Rosenblatt has commenced coverage on Viant (DSP, Financial), assigning a Buy rating and setting a price target of $20. Although Viant is considerably smaller than the market leader, The Trade Desk, the analyst believes that there is significant potential for growth in the advertising sector. Marketers are open to investing in innovative technologies that enhance their advertising expenditure returns.
Viant stands out due to its distinctive innovation, The Household ID, an advanced identity graph. This technology leverages extensive data to link individuals and devices within their household context, providing superior targeting capabilities. This approach offers advantages over alternative identity solutions like Trade Desk’s UID 2.0, which rely on a limited portion of bid stream data for personally identifiable graphs.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for Viant Technology Inc (DSP, Financial) is $22.14 with a high estimate of $27.00 and a low estimate of $18.00. The average target implies an upside of 54.74% from the current price of $14.31. More detailed estimate data can be found on the Viant Technology Inc (DSP) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, Viant Technology Inc's (DSP, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Viant Technology Inc (DSP, Financial) in one year is $8.66, suggesting a downside of 39.48% from the current price of $14.31. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Viant Technology Inc (DSP) Summary page.
DSP Key Business Developments
Release Date: March 03, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Viant Technology Inc (DSP, Financial) reported a 40% year-over-year increase in Q4 revenue, surpassing their guidance.
- The company achieved a 31% year-over-year increase in adjusted EBITDA, reaching $17.1 million.
- Viant Technology Inc (DSP) has seen six consecutive quarters of over 20% year-over-year growth in contribution ex-TAC.
- The acquisition of Locker is expected to enhance Viant's leadership in identity and addressability across the open internet.
- Viant AI's rollout is progressing, with AI bidding now powering 80% of ad spend on their platform, and AI planning launched to improve campaign efficiency.
Negative Points
- Non-GAAP operating expenses increased by 26% year-over-year in Q4, partly due to the acquisition of Iris TV.
- The company faces competition from other DSPs, which could impact market share and pricing strategies.
- There is skepticism from publishers about sharing first-party data with DSPs, which could hinder data collaboration efforts.
- The integration of new acquisitions like Iris TV and Locker may present operational challenges and require significant resources.
- Viant Technology Inc (DSP) operates in a highly competitive ad tech market, which may pressure margins and growth prospects.
