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Viant Technology (DSP)
NASDAQ:DSP
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Viant Technology
(NASDAQ:DSP)
62Neutral
Positive Factors
Acquisition Impact
The acquisition of Lockr is expected to accelerate adoption of Viant's Household ID and IRIS_ID, streamlining the process for publishers to integrate with alternative ID partners.
Financial Performance
Viant reported strong Q4 results, with revenue, contribution ex-TAC, and adj. EBITDA all coming in ahead of guidance for the second straight quarter.
Market Position
Viant is executing exceptionally well, taking share of mid-market brand and agency ad budgets.
Product Innovation
Viant plans to launch two new AI products and is well-positioned to benefit from the shift of U.S. linear TV budgets to CTV.
Negative Factors
Stock Price Movement
Despite strong results, DSP is indicated lower, but the recommendation is to buy on weakness due to fast growth and strong execution.
Stock Volatility
Despite the strong results and forward outlook, the recent pullback in DSP shares is viewed as a compelling buying opportunity.
Viant Technology (DSP) vs. S&P 500 (SPY)
Market Cap
$786.32M
Dividend YieldN/A
Average Volume (3M)583.85K
Price to Earnings (P/E)361.7
Beta (1Y)1.88
Revenue Growth29.74%
EPS GrowthN/A
CountryUS
Employees376
SectorTechnology
Sector Strength48
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.04
Shares Outstanding16,353,548
10 Day Avg. Volume516,505
30 Day Avg. Volume583,848
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.98
Price to Cash Flow (P/CF)11.50
P/FCF Ratio15.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$23.86Price Target Upside79.67% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
Viant Technology Business Overview & Revenue Model
Company DescriptionViant Technology Inc. operates as an advertising software company. It provides Adelphic, an enterprise software platform that enables marketers and their advertising agencies to plan, buy, and measure advertising across channels, including desktop, mobile, connected and linear TV, in-game, streaming audio, and digital billboards. The company also offers Holistic, an omnichannel demand side platform for marketers and their agencies to manage omnichannel campaigns and access metrics from each channel to inform decisions in other channels; Viant Household ID, a household profile, which provides household insights for optimized bid decisions and touchpoint collection across consumer pathways, as well as offers holistic targeting and measurement across channels; World Without Cookies software to manage reach and frequency at the household level; and Viant Identity Graph, which reduces or eliminates the need for cookies by enabling matching of people-based identifiers that anchor digital identifiers that allows marketers to reach targeted consumers in a privacy-conscious manner. In addition, it provides Data lake, a software and self-service enables customers with differentiated insights, including conversion lift, multi-touch attribution, foot-traffic data reports, digital-out-of-home lift, sales reporting, and ROAS analytics; onboarding data integrations provides marketers with high match rates to audience insights for segmentation, targeting, and measuring outcomes; and self-service interface that provides customers with transparency and control over their advertising campaigns and underlying data infrastructure. The company sells its platform through a direct sales team focused on business development in various markets. It serves purchasers of programmatic advertising inventory; and large, independent, and mid-market advertising agencies. The company was founded in 1999 and is headquartered in Irvine, California.
How the Company Makes MoneyViant Technology makes money primarily through its demand-side platform, which generates revenue by charging fees for the advertisement campaigns run on its platform. The company earns a percentage of the advertising spend from its clients, which includes marketers and advertising agencies. Additionally, Viant may derive income from data analytics services and other ancillary digital marketing services. The company's financial success is also influenced by its ability to maintain strong partnerships with data providers, publishers, and technology partners to enhance its service offerings and expand its market reach.
Viant Technology Financial Statement Overview
Summary
Viant Technology shows a strong financial recovery with notable improvements in revenue and net income. The balance sheet exhibits low leverage and a healthy equity structure, although there is a need for equity growth. Cash flow metrics are particularly strong, highlighting effective cash management. While operational efficiency concerns exist, the overall financial health of the company is on an upward trajectory, reflecting positive growth and management strategies.Income Statement
Viant Technology has shown impressive revenue growth from 2019 to 2024, particularly in the last year with a significant increase from $222.9M to $289.2M. The company has turned around its net income from a loss in 2023 to a profit in 2024, with a net profit margin of 4.3%. However, EBIT and EBITDA margins remain low, indicating potential issues with operating efficiency. Continued improvement in net income and revenue growth are strengths, but the low operating margins are a concern.70
Positive
Balance Sheet
The company maintains a healthy equity ratio of 12.2% for 2024, indicating a solid capital structure. The debt-to-equity ratio is relatively low, which is favorable, and there is a positive return on equity of 23.1%. However, the decline in stockholders' equity over the past years poses a potential risk. Overall, the balance sheet shows stability with low leverage, though there is room for improvement in equity growth.65
Positive
Cash Flow
Viant Technology demonstrates strong free cash flow generation with a substantial increase from $24.3M in 2023 to $49.3M in 2024, signaling robust cash flow growth. The operating cash flow to net income ratio is favorable, indicating effective conversion of income into cash. The company has handled capital expenditures efficiently, contributing to positive free cash flow. Continued improvement in cash flow metrics suggests strong cash management practices.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 289.24M | 222.93M | 197.17M | 224.13M | 165.25M |
| Gross Profit | ||||
| 132.07M | 102.45M | 80.44M | 94.52M | 76.99M |
| EBIT | ||||
| 3.48M | -18.30M | -49.26M | -42.80M | 21.77M |
| EBITDA | ||||
| 3.48M | -3.56M | -36.13M | -31.65M | 31.87M |
| Net Income Common Stockholders | ||||
| 2.36M | -3.44M | -9.26M | -8.55M | 20.64M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 205.05M | 216.46M | 206.57M | 238.48M | 9.63M |
| Total Assets | ||||
| 440.80M | 404.91M | 377.88M | 389.13M | 133.52M |
| Total Debt | ||||
| 26.01M | 25.43M | 28.71M | 17.50M | 23.54M |
| Net Debt | ||||
| -179.04M | -191.02M | -177.86M | -220.98M | 13.91M |
| Total Liabilities | ||||
| 166.73M | 130.52M | 112.11M | 106.56M | 113.40M |
| Stockholders Equity | ||||
| 53.84M | 68.26M | 59.25M | 60.16M | 20.12M |
| Cash Flow | Free Cash Flow | |||
| 49.27M | 24.28M | -12.36M | 21.29M | 11.03M |
| Operating Cash Flow | ||||
| 51.77M | 37.75M | -3.53M | 28.66M | 18.88M |
| Investing Cash Flow | ||||
| -27.74M | -13.48M | -8.83M | -7.37M | -7.84M |
| Financing Cash Flow | ||||
| -35.43M | -14.39M | -19.55M | 207.56M | -6.22M |
Viant Technology Technical Analysis
Negative
13.28
Price Trends
18.78
Negative
18.23
Negative
14.42
Negative
Market Momentum
-2.03
Negative
35.82
Neutral
66.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DSP, the sentiment is Negative. The current price of 13.28 is below the 20-day moving average (MA) of 14.55, below the 50-day MA of 18.78, and below the 200-day MA of 14.42, indicating a bearish trend. The MACD of -2.03 indicates Negative momentum. The RSI at 35.82 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DSP.
Viant Technology Risk Analysis
Viant Technology disclosed 54 risk factors in its most recent earnings report. Viant Technology reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Viant Technology Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $385.08M | 31.13 | 1.75% | ― | -32.95% | -89.11% | |
67 Neutral | $11.93B | ― | -5.37% | ― | 18.03% | 82.15% | |
66 Neutral | $30.76B | 79.44 | 15.37% | ― | 25.63% | 118.49% | |
66 Neutral | $383.27M | ― | -101.69% | ― | -15.51% | -54.09% | |
64 Neutral | $1.93B | 97.55 | 3.10% | ― | 7.82% | ― | |
62 Neutral | $786.32M | 361.71 | 3.87% | ― | 29.74% | ― | |
58 Neutral | $22.44B | 10.62 | -18.43% | 2.37% | 4.68% | -25.09% |
* Technology Sector Average
Performance Comparison
DSP
Viant Technology
12.75
2.53
24.76%
PERI
Perion Network
8.07
-14.29
-63.91%
MGNI
Magnite
12.74
2.36
22.74%
APPS
Digital Turbine
3.28
0.67
25.67%
TTD
Trade Desk
58.80
-28.41
-32.58%
ROKU
Roku
81.73
16.15
24.63%
Viant Technology Earnings Call Summary
Earnings Call Date: Mar 3, 2025 | % Change Since: -32.76% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
The earnings call presented strong financial growth, driven by strategic acquisitions and the successful implementation of AI technology, positioning Viant well in the competitive CTV market. While there were some incremental costs due to acquisitions, the overall financial outlook remains positive.Highlights
Record Revenue and Contribution Growth
Q4 set a new record for spend on the platform, with revenue and contribution ex-TAC year-over-year growth rates accelerating to 40% and 28%, respectively.
AI Platform Success
Viant AI bidding is utilized to power 80% of ad spend on the platform, with AI planning launched in Q3 2024, enhancing campaign efficiency and execution.
Strong CTV and Streaming Growth
CTV ad spend increased over 40%, nearly double the industry growth rate, and accounted for over 40% of ad spend on the platform.
Strategic Acquisitions
Acquisition of Iris TV and Locker to enhance Viant's targeting and measurement capabilities across CTV and first-party data activation.
Financial Performance
Adjusted EBITDA increased 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%.
Lowlights
Incremental Costs from Acquisitions
Incremental costs associated with the acquisition of Iris TV impacted non-GAAP operating expenses, contributing to a 26% year-over-year increase in Q4.
Market Challenges for Display Advertising
Market weakness observed in companies with significant exposure to display advertising, dominated by last-touch attribution.
Company Guidance
During Viant Technology Inc.'s fourth quarter 2024 earnings call, the company provided guidance for Q1 2025, forecasting revenue in the range of $65 to $68 million, which represents a 25% year-over-year increase at the midpoint. Contribution ex-TAC is expected to be between $40.5 and $42.5 million, reflecting a 22% growth at the midpoint. Non-GAAP operating expenses are anticipated to rise between $37.25 and $38.25 million, marking a 22% year-over-year increase. Adjusted EBITDA is projected to be between $3.25 and $4.25 million, also reflecting a 22% rise at the midpoint. The company expects the acquisitions of Iris TV and Locker to contribute approximately 600 basis points of growth to non-GAAP operating expenses for the full year 2025. Additionally, Viant expects contribution ex-TAC to continue outpacing the broader US programmatic market, which is projected to grow by approximately 13 to 14%, leading to further market share gains and adjusted EBITDA margin expansion.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.