Viant(DSP)2024-11-15 01:24Financial Data and Key Metrics - Revenue for Q3 2024 was 47.4 million, marking the fifth consecutive quarter of 20%+ growth [58][59] - Adjusted EBITDA reached a record 6.5 million, compared to a loss of 12.3 million [67] - CTV spend grew nearly 50% year-over-year, representing over 40% of total platform spend [61][52] Business Line Performance - CTV and Streaming Audio together accounted for approximately 50% of platform spend in Q3, with CTV spend up nearly 50% year-over-year [30][52] - ViantAI, particularly AI Bidding, drove significant incremental revenue, with revenue and contribution ex-TAC growing 35% quarter-over-quarter [53] - Direct Access program saw strong adoption, with over half of CTV spend coming through this channel [32] Market Performance - CTV remains a cornerstone of growth, with spend accelerating to nearly 50% year-over-year growth in Q3 [61] - Streaming Audio also showed strong double-digit growth, contributing to the overall platform spend [52] - Healthcare, consumer goods, travel, and automotive were the fastest-growing verticals in Q3 [60] Strategic Direction and Industry Competition - The acquisition of IRIS.TV enhances Viant's CTV targeting and measurement capabilities, positioning the company to lead in the intersection of CTV, AI, and adtech [23][26] - ViantAI is transforming programmatic ad buying, enabling advertisers to plan and execute campaigns more efficiently and effectively [14][15] - The company aims to democratize programmatic advertising, making it accessible to small and mid-sized businesses [20][21] Management Commentary on Operating Environment and Future Outlook - Management highlighted the strong demand for ViantAI and the positive reception from customers, which is driving platform spend and market share gains [29][47] - The company expects continued growth in CTV and Streaming Audio, with CTV becoming an increasingly critical channel for advertisers [34][35] - Viant is well-positioned to capitalize on the shift from linear TV to CTV and the growing adoption of programmatic advertising [28][29] Other Important Information - The company repurchased 1.4 million shares of Class A common stock for 214.6 million in cash and cash equivalents and no debt [68] - Q4 2024 guidance includes revenue of 85 million, representing 30% year-over-year growth, and contribution ex-TAC of 53 million, up 22% year-over-year [69][70] Q&A Session Summary Question: Why is the company in the fixed-price business if 95% of revenue is a contra account? - The fixed-price model is used to onboard new customers, which shortens the sales cycle and helps transition them to a percent-of-spend model [77][78] Question: What are the key growth drivers for Viant? - Growth is driven by existing customers scaling their spend, particularly in CTV, new customer acquisitions, and the adoption of ViantAI [80] Question: How does IRIS.TV enhance Viant's CTV offering? - IRIS.TV provides contextual relevance and targeting sophistication through its IRIS_ID, enabling advertisers to target specific video content and improve ROI [83][84] Question: Can IRIS.TV's contextual signals enhance ViantAI's bidding capabilities? - Yes, the contextual data from IRIS.TV can improve bidding strategies by providing deeper insights into video content, allowing advertisers to bid more effectively [87][88] Question: How does Viant plan to serve smaller advertisers? - ViantAI is designed to make programmatic advertising more accessible to small and mid-sized businesses through automation and ease of use [90][91] Question: How does Viant expect to outgrow the broader digital advertising market? - Viant's focus on CTV, innovative products like ViantAI, and the acquisition of IRIS.TV position the company to grow above market rates, particularly in CTV [95][96] Question: What was the impact of political advertising in Q3? - Political advertising slightly exceeded expectations, contributing 2%-3% of contribution ex-TAC, with no significant pullback from other advertisers [99][100]