Slide 1: Q4 2022 Earnings Presentation
Q4 2022 Earnings Presentation / March 2, 2023 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: Q4 2022 Highlights
Q4 2022 HIGHLIGHTS ▪ Advertiser spend in Q4 decreased 13% YoY and increased 9% over Q3. FY 2022 advertiser spend increased 15% YoY ▪ Q4 2022 decline in spend across our Jobs & Employment customer vertical was influenced by a cooling labor market as compared to Q4-21 and contributed to about half of
Slide 8: Consistent Performance vs. Guidance
CONSISTENT PERFORMANCE VS. GUIDANCE ($ in millions) Q4 advertiser spend Q4 2022 Guidance Actual Q4 2022 growth, revenue and Advertiser Spend % QoQ Growth +1% - +12% +9% contribution ex-TAC Advertiser Spend % YoY Growth (20%) - (11%) (13%) were all within Revenue $52.0 - $57.0 $54.5 guidance with Con
Slide 9: Active Customers
ACTIVE CUSTOMERS 336 334 327 326 305 309 288 269 264 266 260 258 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 % Change YoY -2% -7% -7% -5% -1% +11% +18% +17% +23% +17% +10% +6% QoQ -3% -3% -1% +2% +1% +8% +6% +1% +6% +3% -1% -2% ▪ Active customers +6% YoY ▪ Q4 YoY increase
Slide 10: Advertiser Spend – Q4 Performance
ADVERTISER SPEND – Q4 PERFORMANCE Advertiser Spend -13% Challenging macroeconomic conditions put Decrease pressure on advertising budgets and resulted in YoY decline in advertiser spend By Vertical: Jobs & Employment and Retail -51% YoY All Other +7% YoY By Channel: Streaming Audio +38% YoY DOOH +55
Slide 11: Advertiser Spend – FY 2022 Performance
ADVERTISER SPEND – FY 2022 PERFORMANCE Advertiser Spend Momentum of 1H growth (+37% YoY) was tempered by macroeconomic challenges +15% leading to decelerated growth in Q3 (+19% Growth YoY) and decline in Q4 By Vertical: Auto & CPG(1) and Jobs & Employment -19% YoY All Other +28% YoY By Channel: CTV
Slide 12: Q4 2022 Change in Non-GAAP Operating Expenses
Q4 2022 CHANGE IN NON-GAAP OPERATING EXPENSES ($ in millions) Non-GAAP Operating Expenses Non-GAAP operating expenses -1% vs. Q4 2021 -1% -9% vs. Q3 2022 Decrease Given the worsening macroeconomic conditions, investments significantly slowed in Q4 as evidenced by the quarter-over-quarter decline Com
Slide 13: FY 2022 Change in Non-GAAP Operating Expenses
FY 2022 CHANGE IN NON-GAAP OPERATING EXPENSES ($ in millions) Non-GAAP Operating Expenses Non-GAAP operating expenses +25% vs. FY 2021 +25% YoY growth reflects investments made over the last Growth 18 months to enhance our product capabilities and expand our sales and technology teams Given the wors
Slide 14: Q1 2023 Guidance Ranges
Q1 2023 GUIDANCE RANGES ($ in millions) % YoY Change at Q1 2023 Midpoint Revenue $39.0 - $42.0 (5%) Contribution ex-TAC $25.5 - $27.5 (4%) Non-GAAP Operating Expenses ~$30.0 (5%) Adjusted EBITDA $(4.5) - $(2.5) n/a Note: Contribution ex-TAC, non-GAAP operating expenses, and adjusted EBITDA are non-G
Slide 15: Valuation and Shares Outstanding
VALUATION AND SHARES OUTSTANDING ($ and shares in millions, except per share data, as of 2/28/2023, Unaudited) Share Count Enterprise Value Class A shares 14.6 Share price $ 3.93 Fully diluted shares outstanding 65.7 Restricted stock units outstanding (unvested RSUs) 3.9 Market capitalization $ 258.
Slide 16: Appendix
APPENDIX 16
Slide 17: 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 Q4-22 Contribution ex-TAC $26.7 $32.2 $34.1 $48.5 $27.5 $31.7 $32.1 $33.4 % QoQ Growth (32%) 20% 6% 42% (43%) 15% 1% 4% Non-GAAP operating expenses $21.9 $23.9 $27.6 $31.1 $31.4 $34.8 $33.9 $30.7 % QoQ G
Slide 18: Reconciliation of Operating Expenses to Non-GAAP Operating Expenses
RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES (Unaudited) Three Months Ended Year Ended December 31, December 31, 2022 2021 2022 2021 (in thousands) Operating expenses: Platform operations $ 32,051 $ 44,578 $ 116,725 $ 129,604 Sales and marketing 15,966 15,173 63,957 65,042 Tec
Slide 19: Reconciliation of Revenue to Gross Profit to Contribution ex-TAC
RECONCILIATION OF REVENUE TO GROSS PROFIT TO CONTRIBUTION EX-TAC (Unaudited) Three Months Ended Year Ended December 31, December 31, 2022 2021 2022 2021 (in thousands) Revenue $ 54,509 $ 82,715 $ 197,168 $ 224,127 Less: Platform operations (32,051) (44,578) (116,725) (129,604) Gross profit 22,458 38
Slide 20: Reconciliation of Net Income (Loss) to Adjusted EBITDA
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA (Unaudited) Three Months Ended Year Ended December 31, December 31, 2022 2021 2022 2021 (in thousands) Net income (loss) $ (8,008) $ 7,516 $ (48,089) $ (37,609) Add back: Interest expense (income), net (1,199) 161 (1,481) 864 Depreciation and am
Slide 21: 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 Year Ended December 31, December 31, 2022 2021 2022 2021 (in thousands, except for percentages) Gross profit $ 22,458 $ 38,137 $ 80,443 $ 94,523 Net income (loss) $ (8,0
Slide 22: Reconciliation of Net Income (Loss) to Non-GAAP Net Income (Loss)
RECONCILIATION OF NET INCOME (LOSS) TO NON-GAAP NET INCOME (LOSS) (Unaudited) Three Months Ended Year Ended December 31, December 31, 2022 2021 2022 2021 (in thousands) Net income (loss) $ (8,008) $ 7,516 $ (48,089) $ (37,609) Add back: Stock-based compensation 7,046 6,631 28,901 68,822 (1) Add back
Slide 23: 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 Months Ended Three Months Ended December 31, 2022 December 31, 2021 Earnings Earnings (Loss) per Non-GAAP Earnings (Loss) per Non-GAAP Earnings Sh
Slide 24: 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) Year Ended Year Ended December 31, 2022 December 31, 2021 Earnings Earnings (Loss) per Non-GAAP Earnings (Loss) per Non-GAAP Earnings Share Adjustments
Slide 25: Stock-Based Compensation
STOCK-BASED COMPENSATION (Unaudited) Three Months Ended Year Ended December 31, December 31, 2022 2021 2022 2021 (in thousands) Stock-based compensation: Platform operations $ 1,139 $ 1,253 $ 4,761 $ 13,096 Sales and marketing 2,081 2,053 9,010 25,639 Technology and development 1,299 1,390 5,323 12,
Slide 26: Depreciation and Amortization
DEPRECIATION AND AMORTIZATION (Unaudited) Three Months Ended Year Ended December 31, December 31, 2022 2021 2022 2021 (in thousands) Depreciation and amortization: Platform operations $ 2,742 $ 2,439 $ 10,486 $ 8,388 Sales and marketing - - - - Technology and development 396 414 1,646 1,599 General