Viant Technology Inc. Q4 FY2024 earnings call

Key Metrics - Fourth Quarter: Delivered phenomenal fourth quarter results with revenue up 40% year-over-year to $90.1 million and contribution ex-TAC up 28% year-over-year to $54.4 million. Adjusted EBITDA increased 31% year-over-year to $17.1 million. - Full-Year 2024: Increased revenue by 30% and contribution ex-TAC by 24%. Adjusted EBITDA as a percentage of contribution ex-TAC expanded by approximately 500 basis points to 25%. - Catalysts: CTV proliferation, leadership in addressability, and AI innovation. CTV ad spend growth, household ID's record demand, and Viant AI's four-phase rollout (AI bidding, AI planning, AI measurement and analysis, AI decisioning). - Acquisitions: Acquired Iris TV, a leading global content data platform built for CTV, and Locker, a data collaboration platform specializing in first-party data activation.

For 2024, revenue totaled $289.2 million, an increase of 30% over 2023. Contribution ex-TAC grew by 24% year-over-year to $177.4 million. In the fourth quarter of 2024, revenue was $90.1 million, a 40% increase year-over-year. Contribution ex-TAC for Q4 totaled $54.4 million, up 28% year-over-year. CTV ad spend in 2024 increased over 40%, nearly double the industry growth rate, and CTV accounted for over 40% of ad spend on the platform. Video, which includes CTV, comprised just north of 60% of total spend in 2024.

First Quarter 2025 Guidance - Revenue expected in the range of $65 to $68 million, a year-over-year increase of 25% at the midpoint. - Contribution ex-TAC expected in the range of $40.5 to $42.5 million, reflecting year-over-year growth of 22% at the midpoint. - Non-GAAP operating expenses expected to be between $37.25 and $38.25 million. - Adjusted EBITDA expected in the range of $3.25 to $4.25 million. - Acquisitions of Iris TV and Locker expected to contribute approximately 700 basis points to year-over-year non-GAAP operating expenses increase in Q1 2025 and 600 basis points in 2025 overall.

Forward-looking statements are based on assumptions and subject to future events, risks, and uncertainties that could cause actual results to differ materially from those projected. Factors that may cause actual results to differ materially from forward-looking statements are detailed in the news release issued today, as well as the risks and uncertainties described in the annual report on Form 10-K for the year ended December 31, 2024, under the heading Risk Factors, and in other filings with the SEC.

Q: Laura Martin asked about the logic of Locker and why publishers would share first-party data with Viant.

A: Tim Vanderhook responded that Locker reduces friction in matching up household ID with publisher identity, with a single integration from the publisher unlocking all alt IDs in the ecosystem, helping remove friction and making integration faster and smoother for publishers.

Q: Maria Ripps asked about the strategic fit of the Locker acquisition.

A: Tim Vanderhook said Locker accelerates adoption of household ID and Iris ID, leveraging Direct Access relationships and creating a utility for the open Internet to increase addressability by helping publishers use their first-party data.

Q: Nat Schindler asked about market impact on DSPs and unforced errors.

A: Chris Vanderhook mentioned weakness in display advertising linked to last-touch attribution and cookies, and competition as drivers of some results, with internal mistakes possible but tough to know about mid-quarter.

Q: Jason Kreyer asked about scaling of Viant AI and the delta between revenue and contribution.

A: Tim Vanderhook said Viant AI is a wallet share winner, speeding net new business wins and wallet share gains, and Larry Madden explained the delta is due to onboarding larger customers with higher service initially that will go back to net accounting once self-serve is fully implemented.

Q: Matt Condon asked about the SMB opportunity and go-to-market.

A: Chris Vanderhook said Viant AI helps attract walled garden advertisers, with focus on making the platform simple and showing true value of CTV to drive SMB budgets onto the platform