Viant(US:DSP)2022-03-11 02:03Financial Data and Key Metrics Changes - In Q4 2021, total advertiser spend across the platform increased by 26% year-over-year, with revenue reaching $82.7 million, a 46% increase compared to the prior year [45] - For the full year 2021, total advertiser spend increased by 29%, with revenue of $224.1 million, marking a 36% year-over-year growth [46] - Adjusted EBITDA for Q4 was $17.4 million, with an adjusted EBITDA margin of 36%, while for the full year, adjusted EBITDA was $37.1 million, resulting in a 26% margin [59] Business Line Data and Key Metrics Changes - Contribution ex TAC from Connected TV (CTV) grew 66% in Q4 and represented 45% of total contribution ex TAC during the quarter, with a full-year growth of 68% [49] - The number of active customers increased to 309, up 17% year-over-year, with average contribution ex TAC per active customer rising to $458,000, a 9% increase [51][53] Market Data and Key Metrics Changes - CTV has become the largest channel for the company, contributing 68% of revenue in 2021 [15] - The company noted strong growth in new advertiser verticals such as legalized gambling, direct-to-consumer companies, and cryptocurrencies, which are driving demand for customer acquisition [16] Company Strategy and Development Direction - The company plans to invest in five key pillars: developing best-in-class technology, deploying a customer success model, designing scalable infrastructure, elevating brand presence, and expanding strategic partnerships [21][39] - The focus is on autonomous advertising through investments in AI, machine learning, and blockchain technologies to enhance digital advertising efficiency [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing a strong market position and the ability to capitalize on the growing programmatic advertising market [23][83] - The company anticipates continued acceleration in advertiser spend, projecting a growth of at least 35% in Q1 2022 compared to the same period in 2021 [66] Other Important Information - The company ended 2021 with $238 million in cash and a modest debt of $17.5 million, positioning it well for future growth opportunities [60][62] - The company plans to simplify its guidance metrics, focusing on revenue and adjusted EBITDA moving forward [64] Q&A Session Summary Question: Can you discuss the disparity between revenue growth and client spend on the platform? - Management noted explosive growth in the percentage spend pricing option, which is causing short-term revenue growth pain but is expected to normalize throughout the year [87][88] Question: How will new privacy restrictions on Android affect the platform? - Management views the potential deprecation of the Android ID as an opportunity for increased market share as mobile app marketers seek cost-effective advertising solutions [90][91] Question: What is the outlook for political and auto advertising revenue? - Political advertising is expected to contribute less than 5% of revenue in Q1 2022, while auto advertising is projected to be around 2% due to ongoing supply chain issues [100][101] Question: Can you explain the lower EBITDA guidance for 2022 despite strong revenue growth? - Management indicated that increased investments in personnel and strategic initiatives are contributing to the lower EBITDA guidance, which is a short-term impact for long-term growth [96][97] Question: How does supply path optimization affect the DSP? - Management highlighted that supply path optimization is crucial for ensuring that advertising dollars reach content owners directly, which is a focus for the company [106][107]