Summary of Viant Technology FY Conference Call Company Overview - **Company**: Viant Technology (NasdaqGS:DSP) - **Business Model**: Viant operates as a demand-side platform (DSP) that assists advertisers in purchasing ads, charging a fee based on the ad spend. For example, if an advertiser spends $100, Viant may retain 10% as a fee, equating to $10, while the remaining $90 is used for ad purchases [3][4]. Industry Context - **Competition**: Viant competes with major players in the DSP space, including Google (DV360), The Trade Desk, Amazon, and Yahoo. Notably, three of these competitors have conflicts of interest as they also sell ads, making Viant and The Trade Desk the primary independent options for advertisers seeking objectivity [3][4]. - **Market Dynamics**: The digital advertising market is shifting, with brand advertising growth lagging behind direct response advertising. Viant's platform has seen 46% of its ad spend in connected TV (CTV), which is growing faster than traditional channels [35][36]. Key Innovations and AI Integration - **Vion AI**: Launched to create an autonomous advertising platform, Vion AI includes features like AI Bidding, which saves customers an average of 40% on costs, and AI Planning, which automates media planning processes that typically take weeks into just 60 seconds [10][11][12]. - **AI Decisioning**: Set to launch in 2026, this feature aims to fully automate ad campaign creation and optimization, removing human oversight and enhancing efficiency [24][25]. Strategic Partnerships and Market Positioning - **Target Audience**: Viant is focusing on direct-to-consumer e-commerce companies, leveraging partnerships with measurement companies to gain trust and visibility among advertisers who primarily use platforms like Meta [44][45]. - **Addressability Advantage**: Viant's Household ID spans 95% of U.S. households, providing a significant edge in targeting and addressability compared to competitors [48]. Financial Outlook and Growth Potential - **Growth Projections**: Viant anticipates a growth rate of 16% year-over-year, with potential for acceleration due to the removal of political ad spending headwinds and the onboarding of large clients like Molson Coors [74][77]. - **Acquisition Strategy**: The company remains opportunistic regarding acquisitions, focusing on exclusive data and intelligence that can enhance its competitive position [82]. Conclusion - **Market Position**: Viant is positioned as a strong competitor in the DSP market, with a focus on innovation through AI and a commitment to objectivity in ad buying. The company is optimistic about future growth, particularly with the upcoming launch of AI Decisioning and the acquisition of significant clients [84][86].

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $85.6 million, representing a 7% year-over-year increase and a 10% quarter-over-quarter increase, exceeding the midpoint of guidance [29] - Contribution XTAC totaled $53 million, up 12% year-over-year and 10% sequentially, reaching the high end of guidance [29] - Adjusted EBITDA for Q3 was $16 million, growing 9% year-over-year and 42% sequentially, exceeding guidance by 7% [35] Business Line Data and Key Metrics Changes - Excluding political ad spend, revenue increased 19% year-over-year, and contribution XTAC increased 22% year-over-year on a pro forma basis [30] - CTV ad spend reached a record high, accounting for 46% of total platform spend, with nearly half running through Direct Access premium publishers [32] - Contribution XTAC across the top 100 customers grew by 18% year-over-year on a trailing 12-month basis [31] Market Data and Key Metrics Changes - Spend across emerging digital channels, including CTV and streaming audio, represented approximately 56% of total platform spend in Q3, up from 50% in 2024 and 43% in 2023 [32] - The majority of leading streaming services have joined the Direct Access program, enhancing CTV ad spend [11] Company Strategy and Development Direction - The company aims to maintain its dominant position in the mid-market while expanding up-market with major U.S. advertisers and down-market to performance advertisers [21] - The launch of AI Decisioning is expected to enhance the self-service capabilities of the platform, targeting SMBs and direct-to-consumer e-commerce companies [25][44] - The partnership with Molson Coors highlights the company's ability to attract major U.S. brands seeking data-driven campaigns [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying performance, with expectations for accelerating growth in 2026 driven by new client onboarding [40] - The company anticipates easing headwinds from political ad spend starting in Q1 2026, which will positively impact revenue growth [39] - Management noted that the competitive landscape is evolving, with a focus on objectivity and independence in advertising solutions [51][53] Other Important Information - Non-GAAP net income for Q3 was $11.2 million, down 9% year-over-year, primarily due to lower interest income and higher income tax expense [35] - The company ended the quarter with $161 million in cash and cash equivalents and no debt, indicating a strong financial position [36] Q&A Session Summary Question: What is the significance of the third AI product being launched? - The third AI product, AI Decisioning, will complete the Viant AI suite, enabling full automation of ad campaigns, making it easier for advertisers to achieve their goals [44] Question: How will the merger client impact guidance? - The merger client was seasonal, and the significant impact was primarily in Q3, with minimal ongoing headwind expected [43] Question: Has competition increased from Amazon DSP? - No significant increase in competition was noted, with Amazon's DSP being a small portion of their revenue [45] Question: How will the company grow awareness among SMB advertisers? - The company plans to leverage channel partnerships and focus on demonstrating true performance to attract SMBs [46] Question: What is the expected incremental spend from the Molson Coors partnership? - While specific figures cannot be disclosed, the partnership is expected to scale significantly over the years [49] Question: How does the company view the competitive environment? - The competitive landscape is perceived as narrowing, with a focus on objectivity and serving the interests of marketers [51][53]