Viant Technology Inc. · NASDAQ:DSP
Viant Technology — Q3 2024 Earnings Presentation
24 slides from Viant Technology's earnings presentation, Nov 12, 2024
Slide 1: Earnings Presentation Q3 2024
EARNINGS PRESENTATION Q3 2024 November 12, 2024 1
Slide 2: Safe Harbor
SAFE HARBOR This presentation contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply futur
Slide 3: Highlights Q3 2024
HIGHLIGHTS Q3 2024 ▪ Revenue, contribution ex-TAC, and adjusted EBITDA all exceeded the high end of our guidance REVENUE ▪ Revenue increased 34% YoY and contribution ex-TAC increased 21% YoY +34% YoY ▪ Second consecutive quarter of record advertiser spend driven primarily by the Healthcare, Consumer
Slide 4: Viant Acquired IRIS.TV
VIANT ACQUIRED IRIS.TV ▪ Viant acquired IRIS.TV, a global content data platform built for CTV, on November 6, 2024 IRIS.TV – Unlocking Next Generation Contextual Advertising for CTV ▪ IRIS.TV structures, connects, and activates video-level data for planning, audience segmentation, enhanced targeting
Slide 5: Strong Performance Q3 2024 vs. Guidance
STRONG PERFORMANCE Q3 2024 VS. GUIDANCE Q3 Guidance Q3 Actual Q3 Better / (Worse) Midpoint(1) Revenue $69.0 $79.9 $10.9 Contribution ex-TAC $45.0 $47.4 $2.4 Non-GAAP Operating Expenses $33.5 $32.7 $0.8 Adjusted EBITDA $11.5 $14.7 $3.2 (2) Adjusted EBITDA Margin 26% 31% 5% Note: Contribution ex-TAC,
Slide 6: Revenue and Contribution ex-TAC Q3 2024
REVENUE AND CONTRIBUTION EX-TAC Q3 2024 REVENUE CONTRIBUTION EX-TAC +34% YoY +21% YoY $79.9 $47.4 $59.6 $39.1 Q3-23 Q3-24 Q3-23 Q3-24 ▪ Revenue increased 34% YoY to $80 million and contribution ex-TAC increased 21% to $47 million, both metrics were above guidance for the quarter ▪ CTV and streaming
Slide 7: Non-GAAP Operating Expenses and Adjusted EBITDA Q3 2024
NON-GAAP OPERATING EXPENSES AND ADJUSTED EBITDA Q3 2024 NON-GAAP OPERATING EXPENSES ADJUSTED EBITDA +11% YoY +52% YoY $29.4 $32.7 $14.7 $9.7 Q3-23 Q3-24 Q3-23 Q3-24 ▪ Non-GAAP operating expenses increased 11% YoY and decreased 6 percentage points YoY as a percentage of contribution ex- TAC, highligh
Slide 8: Non-GAAP Operating Expenses and Adjusted EBITDA
NON-GAAP OPERATING EXPENSES AND ADJUSTED EBITDA Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Contribution ex-TAC $28.0 $33.7 $39.1 $42.6 $34.1 $41.6 $47.4 Non-GAAP operating expenses $28.4 $26.9 $29.4 $29.6 $31.0 $32.0 $32.7 Adjusted EBITDA $(0.4) $6.8 $9.7 $13.0 $3.1 $9.6 $14.7 Adjusted EBITDA as a pe
Slide 9: Guidance Ranges Q4 2024
GUIDANCE RANGES Q4 2024 (1) % YoY Change at Q4 2024 Guidance Midpoint Revenue $82.0 - $85.0 30% Contribution ex-TAC $51.0 - $53.0 22% Non-GAAP Operating Expenses $35.0 - $36.0 20% Adjusted EBITDA $16.0 - $17.0 27% (2) Adjusted EBITDA Margin 31% - 32% n/a Note: Contribution ex-TAC, non-GAAP operating
Slide 10: Valuation and Shares Outstanding
VALUATION AND SHARES OUTSTANDING Share Count Enterprise Value Class A shares 16.2 Share price (11/11/2024) $ 13.62 Class B shares 46.9 Total Class A and Class B shares outstanding(1) 63.1 Total Class A and Class B shares outstanding(1) 63.1 Market capitalization $ 859.1 Plus: Debt - Less: Cash(2) $
Slide 11: Appendix
APPENDIX 11
Slide 12: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES To provide investors and others with additional information regarding Viant’s results, we have included in this presentation the following financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”): contribution ex
Slide 13: Non-GAAP Financial Measures (Continued)
NON-GAAP FINANCIAL MEASURES (CONTINUED) These non-GAAP financial measures should be considered in addition to, not as a substitute for or in isolation from, the Company’s financial information calculated in accordance with GAAP and should not be considered measures of the Company’s liquidity. Furthe
Slide 14: Reconciliation of Revenue to Gross Profit to Contribution ex-TAC
RECONCILIATION OF REVENUE TO GROSS PROFIT TO CONTRIBUTION EX-TAC Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 (Unaudited, in thousands) Revenue $ 41,720 $ 57,223 $ 59,585 $ 64,406 $ 53,393 $ 65,866 $ 79,922 Less: Platform operations (23,337) (33,523) (30,965) (32,654) (29,880) (35,122) (44,598) Gross P
Slide 15: Reconciliation of Operating Expenses to Non-GAAP Operating Expenses
RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 (Unaudited, in thousands) Operating expenses: Platform operations $ 23,337 $ 33,523 $ 30,965 $ 32,654 $ 29,880 $ 35,122 $ 44,598 Sales and marketing 12,169 11,691 14,146 12,644 12,899 13,088
Slide 16: Reconciliation of Net Income (Loss) to Adjusted EBITDA
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 (Unaudited, in thousands) Net income (loss) $ (9,376) $ (3,203) $ (672) $ 3,308 $ (3,214) $ 1,488 $ 6,458 Add back (less): Interest income, net (1,819) (2,049) (2,329) (2,397) (2,381) (2,359) (2,407) Pro
Slide 17: Net Income as a Percentage of Gross Profit and Adjusted EBITDA Margin
NET INCOME (LOSS) AS A PERCENTAGE OF GROSS PROFIT AND ADJUSTED EBITDA AS A PERCENTAGE OF CONTRIBUTION EX-TAC Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 (Unaudited, in thousands) Gross profit $ 18,383 $ 23,700 $ 28,620 $ 31,752 $ 23,513 $ 30,744 $ 35,324 Net income (loss) $ (9,376) $ (3,203) $ (672) $
Slide 18: Reconciliation of Net Income (Loss) to Non-GAAP Net Income
RECONCILIATION OF NET INCOME (LOSS) TO NON-GAAP NET INCOME Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 (Unaudited, in thousands) Net income (loss) $ 6,458 $ (672) $ 4,732 $ (13,251) Add back (less): Stock-based compensation 5,329 8,734 15,306 24,735 (1) Restr
Slide 19: Reconciliation of EPS to Non-GAAP EPS - QTD
RECONCILIATION OF EARNINGS (LOSS) PER SHARE OF CLASS A COMMON STOCK TO NON-GAAP EARNINGS (LOSS) PER SHARE OF CLASS A COMMON STOCK - QTD Three M on t hs E n ded Sept ember 30, 2024 Three M on t hs E n ded Sept ember 30, 2023 Non -GAAP Non -GAAP E arn i n gs ( Los s ) E arn i n gs ( Los s ) E arn i n
Slide 20: Reconciliation of EPS to Non-GAAP EPS - YTD
RECONCILIATION OF EARNINGS (LOSS) PER SHARE OF CLASS A COMMON STOCK TO NON-GAAP EARNINGS (LOSS) PER SHARE OF CLASS A COMMON STOCK - YTD Ni n e M on t hs E n ded Sept ember 30, 2024 Ni n e M on t hs E n ded Sept ember 30, 2023 Non -GAAP Non -GAAP E arn i n gs ( Los s ) E arn i n gs ( Los s ) E arn i
Slide 21: Stock-Based Compensation
STOCK-BASED COMPENSATION Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 (Unaudited, in thousands) Stock-based compensation: Platform operations $ 553 $ 1,171 $ 1,513 $ 3,187 Sales and marketing 1,180 2,588 3,074 7,620 Technology and development 693 1,529 1,844 4
Slide 22: Depreciation and Amortization
DEPRECIATION AND AMORTIZATION Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 (Unaudited, in thousands) Depreciation and amortization: Platform operations $ 3,383 $ 3,147 $ 10,440 $ 8,827 Sales and marketing — — — — Technology and development 432 386 1,303 1,162
Slide 23: Contribution ex-TAC per Employee
CONTRIBUTION EX-TAC PER EMPLOYEE TTM TTM Q3-23 Q3-24 Change (%) (Unaudited, in thousands, ex cept percentages and headcount) Contribution ex-TAC $ 134,159 $ 165,631 23% (1) Headcount 322 341 6% Contribution ex-TAC per employee $ 417 $ 486 17% Note: Contribution ex-TAC is a non-GAAP financial measure
Slide 24: Reconciliation of Operating Cash Flow to Free Cash Flow
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW Three Months Ended September 30, 2024 (Unaudited, in thousands) Net cash provided by operating activities $ 17,069 Less: Purchases of property and equipment (796) Less: Capitalized software development costs (3,867) Free c