with solutions around CTV, Direct Access, and measurement driving new customer acquisition and growth [92] Question: Impact of cookie deletion and positioning of the sales force [14] - The company's Household ID technology is well-positioned to handle the signal loss due to cookie deletion, with no disruption expected [11] - The company is discussing the topic with brands and agencies, focusing on measurement solutions to drive customer adoption [14] Question: Monthly progression of the quarter and impact of Middle East conflict on CTV trends [17] - The quarter saw steady growth, with the last month being the biggest, and no significant impact from the Middle East conflict [126] Question: CTV growth potential with Direct Access adoption [127] - Direct Access is expected to continue growing, with over 25% of CTV spend already through the program, driven by financial and operational efficiencies [128] Question: Impact of AI tools on the P&L [107] - AI tools like Bid Optimizer are both revenue drivers and differentiators, helping to win incremental business and increase contribution ex TAC [107] Question: Tailoring go-to-market strategy for novice users [96] - The company is focusing on simplifying the platform and making it more accessible, particularly for mid-market and SMB customers [113] Question: Behavior of Household ID technology with potential IP signal loss [99] - The company's Household ID technology is not tied to IP addresses but to physical household data points, making it resilient to IP signal loss [11]

[Special Note Regarding Forward-Looking Statements](index=3&type=section&id=Special%20Note%20Regarding%20Forward-Looking%20Statements) This section cautions that forward-looking statements are based on current expectations and subject to substantial risks - Forward-looking statements are identified by words such as "may," "will," "should," "intend," or "expect" and relate to future financial performance, business measures, and market trends[10](index=10&type=chunk) - Actual results may differ materially from expectations due to various political, economic, competitive, and regulatory factors, as detailed in the "Risk Factors" section[11](index=11&type=chunk) - The company uses its "Investor Relations" website and executive LinkedIn accounts as primary channels for distributing material information[12](index=12&type=chunk) PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) [A. Condensed Consolidated Statements of Operations](index=4&type=section&id=A.%20Condensed%20Consolidated%20Statements%20of%20Operations) The statements show a significant improvement in net loss driven by increased revenue and reduced operating losses | Metric (in thousands) | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Change (%) | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | $59,585 | $48,830 | 22.0% | $158,528 | $142,659 | 11.1% | | Loss from operations | $(2,819) | $(12,875) | 78.1% | $(19,178) | $(40,054) | 52.1% | | Net loss | $(672) | $(12,426) | 94.6% | $(13,251) | $(40,081) | 66.9% | | Net loss attributable to Viant Technology Inc. | $(526) | $(3,126) | 83.2% | $(4,070) | $(9,719) | 58.1% | | Basic Loss per share | $(0.03) | $(0.22) | 86.4% | $(0.27) | $(0.69) | 60.9% | | Diluted Loss per share | $(0.03) | $(0.22) | 86.4% | $(0.27) | $(0.69) | 60.9% | [B. Condensed Consolidated Balance Sheets](index=5&type=section&id=B.%20Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows a slight increase in total assets and equity, while total liabilities decreased | Metric (in thousands) | As of Sep 30, 2023 | As of Dec 31, 2022 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total assets | $378,488 | $377,883 | $605 | 0.2% | | Total liabilities | $109,800 | $112,115 | $(2,315) | -2.1% | | Total equity | $268,688 | $265,768 | $2,920 | 1.1% | | Cash and cash equivalents | $203,007 | $206,573 | $(3,566) | -1.7% | [C. Condensed Consolidated Statements of Equity](index=6&type=section&id=C.%20Condensed%20Consolidated%20Statements%20of%20Equity) Equity changes were primarily driven by stock-based compensation, net loss, and noncontrolling interest adjustments | Metric (in thousands) | Balance as of Dec 31, 2022 | Balance as of Sep 30, 2023 | Change ($) | | :--- | :--- | :--- | :--- | | Total Equity | $265,768 | $268,688 | $2,920 | | Additional Paid-In Capital | $95,922 | $108,858 | $12,936 | | Accumulated Deficit | $(36,261) | $(42,993) | $(6,732) | | Noncontrolling Interests | $206,520 | $203,983 | $(2,537) | - Stock-based compensation contributed **$24.7 million** to additional paid-in capital for the nine months ended September 30, 2023[21](index=21&type=chunk) [D. Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=D.%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash flow from operations improved significantly, while investing and financing activities continued to use cash | Cash Flow Activity (in thousands) | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $14,503 | $(13,314) | $27,817 | 209.0% | | Net cash used in investing activities | $(9,660) | $(6,425) | $(3,235) | 50.3% | | Net cash used in financing activities | $(8,409) | $(19,076) | $10,667 | 55.9% | | Net decrease in cash and cash equivalents | $(3,566) | $(38,815) | $35,249 | 90.8% | [E. Notes to the Condensed Consolidated Financial Statements](index=9&type=section&id=E.%20Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [Note 1 Nature of Operations](index=9&type=section&id=Note%201%20Nature%20of%20Operations) The company operates a demand-side platform for programmatic advertising and functions as a holding company - Viant Technology Inc. operates a cloud-based demand-side platform (DSP) enabling marketers and agencies to centralize planning, buying, and measurement of advertising across various channels[29](index=29&type=chunk) - The company completed its **IPO on February 12, 2021**, and underwent a corporate reorganization, resulting in Class A and Class B common stock[30](index=30&type=chunk)[32](index=32&type=chunk) - Viant Technology Inc. consolidates Viant Technology LLC and records a noncontrolling interest related to Class B units held by Class B stockholders[32](index=32&type=chunk) [Note 2 Basis of Presentation and Summary of Significant Accounting Policies](index=11&type=section&id=Note%202%20Basis%20of%20Presentation%20and%20Summary%20of%20Significant%20Accounting%20Policies) Financial statements are GAAP-compliant, consolidating Viant Technology LLC and using significant management estimates - The unaudited condensed consolidated financial statements are prepared in accordance with GAAP and consolidate Viant Technology LLC, with all intercompany balances and transactions eliminated[33](index=33&type=chunk) - Management's estimates, particularly for revenue recognition, stock-based compensation, and income taxes, are subject to increased judgment due to macroeconomic and geopolitical uncertainties[36](index=36&type=chunk)[37](index=37&type=chunk)[40](index=40&type=chunk) - The company adopted ASU No. 2016-13, Financial Instruments—Credit Losses, at the beginning of fiscal 2023, which **did not have a material impact**[50](index=50&type=chunk) Allowance for Doubtful Accounts (in thousands) | Period | Balance as of | Provision for doubtful accounts | Write-offs, net of recoveries | Balance as of | | :--- | :--- | :--- | :--- | :--- | | Dec 31, 2022 | $1,015 | - | - | - | | Mar 31, 2023 | $1,162 | $22 | $(84) | $1,162 | | Jun 30, 2023 | $1,135 | $27 | $(54) | $1,135 | | Sep 30, 2023 | $1,149 | $14 | - | $1,149 | [Note 3 Revenue](index=14&type=section&id=Note%203%20Revenue) Revenue is primarily recognized at a point-in-time, with most contracts having a duration of less than one year - The **majority of the company's contracts** have an original expected duration of less than one year[51](index=51&type=chunk) Revenue Disaggregation (in thousands) | Revenue Type | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Over-time revenue | $1,019 | $133 | $2,188 | $494 | | Point-in-time revenue | $58,566 | $48,697 | $156,340 | $142,165 | | Total revenue | $59,585 | $48,830 | $158,528 | $142,659 | [Note 4 Property, Equipment, and Software, Net](index=15&type=section&id=Note%204%20Property,%20Equipment,%20and%20Software,%20Net) Net property, equipment, and software increased due to investments in capitalized software development costs Property, Equipment, and Software, Net (in thousands) | Asset Class | As of Sep 30, 2023 | As of Dec 31, 2022 | | :--- | :--- | :--- | | Capitalized software development costs | $86,617 | $72,988 | | Total property, equipment, and software, net | $27,180 | $23,106 | Depreciation Expense (in thousands) | Expense Category | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Platform operations | $3,147 | $2,510 | $8,769 | $7,219 | | Total Depreciation | $3,678 | $3,089 | $10,367 | $8,905 | [Note 5 Leases](index=15&type=section&id=Note%205%20Leases) The company holds operating leases for office space with total lease costs increasing year-over-year - As of September 30, 2023, operating leases had a weighted-average remaining lease term of **approximately seven years** and a weighted-average incremental borrowing rate of **3.5%**[55](index=55&type=chunk) Total Lease Cost (in thousands) | Period | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Total lease cost | $1,502 | $1,279 | $4,273 | $3,700 | Future Minimum Lease Payments (in thousands) | Year | As of Sep 30, 2023 | | :--- | :--- | | Remainder of 2023 | $1,260 | | 2024 | $4,481 | | 2025 | $4,359 | | 2026 | $4,291 | | 2027 | $4,216 | | Thereafter | $10,934 | | Total undiscounted future lease payments | $29,541 | [Note 6 Intangible Assets, Net](index=16&type=section&id=Note%206%20Intangible%20Assets,%20Net) Net intangible assets decreased due to ongoing amortization of customer relationships and trademarks Intangible Assets, Net (in thousands) | Asset Class | As of Sep 30, 2023 (Net Carrying Amount) | As of Dec 31, 2022 (Net Carrying Amount) | | :--- | :--- | :--- | | Developed technology | $0 | $58 | | Customer relationships | $110 | $356 | | Trademarks/tradenames | $193 | $253 | | Total | $303 | $667 | Amortization of Intangible Assets (in thousands) | Period | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Total | $102 | $277 | $364 | $841 | Estimated Future Amortization of Intangible Assets (in thousands) | Year | As of Sep 30, 2023 | | :--- | :--- | | Remainder of 2023 | $103 | | 2024 | $107 | | 2025 | $80 | | 2026 | $13 | | Total | $303 | [Note 7 Accrued Liabilities](index=17&type=section&id=Note%207%20Accrued%20Liabilities) Total accrued liabilities remained stable, with accrued traffic acquisition costs as the largest component Accrued Liabilities (in thousands) | Accrued Liability | As of Sep 30, 2023 | As of Dec 31, 2022 | | :--- | :--- | :--- | | Accrued traffic acquisition costs | $29,332 | $29,631 | | Other accrued liabilities | $5,837 | $5,432 | | Total accrued liabilities | $35,169 | $35,063 | [Note 8 Revolving Credit Facility](index=17&type=section&id=Note%208%20Revolving%20Credit%20Facility) The company increased its revolving credit facility to $75 million and extended its maturity to April 2028 - On April 4, 2023, the company amended its Loan Agreement, increasing the revolving credit facility borrowing capacity from $40.0 million to **$75.0 million** and extending the maturity date to **April 4, 2028**[62](index=62&type=chunk) - As of September 30, 2023, there was **no outstanding balance** under the Amended Loan Agreement, and the company was in compliance with all covenants[64](index=64&type=chunk)[65](index=65&type=chunk) [Note 9 Stock-Based Compensation](index=19&type=section&id=Note%209%20Stock-Based%20Compensation) Stock-based compensation expense increased, with significant unrecognized compensation to be recognized over two years - As of September 30, 2023, unrecognized stock-based compensation for RSUs was approximately **$23.0 million**, and for nonqualified stock options was approximately **$12.8 million**, both expected to be recognized over a weighted-average period of 2.0 years[69](index=69&type=chunk)[71](index=71&type=chunk) Stock-Based Compensation Expense (in thousands) | Expense Category | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Platform operations | $1,171 | $1,233 | $3,187 | $3,622 | | Sales and marketing | $2,588 | $2,324 | $7,620 | $6,929 | | Technology and development | $1,529 | $1,430 | $4,363 | $4,024 | | General and administrative | $3,446 | $2,724 | $9,565 | $7,280 | | Total | $8,734 | $7,711 | $24,735 | $21,855 | Nonqualified Stock Option Valuation Assumptions | Assumption | Three and Nine Months Ended Sep 30, 2023 | Three and Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Risk free interest rate | 3.8% - 4.3% | 1.4% - 2.0% | | Expected volatility | 75.8% - 81.5% | 61.5% - 62.7% | | Expected term (in years) | 6.0 - 6.1 | 5.9 - 6.0 | [Note 10 Income Taxes and Tax Receivable Agreement](index=21&type=section&id=Note%2010%20Income%20Taxes%20and%20Tax%20Receivable%20Agreement) The company recognized a minimal income tax expense and maintains a full valuation allowance against deferred tax assets - The company recognized an income tax expense of **$0.2 million** for the three and nine months ended September 30, 2023, with effective tax rates of **(36.9)%** and **(1.4)%** respectively[78](index=78&type=chunk) - A **full valuation allowance** has been established against deferred tax assets as of September 30, 2023, as realization was not more likely than not[79](index=79&type=chunk) - **No liability related to the Tax Receivable Agreement (TRA) has been recorded**, with a total unrecorded TRA liability of approximately **$10.3 million** as of September 30, 2023[80](index=80&type=chunk) [Note 11 Loss Per Share](index=23&type=section&id=Note%2011%20Loss%20Per%20Share) Net loss per share for Class A common stock improved significantly, with several equity instruments being anti-dilutive - Anti-dilutive shares excluded from diluted loss per share calculation for the nine months ended September 30, 2023, included **3,944 thousand restricted stock units**, **5,775 thousand nonqualified stock options**, and **47,082 thousand shares of Class B common stock**[84](index=84&type=chunk) Loss Per Share of Class A Common Stock | Metric | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Basic Loss per share | $(0.03) | $(0.22) | $(0.27) | $(0.69) | | Diluted Loss per share | $(0.03) | $(0.22) | $(0.27) | $(0.69) | [Note 12 Noncontrolling Interests](index=23&type=section&id=Note%2012%20Noncontrolling%20Interests) The company consolidates Viant Technology LLC and reports a 75.2% noncontrolling interest as of September 30, 2023 - Changes in the company's ownership interest in Viant Technology LLC, while retaining control, are accounted for as **equity transactions**[85](index=85&type=chunk) Ownership of Viant Technology LLC | Owner | Units Owned (Sep 30, 2023) | Ownership Percentage (Sep 30, 2023) | Units Owned (Dec 31, 2022) | Ownership Percentage (Dec 31, 2022) | | :--- | :--- | :--- | :--- | :--- | | Viant Technology Inc. | 15,541,093 | 24.8% | 14,643,798 | 23.7% | | Noncontrolling interests | 47,082,260 | 75.2% | 47,082,260 | 76.3% | | Total | 62,623,353 | 100.0% | 61,726,058 | 100.0% | [Note 13 Commitments and Contingencies](index=24&type=section&id=Note%2013%20Commitments%20and%20Contingencies) The company has non-cancelable lease and hosting commitments and is subject to ordinary course legal proceedings - As of September 30, 2023, non-cancelable operating lease commitments for office space were recorded as operating lease liabilities[88](index=88&type=chunk) - The company is subject to various legal proceedings and claims, but management believes **none will have a material effect** on its business or financial condition[90](index=90&type=chunk) Estimated Hosting Commitments (in thousands) | Year | Estimated Obligation | | :--- | :--- | | Remainder of 2023 | $3,100 | | 2024 | $7,000 | | 2025 | $5,700 | | 2026 | $1,300 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes financial performance, highlighting revenue growth, improved profitability, and key business factors [Overview](index=25&type=section&id=Overview) The company operates a cloud-based DSP, generating revenue from platform fees, with recent results showing strong growth - Viant operates a cloud-based demand-side platform (DSP) that enables programmatic advertising across channels like desktop, mobile, and connected TV[93](index=93&type=chunk)[94](index=94&type=chunk) - The DSP offers self-service options, customized audience segments, and advanced reporting to improve return on advertising spend (ROAS)[95](index=95&type=chunk) - Revenue is generated through platform fees (percentage of spend or fixed CPM) and service fees[96](index=96&type=chunk)[97](index=97&type=chunk) Key Financial Highlights (in thousands) | Metric | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Change (%) | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | $59,585 | $48,830 | 22.0% | $158,528 | $142,659 | 11.1% | | Gross profit | $28,620 | $21,300 | 34.4% | $70,703 | $57,985 | 21.9% | | Contribution ex-TAC | $39,102 | $32,071 | 21.9% | $100,781 | $91,350 | 10.3% | | Net loss | $(672) | $(12,426) | 94.6% | $(13,251) | $(40,081) | 66.9% | | Adjusted EBITDA | $9,668 | $(1,804) | 635.9% | $16,094 | $(8,762) | 283.7% | [Factors Affecting Our Performance](index=27&type=section&id=Factors%20Affecting%20Our%20Performance) Performance is driven by customer acquisition, platform investment, macroeconomic conditions, and market seasonality - Future growth depends on retaining existing customers, increasing their platform usage, and adding new customers[100](index=100&type=chunk) - Revenue grew **22%** and advertiser spend per active customer increased **11%** for the three months ended September 30, 2023, compared to the prior year[101](index=101&type=chunk) - Active customer count was **301** for the twelve months ended September 30, 2023, **a decline from 334** in the prior year[101](index=101&type=chunk) - Macroeconomic uncertainties led to a cost reduction plan in Q4 2022, including a **13% reduction in employee headcount**[103](index=103&type=chunk)[104](index=104&type=chunk) - The advertising industry experiences seasonal fluctuations, with the **fourth quarter historically showing the highest activity**[106](index=106&type=chunk) [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Revenue grew significantly, driven by key industry verticals, while operating expenses showed mixed results - Revenue increase for the three months was primarily due to a **42% increase** from retail, consumer goods, and travel, and **7%** from other verticals[113](index=113&type=chunk)[122](index=122&type=chunk) - Sales and marketing expense decreased by **$2.8 million (17%)** for the three months and **$10.0 million (21%)** for the nine months, primarily due to reduced personnel and advertising costs[115](index=115&type=chunk)[124](index=124&type=chunk) - Total other income increased significantly due to **higher interest income** on cash and cash equivalents[119](index=119&type=chunk)[128](index=128&type=chunk) Revenue Performance (in thousands) | Period | Sep 30, 2023 | Sep 30, 2022 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Three Months Ended | $59,585 | $48,830 | $10,755 | 22% | | Nine Months Ended | $158,528 | $142,659 | $15,869 | 11% | Operating Expenses (in thousands) | Expense Category | 3M Sep 30, 2023 | 3M Sep 30, 2022 | Change (%) | 9M Sep 30, 2023 | 9M Sep 30, 2022 | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Platform operations | $30,965 | $27,530 | 12% | $87,825 | $84,674 | 4% | | Sales and marketing | $14,146 | $16,949 | (17)% | $38,006 | $47,991 | (21)% | | Technology and development | $6,151 | $5,576 | 10% | $18,217 | $15,590 | 17% | | General and administrative | $11,142 | $11,650 | (4)% | $33,658 | $34,458 | (2)% | | Total other expense (income), net | $(2,328) | $(449) | 418% | $(6,108) | $27 | NM | | Provision for income taxes | $181 | $0 | NM | $181 | $0 | NM | [Key Operating and Financial Performance Measures](index=33&type=section&id=Key%20Operating%20and%20Financial%20Performance%20Measures) This section defines and reconciles key non-GAAP measures used by management to evaluate core operations - **Contribution ex-TAC** is a key profitability measure, calculated as revenue less platform operations expense plus other platform operations expense[134](index=134&type=chunk)[136](index=136&type=chunk) - Active customers are defined as those with at least **$5,000 in total aggregate contribution ex-TAC** over the previous twelve months; the count decreased from 334 to 301 YoY[137](index=137&type=chunk) - **Adjusted EBITDA** is defined as net income (loss) before interest, taxes, depreciation, amortization, stock-based compensation, and certain other non-core items[142](index=142&type=chunk) Key Operating and Financial Performance Measures (in thousands, except per share data) | Metric | 3M Sep 30, 2023 | 3M Sep 30, 2022 | Change (%) | 9M Sep 30, 2023 | 9M Sep 30, 2022 | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Gross profit | $28,620 | $21,300 | 34% | $70,703 | $57,985 | 22% | | Contribution ex-TAC | $39,102 | $32,071 | 22% | $100,781 | $91,350 | 10% | | Net loss | $(672) | $(12,426) | 95% | $(13,251) | $(40,081) | 67% | | Adjusted EBITDA | $9,668 | $(1,804) | 636% | $16,094 | $(8,762) | 284% | | Non-GAAP net income (loss) | $7,609 | $(4,434) | 272% | $10,824 | $(17,154) | 163% | | Non-GAAP earnings (loss) per share—basic | $0.08 | $(0.06) | 233% | $0.11 | $(0.24) | 146% | | Active customers | 301 | 334 | (10)% | 301 | 334 | (10)% | [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with sufficient cash and an undrawn credit facility for short-term needs - The company's primary sources of cash are revenues and existing cash, with a **$75.0 million** senior secured revolving credit facility available, of which **$74.1 million was undrawn** as of September 30, 2023[161](index=161&type=chunk)[169](index=169&type=chunk) - Material cash requirements include operating lease commitments (**$29.5 million** total undiscounted) and hosting commitments (**$17.1 million** total) through 2026[163](index=163&type=chunk)[58](index=58&type=chunk)[89](index=89&type=chunk) - **No liability related to the Tax Receivable Agreement (TRA) has been recorded**, with an unrecorded liability of approximately **$10.3 million**[164](index=164&type=chunk) Liquidity Position (in thousands) | Metric | As of Sep 30, 2023 | As of Dec 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $203,007 | $206,573 | | Working capital | $226,810 | $227,745 | Cash Flows Summary (in thousands) | Cash Flow Activity | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Operating activities | $14,503 | $(13,314) | | Investing activities | $(9,660) | $(6,425) | | Financing activities | $(8,409) | $(19,076) | | Net decrease in cash | $(3,566) | $(38,815) | [Critical Accounting Policies and Estimates](index=43&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Critical accounting policies involve significant judgment, particularly in revenue recognition and stock-based compensation - Critical accounting policies and estimates include revenue recognition (net versus gross assessment), valuation models for stock-based compensation, and internal use software[182](index=182&type=chunk) - There have been **no material changes** to critical accounting policies and estimates since the Annual Report on Form 10-K for the year ended December 31, 2022[183](index=183&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) There have been no material changes in the company's market risk exposure during the reporting period - **No material changes** in market risk exposure occurred during the nine months ended September 30, 2023[184](index=184&type=chunk) [Item 4. Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of the end of the reporting period - Management concluded that disclosure controls and procedures were **effective as of September 30, 2023**, providing reasonable assurance that required information is reported timely[186](index=186&type=chunk) - **No material changes** in internal control over financial reporting occurred during the quarter ended September 30, 2023[187](index=187&type=chunk) - Management acknowledges that control systems have inherent limitations and can only provide **reasonable, not absolute, assurance** against errors and fraud[188](index=188&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to ordinary course legal proceedings not expected to have a material adverse effect - The company is subject to various legal proceedings and claims arising in the ordinary course of business[191](index=191&type=chunk) - Management does not believe that any current proceedings or claims will have a **material adverse effect** on the company's business or financial condition[191](index=191&type=chunk) [Item 1A. Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) This section details risks related to business operations, data privacy, IP, capital structure, and stock ownership [RISK FACTOR SUMMARY](index=46&type=section&id=RISK%20FACTOR%20SUMMARY) This summary outlines principal risks including customer dependence, industry shifts, competition, and data privacy - Success and revenue growth depend on **adding new customers** and increasing platform usage[194](index=194&type=chunk) - The company may not realize expected benefits from an industry shift away from **cookie-based consumer tracking**[194](index=194&type=chunk) - **Failure to innovate** and make correct investment decisions in offerings and platform could lead to loss of customers and declining revenue[194](index=194&type=chunk) - The **evolving programmatic advertising market**, if it develops slower or differently than expected, could adversely affect the business[194](index=194&type=chunk) - Significant **revenue concentration** from select advertising agency holding companies poses a risk if these relationships are lost[194](index=194&type=chunk) - **Macroeconomic conditions** and geopolitical events have had and could continue to have an adverse impact on the business[194](index=194&type=chunk) - **Diminished access to advertising inventory** or people-based data could decrease platform effectiveness and revenue[194](index=194&type=chunk) - Stringent and changing **data privacy and security obligations** could lead to regulatory actions, litigation, fines, and reputational harm[194](index=194&type=chunk) [Risks Related to Our Business and Operations](index=47&type=section&id=Risks%20Related%20to%20Our%20Business%20and%20Operations) This section details risks from customer dependency, market evolution, macroeconomic pressures, and operational challenges - The company's success relies on attracting new customers, increasing existing customer usage, and continuous platform enhancement[195](index=195&type=chunk)[197](index=197&type=chunk) - The shift away from **cookie-based consumer tracking** may not occur as rapidly as expected, or competitors may develop alternative solutions[196](index=196&type=chunk) - The programmatic advertising market is evolving, especially in channels like **connected TV and streaming audio**; slower development could adversely affect growth[200](index=200&type=chunk)[201](index=201&type=chunk) - A significant amount of revenue comes from **advertising agencies**; loss of these relationships could harm the business[202](index=202&type=chunk)[203](index=203&type=chunk)[204](index=204&type=chunk) - **Long sales cycles** make it difficult to project new customer acquisition and revenue generation[206](index=206&type=chunk) - **Macroeconomic conditions** (inflation, rising interest rates) can cause customers to decrease advertising budgets, impacting revenue[207](index=207&type=chunk)[208](index=208&type=chunk) - The company faces payment-related risks, including **sequential liability arrangements** with agencies, potentially impacting working capital[213](index=213&type=chunk)[214](index=214&type=chunk)[215](index=215&type=chunk) - Dependence on third-party hosting services like **Google Cloud Platform and Amazon Web Services** means operational issues could harm the business[232](index=232&type=chunk)[233](index=233&type=chunk)[234](index=234&type=chunk) - The company faces liabilities from its ownership and operation of **Myspace.com**, including potential claims for content and privacy practices[244](index=244&type=chunk)[245](index=245&type=chunk)[246](index=246&type=chunk)[247](index=247&type=chunk) - The market is **intensely competitive**, with large competitors having more resources and greater brand recognition[250](index=250&type=chunk)[251](index=251&type=chunk)[252](index=252&type=chunk) [Risks Related to Data Privacy and Artificial Intelligence](index=52&type=section&id=Risks%20Related%20to%20Data%20Privacy%20and%20Artificial%20Intelligence) The company faces evolving risks from data privacy regulations, technology platform changes, and the use of AI - The company processes personal information subject to complex and evolving laws like **CCPA, CPRA, and GDPR**[254](index=254&type=chunk)[255](index=255&type=chunk)[256](index=256&type=chunk)[257](index=257&type=chunk)[258](index=258&type=chunk) - **Non-compliance** with data privacy obligations could result in regulatory investigations, litigation, fines, and reputational harm[255](index=255&type=chunk)[265](index=265&type=chunk)[267](index=267&type=chunk) - Changes by technology companies (e.g., **browser providers restricting third-party cookies**) can fundamentally alter the ability to operate the platform[268](index=268&type=chunk)[269](index=269&type=chunk)[270](index=270&type=chunk)[271](index=271&type=chunk)[272](index=272&type=chunk) - The use of **generative AI technologies** introduces new privacy compliance risks and potential regulatory scrutiny[263](index=263&type=chunk)[284](index=284&type=chunk) - **Cyber-attacks and security breaches** targeting IT systems and confidential data pose significant risks[273](index=273&type=chunk)[274](index=274&type=chunk)[279](index=279&type=chunk)[282](index=282&type=chunk) [Risks Related to Our Intellectual Property](index=57&type=section&id=Risks%20Related%20to%20Our%20Intellectual%20Property) Success depends on protecting intellectual property, though enforcement is difficult and infringement claims are a risk - Protecting proprietary methods and technologies is crucial, but **enforcement can be difficult**, and third parties may copy or design around the technology[285](index=285&type=chunk)[287](index=287&type=chunk) - The **patent prosecution process is expensive and time-consuming**, and issued patents may not be broad enough or may be invalidated[286](index=286&type=chunk) - The company is subject to **third-party claims for alleged infringement** of proprietary rights, which can result in significant defense costs[288](index=288&type=chunk)[289](index=289&type=chunk) - Advertising content distributed through the platform can lead to **litigation related to copyright or trademark infringement**[290](index=290&type=chunk) [Risks Related to Our Capital Structure and Related Tax Matters](index=62&type=section&id=Risks%20Related%20to%20Our%20Capital%20Structure%20and%20Related%20Tax%20Matters) As a holding company, it relies on distributions from its subsidiary to meet tax and TRA obligations - Viant Technology Inc. is a holding company dependent on distributions from Viant Technology LLC to pay income taxes and obligations under the **Tax Receivable Agreement (TRA)**[291](index=291&type=chunk) - The **IRS might challenge tax basis step-ups** and other tax benefits, potentially reducing anticipated tax savings[292](index=292&type=chunk)[293](index=293&type=chunk) - The company is required to pay continuing members of Viant Technology LLC **85% of net cash tax savings** from tax basis step-ups under the TRA, and these payments may be substantial[294](index=294&type=chunk)[295](index=295&type=chunk)[296](index=296&type=chunk)[297](index=297&type=chunk)[299](index=299&type=chunk)[300](index=300&type=chunk) - Viant Technology LLC is required to make **tax distributions** to its members, which may be substantial and could exceed the actual tax liability for many members[301](index=301&type=chunk)[302](index=302&type=chunk)[303](index=303&type=chunk) - There is a risk that Viant Technology LLC could become a **publicly traded partnership taxable as a corporation**, leading to significant tax inefficiencies[304](index=304&type=chunk)[305](index=305&type=chunk) [Risks Related to Our Financial Position and Capital Requirements](index=65&type=section&id=Risks%20Related%20to%20Our%20Financial%20Position%20and%20Capital%20Requirements) Operating results fluctuate, and sustained growth requires additional capital and management of restrictive debt covenants - Operating results may fluctuate due to changes in pricing mix, seasonality, and market demand, making **future results difficult to predict**[306](index=306&type=chunk)[307](index=307&type=chunk)[308](index=308&type=chunk) - Future growth may require **additional capital** through equity or debt financings, which may not be available on favorable terms[309](index=309&type=chunk) - Continued business growth will lead to **substantial financial and resource requirements**, potentially increasing costs without sufficient revenue[310](index=310&type=chunk)[311](index=311&type=chunk)[313](index=313&type=chunk)[314](index=314&type=chunk) - The amended revolving credit agreement contains **covenants that may restrict operations** and affect the ability to execute business strategies[315](index=315&type=chunk) - **Seasonal fluctuations** in advertising activity, with higher spending in Q4 and lower in Q1, can materially impact revenue and cash flow[317](index=317&type=chunk) [Risks Related to Ownership of Our Class A Common Stock](index=67&type=section&id=Risks%20Related%20to%20Ownership%20of%20Our%20Class%20A%20Common%20Stock) Class A common stock price is volatile, with insider control and 'controlled company' status impacting governance - The market price of Class A common stock has been **highly volatile**, ranging from $3.15 to $68.31, and may continue to fluctuate[318](index=318&type=chunk) - **Sales of substantial blocks of Class A common stock** by insiders could cause the market price to decline[320](index=320&type=chunk) - The company is a **"controlled company"** under Nasdaq standards, allowing it to rely on exemptions from certain corporate governance requirements[321](index=321&type=chunk) - Insiders control approximately **71% of the voting power**, limiting other stockholders' ability to influence key decisions[322](index=322&type=chunk) - Charter documents and Delaware law include provisions that could **delay or prevent a change in control**[323](index=323&type=chunk)[324](index=324&type=chunk)[325](index=325&type=chunk) - An **exclusive forum clause** in the certificate of incorporation could limit stockholders' ability to obtain a favorable judicial forum for disputes[326](index=326&type=chunk)[327](index=327&type=chunk)[328](index=328&type=chunk) [General Risk Factors](index=69&type=section&id=General%20Risk%20Factors) The company faces risks from evolving regulations and its status as an emerging growth company - The business is subject to a wide range of evolving laws and regulations, with **non-compliance potentially leading to investigations and fines**[329](index=329&type=chunk)[330](index=330&type=chunk)[332](index=332&type=chunk)[333](index=333&type=chunk)[334](index=334&type=chunk) - As an **emerging growth company (EGC)**, the company benefits from reduced reporting requirements, which might make its stock less attractive to some investors[335](index=335&type=chunk)[336](index=336&type=chunk)[337](index=337&type=chunk) - **Failure to maintain effective internal controls** could lead to inaccurate financial reporting and a material adverse effect on the business and stock price[338](index=338&type=chunk)[339](index=339&type=chunk)[340](index=340&type=chunk)[341](index=341&type=chunk) - The trading market for Class A common stock depends on research from securities analysts; **unfavorable or ceased coverage** could cause the share price to decline[342](index=342&type=chunk)[343](index=343&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities](index=71&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities,%20Use%20of%20Proceeds%20and%20Issuer%20Purchases%20of%20Equity%20Securities) No unregistered sales of equity securities or issuer repurchases occurred during the quarter - **No unregistered sales** of equity securities occurred during the quarter ended September 30, 2023[344](index=344&type=chunk) - Neither the company nor any affiliated purchasers **repurchased any shares** of Class A common stock during the quarter ended September 30, 2023[345](index=345&type=chunk) [Item 3. Defaults Upon Senior Securities](index=71&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported during the period - **No defaults** upon senior securities were reported[346](index=346&type=chunk) [Item 4. Mine Safety Disclosures](index=71&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable - This item is **not applicable**[347](index=347&type=chunk) [Item 5. Other Information](index=71&type=section&id=Item%205.%20Other%20Information) No other information was required to be reported under this item - **No other information** was reported[348](index=348&type=chunk) [Item 6. Exhibits](index=72&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the report, including certifications and XBRL files - Exhibits include Amended and Restated Certificate of Incorporation, Amended and Restated Bylaws, Certifications of Principal Executive and Financial Officers, and Inline XBRL documents[349](index=349&type=chunk) [Signatures](index=73&type=section&id=Signatures) The report is duly signed by the CEO and CFO in compliance with Securities Exchange Act requirements - The report is signed by Tim Vanderhook, Chief Executive Officer and Chairman, and Larry Madden, Chief Financial Officer, on **November 6, 2023**[354](index=354&type=chunk)