Viant Technology’s Earnings Call Highlights Record Growth

Viant Technology, Inc. ((DSP)) has held its Q1 earnings call. Read on for the main highlights of the call.

Viant Technology’s recent earnings call painted a picture of robust growth and strategic prowess, despite facing macroeconomic challenges. The company reported a strong first quarter, with record revenue and significant advancements in key areas such as Connected TV (CTV) and AI solutions. This positive sentiment was underpinned by Viant’s solid financial foundation and strategic initiatives, positioning the company well for future growth.

Record First Quarter Results

Viant Technology delivered impressive first quarter results, surpassing all guidance metrics. The company reported a 32% year-over-year increase in revenue and a 25% rise in contribution ex-TAC. This performance highlights Viant’s ability to navigate challenges and capitalize on growth opportunities.

Strong Growth in CTV and Addressability Solutions

A significant driver of Viant’s top-line growth was the demand for CTV, which accounted for over 45% of total platform spend. Additionally, Viant’s Addressability Solutions, including Household ID and IRIS ID, saw substantial adoption, further reinforcing the company’s strategic focus in these areas.

Adjusted EBITDA Growth

The company achieved a 76% year-over-year increase in adjusted EBITDA, reaching $5.4 million in Q1. This marks the ninth consecutive quarter of over 30% year-over-year growth in this metric, underscoring Viant’s consistent financial performance.

Successful AI Bidding and Planning

Viant’s AI Bidding now automates 85% of ad spending, up from 80% in the previous quarter, with a 75% year-over-year increase in contribution ex-TAC from AI Bidding. AI Planning has also enabled advertisers to efficiently create enterprise-level ad campaigns, showcasing Viant’s innovation in AI solutions.

Significant New Customer Growth

The company experienced strong new customer momentum, with a 37% increase in customers generating over $1 million in contribution ex-TAC. This growth reflects Viant’s expanding market presence and ability to attract high-value clients.

Strong Financial Position

Viant ended the quarter with $174 million in cash and no debt, along with a $75 million undrawn credit facility. This strong financial position provides the company with the flexibility to pursue strategic initiatives and weather economic uncertainties.

Macroeconomic Uncertainty Due to Tariffs

Despite a small number of advertisers delaying campaign activations due to recently imposed tariffs, affecting 3% to 4% of expected Q2 revenue, Viant remains resilient. The company is well-positioned to manage these challenges and continue its growth trajectory.

Limited Exposure in Automotive and Retail Vertical Challenges

Viant’s limited exposure to the automotive sector and some retail advertisers’ postponed spending due to supply chain impacts from tariffs have not significantly hindered its performance. This resilience highlights Viant’s strategic positioning and adaptability.

Forward-Looking Guidance

Looking ahead, Viant Technology has set a strong foundation for the second quarter, with anticipated revenue between $77 million and $80 million, reflecting a 19% year-over-year growth at the midpoint. Contribution ex-TAC is expected to be between $47.5 million and $49.5 million, representing a 17% year-over-year growth at the midpoint. Despite macroeconomic uncertainties, Viant is confident in its ability to outperform the broader advertising industry.

In summary, Viant Technology’s earnings call highlighted a strong performance in the first quarter, driven by strategic initiatives in CTV, addressability, and AI solutions. The company’s robust financial position and forward-looking guidance suggest continued growth, even amid macroeconomic challenges. Investors and market observers can look forward to Viant’s ongoing success in the coming quarters.