Slide 1: Q3 2022 Earnings Presentation
Q3 2022 Earnings Presentation / November 9, 2022 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: 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 4: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Non-GAAP net income (loss) is a non-GAAP financial measure defined by us as net income (loss) adjusted to eliminate the impact of stock-based compensation and certain other items that are not related to our core operations, such as restructuring charges, transaction expen
Slide 5: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES 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. Further, these non
Slide 6: Operational Metrics
OPERATIONAL METRICS We have also included the following operational metrics in this presentation: Advertiser spend and active customers. We define advertiser spend as the total amount billed to our customers for activity on our platform inclusive of the costs of advertising media, third-party data,
Slide 7: Q3 2022 Highlights
Q3 2022 HIGHLIGHTS ▪ Advertiser spend in Q3 increased 19% YoY, and YTD through Q3 increased 30% YoY, driven by the strong adoption of our percentage of spend pricing option ▪ Active customers increased by 29 (+10%) YoY to 334 ▪ Advertiser spend per active customer increased +18% YoY ▪ Strong growth
Slide 8: Consistent Performance vs. Guidance
CONSISTENT PERFORMANCE VS. GUIDANCE ($ in millions) Q3 2022 Guidance Actual Q3 2022 Achieved adjusted Avertiser Advertiser Spend Spend %%YoY YoYGrowth Growth +20% - +25% +19% EBITDA guidance $47.5 - $50.0 $48.8 Revenue for the seventh Adjusted EBITDA $(2.0) - $(1.0) $(1.8) consecutive quarter Note:
Slide 9: Continued Growth in Q3 2022 Across Key Metrics
CONTINUED GROWTH IN Q3 2022 ACROSS KEY METRICS YoY growth rates: +19% +10% +18% Adv. Spend per Advertiser Spend Active Customers Active Customer Note: Advertiser spend is an operational metric defined as the total amount billed to our customers for activity on our platform inclusive of the costs of
Slide 10: Active Customers
ACTIVE CUSTOMERS Active customers +10% YoY vs. Q3 2021 336 334 327 Q3 YoY increase of 29 288 305 309 customers driven by 269 260 258 264 266 continued growth with mid-market agencies Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 and direct clients % Change YoY -2% -7% -7% -5% -1%
Slide 11: Advertiser Spend – Q3 Performance
ADVERTISER SPEND – Q3 PERFORMANCE Advertiser Spend By Channel: +19% CTV excl. Auto & CPG(1) +29% YoY Growth Mobile & Desktop +25% YoY Streaming Audio +51% YoY By Vertical: Auto & CPG(1) -21% YoY All Other +31% YoY Q3-21 Q3-22 Note: Advertiser spend is an operational metric defined as the total amoun
Slide 12: Q3 2022 Change in Non-GAAP Operating Expenses
Q3 2022 CHANGE IN NON-GAAP OPERATING EXPENSES ($ in millions) Non-GAAP Operating Expenses Non-GAAP operating expenses +23% YoY vs. Q3 2021 +23% -3% QoQ vs. Q2 2022 Growth YoY growth reflects investments made over the last 18 months to enhance our product capabilities and expand our sales and technol
Slide 13: Q4 2022 Guidance Ranges
Q4 2022 GUIDANCE RANGES ($ in millions) Q4 2022 Advertiser Spend % QoQ Growth +1% - +11% Advertiser Spend % YoY Growth -20% - -11% Revenue $52.0 - $57.0 Contribution ex-TAC $32.0 - $35.5 Adjusted EBITDA $(1.5) - $1.0 Long-term revenue Long-term adjusted EBITDA margin target target by 2025 as a % of
Slide 14: Valuation and Shares Outstanding
VALUATION AND SHARES OUTSTANDING ($ in millions and shares in millions, except per share data, as of 11/7/2022, Unaudited) Share Count Enterprise Value Class A shares 14.5 Share price $ 4.89 Fully diluted shares outstanding 66.0 Restricted stock units outstanding (RSUs) 4.4 Market capitalization $ 3
Slide 15: Appendix
APPENDIX 15
Slide 16: Non-GAAP Operating Expenses
NON-GAAP OPERATING EXPENSES ($ in millions, Unaudited) Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Contribution ex-TAC $26.7 $32.2 $34.1 $48.5 $27.5 $31.7 $32.1 Non-GAAP operating expenses $21.9 $23.9 $27.6 $31.1 $31.4 $34.8 $33.9 Adjusted EBITDA $4.9 $8.3 $6.5 $17.4 $(3.9) $(3.1) $(1.8) ▪ Growth in n
Slide 17: Reconciliation of Operating Expenses to Non-GAAP Operating Expenses
RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (in thousands) Operating expenses: Platform operations $ 27,530 $ 28,967 $ 84,674 $ 85,026 Sales and marketing 16,949 15,131 47,991 49,
Slide 18: Reconciliation of Revenue to Gross Profit to Contribution ex-TAC
RECONCILIATION OF REVENUE TO GROSS PROFIT TO CONTRIBUTION EX-TAC (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (in thousands) Revenue $ 48,830 $ 50,857 $ 142,659 $ 141,412 Less: Platform operations (27,530) (28,967) (84,674) (85,026) Gross profit 21
Slide 19: Reconciliation of Net Loss to Adjusted EBITDA
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (in thousands) Net loss $ (12,426) $ (12,160) $ (40,081) $ (45,127) Add back: Interest expense (income), net (455) 227 (282) 703 Depreciation and amortizatio
Slide 20: Net Loss as a Percentage of Gross Profit and Adjusted EBITDA Percentage
NET LOSS AS A PERCENTAGE OF GROSS PROFIT AND ADJUSTED EBITDA AS A PERCENTAGE OF CONTRIBUTION EX-TAC (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (in thousands, except for percentages) Gross profit $ 21,300 $ 21,890 $ 57,985 $ 56,386 Net loss $ (12,
Slide 21: Reconciliation of Net Loss to Non-GAAP Net Income (Loss)
RECONCILIATION OF NET LOSS TO NON-GAAP NET INCOME (LOSS) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (in thousands) Net loss $ (12,426) $ (12,160) $ (40,081) $ (45,127) Add back: Stock-based compensation 7,711 15,415 21,855 62,192 Less: Gain on ex
Slide 22: 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) (Unaudited) Three M on t hs E n ded Three M on t hs E n ded Sept ember 30, 2022 Sept ember 30, 2021 Non -G AAP E arn i n gs Non -G AAP E arn i n gs ( Los s ) E arn
Slide 23: 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) (Unaudited) Ni n e M on t hs E n ded Ni n e M on t hs E n ded Sept em ber 30, 2022 Sept em ber 30, 2021 Non -G AAP E arn i n gs Non -G AAP E arn i n gs ( Los s ) E
Slide 24: Stock-Based Compensation
STOCK-BASED COMPENSATION (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (in thousands) Stock-based compensation: Platform operations $ 1,233 $ 3,142 $ 3,622 $ 11,843 Sales and marketing 2,324 4,859 6,929 23,586 Technology and development 1,430 3,015
Slide 25: Depreciation and Amortization
DEPRECIATION AND AMORTIZATION (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (in thousands) Depreciation and amortization: Platform operations $ 2,685 $ 2,255 $ 7,744 $ 5,949 Sales and marketing - - - - Technology and development 432 421 1,250 1,185