Scotiabank has revised its price target for Viant (DSP, Financial) shares, decreasing it from $27 to $26. Despite this adjustment, the firm continues to hold an Outperform rating for the company. Analysts remain optimistic about Viant's prospects, highlighting its appealing growth trajectory and positive positioning in the Connected TV (CTV) market. The setup for the remainder of 2025 is also considered strong, reinforcing confidence in the stock.
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 $21.75 with a high estimate of $26.00 and a low estimate of $18.00. The average target implies an upside of 59.28% from the current price of $13.66. 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 36.07% from the current price of $13.655. 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: May 06, 2025
- Revenue: $70.6 million, a 32% increase year over year.
- Contribution ex-TAC: $42.7 million, up 25% year over year.
- Adjusted EBITDA: $5.4 million, a 76% increase year over year.
- Non-GAAP Net Income: $2.8 million, up 109% from the prior year.
- Non-GAAP Operating Expenses: $37.3 million, a 20% increase year over year.
- Cash and Cash Equivalents: $174 million at the end of the quarter.
- Cash Flow from Operating Activities: $8.2 million, a 30% increase year over year.
- Share Repurchase Program: $17 million spent in Q1, with $46.5 million returned to shareholders since May 2024.
- Guidance for Q2 2025 Revenue: $77 million to $80 million, representing 19% year over year growth at the midpoint.
- Guidance for Q2 2025 Adjusted EBITDA: $10.5 million to $11.5 million, representing 15% growth year over year at the midpoint.
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 32% year-over-year increase in revenue for Q1 2025, exceeding guidance expectations.
- The company achieved a 76% year-over-year growth in adjusted EBITDA, marking the ninth consecutive quarter of over 30% growth.
- Viant's CTV (Connected TV) segment accounted for over 45% of total platform spend, demonstrating strong growth and strategic focus.
- The adoption of Viant's AI product suite, including AI Bidding, has significantly contributed to operational efficiencies and cost savings.
- Viant Technology Inc (DSP) maintains a strong financial position with $174 million in cash and no debt, providing flexibility for strategic investments.
Negative Points
- Macroeconomic uncertainties, particularly related to tariffs, have led to some advertisers delaying campaign activations, impacting Q2 revenue expectations.
- Despite strong growth, Viant Technology Inc (DSP) faces competitive pressures from large tech companies like Google and Amazon, which could impact market share.
- The company's exposure to certain verticals, such as automotive and retail, could be affected by economic downturns and tariff impacts.
- Viant's reliance on CTV as a major growth driver may pose risks if market dynamics shift or if competitors strengthen their CTV offerings.
- Operational expenses increased by 20% year over year, partly due to recent acquisitions, which could pressure margins if not managed effectively.
