Viant(US:DSP)2025-05-06 20:46Financial 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]