Viant(DSP) - 2024 Q3 - Quarterly Report

Financial Performance - Revenue for Q3 2024 was $79.9 million, a 34.1$59.6 million in Q3 2023[80] - Gross profit for Q3 2024 was $35.3 million, representing a 23.4$28.6 million in Q3 2023[80] - Net income for Q3 2024 was $6.5 million, an improvement of 1,061.0$0.7 million in Q3 2023[80] - Non-GAAP net income for Q3 2024 was $12.3 million, a 61.4$7.6 million in Q3 2023[80] - Adjusted EBITDA for Q3 2024 was $14.7 million, representing a 51.8$9.7 million in Q3 2023[81] - Revenue for the nine months ended September 30, 2024, was $199.2 million, a 25.6$158.5 million in the same period of 2023[81] - Net income for the nine months ended September 30, 2024, was $4.7 million, a significant improvement compared to a net loss of$13.3 million in the same period of 2023[112] - Adjusted EBITDA for the nine months ended September 30, 2024, was $27.4 million, representing a 70$16.1 million in the same period of 2023[112] - Non-GAAP net income for the nine months ended September 30, 2024, was $20.9 million, a 93$10.8 million in the same period of 2023[112] - Earnings per share (diluted) for the nine months ended September 30, 2024, was $0.04, compared to a loss of$0.27 in the same period of 2023, marking a 115% improvement[112] Expenses and Cost Management - Operating expenses as a percentage of revenue decreased to 95% in Q3 2024 from 105% in Q3 2023[91] - Platform operations expenses increased by $13.6 million or 44$12.1 million increase in traffic acquisition costs[96] - Sales and marketing expenses decreased by $1.1 million or 8$0.5 million or 8% in Q3 2024, mainly due to a reduction in stock-based compensation[98] - General and administrative expenses increased by $1.5 million or 14$201,606,000, an increase from $177,706,000 in the same period of 2023[118] Strategic Initiatives - ViantAI, launched in September 2024, is expected to enhance the efficiency of programmatic advertising and expand market share[80] - The company plans to invest in platform operations and technology to enhance product capabilities, which may impact short-term profitability[85] - The company plans to continue focusing on core operations and evaluating strategic decisions based on adjusted EBITDA metrics[121] - The company plans to continue investing in critical areas of its business to accelerate demand for its products and growth across the platform[140] - The company plans to continue focusing on strategic performance goals and aligning workforce adjustments as part of its restructuring efforts[126] Cash Flow and Liquidity - Cash flows provided by operating activities for the nine months ended September 30, 2024, were$35.3 million, a net increase of $20.8 million, or 143$14.5 million for the same period in 2023[149] - Cash flows used in investing activities for the nine months ended September 30, 2024, were $13.4 million, a net increase of$3.8 million, or 39%, from $9.7 million for the same period in 2023[150] - Cash flows used in financing activities for the nine months ended September 30, 2024, were$23.7 million, a net increase of $15.3 million, or 182$8.4 million for the same period in 2023[152] - The company experienced a net decrease of $1.8 million in cash and cash equivalents for the nine months ended September 30, 2024, compared to a decrease of$3.6 million for the same period in 2023[148] - The company expects seasonality to impact cash flows from operating activities on a quarterly basis[149] Shareholder Returns and Capital Structure - The company has a stock repurchase program authorized for up to $50 million, with$38.5 million remaining available as of September 30, 2024[145] - The company repurchased 1.1 million shares of Class A common stock for an aggregate amount of $11.6 million during the nine months ended September 30, 2024[145] - The Amended Loan Agreement provides access to a$75 million senior secured revolving credit facility, with no outstanding balance as of September 30, 2024[146] Market Trends and Industry Outlook - The advertising industry is expected to experience seasonal fluctuations, with the fourth quarter typically reflecting the highest revenue levels[88] - The company experienced a 154% increase in revenue from marketers in the political, automotive, travel, and consumer goods industry verticals during Q3 2024[94]