Viant Technology Announces First Quarter 2024 Financial Results; Board of Directors Authorizes $50 Million Stock Repurchase Program

Rhea-AI Summary

Viant Technology Inc. (Nasdaq: DSP) reported strong first quarter financial results with over 50% year-over-year growth in CTV and a record quarter for streaming audio. The company's performance was marked by significant improvements in revenue, gross profit, and net loss. Additionally, the Board of Directors authorized a $50 million stock repurchase program. Viant remains optimistic about the future, expecting continued growth in the programmatic advertising industry.

Positive

• Over 50% year-over-year growth in CTV and record quarter for streaming audio.

• Significant improvements in revenue, gross profit, and net loss.

• Board of Directors authorized a $50 million stock repurchase program.

• Expectations for continued growth in the programmatic advertising industry.

Negative

• None.

Insights

Financial Analyst

Viant Technology Inc.'s report exhibits a robust year-over-year growth in revenue and gross profit, both ascending by 28%. The significant reduction in net loss from $9.3 million to $3.2 million, a 66% decrease, is indicative of an improving financial health. Impressively, non-GAAP metrics such as Adjusted EBITDA leapt from a loss to a $3 million positive, demonstrating operating leverage. For investors, the alignment of financial recovery with an uptick in high-demand sectors like CTV suggests potential for scalability and market capture.

Market Research Analyst

Viant's growth trajectory is closely tied to the blossoming CTV and streaming audio markets. The reported >percent>50% year-over-year growth in CTV, fueled by the Direct Access program, reflects a strategic positioning that capitalizes on the shift from linear TV to digital. For retail investors, understanding this pivot is critical as it highlights Viant's potential to secure a larger share of the advertising spend transitioning towards programmatic avenues, a market with over $60 billion in play.

Investment Strategist

The Board's authorization of a $50 million stock repurchase program suggests confidence in the company's future and a commitment to shareholder value. It's a strategic move that can support stock price stability and potentially enhance earnings per share by reducing the number of shares outstanding. However, investors should note that repurchase programs are contingent on various factors, including market conditions and other investment considerations, which might influence the program's execution and scale.

IRVINE, Calif.--(BUSINESS WIRE)-- Viant Technology Inc. (Nasdaq: DSP), a leading advertising technology company, today reported financial results for its first quarter ended March 31, 2024.

“We had a strong start to the year as the momentum we saw in the second half of 2023 continued through the first quarter,” said Tim Vanderhook, Co-Founder and CEO, Viant. “Our performance this quarter was driven by over 50% year-over-year growth in CTV, where we are seeing notable adoption of our Direct Access program which facilitates frictionless access to some of the world’s most premium CTV content. We continue to make progress towards our long-term vision of autonomous advertising, making programmatic advertising easier and more effective across all channels. We believe this is driving better return on ad spend for our customers and increasing market share for Viant.”

First quarter 2024 Financial Highlights, year-over-year (in thousands, except percentages and per share data):

	2024				2023				Change (%)
	(NM = Not Meaningful)
GAAP
Revenue	$	53,393			$	41,720			28	%
Gross profit	$	23,513			$	18,383			28	%
Net loss	$	(3,214	)		$	(9,376	)		66	%
Net loss as a percentage of gross profit		(14	)%			(51	)%		NM
Net loss attributable to Viant Technology Inc.	$	(947	)		$	(2,480	)		62	%
Earnings (loss) per share of Class A common stock—basic	$	(0.06	)		$	(0.17	)		65	%
Earnings (loss) per share of Class A common stock—diluted	$	(0.06	)		$	(0.17	)		65	%
Class A and Class B common shares outstanding (as of March 31)		63,426
Cash and cash equivalents (as of March 31)	$	206,057
Non-GAAP(1)
Contribution ex-TAC	$	34,121			$	27,991			22	%
Adjusted EBITDA	$	3,075			$	(390	)		888	%
Adjusted EBITDA as a percentage of contribution ex-TAC		9	%			(1	)%		NM
Non-GAAP net income (loss)	$	1,348			$	(1,814	)		174	%
Non-GAAP net income (loss) attributable to Viant Technology Inc.	$	297			$	(435	)		168	%
Non-GAAP earnings (loss) per share of Class A common stock—basic	$	0.02			$	(0.03	)		167	%
Non-GAAP earnings (loss) per share of Class A common stock—diluted	$	0.02			$	(0.03	)		167	%

Business Highlights:

• Over 50% year-over-year growth in CTV, driven by our Household ID technology and Direct Access program.
• Over half of CTV spend in the quarter was through Direct Access, up from over 40% in Q4 2023.
• Record quarter for streaming audio accounting for approximately 10% of advertiser spend.

“We are very pleased with our strong first quarter results, marking our third consecutive quarter of greater than 20% year-over-year growth in contribution ex-TAC. We also continued to drive operating leverage in the quarter, as evidenced by a 10 percentage point year-over-year improvement in adjusted EBITDA as a percentage of contribution ex-TAC,” said Larry Madden, CFO, Viant. “Our momentum is being driven in part by advertising budgets shifting to higher performing channels, and this is reflected in our strong performance in CTV and streaming audio, which together represented more than half of all advertising spend on our platform in the quarter. We believe that we remain extremely well positioned to benefit from the strong industry tailwinds for programmatic advertising, including over $60 billion in linear TV budgets expected to shift to CTV, and we look forward to building on our momentum in the coming quarters.”

Stock Repurchase Program

The Company also announced that its Board of Directors has authorized the repurchase of up to $50.0 million of the Company’s common equity. Under the program, the Company may make repurchases, from time to time, through open market purchases, block trades, in privately negotiated transactions, accelerated stock repurchase transactions, or by other means. Open market repurchases will be structured to occur in accordance with applicable federal securities laws, including within the pricing and volume requirements of Rule 10b-18 under the Exchange Act. The Company may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases under this authorization. The volume, timing, and manner of any repurchases will be determined at the Company’s discretion, subject to general market conditions, as well as the Company’s management of capital, general business conditions, other investment opportunities, regulatory requirements and other factors. The repurchase program does not obligate the Company to repurchase any specific amount of common equity, has no time limit, and may be modified, suspended, or discontinued at any time without notice at the discretion of the Board of Directors. The Company currently expects to fund the repurchase program from existing cash and cash equivalents, short-term investments and/or future cash flows.

Guidance:

For the second quarter 2024, the Company expects:

• Revenue in the range of $63.5 million to $66.5 million
• Contribution ex-TAC in the range of $40.0 million to $42.0 million
• Non-GAAP operating expenses in the range of $32.0 million to $33.0 million
• Adjusted EBITDA in the range of $8.0 million to $9.0 million

Contribution ex-TAC, non-GAAP operating expenses, adjusted EBITDA, adjusted EBITDA as a percentage of contribution ex-TAC, non-GAAP net income (loss), and non-GAAP earnings (loss) per share of Class A common stock—basic and diluted 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. Reconciliations of these non-GAAP financial measures to Viant’s financial results as determined in accordance with GAAP are included at the end of this press release under “Reconciliation of Non-GAAP Financial Measures.” For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see “Non-GAAP Financial Measures” in this press release. We are not able to estimate gross profit, total operating expenses or net income (loss) on a forward-looking basis or reconcile the guidance provided for contribution ex-TAC, non-GAAP operating expenses, or adjusted EBITDA to the closest corresponding GAAP financial measures on a forward-looking basis without unreasonable efforts due to the variability and complexity with respect to the charges excluded from these non-GAAP financial measures; in particular, the impact of future traffic acquisition costs and other platform operations expenses, as well as the measures and effects of our stock-based compensation related to equity grants that are directly impacted by unpredictable fluctuations in our share price and the potential forfeitures of equity grants. We expect the variability of the above charges could have a significant and potentially unpredictable impact on our future GAAP financial results.

(1) For a discussion on how we define, use and calculate these non-GAAP financial measures and a reconciliation thereof to the most directly comparable GAAP financial measures, see “Non-GAAP Financial Measures” and the supplementary schedules under “Reconciliation of Non-GAAP Financial Measures” in this press release.

Supplemental Financial and Other Information:

Supplemental financial and other information can be accessed through Viant’s investor relations website at investors.viantinc.com.

As of March 31, 2024, there were 16.4 million shares of the Company's Class A common stock outstanding and 47.0 million shares of the Company's Class B common stock outstanding. For more information, please refer to our Quarterly Report on Form 10-Q expected to be filed with the SEC on April 30, 2024.

Conference Call and Webcast Details:

Viant will host a conference call and webcast to discuss its financial results on Tuesday, April 30, 2024 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.

Viant Technology has used, and intends to continue to use, the “Investor Relations” section of its website at investors.viantinc.com and its LinkedIn account, and the LinkedIn account of its Chief Executive Officer, Tim Vanderhook, to post information that may be important to investors. Investors and potential investors are encouraged to consult Viant Technology’s website and LinkedIn account and Mr. Vanderhook’s LinkedIn account regularly for important information.

About Viant

Viant® (NASDAQ: DSP) is a leading advertising technology company that enables marketers to plan, execute and measure omnichannel ad campaigns through a cloud-based platform. Viant’s self-service Demand Side Platform ("DSP") powers programmatic advertising across Connected TV, Linear TV, mobile, desktop, audio, gaming and digital out-of-home channels. As an organization committed to sustainability, Viant’s Adtricity® carbon reduction program helps clients achieve their sustainability goals. In the past year, Viant was recognized by G2 as a Leader in the DSP category and as the Best Software in Marketing & Advertising, earned Great Place to Work® certification, and became a founding member of Ad Net Zero. Viant’s Co-Founders Tim and Chris Vanderhook are also past recipients of EY's Entrepreneurs of the Year award. To learn more, please visit viantinc.com.

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 “guidance,” “believe,” “expect,” “estimate,” “project,” “plan,” “will,” 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, if at all. Forward-looking statements contained in this press release relate to, among other things, Viant’s projected financial performance and operating results, including our guidance for revenue, contribution ex-TAC, non-GAAP operating expenses, and adjusted EBITDA, as well as statements regarding the impact of the deprecation of cookies on Viant's customers and business, Viant’s growth prospects, Viant's ability to drive return on ad spend for our customers and capture increased market share, and Viant’s ability to capitalize on the changes in the programmatic advertising ecosystem. 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 Viant’s expectations, the demands and expectations of customers, the ability to attract and retain customers, the impact of information and data privacy trends and regulations on our business and competitors 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. Investors are referred to our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and subsequent Quarterly Reports on Form 10-Q, for additional information regarding the risks and uncertainties that may cause actual results to differ materially from those expressed in any forward-looking statement. 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.

VIANT TECHNOLOGY INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited; in thousands, except per share data)
	Three Months Ended March 31,
	2024				2023
Revenue	$	53,393			$	41,720
Operating expenses(1):
Platform operations		29,880				23,337
Sales and marketing		12,899				12,169
Technology and development		5,232				5,894
General and administrative		11,074				11,428
Total operating expenses		59,085				52,828
Loss from operations		(5,692	)			(11,108	)
Other expense (income), net:
Interest income, net		(2,381	)			(1,819	)
Other expense, net		2				87
Total other expense (income), net		(2,379	)			(1,732	)
Loss before income taxes		(3,313	)			(9,376	)
Benefit from income taxes		(99	)			—
Net loss		(3,214	)			(9,376	)
Less: Net loss attributable to noncontrolling interests		(2,267	)			(6,896	)
Net loss attributable to Viant Technology Inc.	$	(947	)		$	(2,480	)
Earnings (loss) per share of Class A common stock:
Basic	$	(0.06	)		$	(0.17	)
Diluted	$	(0.06	)		$	(0.17	)
Weighted-average shares of Class A common stock outstanding:
Basic		15,949				14,748
Diluted		15,949				14,748

(1)

Stock-based compensation and depreciation and amortization included in operating expenses are as follows (in thousands):

	Three Months Ended March 31,
	2024				2023
Stock-based compensation:
Platform operations	$	406			$	892
Sales and marketing		755				2,512
Technology and development		500				1,327
General and administrative		2,779				2,741
Total	$	4,440			$	7,472
	Three Months Ended March 31,
	2024				2023
Depreciation and amortization:
Platform operations	$	3,526			$	2,770
Sales and marketing		—				—
Technology and development		431				393
General and administrative		189				249
Total	$	4,146			$	3,412

VIANT TECHNOLOGY INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited; in thousands, except share and per share data)
	As of March 31,				As of December 31,
	2024				2023
Assets
Current assets:
Cash and cash equivalents	$	206,057			$	216,458
Accounts receivable, net of allowances		113,508				117,473
Prepaid expenses and other current assets		7,978				6,486
Total current assets		327,543				340,417
Property, equipment, and software, net		29,356				28,261
Operating lease assets		24,898				22,995
Intangible assets, net		153				201
Goodwill		12,422				12,422
Other assets		669				615
Total assets	$	395,041			$	404,911
Liabilities and stockholders’ equity
Liabilities
Current liabilities:
Accounts payable	$	51,972			$	47,342
Accrued liabilities		35,988				39,263
Accrued compensation		7,124				10,925
Current portion of deferred revenue		181				316
Current portion of operating lease liabilities		3,748				3,762
Other current liabilities		2,015				7,242
Total current liabilities		101,028				108,850
Long-term debt		—				—
Long-term portion of operating lease liabilities		23,557				21,672
Total liabilities		124,585				130,522
Commitments and contingencies
Stockholders’ equity
Preferred stock, $0.001 par value
Authorized shares — 10,000,000
Issued and outstanding — none		—				—
Class A common stock, $0.001 par value
Authorized shares — 450,000,000
Issued — 16,979,744 and 15,937,816		17				16
Outstanding — 16,440,946 and 15,783,941
Class B common stock, $0.001 par value
Authorized shares — 150,000,000
Issued and outstanding — 46,984,825 and 47,032,260		47				47
Additional paid-in capital		116,571				112,830
Accumulated deficit		(45,589	)			(43,509	)
Treasury stock, at cost; 538,798 and 153,875 shares held		(5,458	)			(1,127	)
Total stockholders’ equity attributable to Viant Technology Inc.		65,588				68,257
Noncontrolling interests		204,868				206,132
Total equity		270,456				274,389
Total liabilities and stockholders’ equity	$	395,041			$	404,911

VIANT TECHNOLOGY INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited; in thousands)
	Three Months Ended March 31,
	2024				2023
Cash flows from operating activities:
Net loss	$	(3,214	)		$	(9,376	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization		4,146				3,412
Stock-based compensation		4,440				7,472
Provision for doubtful accounts		(87	)			22
Loss on disposal of assets		6				104
Noncash lease expense		988				968
Changes in operating assets and liabilities:
Accounts receivable		4,051				20,618
Prepaid expenses and other assets		(1,759	)			3,180
Accounts payable		4,337				(16,301	)
Accrued liabilities		(3,244	)			(6,504	)
Accrued compensation		(3,987	)			(3,350	)
Deferred revenue		(135	)			933
Operating lease liabilities		(1,020	)			(743	)
Other liabilities		(684	)			(1,000	)
Net cash provided by (used in) operating activities		3,838				(565	)
Cash flows from investing activities:
Purchases of property and equipment		(530	)			(291	)
Capitalized software development costs		(3,532	)			(2,382	)
Net cash used in investing activities		(4,062	)			(2,673	)
Cash flows from financing activities:
Repurchase of treasury stock in connection with the taxes paid related to the vesting of equity awards		(5,526	)			(1,567	)
Payment of member tax distributions		(4,723	)			(26	)
Proceeds from the exercise of stock options		101				—
Payment of offering costs		(29	)			—
Net cash used in financing activities		(10,177	)			(1,593	)
Net decrease in cash and cash equivalents		(10,401	)			(4,831	)
Cash and cash equivalents at beginning of period		216,458				206,573
Cash and cash equivalents at end of period	$	206,057			$	201,742

Non-GAAP Financial Measures

To provide investors and others with additional information regarding Viant’s results, we have included in this press release the following financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”): contribution ex-TAC, non-GAAP operating expenses, adjusted EBITDA, adjusted EBITDA as a percentage of contribution ex-TAC, non-GAAP net income (loss) and non-GAAP earnings (loss) per share of Class A common stock—basic and diluted. The Company’s management believes that this information can assist investors in evaluating the Company’s operational trends, financial performance, and cash generating capacity. Management believes these non-GAAP financial measures allow investors to evaluate the Company’s financial performance using some of the same measures as management.

Contribution ex-TAC is a non-GAAP financial measure. Gross profit is the most comparable GAAP financial measure, which is calculated as revenue less platform operations expense. In calculating contribution ex-TAC, we add back other platform operations expense to gross profit. Contribution ex-TAC is a key profitability measure used by our management and board of directors to understand and evaluate our operating performance and trends, develop short- and long-term operational plans and make strategic decisions regarding the allocation of capital. “Traffic acquisition costs” or “TAC” represents amounts incurred and payable to suppliers for the cost of advertising media, third-party data and other add-on features related to our fixed CPM pricing option and certain arrangements related to our percentage of spend pricing option. In particular, we believe that contribution ex-TAC can provide a measure of period-to-period comparisons for all pricing options within our business. Accordingly, we believe that this measure provides information to investors and the market in understanding and evaluating our operating results in the same manner as our management and board of directors.

Non-GAAP operating expenses is a non-GAAP financial measure. Total operating expenses is the most comparable GAAP financial measure. Non-GAAP operating expenses is defined by us as total operating expenses plus other expense (income), net, less TAC, stock-based compensation, depreciation, amortization, and certain other items that are not related to our core operations, such as restructuring and other charges and transaction expenses. Non-GAAP operating expenses is a key component in calculating adjusted EBITDA, which is one of the measures we use to provide our business outlook to the investment community. Additionally, non-GAAP operating expenses is used by our management and board of directors to understand and evaluate our operating performance and trends, to prepare and approve our annual budget and to develop short- and long-term operational plans. We believe that the elimination of TAC, stock-based compensation, depreciation, amortization and certain other items not related to our core operations provides another measure for period-to-period comparisons of our business, provides additional insight into our core controllable costs and is a useful metric for investors because it allows them to evaluate our operational performance in the same manner as our management and board of directors.

Adjusted EBITDA is a non-GAAP financial measure defined by us as net income (loss) before interest expense (income), net, income tax benefit (expense), depreciation, amortization, stock-based compensation and certain other items that are not related to our core operations, such as restructuring and other charges, transaction expenses and the extinguishment of debt. Net income (loss) is the most comparable GAAP financial measure. Adjusted EBITDA as a percentage of contribution ex-TAC is a non-GAAP financial measure we calculate by dividing adjusted EBITDA by contribution ex-TAC for the period or periods presented.

Adjusted EBITDA and adjusted EBITDA as a percentage of contribution ex-TAC are used by our management and board of directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short- and long-term operational plans. In particular, we believe that the exclusion of the amounts eliminated in calculating adjusted EBITDA can provide a measure for period-to-period comparisons of our business. Adjusted EBITDA as a percentage of contribution ex-TAC, a non-GAAP financial measure, is used by our management and board of directors to evaluate adjusted EBITDA relative to our profitability after costs that are directly variable to revenues, which comprise TAC. Accordingly, we believe that adjusted EBITDA and adjusted EBITDA as a percentage of contribution ex-TAC provide information to investors and the market in understanding and evaluating our operating results in the same manner as our management and board of directors. Net income (loss) as a percentage of gross profit is the most comparable GAAP financial measure.

Non-GAAP net income (loss) is a non-GAAP financial measure defined by us as net income (loss) adjusted to eliminate the impact of stock-based compensation and certain other items that are not related to our core operations, such as restructuring and other charges, transaction expenses and the extinguishment of debt, as well as the income tax effect of these adjustments. Net income (loss) is the most comparable GAAP financial measure. Non-GAAP net income (loss) is a key measure used by our management and board of directors to evaluate operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, we believe that the elimination of stock-based compensation and certain other items that are not related to our core operations provides measures for period-to-period comparisons of our business and additional insight into our core controllable costs. Accordingly, we believe that non-GAAP net income (loss) provides information to investors and the market generally in understanding and evaluating our results of operations in the same manner as our management and board of directors.

Non-GAAP earnings (loss) per share of Class A common stock—basic and diluted is a non-GAAP financial measure defined by us as earnings (loss) per share of Class A common stock—basic and diluted, adjusted to eliminate the impact of stock-based compensation and certain other items that are not related to our core operations, such as restructuring and other charges, transaction expenses, and the extinguishment of debt, as well as the income tax effect of such adjustments. Earnings (loss) per share of Class A common stock—basic and diluted is the most comparable GAAP financial measure. Non-GAAP earnings (loss) per share of Class A common stock—basic and diluted is used by our management and board of directors to evaluate operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, we believe that the elimination of stock-based compensation and certain other items that are not related to our core operations provides measures for period-to-period comparisons of our business and provides additional insight into our core controllable costs. Accordingly, we believe that non-GAAP earnings (loss) per share of Class A common stock—basic and diluted provides information to investors and the market generally that aids in the understanding and evaluation of our results of operations in the same manner as our management and board of directors.

These non-GAAP financial measures should be considered in addition to, not as a substitute for or in isolation from, the Company’s financial information calculated in accordance with GAAP and should not be considered measures of the Company’s liquidity. Further, these non-GAAP financial measures as defined by the Company may not be comparable to similar non-GAAP financial measures presented by other companies, including peer companies, and therefore comparability may be limited. The presentation of such measures, which may include adjustments to exclude unusual or non-recurring items, should not be construed as an inference that the Company’s future results, cash flows or leverage will be unaffected by other unusual or non-recurring items. Management encourages investors and others to review Viant’s financial information in its entirety and not rely on a single financial measure.

Reconciliation of Non-GAAP Financial Measures

The following tables show the reconciliations of the Company’s non-GAAP financial measures contained in this press release to the most directly comparable GAAP financial measures.

The following table presents the calculation of gross profit and the reconciliation of gross profit to contribution ex-TAC for the periods presented (unaudited; in thousands):

	Three Months Ended March 31,
	2024				2023
Revenue	$	53,393			$	41,720
Less: Platform operations		(29,880	)			(23,337	)
Gross profit		23,513				18,383
Add: Other platform operations		10,608				9,608
Contribution ex-TAC	$	34,121			$	27,991

The following table presents a reconciliation of total operating expenses to non-GAAP operating expenses for the periods presented (unaudited; in thousands):

	Three Months Ended March 31,
	2024				2023
Operating expenses:
Platform operations	$	29,880			$	23,337
Sales and marketing		12,899				12,169
Technology and development		5,232				5,894
General and administrative		11,074				11,428
Total operating expenses		59,085				52,828
Add:
Other expense, net		2				87
Less:
Traffic acquisition costs		(19,272	)			(13,729	)
Stock-based compensation		(4,440	)			(7,472	)
Depreciation and amortization		(4,146	)			(3,412	)
Restructuring and other(1)		(183	)			79
Non-GAAP operating expenses	$	31,046			$	28,381

(1)

Restructuring and other includes severance and other charges related to aligning our workforce with our strategic performance goals for the three months ended March 31, 2024, and adjustments to severance charges initially recognized during 2022 for the three months ended March 31, 2023.

The following table presents a reconciliation of net loss to adjusted EBITDA for the periods presented (unaudited; in thousands):

	Three Months Ended March 31,
	2024				2023
Net loss	$	(3,214	)		$	(9,376	)
Add back (less):
Interest income, net		(2,381	)			(1,819	)
Benefit from income taxes		(99	)			—
Depreciation and amortization		4,146				3,412
Stock-based compensation		4,440				7,472
Restructuring and other(1)		183				(79	)
Adjusted EBITDA	$	3,075			$	(390	)

(1)

Restructuring and other includes severance and other charges related to aligning our workforce with our strategic performance goals for the three months ended March 31, 2024, and adjustments to severance charges initially recognized during 2022 for the three months ended March 31, 2023.

The following table presents the calculation of net loss as a percentage of gross profit and the calculation of adjusted EBITDA as a percentage of contribution ex-TAC for the periods presented (unaudited; in thousands, except percentages):

	Three Months Ended March 31,
	2024				2023
Gross profit	$	23,513			$	18,383
Net loss	$	(3,214	)		$	(9,376	)
Net loss as a percentage of gross profit		(14	)%			(51	)%
Contribution ex-TAC	$	34,121			$	27,991
Adjusted EBITDA	$	3,075			$	(390	)
Adjusted EBITDA as a percentage of contribution ex-TAC		9	%			(1	)%

The following table presents a reconciliation of net loss to non-GAAP net income (loss) for the periods presented (unaudited; in thousands):

	Three Months Ended March 31,
	2024				2023
Net loss	$	(3,214	)		$	(9,376	)
Add back (less):
Stock-based compensation		4,440				7,472
Restructuring and other(1)		183				(79	)
Income tax benefit (expense) related to Viant Technology Inc.’s share of non-GAAP pre-tax income (loss)(2)		(61	)			169
Non-GAAP net income (loss)	$	1,348			$	(1,814	)

(1)		Restructuring and other includes severance and other charges related to aligning our workforce with our strategic performance goals for the three months ended March 31, 2024, and adjustments to severance charges initially recognized during 2022 for the three months ended March 31, 2023.
(2)		The estimated income tax effect of our share of non-GAAP pre-tax income (loss) for the three months ended March 31, 2024 and 2023 is calculated using assumed blended tax rates of 27% and 28%, respectively, which represent our expected corporate tax rate, excluding discrete and non-recurring tax items.

The following tables present a reconciliation of earnings (loss) per share of Class A common stock—basic and diluted to non-GAAP earnings (loss) per share of Class A common stock—basic and diluted for the periods presented (unaudited; in thousands, except per share data):

	Three Months Ended March 31, 2024												Three Months Ended March 31, 2023
	Earnings (Loss) per Share				Adjustments				Non-GAAP Earnings (Loss) per Share				Earnings (Loss) per Share				Adjustments				Non-GAAP Earnings (Loss) per Share
Numerator
Net income (loss)	$	(3,214	)		$	—			$	(3,214	)		$	(9,376	)		$	—			$	(9,376	)
Adjustments:
Add back: Stock-based compensation		—				4,440				4,440				—				7,472				7,472
Add back: Restructuring and other(1)		—				183				183				—				(79	)			(79	)
Income tax benefit (expense) related to Viant Technology Inc.'s share of non-GAAP pre-tax income (loss)(2)		—				(61	)			(61	)			—				169				169
Non-GAAP net income (loss)		(3,214	)			4,562				1,348				(9,376	)			7,562				(1,814	)
Less: Net income (loss) attributable to noncontrolling interests(3)		(2,267	)			3,348				1,081				(6,896	)			5,517				(1,379	)
Net income (loss) attributable to Viant Technology Inc.—basic		(947	)			1,214				267				(2,480	)			2,045				(435	)
Add back: Reallocation of net income (loss) attributable to noncontrolling interest from the assumed exchange of dilutive securities for Class A common stock		—				42				42				—				—				—
Income tax benefit (expense) from the assumed exchange of dilutive securities for Class A common stock		—				(12	)			(12	)			—				—				—
Net income (loss) attributable to Viant Technology Inc.—diluted	$	(947	)		$	1,244			$	297			$	(2,480	)		$	2,045			$	(435	)
Denominator
Weighted-average shares of Class A common stock outstanding —basic		15,949								15,949				14,748								14,748
Effect of dilutive securities:
Restricted stock units		—								1,897				—								—
Nonqualified stock options		—								1,034				—								—
Weighted-average shares of Class A common stock outstanding —diluted		15,949								18,880				14,748								14,748
Earnings (loss) per share of Class A common stock—basic	$	(0.06	)		$	0.08			$	0.02			$	(0.17	)		$	0.14			$	(0.03	)
Earnings (loss) per share of Class A common stock—diluted	$	(0.06	)		$	0.08			$	0.02			$	(0.17	)		$	0.14			$	(0.03	)
Anti-dilutive shares excluded from earnings (loss) per share of Class A common stock—diluted:
Restricted stock units		4,684								—				4,496								4,496
Nonqualified stock options		6,135								—				5,755								5,755
Shares of Class B common stock		46,985								46,985				47,082								47,082
Total shares excluded from earnings (loss) per share of Class A common stock—diluted		57,804								46,985				57,333								57,333

(1)		Restructuring and other includes severance and other charges related to aligning our workforce with our strategic performance goals for the three months ended March 31, 2024, and adjustments to severance charges initially recognized during 2022 for the three months ended March 31, 2023.
(2)		The estimated income tax effect of our share of non-GAAP pre-tax income (loss) for the three months ended March 31, 2024 and 2023 is calculated using assumed blended tax rates of 27% and 28%, respectively, which represent our expected corporate tax rate, excluding discrete and non-recurring tax items.
(3)		The adjustment to net income (loss) attributable to noncontrolling interests represents stock-based compensation and restructuring charges attributed to the noncontrolling interest outstanding during the period.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240430339055/en/

Media Contact:

Marielle Lyon

press@viantinc.com

Investor Contact:

Nicole Kunzman

investors@viantinc.com

Source: Viant Technology Inc.

FAQ

What were Viant Technology's first quarter financial results?

Viant Technology reported significant improvements in revenue, gross profit, and net loss for the first quarter of 2024.

What program contributed to over 50% year-over-year growth in CTV for Viant Technology?

Viant Technology's Direct Access program facilitated frictionless access to premium CTV content, driving growth in the segment.

What was the key financial highlight regarding adjusted EBITDA for Viant Technology in the first quarter?

Viant Technology showed an impressive 888% improvement in adjusted EBITDA as a percentage of contribution ex-TAC year-over-year.

What did Viant Technology's Board of Directors authorize recently?

Viant Technology's Board of Directors authorized a $50 million stock repurchase program for the company's common equity.

What are Viant Technology's revenue expectations for the second quarter of 2024?

Viant Technology expects revenue in the range of $63.5 million to $66.5 million for the second quarter of 2024.