Release Date: March 03, 2025

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 40% year-over-year increase in Q4 revenue, surpassing their guidance.
• The company achieved a 31% year-over-year increase in adjusted EBITDA, reaching $17.1 million.
• Viant Technology Inc (NASDAQ:DSP) has seen six consecutive quarters of over 20% year-over-year growth in contribution ex-TAC.
• The acquisition of Locker is expected to enhance Viant's leadership in identity and addressability across the open internet.
• Viant AI's rollout is progressing, with AI bidding now powering 80% of ad spend on their platform, and AI planning launched to improve campaign efficiency.

Negative Points

• Non-GAAP operating expenses increased by 26% year-over-year in Q4, partly due to the acquisition of Iris TV.
• The company faces competition from other DSPs, which could impact market share and pricing strategies.
• There is skepticism from publishers about sharing first-party data with DSPs, which could hinder data collaboration efforts.
• The integration of new acquisitions like Iris TV and Locker may present operational challenges and require significant resources.
• Viant Technology Inc (NASDAQ:DSP) operates in a highly competitive ad tech market, which may pressure margins and growth prospects.

Q & A Highlights

• Warning! GuruFocus has detected 5 Warning Sign with DSP.

Q: Can you explain the strategic rationale behind the acquisition of Locker and how it benefits publishers? A: (Tim Vanderhoek, CEO) Locker reduces the friction in matching up household ID with publisher identity, streamlining integration processes for publishers. It allows publishers to integrate once and unlock all alternative IDs, enhancing the use of first-party data in advertising. This is crucial for the open internet to compete against walled gardens by enabling large content owners to leverage their valuable assets effectively.

Q: How did Iris TV contribute to your financials in the fourth quarter? A: (Larry Madden, CFO) Iris TV's contribution was relatively modest, accounting for about 1% of the total revenue in the fourth quarter.

Q: How do you view the current market conditions and their impact on Viant's performance? A: (Chris Vanderhoek, COO) We observed strength throughout the fourth quarter, with December being particularly strong. While some companies with significant exposure to display advertising faced challenges, Viant's focus on CTV and other channels insulated us from these issues.

Q: What is the expected impact of Viant AI on your business in 2025? A: (Tim Vanderhoek, CEO) Viant AI is expected to significantly increase wallet share and attract new customers. It simplifies the planning and activation process, making it easier for agencies to execute campaigns. This will likely lead to increased market share as agencies and advertisers transition from competitive platforms to Viant.

Q: How do you plan to capture the SMB market with Viant AI? A: (Chris Vanderhoek, COO) Viant AI aims to attract SMBs by simplifying the buying process and demonstrating the value of CTV. The focus is on making CTV accessible and showing advertisers the incremental value of their ad spend, which is crucial for attracting direct-to-consumer e-commerce companies that typically rely on search and social channels.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.