Viant(US:DSP)2025-11-10 21:45Financial Performance - Revenue for Q3 2025 was $85.6 million, a 7% increase from $79.9 million in Q3 2024[104] - Gross profit for Q3 2025 was $39.8 million, representing a 13% increase from $35.3 million in Q3 2024[104] - Contribution ex-TAC for Q3 2025 was $53.0 million, up 12% from $47.4 million in Q3 2024[104] - Net income for Q3 2025 decreased to $5.2 million, down 20% from $6.5 million in Q3 2024[104] - Non-GAAP net income for Q3 2025 was $11.2 million, a decrease of 9% from $12.3 million in Q3 2024[104] - Adjusted EBITDA for Q3 2025 was $16.0 million, reflecting a 9% increase from $14.7 million in Q3 2024[104] - Revenue for the nine months ended September 30, 2025, was $234.1 million, an 18% increase from $199.2 million in the same period of 2024[104] - Net income for the nine months ended September 30, 2025, was $3.6 million, a decrease of $1.1 million or 23% from $4.7 million in 2024[132] - Non-GAAP net income for the nine months ended September 30, 2025, was $22.0 million, compared to $20.9 million for the same period in 2024, reflecting a growth of approximately 5.3%[158] Operating Expenses - Total operating expenses for the three months ended September 30, 2025, were $81,351,000, up from $75,884,000 in 2024, reflecting a 7% increase[1] - Platform operations expenses increased by $1,145,000, or 3%, to $45,743,000, with a notable rise in other platform operations expenses[114] - Sales and marketing expenses rose by $3,733,000, or 29%, to $16,740,000, primarily due to increased advertising and personnel costs[115] - Technology and development expenses increased by $2,072,000, or 37%, to $7,703,000, driven by higher personnel and technology costs[116] - General and administrative expenses decreased by $1,483,000, or 12%, to $11,165,000, mainly due to a reduction in bad debt and stock-based compensation[117] - Total operating expenses for the nine months ended September 30, 2025, were $234.7 million, up $33.1 million or 16% from $201.6 million in 2024[132] - Technology and development expenses increased by $5.6 million or 34%, reaching $22.3 million for the nine months ended September 30, 2025, compared to $16.7 million in 2024[125] - Sales and marketing expenses rose by $7.5 million or 19%, totaling $46.5 million for the nine months ended September 30, 2025, compared to $39.0 million in 2024[124] Cash Flow and Liquidity - Cash and cash equivalents decreased to $161.3 million as of September 30, 2025, down from $205.0 million as of December 31, 2024[159] - Cash flows provided by operating activities for the nine months ended September 30, 2025, were $19.5 million, down from $35.3 million in the same period of 2024[174][176] - Cash flows used in investing activities amounted to $17.4 million for the nine months ended September 30, 2025, primarily due to $12.6 million in capitalized software investments[179] - Cash flows used in financing activities were $45.9 million for the nine months ended September 30, 2025, mainly from $38.1 million for stock repurchases[183] - The company reported a net decrease in cash and cash equivalents of $43.8 million for the nine months ended September 30, 2025, compared to a decrease of $1.8 million in 2024[174] - The company anticipates that existing cash, cash flow from operations, and undrawn credit facilities will be sufficient to meet cash requirements over the next 12 months[162] Stock and Shareholder Information - A stock repurchase program was authorized for up to $100 million, with $40.4 million remaining available as of September 30, 2025[169] - The company repurchased 3.0 million shares of Class A common stock for an aggregate amount of $37.9 million during the nine months ended September 30, 2025[169] - Non-GAAP earnings per share of Class A common stock for the three months ended September 30, 2025, was $0.06, compared to $0.09 for the same period in 2024[155] - The weighted-average shares of Class A common stock outstanding—basic for the three months ended September 30, 2025, was 16,331,000, compared to 16,290,000 for the same period in 2024[155] - The total shares excluded from earnings per share of Class A common stock—diluted for the three months ended September 30, 2025, was 45,755,000[155] Future Outlook and Investments - The company plans to invest in platform operations and technology to enhance product capabilities, which may impact near-term profitability[107] - The adoption of programmatic advertising is expected to continue growing, benefiting the company's market position[109] - Seasonal fluctuations in revenue are anticipated, with the fourth quarter typically reflecting the highest advertising activity[110] - The company plans to continue investing in critical areas to accelerate demand for its products and growth across the platform for the remainder of 2025[161] - The company has a shelf registration statement allowing it to offer up to $100 million in securities, providing flexibility for future capital needs[168] Tax and Compliance - The provision for income taxes was $541,000 for the three months ended September 30, 2025, compared to a benefit of $(14,000) in 2024, reflecting a significant change[120] - The total unrecorded liability for the Tax Receivable Agreement (TRA) is approximately $13.2 million as of September 30, 2025[166] - The company maintained compliance with all covenants under the Amended Loan Agreement as of September 30, 2025[171] Market and Risk Factors - There have been no material changes in the company's exposure to market risk during the nine months ended September 30, 2025[188]