VIANT TECHNOLOGY INC. EARNINGS PRESENTATION
Q1 2024
April 30, 2024
SAFE HARBOR
This presentation contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words such as "guidance," "believe," "expect," "estimate," "project," "plan," "will," or words or phrases with similar meaning. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. Forward-looking statements contained in this presentation relate to, among other things, Viant's projected financial performance and operating results, including our guidance for revenue, contribution ex-TAC,non-GAAP operating expenses, adjusted EBITDA, and adjusted EBITDA as a percentage of contribution ex-TAC, as well as statements regarding the impact of Viant's growth prospects, Viant's commitment to making strategic investments while driving operational efficiencies, Viant's ability to drive return on ad spend for our customers and capture increased market share, and Viant's ability to capitalize on the changes in the programmatic advertising ecosystem. Forward-looking statements are based on current expectations, forecasts and assumptions that involve risks and uncertainties, including, but not limited to, the market for programmatic advertising developing slower or differently than Viant's expectations, the demands and expectations of customers, the ability to attract and retain customers, the impact of information and data privacy trends and regulations on our business and competitors and other economic, competitive, governmental and technological factors outside of our control, that may cause our business, strategy or actual results to differ materially from the forward-looking statements. Investors are referred to our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and subsequent Quarterly Reports on Form 10-Q, for additional information regarding the risks and uncertainties that may cause actual results to differ materially from those expressed in any forward-looking statement. We do not intend and undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law.
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HIGHLIGHTS Q1 2024
REVENUE
+28% YoY
CONTRIBUTION EX-TAC
+22% YoY
ADJUSTED EBITDA
+$3.5 million YoY
9% Margin(1)
CASH FLOW FROM
OPERATIONS
+$3.8 million
- Revenue, contribution ex-TAC and adjusted EBITDA all were within or exceeded guidance as the momentum we saw in the second half of 2023 continued through the first quarter
- Revenue increased 28% YoY and contribution ex-TAC increased 22% YoY
- Strong advertiser spend growth in Public Services, Retail, Financial Services, Travel, and Consumer Goods
- CTV continues to be a strong growth driver, propelled by our Household ID technology and our Direct Access program
- Over half of CTV spend in the quarter was through Direct Access, up from over 40% in Q4 2023
- Record quarter for streaming audio accounting for approximately 10% of advertiser spend
- On a combined basis, CTV and streaming audio represented over half of total advertiser spend
- Adjusted EBITDA outperformance was driven by strong top-line growth and controlled growth in expenses, creating meaningful operating leverage which resulted in a 10 percentage point EBITDA margin(1) improvement YoY
- Healthy cash & cash equivalents balance of $206 million and no debt outstanding as of March 31, 2024
- $227 million of positive working capital
Note: Amounts shown are rounded for ease of presentation. Please refer to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, for the
Company's actual financial results. Contribution ex-TAC,non-GAAP operating expenses, adjusted EBITDA and adjusted EBITDA as a percentage of contribution ex-TAC are
non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are available in the | ||
appendix. | 3 | |
(1) | As a percentage of contribution ex-TAC. |
STRONG PERFORMANCE
Q1 2024 VS. GUIDANCE
Q1 Guidance | Q1 Actual | Q1 Better / (Worse) | |
Midpoint(1) | |||
Revenue | $50.5 | $53.4 | $2.9 |
Contribution ex-TAC | $34.0 | $34.1 | $0.1 |
Non-GAAP Operating Expenses | $31.5 | $31.0 | $0.5 |
Adjusted EBITDA | $2.5 | $3.1 | $0.6 |
Adjusted EBITDA Margin(2) | 7% | 9% | 2% |
Note: Contribution ex-TAC,non-GAAP operating expenses, adjusted EBITDA, and adjusted EBITDA as a percentage of contribution ex-TAC are non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are available in the appendix.
- An explanation of why reconciliations of these non-GAAP financial outlook measures to the most directly comparable GAAP financial measures are not available without
unreasonable efforts is available in the appendix. | 4 | |
(2) | As a percentage of contribution ex-TAC. | |
REVENUE AND CONTRIBUTION EX-TAC
Q1 2024
REVENUE | CONTRIBUTION EX-TAC |
+28% YoY | |
+22% YoY |
$53.4 $41.7
$28.0 | $34.1 |
Q1-23 | Q1-24 | Q1-23 | Q1-24 |
- Revenue increased 28% YoY and contribution ex-TAC increased 22%, driven by strong advertiser spend growth in Public Services, Retail, Financial Services, Travel, and Consumer Goods verticals
- CTV continues to be a strong growth driver, propelled by our Household ID technology and our Direct Access program
Note: Contribution ex-TAC is a non-GAAP financial measure. A reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure is | 5 |
available in the appendix. |
NON-GAAP OPERATING EXPENSES AND ADJUSTED EBITDA Q1 2024
NON-GAAP OPERATING EXPENSES | ADJUSTED EBITDA | |||||
+9% YoY | ||||||
+$3.5M YoY | ||||||
$28.4 | $31.0 | |||||
$3.1 | ||||||
$(0.4) | ||||||
Q1-23 | Q1-24 | Q1-23 | Q1-24 |
- Non-GAAPoperating expenses increased 9% YoY and decreased approximately 10 percentage points YoY as a percentage of contribution ex-TAC, highlighting our ongoing commitment to managing expenses while making strategic investments
- Adjusted EBITDA increased by $3.5 million YoY in Q1-24, driven by strong top-line growth and controlled growth in operating expenses, creating meaningful operating leverage
Note: Adjusted EBITDA, contribution ex-TAC and non-GAAP operating expenses are non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to | 6 |
the most directly comparable GAAP financial measures are available in the appendix. |
NON-GAAP OPERATING EXPENSES
Q1-23 | Q2-23 | Q3-23 | Q4-23 | Q1-24 | |
Contribution ex-TAC | $28.0 | $33.7 | $39.1 | $42.6 | $34.1 |
Non-GAAP operating expenses | $28.4 | $26.9 | $29.4 | $29.6 | $31.0 |
Adjusted EBITDA | $(0.4) | $6.8 | $9.7 | $13.0 | $3.1 |
Adjusted EBITDA as a percentage of | (1%) | 20% | 25% | 31% | 9% |
contribution ex-TAC | |||||
- Non-GAAPoperating expenses increased 9% YoY in Q1-24 and decreased 10 percentage points YoY as a percentage of contribution ex-TAC, highlighting our ongoing commitment to make strategic investments, while driving operational efficiencies
Note: Contribution ex-TAC,non-GAAP operating expenses, adjusted EBITDA, and adjusted EBITDA as a percentage of contribution ex-TAC are non-GAAP financial measures. | 7 |
Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are available in the appendix. |
GUIDANCE RANGES
Q2 2024
Q2 2024 Guidance | (1) | |||
Revenue | $63.5 | - | $66.5 | |
Contribution ex-TAC | $40.0 | - | $42.0 | |
Non-GAAP Operating Expenses | $32.0 | - | $33.0 | |
Adjusted EBITDA | $8.0 | - | $9.0 | |
Adjusted EBITDA Margin | (2) | 20% | - | 21% |
- YoY Change at Midpoint
14% 22% 21% 25% n/a
Note: Contribution ex-TAC,non-GAAP operating expenses, adjusted EBITDA, and adjusted EBITDA as a percentage of contribution ex-TAC are non-GAAP financial measures.
- An explanation of why reconciliations of these non-GAAP financial outlook measures to the most directly comparable GAAP financial measures are not available
without unreasonable efforts is available in the appendix. | 8 | |
(2) | As a percentage of contribution ex-TAC. | |
VALUATION AND SHARES OUTSTANDING
Share Count | ||
Class A shares | 16.4 | |
Class B shares | 47.0 | |
Total Class A and Class B shares outstanding | (1) | 63.4 |
Enterprise Value | ||
Share price (4/29/2024) | $ | 8.45 |
Total Class A and Class B shares outstanding(1) | 63.4 | |
Market capitalization | $ | 535.9 |
Plus: Debt | - | |
Less: Cash(2) | $ | (206.1) |
Enterprise value | $ | 329.9 |
Enterprise value as a multiple of: |
TTM Revenue ($234.6M) | 1.4x | |
TTM Contribution ex-TAC ($149.5M) | 2.2x | |
TTM Adjusted EBITDA ($32.6M) | 10.1x | |
Cash per share(1,2) | $ | 3.25 |
Note: Cash and debt amounts as of March 31, 2024.
- Based on Class A and Class B common shares outstanding as of March 31, 2024. Each share of Class A and Class B common stock entitles its holders to one vote on all
matters on which stockholders generally are entitled to vote. Excludes outstanding RSUs of 4.7 million and outstanding NQSOs of 6.1 million. | 9 | |
(2) | Cash refers to cash & cash equivalents. |
APPENDIX
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Disclaimer
Viant Technology Inc. published this content on 30 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 April 2024 20:19:11 UTC.
