Yahoo Finance Viant Technology Inc (DSP) (Q1 2024) Earnings Call Transcript Highlights: Robust Growth and ...
Revenue: $53.4 million, a 28% increase year-over-year.
Contribution ex tax: $34.1 million, up 22% from the previous year.
Adjusted EBITDA: $3.1 million, a significant improvement from the previous year.
Net Income: Non-GAAP net income of $1.3 million, compared to a net loss of $1.8 million in the prior year.
Earnings Per Share: Non-GAAP EPS of $0.02, up from a loss of $0.03 per share year-over-year.
Cash Flow: Generated $3.8 million from operations.
Market Capitalization: Not directly mentioned, but share count at quarter end was 63.4 million.
Free Cash Flow: Not explicitly mentioned, but operational cash flow and financial position were highlighted.
Release Date: April 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Viant Technology Inc (NASDAQ:DSP) reported a strong start to the year with Q1 revenue growing 28% year-over-year and adjusted EBITDA of more than $3 million.
The company saw over 50% year-over-year growth in Connected TV (CTV), attributing to capturing a larger percentage of customer budgets and significant market share gains.
Viant Technology Inc (NASDAQ:DSP) is enhancing platform usability and efficiency through AI-driven automation and ongoing product enhancements, aiming for autonomous advertising.
The adoption of Viant's patented household ID technology has driven strong campaign performance and measurement results, with less than 10% of total ad spend utilizing cookies.
Viant Technology Inc (NASDAQ:DSP) continues to expand its customer base, with a notable increase in larger mid-market customers adopting new products, contributing to revenue growth.
Negative Points
Despite strong growth, there are uncertainties and risks as outlined in the company's forward-looking statements, which could affect future results.
The company faces intense competition in the ad tech market, particularly in areas like CTV where other major players are also forming strategic partnerships.
Viant Technology Inc (NASDAQ:DSP) is heavily reliant on the continued adoption and performance of its AI and household ID technologies, which may face challenges or decreased effectiveness over time.
The delay in cookie deprecation by Google could impact the broader adoption of alternative tracking technologies like Viant's household ID.
Operational costs are expected to grow, with non-GAAP operating expenses projected to increase year-over-year, which could impact profitability if not managed effectively.
Q & A Highlights
Q: Can you provide some color around the linearity of demand in the quarter and visibility into the back half of the year? A: (Lawrence Madden, CFO) The demand in Q1 typically builds throughout the three months, with each month being better than the prior. This pattern held true this year, starting strong and maintaining momentum. For the second half of 2024, while specific guidance isn't provided, the expectation is to continue outpacing the market growth projections for U.S. programmatic advertising.
Q: With The Trade Desk announcing a partnership with Roku, what opportunities do you have to launch similar partnerships, especially in CTV? A: (Lawrence Madden, CFO) Viant also has a strong partnership with Roku, leveraging the Roku ID with Viant's household ID for addressable advertising. This integration allows customers to serve targeted advertising effectively within the Roku ecosystem.
Q: Given the delay in cookie deprecation by Google, how does this impact the usage of Viant's household ID? A: (Tim Vanderhook, CEO) The delay is not surprising due to the complex decision-making involved. Viant's household ID, which is used in 90% of ad spends on the platform, offers a more privacy-friendly and effective alternative across various channels, which is why it's preferred over cookies.
Q: What are the drivers behind the significant growth in streaming audio? A: (Tim Vanderhook, CEO) The growth is driven by high ad recall rates due to low ad clutter and the increasing amount of supply available in programmatic channels. The premium nature of the content and effective targeting capabilities also contribute to this growth.
Q: Can you discuss the momentum in the public services vertical and what's driving the incremental spend? A: (Tim Vanderhook, CEO) The shift from traditional direct response advertising using cookies to more effective CTV advertising has driven growth. Additionally, Viant's focus on sustainability has attracted clients like universities and municipalities.
Q: Regarding the Direct Access Program, how are you expanding beyond initial partners like Disney and Paramount? A: (Tim Vanderhook, CEO) The program is growing, with more premium content providers being added each quarter. This direct connection allows for more efficient media buying, benefiting both content owners with higher CPMs and advertisers with better returns.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
