Viant (DSP, Financial) reported impressive financial outcomes for the first quarter, achieving a revenue of $70.6 million, significantly exceeding the anticipated $63.7 million. The company's performance in revenue, contribution excluding traffic acquisition costs, and adjusted EBITDA all surpassed their projected upper limits. This growth can be attributed to Viant's strategic focus on thriving digital channels like connected TV, streaming audio, and digital outdoor advertising, which dominate advertising expenditures on their platform.
The company is also seeing increased utilization of its advanced audience and contextual addressability technologies, Household ID and IRIS ID, with ViantAI still in its nascent stage of adoption. With unique advantages in current market trends and distinct technological offerings, Viant is positioned to excel beyond the broader advertising industry's expectations.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 8 analysts, the average target price for Viant Technology Inc (DSP, Financial) is $21.88 with a high estimate of $27.00 and a low estimate of $18.00. The average target implies an upside of 46.71% from the current price of $14.91. More detailed estimate data can be found on the Viant Technology Inc (DSP) Forecast page.
Based on the consensus recommendation from 8 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 $8.73, suggesting a downside of 41.45% from the current price of $14.91. 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.
