Viant Technology (DSP) AI Stock Analysis

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Viant Technology

(NASDAQ:DSP)

65Neutral

Viant Technology's strong financial recovery and positive earnings call guidance are the primary strengths, reflecting solid revenue growth and market positioning. However, the high P/E ratio suggests potential overvaluation, and technical indicators indicate a bearish trend, posing risks. The balance sheet is stable, but with room for equity growth, while cash flow management is robust. Overall, Viant Technology shows promise but faces challenges in valuation and market momentum.

Positive Factors

Acquisitions

DSP's two recent acquisitions (Iris.tv and Lockr) suggest faster revenue growth.

Market Share Expansion

Viant is a pure-play independent DSP that says it is taking share from TTD.

Revenue Growth

Net revenue growth has been greater than 20% for the past six quarters.

Negative Factors

Ad Category Exposure

DSP is completely missing the 3 most tariff-exposed ad categories - industrials.

Stock Price Performance

Despite strong results, DSP is indicated lower, but the recommendation is to buy on weakness due to fast growth and strong execution.

Viant Technology (DSP) vs. S&P 500 (SPY)

Market Cap

$807.77M

Dividend YieldN/A

Average Volume (3M)459.59K

Price to Earnings (P/E)376.5

Beta (1Y)1.43

Revenue Growth29.74%

EPS GrowthN/A

CountryUS

Employees376

SectorTechnology

Sector Strength46

IndustrySoftware - Application

Share Statistics

EPS (TTM)0.03

Shares Outstanding16,353,548

10 Day Avg. Volume417,571

30 Day Avg. Volume459,586

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

$22.57

Price Target Upside76.33% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering7

Viant Technology Business Overview & Revenue Model

Company DescriptionViant Technology Inc. is a leading advertising technology company that provides a cloud-based platform for marketers and advertising agencies to execute programmatic advertising campaigns. The company operates in the digital advertising sector, focusing on enabling its clients to plan, buy, and measure digital advertising across various channels, including mobile, desktop, connected TV, and digital audio. Viant's core products and services include its demand-side platform (DSP), which leverages data-driven insights to optimize ad placements and reach target audiences effectively.

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

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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

Technical Analysis Sentiment

Negative

Last Price12.80

Price Trends

50DMA

16.17

Negative

100DMA

18.02

Negative

200DMA

14.70

Negative

Market Momentum

MACD

-0.62

Negative

RSI

43.43

Neutral

STOCH

56.56

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 12.8 is below the 20-day moving average (MA) of 12.87, below the 50-day MA of 16.17, and below the 200-day MA of 14.70, indicating a bearish trend. The MACD of -0.62 indicates Negative momentum. The RSI at 43.43 is Neutral, neither overbought nor oversold. The STOCH value of 56.56 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
KARO	75 Outperform	$1.22B	25.51	31.45%	2.72%	10.07%	31.38%
PUBM	68 Neutral	$443.05M	39.35	4.36%	―	9.08%	43.58%
DSP	65 Neutral	$807.77M	376.47	3.87%	―	29.74%	―
BMBL	61 Neutral	$460.18M	―	-44.89%	―	1.88%	-11430.00%
Sector *	58 Neutral	$10.03B	9.97	-6.85%	3.09%	7.50%	-11.51%
SMRT	48 Neutral	$152.55M	―	-10.65%	―	-26.16%	2.89%
FRGE	46 Neutral	$116.55M	―	-27.24%	―	13.62%	30.26%

* Technology Sector Average

Performance Comparison

DSP

Viant Technology

12.80

4.07

46.62%

PUBM

PubMatic

9.13

-13.04

-58.82%

FRGE

Forge Global Holdings

8.69

-20.11

-69.83%

SMRT

SmartRent

0.79

-1.50

-65.50%

BMBL

Bumble

4.36

-5.99

-57.87%

KARO

Karooooo

39.66

13.37

50.86%

Viant Technology Earnings Call Summary

Earnings Call Date: Mar 3, 2025 | % Change Since: -35.19% | 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.