Viant Technology, Inc. ((DSP)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Viant Technology, Inc. recently held its earnings call, revealing a mixed sentiment with strong financial performance and growth in AI and CTV offerings, yet facing challenges due to economic policies and client losses. The call highlighted significant achievements in revenue growth and strategic advancements, while also addressing temporary setbacks impacting short-term projections.
Record Revenue and Growth
Viant Technologies reported a remarkable 18% year-over-year increase in revenue, with contribution ex-TAC also rising by 16% year-over-year, aligning with their quarterly guidance. The company’s adjusted EBITDA saw an 18% increase, reaching $11.3 million for the quarter, underscoring a robust financial performance.
Expansion of CTV Offering
The company’s CTV offerings emerged as a major growth driver, accounting for about 45% of total ad spend on their platform. The Direct Access premium publisher program expanded with new partnerships, including notable names like Disney, Paramount, and LG, further strengthening their market position.
Advancements in AI Product Suite
Viant successfully launched its AI Measurement and Analysis tools, with 85% of ad spend on the platform utilizing AI Bidding. The AI Planning tool also showed promising engagement, with approximately 25,000 interactions recorded year-to-date, indicating growing adoption and utilization.
Strong Financial Position
The company concluded the quarter with a solid financial footing, boasting $173 million in cash and cash equivalents, $192 million in positive working capital, no debt, and full access to a $75 million undrawn credit facility, providing a stable base for future growth.
Temporary Disruption Due to Economic Policies
Viant faced a temporary setback as three advertisers paused their campaigns in response to economic policy actions, creating a headwind of nearly 300 basis points to revenue growth and over 400 basis points to contribution ex-TAC growth.
Impact of Client Loss
The loss of a sizable advertiser by one agency client significantly impacted Q3 contribution ex-TAC growth by approximately 600 basis points, highlighting the challenges posed by client retention.
Projected Headwinds for Q3
Looking ahead, Viant’s guidance for Q3 anticipates revenue between $83.5 million and $86.5 million, reflecting a 6% year-over-year increase at the midpoint. Contribution ex-TAC is expected to grow by 10% year-over-year, despite anticipated impacts from high political ad spend and client losses. Adjusted EBITDA is forecasted to decline by 1% year-over-year but is projected to increase sequentially by 29% at the midpoint.
In summary, Viant Technology, Inc.’s earnings call presented a picture of strong financial health and strategic advancements, tempered by temporary disruptions and client challenges. The company remains optimistic about future growth, driven by a strong pipeline of opportunities with major U.S. advertisers, suggesting potential acceleration in growth rates throughout 2026.