Viant Technology (DSP) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 34% year-over-year to $79.9 million, surpassing guidance, with record CTV spend and strong advertiser growth 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 fifth consecutive quarter of 20%+ year-over-year growth.

• Net income for Q3 2024 was $6.5 million, compared to a net loss of $672,000 in the prior year; non-GAAP net income was $12.3 million, up 61% year-over-year.

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

• Share repurchase program initiated, with 1.4 million shares repurchased for $14–$14.2 million; $35.8–$36 million remains authorized.

Financial highlights

• Q3 2024 revenue: $79.9 million (+34% YoY); contribution ex-TAC: $47.4 million (+21% YoY); adjusted EBITDA: $14.7 million (+52% YoY), margin 31%.

• Q3 2024 gross profit was $35.3 million, up 23% year-over-year.

• Cash and cash equivalents as of September 30, 2024 were $214.6–$215 million; working capital was $230.2 million.

• No debt outstanding; $75 million revolving credit facility undrawn.

• Free cash flow in Q3 was $12.4 million; cash flow from operations was $17 million.

Outlook and guidance

• Q4 2024 revenue expected at $82–$85 million (up 30% YoY), contribution ex-TAC at $51–$53 million (up 22% YoY), and adjusted EBITDA at $16–$17 million (margin 31–32%).

• Non-GAAP operating expenses for Q4 expected at $35–$36 million.

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

• IRIS.TV acquisition expected to have limited impact on Q4 results due to timing and size.

• Existing cash, cash flow from operations, and undrawn credit facility expected to meet cash requirements for the next 12 months.