Viant Technology (DSP) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 34% year-over-year to $79.9 million, exceeding guidance, with strong advertiser spend in healthcare, consumer goods, travel, automotive, and political sectors.

• Contribution ex-TAC rose 21% year-over-year to $47.4 million, and adjusted EBITDA increased 52% to $14.7 million, marking the seventh consecutive quarter of over 40% growth.

• Net income for Q3 2024 was $6.5 million, compared to a net loss of $0.7 million in Q3 2023, and non-GAAP net income was $12.3 million, up 61% year-over-year.

• Launched ViantAI, a fully autonomous advertising software platform, and completed the acquisition of IRIS.TV to enhance CTV targeting, measurement, and AI capabilities.

• Record CTV spend grew nearly 50% year-over-year, with streaming audio also posting strong double-digit growth.

Financial highlights

• Q3 2024 revenue: $79.9 million, up 34% year-over-year; contribution ex-TAC: $47.4 million, up 21%; adjusted EBITDA: $14.7 million, up 52% with a 31% margin.

• Net income: $6.5 million (8.1% margin), compared to a net loss of $0.7 million in Q3 2023; non-GAAP net income: $12.3 million.

• Cash and cash equivalents: $214.6 million as of September 30, 2024; working capital: $230.2 million; no debt.

• Generated $17.1 million in operating cash flow and $12.4 million in free cash flow in Q3.

• Share repurchases totaled 1.4 million shares for $14–$14.2 million YTD; $35.8–$36 million remains authorized.

Outlook and guidance

• Q4 2024 revenue expected at $82–$85 million, up 30% year-over-year; contribution ex-TAC expected at $51–$53 million, up 22% year-over-year.

• Q4 adjusted EBITDA guidance: $16–$17 million, up 27% year-over-year; margin expected at 31–32%.

• Non-GAAP operating expenses for Q4 expected at $35–$36 million (20% YoY growth at midpoint).

• Full year 2024 guidance: revenue growth of 27%, contribution ex-TAC growth of 22%, adjusted EBITDA growth of 51%.

• IRIS.TV acquisition included in Q4 guidance, expected to have limited near-term impact.