8-K: Viant Technology Reports Strong Q1 2024 Results, Announces $50 Million Stock Buyback

Viant Technology reported a strong first quarter of 2024 with significant revenue growth and a new $50 million stock repurchase program.

Summary

• Viant Technology announced its financial results for the first quarter of 2024, showing a 28% year-over-year increase in revenue, reaching $53.393 million.
• Gross profit also increased by 28% year-over-year to $23.513 million.
• The company's net loss improved significantly, decreasing by 66% year-over-year to a loss of $3.214 million.
• Adjusted EBITDA saw a substantial improvement, increasing by 888% year-over-year to $3.075 million.
• CTV growth was a major driver, with over 50% year-over-year growth and more than half of CTV spend through the Direct Access program.
• Streaming audio also performed well, accounting for approximately 10% of advertiser spend.
• The company's board of directors authorized a stock repurchase program of up to $50 million.
• Viant expects second quarter 2024 revenue to be between $63.5 million and $66.5 million, with adjusted EBITDA between $8.0 million and $9.0 million.

Sentiment

Score: 8

Explanation: The document conveys a positive sentiment due to strong financial results, significant growth in key areas like CTV, and the announcement of a stock repurchase program. The company's management also expresses confidence in future growth.

Positives

• Viant experienced strong revenue growth of 28% year-over-year.
• The company significantly reduced its net loss by 66% year-over-year.
• Adjusted EBITDA showed a substantial improvement, increasing by 888% year-over-year.
• The CTV segment saw impressive growth, exceeding 50% year-over-year.
• The Direct Access program is gaining traction, with over half of CTV spend going through it.
• The company's stock repurchase program could boost investor confidence.
• Viant provided positive guidance for Q2 2024, indicating continued growth.

Negatives

• The company still reported a net loss of $3.214 million, although it is a significant improvement year-over-year.
• Stock-based compensation remains a significant expense, totaling $4.440 million for the quarter.

Risks

• The company's future performance is subject to market conditions and the programmatic advertising landscape.
• The stock repurchase program may be modified, suspended, or discontinued at any time.
• The company's ability to achieve its financial guidance is subject to various factors, including market conditions and customer demand.
• The company's forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially.

Future Outlook

Viant expects Q2 2024 revenue to be between $63.5 million and $66.5 million, contribution ex-TAC to be between $40.0 million and $42.0 million, non-GAAP operating expenses to be between $32.0 million and $33.0 million, and adjusted EBITDA to be between $8.0 million and $9.0 million.

Management Comments

• Tim Vanderhook, Co-Founder and CEO, stated that the company had a strong start to the year, with momentum from the second half of 2023 continuing into the first quarter.
• Tim Vanderhook noted that the company's performance was driven by over 50% year-over-year growth in CTV.
• Larry Madden, CFO, mentioned that the company is pleased with the strong first quarter results, marking the third consecutive quarter of greater than 20% year-over-year growth in contribution ex-TAC.
• Larry Madden also stated that the company continued to drive operating leverage in the quarter, as evidenced by a 10 percentage point year-over-year improvement in adjusted EBITDA as a percentage of contribution ex-TAC.

Industry Context

The results reflect a broader trend of advertising budgets shifting towards higher-performing channels like CTV and streaming audio, which is benefiting Viant. The company is also well-positioned to capitalize on the expected shift of linear TV budgets to CTV.

Comparison to Industry Standards

• Viant's 28% revenue growth is strong compared to the overall digital advertising market, which is expected to grow at a slower pace.
• The 50% year-over-year growth in CTV is particularly impressive, as it indicates Viant is capturing a significant share of the rapidly expanding CTV market.
• Companies like The Trade Desk and Magnite are also seeing growth in the CTV space, but Viant's Direct Access program appears to be a differentiator.
• Viant's adjusted EBITDA improvement is notable, suggesting improved operational efficiency compared to previous periods and potentially compared to some peers.

Stakeholder Impact

• Shareholders may benefit from the stock repurchase program and the company's improved financial performance.
• Employees may be positively impacted by the company's growth and success.
• Customers may benefit from the company's focus on improving ad performance and return on ad spend.
• Suppliers may see increased business opportunities as the company grows.

Next Steps

• The company will continue to execute its growth strategy, focusing on CTV and other high-performing channels.
• Viant will implement the stock repurchase program, subject to market conditions and other factors.
• The company will host a conference call and webcast to discuss its financial results.
• Viant will file its Quarterly Report on Form 10-Q with the SEC.

Key Dates

Keywords

programmatic advertising, CTV, digital advertising, stock repurchase, adjusted EBITDA, revenue, financial results, Direct Access, streaming audio, ad tech