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Viant Technology Announces Second Quarter 2023 Financial Results

Viant Technology Inc. (Nasdaq: DSP), a leading people-based advertising technology company, today reported financial results for its second quarter ended June 30, 2023.

“We are pleased to report another quarter of strong performance, highlighted by double-digit revenue growth,” said Tim Vanderhook, Co-Founder and CEO, Viant. “New AI enhancements to our platform are improving campaign performance, prompting our customers to increase their spend. Our unique suite of omnichannel solutions position our customers for measurable campaign success across cookie-free environments, including CTV, and give us confidence in our market positioning and growth opportunities ahead.”

Second quarter 2023 Financial Highlights, year-over-year:

GAAP

  • Revenue of $57.2 million, an increase of 12%
  • Gross profit of $23.7 million, an increase of 17%
  • Net loss of $3.2 million, compared to a net loss of $14.1 million in the second quarter of 2022
  • Net loss attributable to Viant Technology Inc. of $1.1 million, or $(0.07) per diluted share of Class A common stock, compared to net loss attributable to Viant Technology Inc. of $3.4 million, or $(0.24) per diluted share of Class A common stock, in the second quarter of 2022
  • Total Class A and Class B common shares outstanding were 62.4 million as of June 30, 2023
  • Cash and cash equivalents as of June 30, 2023 was $203.9 million, with no outstanding debt

Non-GAAP(1)

  • Contribution ex-TAC of $33.7 million, an increase of 6%
  • Adjusted EBITDA of $6.8 million, compared to $(3.1) million in the second quarter of 2022
  • Adjusted EBITDA as a percentage of contribution ex-TAC of 20%
  • Non-GAAP net income of $5.1 million, compared to non-GAAP net loss of $5.9 million in the second quarter of 2022
  • Non-GAAP net income attributable to Viant Technology Inc. of $0.9 million, or $0.06 per diluted share of Class A common stock, compared to non-GAAP net loss attributable to Viant Technology Inc. of $1.2 million, or $(0.08) per diluted share of Class A common stock, in the second quarter of 2022

Business Highlights:

  • Advertiser spend per active customer(2) increased 7% year-over-year
  • Released AI-powered Bid Optimizer, driving an average CPM savings of over 35% on behalf of advertisers
  • Accelerated Direct Access program for premium publishers with the acceptance of Viant’s Prebid adapter into Prebid.org
  • AI technologies leveraged across the organization contributed to a 27% improvement in revenue per employee

“Our revenue and adjusted EBITDA again exceeded expectations driven by a combination of our differentiated platform capabilities, strong execution, and disciplined cost management,” said Larry Madden, CFO, Viant. “We are pleased to have generated a 30-point year-over-year improvement in adjusted EBITDA as a percentage of contribution ex-TAC this quarter and remain focused on growing our market share and expanding margins as we look to the second half of the year.”

Guidance:

For the third quarter 2023, the Company expects:

  • Revenue in the range of $56.0 million to $59.0 million
  • Contribution ex-TAC in the range of $35.0 million to $37.0 million
  • Non-GAAP operating expenses in the range of $28.5 million to $29.5 million
  • Adjusted EBITDA in the range of $6.5 million to $7.5 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, and 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 measures and effects of our stock-based compensation related to equity grants that are directly impacted by unpredictable fluctuations in our share price, as well as the impact of future traffic acquisition costs and other platform operations expenses that we are unable to forecast in light of the current macroeconomic environment. We expect the variability of the above charges could have a significant and potentially unpredictable impact on our future GAAP financial results.

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 June 30, 2023, there were 15.3 million shares of the Company's Class A common stock outstanding and 47.1 million shares of the Company's Class B common stock outstanding. For more information, please refer to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023.

Conference Call and Webcast Details:

Viant will host a conference call and webcast to discuss its financial results on Monday, August 7, 2023 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 people-based, 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, Adelphic®, 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 Adricity® carbon reduction program helps clients achieve their sustainability goals. In 2023, Viant was recognized 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 were also recently named EY Entrepreneurs of the Year. 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 Viant’s positioning to capitalize on market share and Viant’s plan to continue to capitalize on the shift to omnichannel programmatic advertising. 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 and the ability to attract and retain customers 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. 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. Investors are referred to our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K 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.

(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.

(2) We define advertiser spend across our platform as the total amount billed to our customers for activity on our platform, inclusive of the costs of advertising media, third-party data, other add-on features and our platform fee we charge customers. We define an active customer as a customer that had total aggregate contribution ex-TAC of at least $5,000 through our platform during the previous twelve months. Advertiser spend per active customer is an operational metric defined as advertiser spend for the trailing twelve-month period presented divided by active customers. See “Operational Metrics” for a discussion of how we use this metric and why it is useful to investors.

 

VIANT TECHNOLOGY INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited; in thousands, except per share data)

 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Revenue

$

57,223

 

 

$

51,200

 

 

$

98,943

 

 

$

93,829

 

Operating expenses(1):

 

 

 

 

 

 

 

Platform operations

 

33,523

 

 

 

30,950

 

 

 

56,860

 

 

 

57,144

 

Sales and marketing

 

11,691

 

 

 

17,286

 

 

 

23,860

 

 

 

31,042

 

Technology and development

 

6,172

 

 

 

5,011

 

 

 

12,066

 

 

 

10,014

 

General and administrative

 

11,088

 

 

 

11,725

 

 

 

22,516

 

 

 

22,808

 

Total operating expenses

 

62,474

 

 

 

64,972

 

 

 

115,302

 

 

 

121,008

 

Loss from operations

 

(5,251

)

 

 

(13,772

)

 

 

(16,359

)

 

 

(27,179

)

Interest expense (income), net

 

(2,049

)

 

 

21

 

 

 

(3,868

)

 

 

173

 

Other expense, net

 

1

 

 

 

299

 

 

 

88

 

 

 

303

 

Total other expense (income), net

 

(2,048

)

 

 

320

 

 

 

(3,780

)

 

 

476

 

Net loss

 

(3,203

)

 

 

(14,092

)

 

 

(12,579

)

 

 

(27,655

)

Less: Net loss attributable to noncontrolling interests

 

(2,140

)

 

 

(10,691

)

 

 

(9,036

)

 

 

(21,062

)

Net loss attributable to Viant Technology Inc.

$

(1,063

)

 

$

(3,401

)

 

$

(3,543

)

 

$

(6,593

)

Loss per share of Class A common stock:

 

 

 

 

 

 

 

Basic

$

(0.07

)

 

$

(0.24

)

 

$

(0.24

)

 

$

(0.47

)

Diluted

$

(0.07

)

 

$

(0.24

)

 

$

(0.24

)

 

$

(0.47

)

Weighted-average shares of Class A common stock outstanding:

 

 

 

 

 

 

 

Basic

 

15,135

 

 

 

14,114

 

 

 

14,943

 

 

 

13,962

 

Diluted

 

15,135

 

 

 

14,114

 

 

 

14,943

 

 

 

13,962

 

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

 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

 

2023

 

 

2022

 

 

2023

 

 

2022

Stock-based compensation:

 

 

 

 

 

 

 

Platform operations

$

1,124

 

$

1,303

 

$

2,016

 

$

2,389

Sales and marketing

 

2,520

 

 

2,426

 

 

5,032

 

 

4,605

Technology and development

 

1,507

 

 

1,425

 

 

2,834

 

 

2,594

General and administrative

 

3,378

 

 

2,614

 

 

6,119

 

 

4,556

Total

$

8,529

 

$

7,768

 

$

16,001

 

$

14,144

 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

 

2023

 

 

2022

 

 

2023

 

 

2022

Depreciation and amortization:

 

 

 

 

 

 

 

Platform operations

$

2,910

 

$

2,748

 

$

5,680

 

$

5,059

Sales and marketing

 

 

 

 

 

 

 

Technology and development

 

383

 

 

223

 

 

776

 

 

818

General and administrative

 

246

 

 

255

 

 

495

 

 

503

Total

$

3,539

 

$

3,226

 

$

6,951

 

$

6,380

 

VIANT TECHNOLOGY INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited; in thousands, except share and per share data)

 

 

As of

June 30,

 

As of

December 31,

 

 

2023

 

 

 

2022

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

203,901

 

 

$

206,573

 

Accounts receivable, net of allowances

 

89,967

 

 

 

101,658

 

Prepaid expenses and other current assets

 

4,190

 

 

 

6,631

 

Total current assets

 

298,058

 

 

 

314,862

 

Property, equipment, and software, net

 

25,829

 

 

 

23,106

 

Operating lease assets

 

24,715

 

 

 

26,441

 

Intangible assets, net

 

405

 

 

 

667

 

Goodwill

 

12,422

 

 

 

12,422

 

Other assets

 

26

 

 

 

385

 

Total assets

$

361,455

 

 

$

377,883

 

Liabilities and stockholders’ equity

 

 

 

Liabilities

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

31,765

 

 

$

37,063

 

Accrued liabilities

 

29,831

 

 

 

35,063

 

Accrued compensation

 

5,878

 

 

 

9,162

 

Current portion of deferred revenue

 

180

 

 

 

123

 

Current portion of operating lease liabilities

 

3,918

 

 

 

3,711

 

Other current liabilities

 

2,494

 

 

 

1,995

 

Total current liabilities

 

74,066

 

 

 

87,117

 

Long-term debt

 

 

 

 

 

Long-term portion of operating lease liabilities

 

23,334

 

 

 

24,998

 

Total liabilities

 

97,400

 

 

 

112,115

 

Commitments and contingencies (Note 13)

 

 

 

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 — 15,598,505 and 14,783,886

 

 

 

Outstanding — 15,342,563 and 14,643,798

 

16

 

 

 

15

 

Class B common stock, $0.001 par value

 

 

 

Authorized shares — 150,000,000

 

 

 

Issued and outstanding — 47,082,260 and 47,082,260

 

47

 

 

 

47

 

Additional paid-in capital

 

102,885

 

 

 

95,922

 

Accumulated deficit

 

(41,636

)

 

 

(36,261

)

Treasury stock, at cost; 255,942 and 140,088 shares held

 

(1,074

)

 

 

(475

)

Total stockholders’ equity attributable to Viant Technology Inc.

 

60,238

 

 

 

59,248

 

Noncontrolling interests

 

203,817

 

 

 

206,520

 

Total equity

 

264,055

 

 

 

265,768

 

Total liabilities and stockholders’ equity

$

361,455

 

 

$

377,883

 

 

VIANT TECHNOLOGY INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited; in thousands)

 

 

Six Months Ended

June 30,

 

 

2023

 

 

 

2022

 

Cash flows from operating activities:

 

 

 

Net loss

$

(12,579

)

 

$

(27,655

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

Depreciation and amortization

 

6,951

 

 

 

6,380

 

Stock-based compensation

 

16,001

 

 

 

14,144

 

Provision for doubtful accounts

 

49

 

 

 

51

 

Loss on disposal of assets

 

104

 

 

 

305

 

Noncash lease expense

 

1,940

 

 

 

1,311

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

11,433

 

 

 

17,206

 

Prepaid expenses and other assets

 

2,799

 

 

 

65

 

Accounts payable

 

(5,554

)

 

 

(4,652

)

Accrued liabilities

 

(5,187

)

 

 

(2,528

)

Accrued compensation

 

(3,206

)

 

 

(4,607

)

Deferred revenue

 

57

 

 

 

(6,486

)

Operating lease liabilities

 

(1,671

)

 

 

(957

)

Other liabilities

 

(282

)

 

 

(1,096

)

Net cash provided by (used in) operating activities

 

10,855

 

 

 

(8,519

)

Cash flows from investing activities:

 

 

 

Purchases of property and equipment

 

(348

)

 

 

(397

)

Capitalized software development costs

 

(6,114

)

 

 

(3,941

)

Net cash used in investing activities

 

(6,462

)

 

 

(4,338

)

Cash flows from financing activities:

 

 

 

Taxes paid related to net share settlement of equity awards

 

(2,222

)

 

 

(861

)

Payment of member tax distributions

 

(4,843

)

 

 

(14

)

Repayment of revolving credit facility

 

 

 

 

(17,500

)

Net cash used in financing activities

 

(7,065

)

 

 

(18,375

)

Net decrease in cash and cash equivalents

 

(2,672

)

 

 

(31,232

)

Cash and cash equivalents at beginning of period

 

206,573

 

 

 

238,480

 

Cash and cash equivalents at end of period

$

203,901

 

 

$

207,248

 

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 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 quarterly and annual 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 depreciation, amortization, stock-based compensation, TAC 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 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.

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 charges, transaction expenses and the extinguishment of debt. 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 charges, transaction expenses, and the extinguishment of debt. 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, gain on extinguishment of debt 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 in understanding and evaluating 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

June 30,

 

Six Months Ended

June 30,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Revenue

$

57,223

 

 

$

51,200

 

 

$

98,943

 

 

$

93,829

 

Less: Platform operations

 

(33,523

)

 

 

(30,950

)

 

 

(56,860

)

 

 

(57,144

)

Gross profit

 

23,700

 

 

 

20,250

 

 

 

42,083

 

 

 

36,685

 

Add: Other platform operations

 

9,988

 

 

 

11,485

 

 

 

19,596

 

 

 

22,594

 

Contribution ex-TAC

$

33,688

 

 

$

31,735

 

 

$

61,679

 

 

$

59,279

 

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

June 30,

 

Six Months Ended

June 30,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Operating expenses:

 

 

 

 

 

 

 

Platform operations

$

33,523

 

 

$

30,950

 

 

$

56,860

 

 

$

57,144

 

Sales and marketing

 

11,691

 

 

 

17,286

 

 

 

23,860

 

 

 

31,042

 

Technology and development

 

6,172

 

 

 

5,011

 

 

 

12,066

 

 

 

10,014

 

General and administrative

 

11,088

 

 

 

11,725

 

 

 

22,516

 

 

 

22,808

 

Total operating expenses

 

62,474

 

 

 

64,972

 

 

 

115,302

 

 

 

121,008

 

Add:

 

 

 

 

 

 

 

Other expense, net

 

1

 

 

 

299

 

 

 

88

 

 

 

303

 

Less:

 

 

 

 

 

 

 

Traffic acquisition costs

 

(23,535

)

 

 

(19,465

)

 

 

(37,264

)

 

 

(34,550

)

Stock-based compensation

 

(8,529

)

 

 

(7,768

)

 

 

(16,001

)

 

 

(14,144

)

Depreciation and amortization

 

(3,539

)

 

 

(3,226

)

 

 

(6,951

)

 

 

(6,380

)

Restructuring(1)

 

 

 

 

 

 

 

79

 

 

 

 

Non-GAAP operating expenses

$

26,872

 

 

$

34,812

 

 

$

55,253

 

 

$

66,237

 

 

(1) Restructuring includes adjustments to severance charges initially recognized during the prior year.

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

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Net loss

$

(3,203

)

 

$

(14,092

)

 

$

(12,579

)

 

$

(27,655

)

Add back:

 

 

 

 

 

 

 

Interest expense (income), net

 

(2,049

)

 

 

21

 

 

 

(3,868

)

 

 

173

 

Depreciation and amortization

 

3,539

 

 

 

3,226

 

 

 

6,951

 

 

 

6,380

 

Stock-based compensation

 

8,529

 

 

 

7,768

 

 

 

16,001

 

 

 

14,144

 

Restructuring(1)

 

 

 

 

 

 

 

(79

)

 

 

 

Adjusted EBITDA

$

6,816

 

 

$

(3,077

)

 

$

6,426

 

 

$

(6,958

)

 

(1) Restructuring includes adjustments to severance charges initially recognized during the prior year.

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

June 30,

 

Six Months Ended

June 30,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Gross profit

$

23,700

 

 

$

20,250

 

 

$

42,083

 

 

$

36,685

 

Net loss

$

(3,203

)

 

$

(14,092

)

 

$

(12,579

)

 

$

(27,655

)

Net loss as a percentage of gross profit

 

(14

)%

 

 

(70

)%

 

 

(30

)%

 

 

(75

)%

Contribution ex-TAC

$

33,688

 

 

$

31,735

 

 

$

61,679

 

 

$

59,279

 

Adjusted EBITDA

$

6,816

 

 

$

(3,077

)

 

$

6,426

 

 

$

(6,958

)

Adjusted EBITDA as a percentage of contribution ex-TAC

 

20

%

 

 

(10

)%

 

 

10

%

 

 

(12

)%

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

June 30,

 

Six Months Ended

June 30,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Net loss

$

(3,203

)

 

$

(14,092

)

 

$

(12,579

)

 

$

(27,655

)

Add back: Stock-based compensation

 

8,529

 

 

 

7,768

 

 

 

16,001

 

 

 

14,144

 

Add back: Restructuring(1)

 

 

 

 

 

 

 

(79

)

 

 

 

Less: Income tax benefit (expense) related to Viant Technology Inc.’s share of adjustments(2)

 

(231

)

 

 

390

 

 

 

(107

)

 

 

809

 

Non-GAAP net income (loss)

$

5,095

 

 

$

(5,934

)

 

$

3,236

 

 

$

(12,702

)

(1)

 

Restructuring includes adjustments to severance charges initially recognized during the prior year.

(2)

 

The estimated income tax effect of our share of non-GAAP reconciling items for the three and six months ended June 30, 2023 and 2022 are calculated using assumed blended tax rates of 20% and 25%, 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

June 30, 2023

 

Three Months Ended

June 30, 2022

 

Earnings

(Loss) per

Share

 

Adjustments

 

Non-GAAP

Earnings (Loss)

per Share

 

Earnings

(Loss) per

Share

 

Adjustments

 

Non-GAAP

Earnings (Loss)

per Share

Numerator

 

 

 

 

 

 

 

 

 

 

 

Net loss

$

(3,203

)

 

$

 

 

$

(3,203

)

 

$

(14,092

)

 

$

 

$

(14,092

)

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

Add back: Stock-based compensation

 

 

 

 

8,529

 

 

 

8,529

 

 

 

 

 

 

7,768

 

 

7,768

 

Income tax benefit (expense) related to Viant Technology Inc.'s share of adjustments(1)

 

 

 

 

(231

)

 

 

(231

)

 

 

 

 

 

390

 

 

390

 

Non-GAAP net income (loss)

 

(3,203

)

 

 

8,298

 

 

 

5,095

 

 

 

(14,092

)

 

 

8,158

 

 

(5,934

)

Less: Net income (loss) attributable to noncontrolling interests(2)

 

(2,140

)

 

 

6,341

 

 

 

4,201

 

 

 

(10,691

)

 

 

5,952

 

 

(4,739

)

Net income (loss) attributable to Viant Technology Inc.—basic

 

(1,063

)

 

 

1,957

 

 

 

894

 

 

 

(3,401

)

 

 

2,206

 

 

(1,195

)

Add back: Reallocation of net loss attributable to noncontrolling interest from the assumed exchange of RSUs for Class A common stock

 

 

 

 

17

 

 

 

17

 

 

 

 

 

 

 

 

 

Income tax benefit (expense) from the assumed exchange of RSUs for Class A common stock

 

 

 

 

(3

)

 

 

(3

)

 

 

 

 

 

 

 

 

Net income (loss) attributable to Viant Technology Inc.—diluted

$

(1,063

)

 

$

1,971

 

 

$

908

 

 

$

(3,401

)

 

$

2,206

 

$

(1,195

)

Denominator

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares of Class A common stock outstanding —basic

 

15,135

 

 

 

 

 

15,135

 

 

 

14,114

 

 

 

 

 

14,114

 

Effect of dilutive securities:

 

 

 

 

 

 

 

 

 

 

 

Restricted stock units

 

 

 

 

 

 

220

 

 

 

 

 

 

 

 

 

Weighted-average shares of Class A common stock outstanding —diluted

 

15,135

 

 

 

 

 

15,355

 

 

 

14,114

 

 

 

 

 

14,114

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share of Class A common stock—basic

$

(0.07

)

 

$

0.13

 

 

$

0.06

 

 

$

(0.24

)

 

$

0.16

 

$

(0.08

)

Earnings (loss) per share of Class A common stock—diluted

$

(0.07

)

 

$

0.13

 

 

$

0.06

 

 

$

(0.24

)

 

$

0.16

 

$

(0.08

)

 

 

 

 

 

 

 

 

 

 

 

 

Anti-dilutive shares excluded from earnings (loss) per share of Class A common stock—diluted:

 

 

 

 

 

 

 

 

 

 

 

Restricted stock units

 

4,240

 

 

 

 

 

 

 

 

4,781

 

 

 

 

 

4,781

 

Nonqualified stock options

 

5,763

 

 

 

 

 

5,763

 

 

 

3,898

 

 

 

 

 

3,898

 

Shares of Class B common stock

 

47,082

 

 

 

 

 

47,082

 

 

 

47,082

 

 

 

 

 

47,082

 

Total shares excluded from earnings (loss) per share of Class A common stock—diluted

 

57,085

 

 

 

 

 

52,845

 

 

 

55,761

 

 

 

 

 

55,761

 

 

(1)

 

The estimated income tax effect of our share of non-GAAP reconciling items for the three months ended June 30, 2023 and 2022 are calculated using assumed blended tax rates of 20% and 25%, respectively, which represent our expected corporate tax rate, excluding discrete and non-recurring tax items.

 

(2)

 

The adjustment to net income (loss) attributable to noncontrolling interests represents stock-based compensation attributed to the noncontrolling interest outstanding during the period.

 

 

Six Months Ended

June 30, 2023

 

Six Months Ended

June 30, 2022

 

Earnings

(Loss) per

Share

 

Adjustments

 

Non-GAAP

Earnings (Loss)

per Share

 

Earnings

(Loss) per

Share

 

Adjustments

 

Non-GAAP

Earnings (Loss)

per Share

Numerator

 

 

 

 

 

 

 

 

 

 

 

Net loss

$

(12,579

)

 

$

 

 

$

(12,579

)

 

$

(27,655

)

 

$

 

$

(27,655

)

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

Add back: Stock-based compensation

 

 

 

 

16,001

 

 

 

16,001

 

 

 

 

 

 

14,144

 

 

14,144

 

Add back: Restructuring(1)

 

 

`

 

(79

)

 

 

(79

)

 

 

 

 

 

 

 

 

Income tax benefit (expense) related to Viant Technology Inc.'s share of adjustments (2)

 

 

 

 

(107

)

 

 

(107

)

 

 

 

 

 

809

 

 

809

 

Non-GAAP net income (loss)

 

(12,579

)

 

 

15,815

 

 

 

3,236

 

 

 

(27,655

)

 

 

14,953

 

 

(12,702

)

Less: Net income (loss) attributable to noncontrolling interests (3)

 

(9,036

)

 

 

11,858

 

 

 

2,822

 

 

 

(21,062

)

 

 

10,838

 

 

(10,224

)

Net income (loss) attributable to Viant Technology Inc.—basic

 

(3,543

)

 

 

3,957

 

 

 

414

 

 

 

(6,593

)

 

 

4,115

 

 

(2,478

)

Add back: Reallocation of net loss attributable to noncontrolling interest from the assumed exchange of RSUs for Class A common stock

 

 

 

 

16

 

 

 

16

 

 

 

 

 

 

 

 

 

Income tax benefit (expense) from the assumed exchange of RSUs for Class A common stock

 

 

 

 

(3

)

 

 

(3

)

 

 

 

 

 

 

 

 

Net income (loss) attributable to Viant Technology Inc.—diluted

$

(3,543

)

 

$

3,970

 

 

$

427

 

 

$

(6,593

)

 

$

4,115

 

$

(2,478

)

Denominator

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares of Class A common stock outstanding —basic

 

14,943

 

 

 

 

 

14,943

 

 

 

13,962

 

 

 

 

 

13,962

 

Effect of dilutive securities:

 

 

 

 

 

 

 

 

 

 

 

Restricted stock units

 

 

 

 

 

 

136

 

 

 

 

 

 

 

 

 

Weighted-average shares of Class A common stock outstanding —diluted

 

14,943

 

 

 

 

 

15,079

 

 

 

13,962

 

 

 

 

 

13,962

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share of Class A common stock—basic

$

(0.24

)

 

$

0.27

 

 

$

0.03

 

 

$

(0.47

)

 

$

0.29

 

$

(0.18

)

Earnings (loss) per share of Class A common stock—diluted

$

(0.24

)

 

$

0.27

 

 

$

0.03

 

 

$

(0.47

)

 

$

0.29

 

$

(0.18

)

 

 

 

 

 

 

 

 

 

 

 

 

Anti-dilutive shares excluded from earnings (loss) per share of Class A common stock—diluted:

 

 

 

 

 

 

 

 

 

 

 

Restricted stock units

 

4,240

 

 

 

 

 

 

 

 

4,781

 

 

 

 

 

4,781

 

Nonqualified stock options

 

5,763

 

 

 

 

 

5,763

 

 

 

3,898

 

 

 

 

 

3,898

 

Shares of Class B common stock

 

47,082

 

 

 

 

 

47,082

 

 

 

47,082

 

 

 

 

 

47,082

 

Total shares excluded from earnings (loss) per share of Class A common stock—diluted

 

57,085

 

 

 

 

 

52,845

 

 

 

55,761

 

 

 

 

 

55,761

 

 

(1)

 

Restructuring includes adjustments to severance charges initially recognized during the prior year.

 

(2)

 

The estimated income tax effect of our share of non-GAAP reconciling items for the six months ended June 30, 2023 and 2022 are calculated using assumed blended tax rates of 20% and 25%, 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.

Operational Metrics

We have also included the following operational metrics in this press release: Advertiser spend and active customers.

We define advertiser spend across our platform as the total amount billed to our customers for activity on our platform inclusive of the costs of advertising media, third-party data, other add-on features and our platform fee we charge customers. We evaluate our customers’ usage of our platform and assess our market penetration and scale based on the percentage change in advertiser spend. The percentage change in advertiser spend is a key measure used by our management and our board of directors to evaluate the demand for our products and to assess whether we are increasing market share. Our management uses this key metric to develop short- and long-term operational plans and make strategic decisions regarding future enhancements to our software. We believe the percentage change in advertiser spend across our platform is a useful metric for investors because it allows investors to evaluate our operational performance in the same manner as our management and board of directors.

We define an active customer as a customer that had total aggregate contribution ex-TAC of at least $5,000 through our platform during the previous twelve months. For purposes of this definition, a customer that operates under any of our pricing options that equals or exceeds the aforementioned contribution ex-TAC threshold is considered an active customer. Active customers is an operational metric calculated using contribution ex-TAC, a non-GAAP financial measure. Active customers is a key 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 future enhancements to our platform. We believe active customers is a useful metric for investors because it allows investors to evaluate the Company’s operational performance in the same manner as our management and board of directors.

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