Viant Technology, Inc. ((DSP)) has held its Q4 earnings call. Read on for the main highlights of the call.
Viant Technology, Inc. recently held its earnings call, revealing a strong financial performance driven by strategic acquisitions and the successful implementation of AI technology. The company is well-positioned in the competitive Connected TV (CTV) market, despite facing some incremental costs due to acquisitions. Overall, the financial outlook remains positive.
Record Revenue and Contribution Growth
Viant Technology set a new record for platform spend in Q4, with revenue and contribution ex-TAC year-over-year growth rates accelerating to 40% and 28%, respectively. This impressive growth underscores the company’s ability to capitalize on market opportunities and drive financial success.
AI Platform Success
The company’s AI bidding technology now powers 80% of ad spend on the platform. The launch of AI planning in Q3 2024 has further enhanced campaign efficiency and execution, demonstrating Viant’s commitment to leveraging technology for improved performance.
Strong CTV and Streaming Growth
CTV ad spend saw an impressive increase of over 40%, nearly double the industry growth rate, and accounted for more than 40% of total ad spend on the platform. This growth highlights Viant’s strong position in the rapidly expanding CTV market.
Strategic Acquisitions
Viant’s acquisition of Iris TV and Locker aims to enhance its targeting and measurement capabilities across CTV and first-party data activation. These strategic moves are expected to bolster the company’s competitive edge in the digital advertising space.
Financial Performance
The company’s adjusted EBITDA increased by 31% year-over-year in Q4 to $17.1 million, with a full-year adjusted EBITDA margin expansion of approximately 500 basis points to 25%. This financial performance reflects Viant’s operational efficiency and growth strategy.
Incremental Costs from Acquisitions
The acquisition of Iris TV led to incremental costs impacting non-GAAP operating expenses, contributing to a 26% year-over-year increase in Q4. Despite these costs, the overall financial outlook remains robust.
Market Challenges for Display Advertising
Viant observed market weakness in companies with significant exposure to display advertising, dominated by last-touch attribution. This challenge underscores the importance of diversifying advertising strategies.
Forward-Looking Guidance
For Q1 2025, Viant forecasts revenue between $65 and $68 million, representing a 25% year-over-year increase at the midpoint. Contribution ex-TAC is expected to grow by 22%, with non-GAAP operating expenses anticipated to rise by the same percentage. Adjusted EBITDA is projected to increase by 22% at the midpoint. The acquisitions of Iris TV and Locker are expected to contribute significantly to growth, positioning Viant for further market share gains and adjusted EBITDA margin expansion.
In conclusion, Viant Technology, Inc.’s earnings call reflects a positive sentiment, driven by strong financial growth and strategic initiatives. The company’s focus on AI technology and strategic acquisitions has positioned it well in the competitive CTV market, with promising forward-looking guidance indicating continued success.