Viant Announces Fourth Quarter and Full Year 2020 Financial Results
Viant Technology Inc. (NASDAQ: DSP) reported its fourth quarter and fiscal year results for 2020. The company achieved a quarterly revenue of $56.5 million, up 9% year-over-year, and a full year revenue of $165.3 million, a modest 0.2% increase. Notably, net income for Q4 reached $12.9 million, soaring 138% from the previous year. Platform spend rose 36% in Q4, with connected TV up 71%. For 2021, Viant anticipates revenue between $194 million to $200 million, indicating a growth forecast of 17% to 21%.
- Q4 revenue increased to $56.5 million, up 9% YoY.
- Gross profit for Q4 was $30.5 million, up 31% YoY.
- Net income for Q4 reached $12.9 million, a 138% increase YoY.
- Adjusted EBITDA for Q4 was $15.6 million, reflecting a 66% increase YoY.
- Platform spend rose 36% YoY in Q4.
- Full-year revenue growth was only 0.2%.
- Expected Q1 2021 revenue growth is minimal at approximately 0% to 1%.
IRVINE, Calif., March 22, 2021 (GLOBE NEWSWIRE) -- Viant Technology Inc. (NASDAQ: DSP), a leading people-based advertising software company, today announced financial results for its fourth quarter and fiscal year ended December 31, 2020.
“We are excited to report our first quarterly earnings as a public company, having completed our successful IPO in February,” stated Tim Vanderhook, Co-founder and CEO of Viant. “2020 was a transformational year for Viant and the advertising industry as marketers responded to the impact of the global pandemic. We exited the year with strong momentum, particularly in connected TV, and we are seeing signs of recovery in several verticals that were negatively impacted by the pandemic. With our people-based approach to digital advertising, we believe we are uniquely well positioned to benefit from the tailwinds of the industry as cookie-based approaches become obsolete. We are just at the beginning of a large opportunity and look forward to driving growth in the quarters ahead as we capitalize on the investments we have made in our software platform and go-to-market organization.”
Fourth Quarter 2020 Financial Highlights:
- Revenue: Revenue for the quarter was
$56.5 million , an increase of9% year-over-year. - Gross Profit: Gross profit for the quarter was
$30.5 million , an increase of31% year-over-year. - Revenue ex-TAC: Revenue ex-TAC was
$39.1 million , an increase of19% over$32.8 million in 2019. (1) - Net Income: Net income was
$12.9 million , or$12.86 per diluted unit in the fourth quarter, an increase of138% over net income of$5.4 million in the same period of 2019. - Adjusted EBITDA: Adjusted EBITDA was
$15.6 million , an increase of66% over$9.4 million for the same period in 2019. Adjusted EBITDA margin as a percentage of revenue ex-TAC was40% . (1)
Full Year 2020 Financial Highlights:
- Revenue: Revenue for the full year was
$165.3 million , an increase of0.2% year-over-year. - Gross Profit: Gross profit for the full year was
$77.0 million , an increase of9% year-over-year. - Revenue ex-TAC: Revenue ex-TAC was
$110.5 million , an increase of6% over$104.4 million in 2019. (1) - Net Income: Net income was
$20.6 million , or$20.64 per diluted unit, an increase of108% over net income of$9.9 million in 2019. - Adjusted EBITDA: Adjusted EBITDA was
$31.8 million , an increase of29% over$24.7 million in 2019. Adjusted EBITDA margin as a percentage of revenue ex-TAC was29% . (1)
Business Highlights:
- Completed our Initial Public Offering in February of 2021, raising
$232.5 million in net proceeds. - Platform spend (2) increased
36% year-over-year in the fourth quarter. - Platform spend from connected television (CTV) grew
71% in the fourth quarter and70% for the full year 2020. - Video represented
61% of platform spend in the fourth quarter and62% for the full year 2020.
“We are pleased with the momentum we saw in the fourth quarter with growth in revenue, gross profit, revenue ex-TAC and customer engagement as measured by platform spend. Despite the continued softness in retail, automotive and travel verticals, spend across all other verticals grew
For the first quarter of 2021, the Company currently expects:
- Revenue in the range of
$38.0 million to$38.5 million , which represents year-over-year growth of approximately0% to1% . - Revenue ex-TAC in the range of
$26.0 million to$26.5 million , which represents year-over-year growth of approximately11% to14% . - Adjusted EBITDA in the range of
$2.5 million to$3.5 million , or a margin as a percentage of revenue ex-TAC of10% to13% .
For the full year 2021, the Company currently expects:
- Revenue in the range of
$194 million to$200 million , which represents year-over-year growth of approximately17% to21% . - Revenue ex-TAC in the range of
$131 million to$136 million , which represents year-over-year growth of approximately19% to23% . - Adjusted EBITDA in the range of
$22 million to$25 million , or a margin as a percentage of revenue ex-TAC of17% to18% .
Revenue ex-TAC and Adjusted EBITDA are non-GAAP financial measures. These non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information provided in accordance with GAAP. We are not able to estimate gross profit and net income on a forward-looking basis or reconcile the guidance provided to the closest corresponding GAAP measures without unreasonable efforts on a forward-looking basis due to the variability and complexity with respect to the charges excluded from these non-GAAP measures; in particular, the measures and effects of our stock-based compensation expense that are directly impacted by unpredictable fluctuations in our share price. We expect the variability of the above charges could have a significant and potentially unpredictable impact on our future GAAP financial results.
Conference Call and Webcast Details:
Viant will host a conference call to discuss its financial results on Monday, March 22, 2021 at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). A live webcast of the call can be accessed from Viant’s Investor Relations website. An archived version of the webcast will be available from the same website after the call.
About Viant
Viant® is a leading people-based advertising software company that enables marketers and their agencies to centralize the planning, buying and measurement of their advertising investments across most channels. Viant’s self-service Demand Side Platform (DSP), Adelphic®, is an enterprise software platform enabling marketers to execute programmatic advertising campaigns across Connected TV, Linear TV, mobile, desktop, audio and digital out-of-home channels. Viant’s Identity Resolution capabilities have linked 115 million U.S. households to more than 1 billion connected devices and is combined with access to more than 280,000 audience attributes from more than 70 people-based data partners. Viant is an Advertising Age 2021 Best Places to Work award winner and Adelphic is featured on AdExchanger’s 2021 Programmatic Power Players list. To learn more, visit viantinc.com.
Presentation
This press release presents historical results for the periods presented of Viant Technology LLC, the predecessor of Viant Technology Inc. for accounting purposes, prior to the corporate reorganization and IPO.
Forward-Looking Statements
This press release 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 “believe,” “anticipate,” “expect,” “estimate,” “intend,” “project,” “plan,” 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. Forward-looking statements contained in this press release relate to, among other things, the Company’s projected financial performance and operating results, including projected revenue, revenue ex-TAC and Adjusted EBITDA, as well as statements regarding the anticipated growth and recovery from the effects of COVID-19. 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 the Company’s expectations, the demands and expectations of clients and the ability to attract and retain clients 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. 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. Investors are referred to our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K, for additional information regarding the risks and uncertainties that may cause actual results to differ materially from those expressed in any forward-looking statement.
Media Contact:
Jon Schulz
press@viantinc.com
Investor Contact:
The Blueshirt Group
Nicole Borsje
Maili Bergman
investors@viantinc.com
| (1) | Revenue ex-TAC and Adjusted EBITDA are non-GAAP financial measures. See the supplementary schedules in this press release for a discussion of how we define and calculate these measures and a reconciliation thereof to the most directly comparable GAAP measures. |
| (2) | Platform spend, a measure of customer engagement, was previously referred to in our registration statement on form S-1 as platform usage. |
VIANT TECHNOLOGY LLC
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per unit amounts)
(Unaudited)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Revenue | $ | 56,461 | $ | 51,954 | $ | 165,251 | $ | 164,892 | ||||||||
| Operating expenses (1): | ||||||||||||||||
| Platform operations | 25,944 | 28,710 | 88,260 | 94,060 | ||||||||||||
| Sales and marketing | 9,494 | 8,277 | 28,887 | 29,027 | ||||||||||||
| Technology and development | 2,618 | 2,585 | 8,698 | 9,240 | ||||||||||||
| General and administrative | 5,231 | 6,597 | 17,639 | 19,770 | ||||||||||||
| Total operating expenses | 43,287 | 46,169 | 143,484 | 152,097 | ||||||||||||
| Income from operations | 13,174 | 5,785 | 21,767 | 12,795 | ||||||||||||
| Total other expense, net | 313 | 375 | 1,129 | 2,871 | ||||||||||||
| Net income | $ | 12,861 | $ | 5,410 | $ | 20,638 | $ | 9,924 | ||||||||
| Earnings per unit: | ||||||||||||||||
| Basic | $ | 12.86 | $ | 23.46 | $ | 20.64 | $ | 31.31 | ||||||||
| Diluted | $ | 12.86 | $ | 22.85 | $ | 20.64 | $ | 27.37 | ||||||||
| Weighted average units outstanding: | ||||||||||||||||
| Basic | 400 | 274 | 400 | 274 | ||||||||||||
| Diluted | 1,000 | 1,000 | 1,000 | 1,000 | ||||||||||||
| (1) | Unit-based compensation expense and depreciation expense and amortization expense included above were as follows: |
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Unit-based compensation expense: | ||||||||||||||||
| Platform operations | $ | — | $ | 24 | $ | — | $ | 42 | ||||||||
| Sales and marketing | — | 25 | — | 44 | ||||||||||||
| Technology and development | — | 47 | — | 82 | ||||||||||||
| General and administrative | — | 528 | — | 922 | ||||||||||||
| Total | $ | — | $ | 624 | $ | — | $ | 1,090 | ||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Depreciation and amortization expense: | ||||||||||||||||
| Platform operations | $ | 1,754 | $ | 1,879 | $ | 7,338 | $ | 7,535 | ||||||||
| Sales and marketing | — | — | — | — | ||||||||||||
| Technology and development | 402 | 399 | 1,608 | 1,537 | ||||||||||||
| General and administrative | 296 | 274 | 1,160 | 1,083 | ||||||||||||
| Total | $ | 2,452 | $ | 2,552 | $ | 10,106 | $ | 10,155 | ||||||||
VIANT TECHNOLOGY LLC
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
| As of December 31, | ||||||||
| 2020 | 2019 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash | $ | 9,629 | $ | 4,815 | ||||
| Accounts receivable, net of allowances | 89,767 | 68,083 | ||||||
| Prepaid expenses and other current assets | 4,487 | 1,892 | ||||||
| Total current assets | 103,883 | 74,790 | ||||||
| Property, equipment, and software, net | 13,829 | 14,924 | ||||||
| Intangible assets, net | 3,015 | 4,243 | ||||||
| Goodwill | 12,422 | 12,422 | ||||||
| Other assets | 371 | 478 | ||||||
| Total assets | $ | 133,520 | $ | 106,857 | ||||
| Liabilities, convertible preferred units and members’ equity | ||||||||
| Liabilities | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 29,763 | $ | 20,480 | ||||
| Accrued liabilities and accrued compensation | 34,388 | 31,084 | ||||||
| Current portion of long-term debt | 3,353 | — | ||||||
| Current portion of deferred revenue | 2,725 | 5,261 | ||||||
| Other current liabilities | 9,427 | 4,236 | ||||||
| Total current liabilities | 79,656 | 61,061 | ||||||
| Long-term debt | 20,182 | 17,500 | ||||||
| Long-term portion of deferred revenue | 5,612 | 4,769 | ||||||
| Other long-term liabilities | 453 | 822 | ||||||
| Total liabilities | 105,903 | 84,152 | ||||||
| Convertible preferred units and members' equity | ||||||||
| Convertible preferred units | 7,500 |
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FAQ
What were Viant Technology's Q4 2020 financial results?
Viant reported Q4 2020 revenue of $56.5 million, a 9% YoY increase, with net income of $12.9 million.
How did Viant Technology perform in fiscal year 2020?
In fiscal year 2020, Viant achieved revenue of $165.3 million, up 0.2% YoY, and net income of $20.6 million.
What is Viant Technology's growth outlook for 2021?
Viant expects 2021 revenue in the range of $194 million to $200 million, indicating a growth forecast of 17% to 21%.
How is Viant Technology focusing on connected TV?
Viant reported a 71% increase in platform spend from connected TV in Q4 2020, highlighting its strategic focus.
What are Viant Technology's expectations for Q1 2021 revenue?
For Q1 2021, Viant expects revenue between $38.0 million to $38.5 million, representing a YoY growth of approximately 0% to 1%.
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