Viant Technology (DSP) Q2 2024 earnings summary

Executive summary

• Achieved record advertiser spend in Q2 2024, surpassing previous highs, with CTV and streaming audio reaching all-time spend and representing over 50% of platform spend.

• Revenue grew 15% year-over-year to $65.9 million, with contribution ex-TAC up 23% and adjusted EBITDA increasing 41% to $9.6 million.

• Net income was $1.5 million, a turnaround from a net loss of $3.2 million in Q2 2023; non-GAAP net income rose 41% to $7.2 million.

• Growth was driven by strong performance in healthcare, consumer goods, travel, public services, and automotive sectors.

• Continued investment in AI-driven automation, platform enhancements, and expanding partnerships, including the launch of Viant AI and integration with Google Cloud's BigQuery.

Financial highlights

• Q2 2024 revenue: $65.9 million (+15% YoY); contribution ex-TAC: $41.6 million (+23% YoY); gross profit: $30.7 million (+29.7% YoY).

• Adjusted EBITDA: $9.6 million (+41% YoY), margin 23% of contribution ex-TAC, up 3 points YoY.

• Net income: $1.5 million (vs. $-3.2 million YoY); non-GAAP net income: $7.2 million (+41% YoY); non-GAAP EPS: $0.08.

• Cash and equivalents at quarter-end: $210 million; working capital: $227 million; no debt.

• Generated $14 million in operating cash flow and $10 million in free cash flow in Q2.

Outlook and guidance

• Q3 2024 revenue expected at $67.5–$70.5 million, up 16% year-over-year at midpoint.

• Q3 contribution ex-TAC guidance: $44–$46 million, up 15% year-over-year at midpoint.

• Q3 adjusted EBITDA expected at $11–$12 million, up 19% year-over-year at midpoint; margin expected at 25–26%.

• Non-GAAP operating expenses for Q3 guided at $33–$34 million, up 14% year-over-year.

• Management expects continued investment in platform operations, technology, and sales to drive long-term growth.