Release Date: August 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Record advertiser spend on the platform, surpassing the seasonally strong Q4 of 2023.
- Revenue in Q2 grew 15% year-over-year, with contribution ex-TAC increasing by 23%.
- Adjusted EBITDA rose by 41% year-over-year to $9.6 million.
- Strong momentum in CTV and streaming audio channels, with CTV spend growing over 40% year-over-year.
- Introduction of ViantAI, a rebranded suite of AI products aimed at revolutionizing digital ad campaigns.
Negative Points
- Continued reliance on a small number of large customers, which could pose a risk if any major client reduces spend.
- Ongoing industry challenges with centralized power exerted by a few large players, such as Google.
- Potential uncertainty and market shifts due to Google's announcement to reverse course on cookie deprecation.
- High competition in the ad-tech space, particularly from established players like Trade Desk and Google.
- Challenges in raising awareness and adoption of their political advertising products, which may limit growth in that segment.
Q & A Highlights
Q: Can you give a sense of the penetration rates you're seeing with AI-enabled services among your clients right now?
A: Currently, it has been solution by solution. We talked about the second generation of Bid Optimizer, now up to 65% of all impressions, and we've seen tremendous adoption there. When we complete the autonomous side at some point in 2025, the idea is that they're all working together. β Tim Vanderhook, CEO
Q: How do you see your role potentially in Netflix's ad-tech stack as they build out their ads business?
A: We'll remain on the buy side and have access through partners like Magnite. In the US, Netflix's ad base isn't very scaled yet, but as they grow, we'll likely see more demand from our customers. β Tim Vanderhook, CEO
Q: Any pushback from advertisers on adopting AI or autonomous solutions?
A: The main concern is trust and proving customer value upfront. For example, Bid Optimizer showed significant savings, which increased adoption. Customers want to ensure accuracy, especially with products like Chat with Data. β Tim Vanderhook, CEO and Christopher Vanderhook, COO
Q: How does the increasing dissatisfaction with the largest industry players impact Viant's opportunity?
A: Advertisers are looking for tools that automate processes and drive efficiency. Our focus on the mid-market and providing cost savings and better performance makes us a strong alternative. β Tim Vanderhook, CEO and Christopher Vanderhook, COO
Q: Why are clients choosing Viant over other large players like Trade Desk?
A: Our mid-market focus, data-driven approach, and products that drive efficiency and campaign performance are key differentiators. Our Household ID technology also offers superior scalability and productivity. β Tim Vanderhook, CEO and Christopher Vanderhook, COO
Q: Are you seeing downward pressure on CPMs in connected television (CTV)?
A: No noticeable downward pressure on CPMs for premium CTV content. While there might be some pressure in open exchange, premium content CPMs have remained consistent. β Christopher Vanderhook, COO and Tim Vanderhook, CEO
Q: How has Google's announcement on third-party cookies impacted your sales pipeline?
A: The pipeline remains robust as advertisers were already looking for alternatives. Less than 10% of our media spend relies on cookies, so the impact is minimal. β Tim Vanderhook, CEO and Christopher Vanderhook, COO
Q: What is the potential benefit from political advertising in your Q3 guide and for Q4?
A: Historically, political advertising represents about 2-3% of second-half spend during election cycles. We haven't assumed a significant increase in our Q3 guide but expect some impact in Q4. β Tim Vanderhook, CEO and Lawrence Madden, CFO
Q: How does the Viant data platform and greater adoption impact the P&L?
A: Clean room matching replaces cookie syncs, making data interoperable. This drives better measurement and increases contribution ex-TAC over time with adoption. β Tim Vanderhook, CEO and Christopher Vanderhook, COO
Q: What are the key investment areas for 2025?
A: Investments will focus on engineering, product, sales, and AI initiatives. Expect low double-digit growth in overhead, consistent with 2024 trends. β Lawrence Madden, CFO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
