Release Date: November 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Viant Technology Inc (DSP, Financial) achieved a new quarterly record for platform spend, with revenue and contribution ex-TAC growing 34% and 21% year-over-year, respectively.
- The company delivered record Q3 adjusted EBITDA of $14.7 million, marking the seventh consecutive quarter of adjusted EBITDA growth over 40%.
- Viant Technology Inc (DSP) announced the acquisition of Iris TV, enhancing their CTV targeting and measurement capabilities.
- The rollout of Vianai AI is generating significant interest, with over 500 early access sign-ups and positive feedback from customers.
- CTV spend on the platform grew nearly 50% year-over-year, representing a significant portion of the company's growth strategy.
Negative Points
- The company's fixed price business model results in a high percentage of revenue being accounted as a contra account, raising concerns about margin sustainability.
- Despite strong growth, the company faces challenges in maintaining its growth rate as the broader digital advertising market is expected to decelerate.
- Political ad spending, while slightly exceeding expectations, remains a modest contributor to overall revenue.
- The integration of Iris TV may add overhead costs, potentially impacting expense management in the short term.
- Viant Technology Inc (DSP) needs to enhance its go-to-market strategy to effectively tap into the long tail of advertisers and expand its customer base.
Q & A Highlights
Q: Can you explain the discrepancy between the 34% growth in gross spend and the 21% growth in contribution ex-TAC? Why are we in a business where we give away a large portion of the top line?
A: Larry Madden, CFO: It's not 95% as suggested. The discrepancy is due to a handful of new customers for whom we provided services, requiring gross accounting. This is a positive sign as it indicates new customers spending heavily. Tim Vanderhook, CEO: We onboard customers with fixed pricing to shorten the sales cycle, then move to a percentage of spend model.
Q: What are the main growth drivers for Viant Technology? Is it Vianai AI, existing client spend, new clients, or direct access?
A: Chris Vanderhook, COO: The growth is primarily driven by existing customers scaling their spend, especially in CTV. Direct access is a significant factor, as it is centered on CTV. New customer acquisition is also strong, partly due to the attention around Vianai AI.
Q: How does the acquisition of Iris TV help create an alternative to walled gardens, and is there interoperability between Iris ID and Household ID?
A: Chris Vanderhook, COO: Iris TV provides contextual relevance to ads, similar to platforms like Meta. It allows for more targeted advertising by matching ads to content. Tim Vanderhook, CEO: Iris ID provides data about content, while Household ID provides data about the household. They can be used together for enhanced targeting.
Q: Can the contextual signal from Iris TV enhance your AI bidding capabilities?
A: Chris Vanderhook, COO: Yes, Iris TV provides detailed data about content, enabling better targeting and bidding. This allows marketers to bid up on high-performing content, benefiting both content owners and marketers.
Q: How does Vianai AI unlock the long tail of advertisers, and do you have the go-to-market muscle to service these advertisers?
A: Chris Vanderhook, COO: Vianai AI makes the open ecosystem more accessible, targeting ecommerce and direct-to-consumer companies. We aim to automate the process rather than rely on a large sales force. Tim Vanderhook, CEO: The Vianai AI interface will enable small businesses to effectively target ad campaigns.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
