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01/11 03:17
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call summary and Q&A reveal a positive outlook with strong growth in CTV and AI Decisioning, a unique market position, and a large pipeline of opportunities. Despite a slight EBITDA decline, sequential growth and strategic partnerships like Molson Coors signal potential upside. The market's reaction should be positive, though not overwhelmingly so, due to some uncertainties in proprietary spend details and pipeline conversion.
Revenue Revenue for the quarter was $85.6 million, representing a 7% increase year-over-year. Excluding political ad spend and the departure of a seasonal advertiser, revenue increased 19% year-over-year. Growth was driven by new customer wins, accelerating CTV demand, a surge in streaming audio demand, greater adoption of Viant's addressability solutions, and the expanded use of the ViantAI product suite.
Contribution ex-TAC Contribution ex-TAC totaled $53 million in Q3, up 12% compared to the prior year period. Excluding political ad spend and the departure of a seasonal advertiser, contribution ex-TAC increased 22% year-over-year. Growth was attributed to strong performance in CTV and the adoption of addressability solutions like Household ID and IRIS_ID.
Adjusted EBITDA Adjusted EBITDA increased 9% year-over-year to $16 million for the quarter. This growth was driven by disciplined expense management and strong operational efficiency, as evidenced by a 7% year-over-year increase in contribution ex-TAC per employee.
CTV Ad Spend CTV ad spend on the platform reached a new all-time high, representing 46% of total advertiser spend on the platform. This growth was driven by increasing adoption of addressability solutions and the direct access premium publisher program.
Emerging Digital Channels Spend across emerging digital channels, including CTV, streaming audio, and digital out-of-home, collectively represented approximately 56% of total platform spend in Q3, up from 50% in 2024 and 43% in 2023. This highlights the accelerating adoption of next-generation media formats.
Video Ad Spend Video ad spend, inclusive of CTV, reached a record high of 62% of total platform spend in the quarter, reflecting a continued shift towards high-impact measurable formats.
Non-GAAP Operating Expenses Non-GAAP operating expenses totaled $37 million in the third quarter, representing a 13% year-over-year increase. Excluding acquisitions, organic non-GAAP operating expenses increased 7% year-over-year, reflecting disciplined expense management.
Non-GAAP Net Income Non-GAAP net income totaled $11.2 million for the quarter, down 9% from $12.3 million in the prior year. The decline was primarily due to lower interest income and higher income tax expense in the current period.
ViantAI product suite: Expanded with three out of four phases rolled out, including AI Bidding, AI Planning, and AI Measurement and Analysis. AI Decisioning to launch by year-end, enabling dynamic spend deployment and real-time campaign adjustments.
CTV and streaming audio: Achieved record high ad spend, with CTV accounting for 46% of total advertiser spend. Expanded partnerships with premium publishers like Disney+, Paramount+, and Tubi.
IRIS_ID: Tripled presence in the CTV bid stream within a year, enabling scene-level targeting and achieving a 48% increase in conversion rates for advertisers.
Molson Coors partnership: Secured a flagship multiyear partnership to power programmatic ad campaigns across the U.S. starting in 2026, leveraging Viant's autonomous ad platform.
Retail media networks: Expanded partnerships with major retailers to utilize first-party data for targeted advertising, driving sales growth.
Revenue and contribution ex-TAC: Revenue increased 7% YoY to $85.6 million, and contribution ex-TAC grew 12% YoY to $53 million, excluding political ad spend and seasonal advertiser impact.
Adjusted EBITDA: Increased 9% YoY to $16 million, surpassing guidance.
Operational efficiency: Improved contribution ex-TAC per employee by over 7% YoY.
Expansion into performance advertisers: Launching AI Decisioning to target performance advertisers, including SMBs and e-commerce companies, representing a $240 billion market opportunity.
Mid-market dominance: Continued strong growth in mid-market segment, with 22% YoY growth in contribution ex-TAC after adjustments.
Market Conditions: Potential headwinds from political ad spend fluctuations, which impacted revenue growth by 600 basis points and contribution ex-TAC growth by 500 basis points in Q4 2025. This indicates sensitivity to external market conditions.
Competitive Pressures: Viant faces competition from larger players like Google, Amazon, and The Trade Desk, which have integrated platforms and direct spend channels that could limit Viant's market share.
Regulatory Hurdles: No explicit mention of regulatory challenges in the transcript.
Supply Chain Disruptions: No explicit mention of supply chain disruptions in the transcript.
Economic Uncertainties: The company is exposed to broader economic uncertainties that could impact advertiser budgets, particularly in the mid-market and performance advertiser segments.
Strategic Execution Risks: The success of new initiatives like ViantAI and the Molson Coors partnership depends on effective execution and adoption by advertisers. Failure to deliver measurable outcomes could harm the company's reputation and growth.
Q4 2025 Revenue Guidance: Revenue is expected to be between $101.5 million and $104.5 million, representing a 14% year-over-year increase and 20% sequential growth at the midpoint. Excluding political ad spend impact, revenue is projected to grow 20% year-over-year on a pro forma basis.
Q4 2025 Contribution ex-TAC Guidance: Contribution ex-TAC is expected to range from $62 million to $64 million, reflecting 16% year-over-year growth and 19% sequential growth at the midpoint. Excluding political ad spend impact, contribution ex-TAC is projected to grow 21% year-over-year on a pro forma basis.
Q4 2025 Adjusted EBITDA Guidance: Adjusted EBITDA is projected to be between $22.5 million and $23.5 million, representing a 35% year-over-year increase and a 44% sequential increase at the midpoint. Adjusted EBITDA margin as a percentage of contribution ex-TAC is expected to be 37% at the midpoint, an improvement of over 500 basis points year-over-year.
Full Year 2025 Financial Projections: Revenue and contribution ex-TAC are expected to grow by 17%, adjusted EBITDA by 25%, and adjusted EBITDA margins to improve by nearly 200 basis points year-over-year to 27%. Excluding temporary headwinds, full-year revenue and contribution ex-TAC growth are projected at 22% on a pro forma basis.
2026 Financial Outlook: Accelerating year-over-year growth in revenue and contribution ex-TAC is anticipated throughout 2026, driven by new client onboarding. Significant spending from the Molson Coors partnership is expected to commence in Q2 2026. Non-GAAP operating expenses are projected to grow at a lower rate in 2026 compared to 2025, leading to significant EBITDA margin expansion.
Share Repurchase Program: Since launching the share repurchase program in May 2024, Viant has returned $59.6 million to shareholders, including $10 million in Q3 and $37.9 million year-to-date through November 7. In total, since inception, 4.8 million shares have been repurchased at an average price of $12.42. As of November 7, approximately $40.4 million remains available under the current authorization. The company intends to continue executing this program opportunistically, particularly during periods when the stock is undervalued.
The earnings call summary and Q&A reveal a positive outlook with strong growth in CTV and AI Decisioning, a unique market position, and a large pipeline of opportunities. Despite a slight EBITDA decline, sequential growth and strategic partnerships like Molson Coors signal potential upside. The market's reaction should be positive, though not overwhelmingly so, due to some uncertainties in proprietary spend details and pipeline conversion.
The earnings call summary indicates strong financial performance with record high revenue, increased cash flow, and a share repurchase program, reflecting confidence in long-term value. The Q&A highlights minimal impact from a lost client, strategic investments in AI, and a shift to target larger customers, suggesting growth potential. However, management's avoidance of a specific revenue growth question slightly tempers sentiment. Overall, the positive guidance, strong financial metrics, and strategic initiatives support a positive stock price reaction in the short term.
Viant's strong financial performance, particularly the 32% revenue growth and 76% increase in EBITDA, coupled with optimistic guidance, suggests a positive outlook. The share repurchase program further boosts investor confidence. Despite some supply chain challenges, the company's focus on CTV and unique offerings like Household ID provide a competitive edge. Although management was vague on tariff impacts, the overall sentiment remains positive, with robust growth in key areas and strategic initiatives likely to drive stock price upwards.
Viant reported strong financial performance with a 32% revenue increase and 76% EBITDA growth, indicating operational efficiency and strategic success. The share repurchase program further boosts shareholder confidence. Despite macroeconomic uncertainties, the company shows resilience with a strong CTV demand and increased customer interest in AI solutions. The Q&A reveals confidence in future spend materializing and a strong competitive position against major players. Thus, the overall sentiment is positive, anticipating a 2% to 8% stock price increase over the next two weeks.
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