• Viant Technology Announces Second Quarter 2021 Financial Results

    المصدر: Nasdaq GlobeNewswire / 12 أغسطس 2021 16:05:02   America/New_York

    IRVINE, Calif., Aug. 12, 2021 (GLOBE NEWSWIRE) -- Viant Technology Inc. (NASDAQ: DSP), a leading people-based advertising software company, today announced financial results for its second quarter ended June 30, 2021.

    “We had a very strong second quarter, highlighted by revenue growth of 66% and continued momentum with Connected TV, which more than doubled year-over-year,” said Tim Vanderhook, co-founder and CEO of Viant. “Our people-based approach to digital advertising and patented Household Identification technology remain key differentiators that attract customers to our platform as they look to drive tangible ROI from their marketing investments. We are encouraged by the momentum we are seeing across our business and are raising guidance for the full year across all key metrics.”

    Second Quarter 2021 Financial Highlights:

    • Revenue: Revenue was $50.4 million, an increase of 66% year-over-year.
    • Gross Profit: Gross Profit was $18.7 million, an increase of 58% year-over-year.
    • Contribution ex-TAC: Contribution ex-TAC was $32.2 million, an increase of 61% year-over-year.(1)
    • Net Loss: Net Loss was $18.1 million, or ($0.32) per diluted share of Class A common stock in the second quarter, compared to Net Loss of $0.03 million for the same period in 2020.
    • Non-GAAP Net Income: Non-GAAP Net Income was $5.2 million, or $0.06 per diluted share of Class A common stock in the second quarter of 2021.(1)
    • Adjusted EBITDA: Adjusted EBITDA was $8.3 million, an increase of 203% versus $2.8 million for the same period in 2020.(1)
    • Adjusted EBITDA margin: Adjusted EBITDA margin as a percentage of Contribution ex-TAC was 26%.(1) Net Income (Loss) as a percentage of Gross Profit, the most comparable GAAP measure, is not meaningful due to the Net Loss for the period.

    Business Highlights:

    • Contribution ex-TAC from Connected TV grew 105% year-over-year in the second quarter and represented 41% of total Contribution ex-TAC. Gross Profit, the most comparable GAAP measure, is not calculable by channel because Other Platform Operations expenses cannot be allocated by channel.
    • Total Platform Spend increased 58% year-over-year in the second quarter. (2)
    • Total Active Customers grew to 288 by the end of the second quarter, a sequential increase of 22 from 266 at the end of the first quarter of 2021. Average Contribution ex-TAC per Active Customer increased to $438 thousand in the second quarter.(3)

    “We once again exceeded our guidance across all metrics and demonstrated accelerating growth across our business,” said Larry Madden, CFO of Viant. “In addition to doubling our Connected TV business, we had solid growth of 40% in all other channels during the quarter. We saw recovery in some of our core advertiser verticals that were hit the hardest by the pandemic, and at the same time are continuing to invest in our people and technology to drive growth in the quarters ahead.”

    For the third quarter of 2021, the Company expects:

    • Revenue in the range of $48 million to $50 million, which represents year-over-year growth of approximately 19% to 24%.
    • Contribution ex-TAC in the range of $32.5 million to $33.5 million, which represents year-over-year growth of approximately 16% to 20%.
    • Adjusted EBITDA in the range of $4 million to $5 million, or Adjusted EBITDA as a percentage of Contribution ex-TAC of 12% to 15%.

    For the full year 2021, the Company is raising guidance and now expects:

    • Revenue in the range of $205 million to $210 million, which represents year-over-year growth of approximately 24% to 27%.
    • Contribution ex-TAC in the range of $137 million to $142 million, which represents year-over-year growth of approximately 24% to 28%.
    • Adjusted EBITDA in the range of $29 million to $32 million, or Adjusted EBITDA as a percentage of Contribution ex-TAC of 21% to 23%.

    Contribution ex-TAC, Adjusted EBITDA, Non-GAAP Net Income (loss) and Non-GAAP Earnings (Loss) per Share 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. We are not able to estimate gross profit and Net Income (loss) on a forward-looking basis or reconcile the guidance provided to the closest corresponding GAAP measures without unreasonable efforts on a forward-looking basis due to the variability and complexity with respect to the charges excluded from these non-GAAP measures; in particular, the measures and effects of our stock-based compensation related to new equity grants that are directly impacted by unpredictable fluctuations in our share price. We expect the variability of the above charges could have a significant and potentially unpredictable impact on our future GAAP financial results.

    Conference Call and Webcast Details:
    Viant will host a conference call to discuss its financial results on Thursday, August 12, 2021 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.

    About Viant

    Viant® is a leading people-based advertising software company that enables marketers and their agencies to centralize the planning, buying and measurement of their advertising investments across most channels. Viant’s self-service Demand Side Platform (DSP), Adelphic®, is an enterprise software platform enabling marketers to execute programmatic advertising campaigns across Connected TV, Linear TV, mobile, desktop, audio and digital out-of-home channels. Viant’s Identity Resolution capabilities have linked 115 million U.S. households to more than 1 billion connected devices and is combined with access to more than 280,000 audience attributes from more than 70 people-based data partners. Viant is an Ad Age 2021 Best Places to Work award winner and the Adelphic DSP is featured on AdExchanger’s 2021 Programmatic Power Players list. 

    Presentation

    Viant Technology LLC has been determined to be the predecessor for accounting purposes and, accordingly, the consolidated financial statements for periods prior to the IPO and the related organizational transactions have been adjusted to combine the previously separate entities for presentation purposes. Amounts for the period from January 1, 2020 through February 11, 2021 presented in this press release represent the historical operations of Viant Technology LLC. The amounts as of June 30, 2021 and for the period from February 12, 2021 reflect the consolidated operations of the Company.

    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,” “anticipate,” “expect,” “estimate,” “intend,” “project,” “plan,” 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, the Company’s projected financial performance and operating results, including projected Revenue, Contribution ex-TAC and Adjusted EBITDA, as well as statements regarding our market opportunity, advertisers’ spend, investments in our people and technology and recovery from the effects of COVID-19. 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 the Company’s expectations, the demands and expectations of clients and the ability to attract and retain clients 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 filings 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.

    Media Contact:
    Karen Castillo-Paff
    Vice President Communications, Viant Technology Inc.
    press@viantinc.com

    Investor Contact:
    The Blueshirt Group
    Nicole Borsje
    investors@viantinc.com

    (1)  Contribution ex-TAC (previously referred to as Revenue ex-TAC), Adjusted EBITDA, Non-GAAP Net Income (loss) and Non-GAAP Earnings (Loss) per Share are non-GAAP financial measures. See the supplementary schedules in this press release for a discussion of how we define and calculate these measures and a reconciliation thereof to the most directly comparable GAAP measures.

    (2)  Platform Spend, a measure of customer engagement, was previously referred to in our registration statement on Form S-1 as platform usage.

    (3)  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. We define average Contribution ex-TAC per Active Customer as Contribution ex-TAC for the trailing twelve-month period presented divided by Active Customers.

    VIANT TECHNOLOGY INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (In thousands, except per share/unit data)
    (Unaudited)

      Three Months Ended June 30,  Six Months Ended June 30, 
      2021  2020  2021  2020 
    Revenue $50,411  $30,425  $90,555  $68,585 
    Operating expenses (1):                
    Platform operations  31,715   18,589   56,059   42,192 
    Sales and marketing  20,553   5,742   34,738   12,872 
    Technology and development  8,031   1,984   13,931   4,134 
    General and administrative  14,075   3,891   24,495   8,547 
    Total operating expenses  74,374   30,206   129,223   67,745 
    Income (loss) from operations  (23,963)  219   (38,668)  840 
    Interest expense, net  241   244   476   525 
    Other expense (income), net  1   5   (68)  16 
    Gain on extinguishment of debt  (6,110)     (6,110)   
    Total other expense (income), net  (5,868)  249   (5,702)  541 
    Net income (loss)  (18,095)  (30)  (32,966)  299 
    Less: Net loss attributable to noncontrolling interests  (14,440)     (26,206)   
    Net income (loss) attributable to Viant Technology Inc. $(3,655) $(30) $(6,760) $299 
    Earnings (loss) per Class A common stock/unit:                
    Basic $(0.32) $(0.08) $(0.59) $0.30 
    Diluted $(0.32) $(0.08) $(0.59) $0.30 
    Weighted-average Class A common stock/units outstanding:                
    Basic  11,500   400   11,500   400 
    Diluted  11,500   400   11,500   1,000 
                     

    (1)    Stock-based compensation, depreciation and amortization recorded in the condensed consolidated statements of operations above were as follows:

      Three Months Ended June 30,  Six Months Ended June 30, 
      2021  2020  2021  2020 
           
      (in thousands)  (in thousands) 
    Stock-based compensation:                
    Platform operations $5,540  $  $8,701  $ 
    Sales and marketing  11,914      18,727    
    Technology and development  5,029      7,968    
    General and administrative  7,203      11,381    
    Total $29,686  $  $46,777  $ 
                     


      Three Months Ended June 30,  Six Months Ended June 30, 
      2021  2020  2021  2020 
           
      (in thousands)  (in thousands) 
    Depreciation and amortization:                
    Platform operations $1,941  $1,853  $3,694  $3,790 
    Sales and marketing            
    Technology and development  383   402   763   803 
    General and administrative  300   285   594   561 
    Total $2,624  $2,540  $5,051  $5,154 
                     

    VIANT TECHNOLOGY INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (In thousands)
    (Unaudited)

      As of
    June 30,
      As of
    December 31,
     
      2021  2020 
    Assets        
    Current assets:        
    Cash $252,271  $9,629 
    Accounts receivable, net of allowances  63,747   89,767 
    Prepaid expenses and other current assets  4,219   4,487 
    Total current assets  320,237   103,883 
    Property, equipment, and software, net  20,946   13,829 
    Intangible assets, net  2,400   3,015 
    Goodwill  12,422   12,422 
    Other assets  373   371 
    Total assets $356,378  $133,520 
    Liabilities, convertible preferred units and stockholders' equity/members' equity        
    Liabilities        
    Current liabilities:        
    Accounts payable $24,537  $29,763 
    Accrued liabilities and accrued compensation  27,320   34,388 
    Current portion of long-term debt     3,353 
    Current portion of deferred revenue  1,637   2,725 
    Other current liabilities  2,310   9,427 
    Total current liabilities  55,804   79,656 
    Long-term debt  17,500   20,182 
    Long-term portion of deferred revenue  5,617   5,612 
    Other long-term liabilities  405   453 
    Total liabilities  79,326   105,903 
    Convertible preferred units and members' equity        
    Convertible preferred units     7,500 
    Members' equity     20,117 
    Stockholders' equity        
    Preferred stock      
    Class A common stock  12    
    Class B common stock  47    
    Additional paid-in capital  102,040    
    Accumulated deficit  (6,759)   
    Total stockholders' equity attributable to Viant Technology Inc./members' equity  95,340   20,117 
    Noncontrolling interests  181,712    
    Total equity  277,052   20,117 
    Total liabilities, convertible preferred units and stockholders'/members’ equity $356,378  $133,520 
             

    VIANT TECHNOLOGY INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In thousands)
    (Unaudited)

      Six Months Ended June 30, 
      2021  2020 
    Cash flows from operating activities:        
    Net income (loss) $(32,966) $299 
    Adjustments to reconcile net income (loss) to net cash provided by operating activities:        
    Depreciation and amortization  5,051   5,154 
    Stock-based compensation  46,777    
    Recovery of doubtful accounts  (200)  (140)
    Loss on disposal of assets  8    
    Gain on extinguishment of debt  (6,110)   
    Changes in operating assets and liabilities:        
    Accounts receivable  26,220   16,307 
    Prepaid expenses and other assets  (1,753)  (13)
    Accounts payable  (5,126)  2,204 
    Accrued liabilities and accrued compensation  (6,770)  (10,134)
    Deferred revenue  (1,082)  (958)
    Other liabilities  (478)  (1,176)
    Net cash provided by operating activities  23,571   11,543 
    Cash flows from investing activities:        
    Purchases of property and equipment  (266)  (159)
    Capitalized software development costs  (3,750)  (3,678)
    Net cash used in investing activities  (4,016)  (3,837)
    Cash flows from financing activities:        
    Proceeds from Paycheck Protection Program Loan     6,035 
    Proceeds from issuance of common stock, net of underwriting discounts  232,500    
    Payment of member tax distributions  (6,805)   
    Payment of offering costs  (2,608)   
    Net cash provided by financing activities  223,087   6,035 
    Net increase in cash  242,642   13,741 
    Cash at beginning of period  9,629   4,815 
    Cash at end of period $252,271  $18,556 
             

    Non-GAAP Financial Metrics

    We use financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”), contribution ex-TAC, Adjusted EBITDA, non-GAAP net income (loss) and non-GAAP earnings (loss) per share. 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 measures allow investors to evaluate the Company’s financial performance using some of the same measures as management.

    In calculating contribution ex-TAC, we add back other platform operations expense to gross profit, the most comparable GAAP measurement. 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.

    Adjusted EBITDA is defined by us as net income (loss), the most comparable GAAP measurement, before interest expense, net, income tax expense (benefit), 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. Adjusted EBITDA and Adjusted EBITDA as a percentage of contribution ex-TAC are key measures 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. Adjusted EBITDA as a percentage of our non-GAAP metric, contribution ex-TAC, 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 traffic acquisition costs.

    Non-GAAP net income (loss) is defined by us as net income (loss), the most comparable GAAP measurement, 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. 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, gain on debt extinguishment, and certain other items that are not related to our core operations provides another measure for period-to-period comparisons of our business and provides additional insight into our core controllable costs.

    Non-GAAP earnings (loss) per share is defined by us as earnings (loss) per share, the most comparable GAAP measurement, adjusted to eliminate any 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. Non-GAAP earnings (loss) per share 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, gain on extinguishment of debt and certain other items that are not related to our core operations provides another measure 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 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 are designed to supplement, and not substitute the Company’s financial information presented in accordance with GAAP. The non-GAAP measures as defined by the Company may not be comparable to similar non-GAAP measures presented by other companies. 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.

    The following tables show the reconciliations of the Company’s non-GAAP financial measures to the most directly comparable GAAP financial metrics included in this release.

    The following table sets forth a reconciliation of revenue to gross profit to contribution ex-TAC for the periods presented (unaudited):

      Three Months Ended
    June 30,
      Six Months Ended
    June 30,
     
      2021  2020  2021  2020 
           
      (in thousands)  (in thousands) 
    Revenue $50,411  $30,425  $90,555  $68,585 
    Less: Platform operations  (31,715)  (18,589)  (56,059)  (42,192)
    Gross profit  18,696   11,836   34,496   26,393 
    Add back: Other platform operations  13,503   8,209   24,444   16,993 
    Contribution ex-TAC $32,199  $20,045  $58,940  $43,386 
                     

    The following table sets forth a reconciliation of net income (loss) to Adjusted EBITDA for the periods presented (unaudited):

      Three Months Ended
    June 30,
      Six Months Ended
    June 30,
     
      2021  2020  2021  2020 
           
      (in thousands)  (in thousands) 
    Net income (loss) $(18,095) $(30) $(32,966) $299 
    Add back:                
    Interest expense, net  241   244   476   525 
    Depreciation and amortization  2,624   2,540   5,051   5,154 
    Stock-based compensation  29,686      46,777    
    Less:                
    Gain on extinguishment of debt  (6,110)     (6,110)   
    Adjusted EBITDA $8,346  $2,754  $13,228  $5,978 

    The following table presents the reconciliation of net income (loss) as a percentage of gross profit to Adjusted EBITDA as a percentage of contribution ex-TAC for the periods presented (unaudited):

      Three Months Ended
    June 30,
      Six Months Ended
    June 30,
     
      2021  2020  2021  2020 
      (in thousands, except for
    percentages)
      (in thousands, except for
    percentages)
     
    Gross profit $18,696  $11,836  $34,496  $26,393 
    Net income (loss) $(18,095) $(30) $(32,966) $299 
    Net income (loss) as a percentage of gross profit(1) N/M   (0)% N/M   1%
    Contribution ex-TAC $32,199  $20,045  $58,940  $43,386 
    Adjusted EBITDA $8,346  $2,754  $13,228  $5,978 
    Adjusted EBITDA as a percentage of contribution ex-TAC  26%  14%  22%  14%

    (1) Management believes that net loss as a percentage of gross profit for the current periods presented is not comparable to the prior year period presented due to the impact of stock-based compensation recognized in the current period.

    The following table presents the reconciliation of net income (loss) to non-GAAP net income (loss) for the periods presented (unaudited):

      Three Months Ended June 30,  Six Months Ended June 30, 
      2021  2020  2021  2020 
           
      (in thousands)  (in thousands) 
    Net income (loss) $(18,095) $(30) $(32,966) $299 
    Add back: Stock-based compensation  29,686      46,777    
    Less: Gain on extinguishment of debt  (6,110)     (6,110)   
    Less: Income tax effect related to Viant
    Technology Inc.'s share of adjustments
      (250)     (316)   
    Non-GAAP net income (loss) $5,231  $(30) $7,385  $299 

    The following table presents the reconciliation of earnings (loss) per share to non-GAAP earnings (loss) per share of Class A common stock for the three and six months ended June 30, 2021. Earnings (loss) per share was not adjusted for the three and six months ended June 30, 2020 because there were no expenses related to stock-based compensation, gain on extinguishment of debt or other items that were not related to our core operations in those periods (unaudited):

      Three Months Ended  Six Months Ended
     
      June 30, 2021  June 30, 2021
     
                  Non-
    GAAP

              Non-
    GAAP

     
      (Loss) per
           Earnings
      (Loss) per   
           Earnings  
      Share
      Adjustments
      per Share
      Share   
      Adjustments   per Share
     
        
      (in thousands, except per share data)
     
    Numerator                                 
    Net loss $(18,095) $  $(18,095) $(32,966) $  $(32,966)
    Adjustments:                        
    Add back: Stock-based compensation     29,686   29,686      46,777   46,777 
    Less: Gain on extinguishment of debt     (6,110)  (6,110)     (6,110)  (6,110)
    Less: Income tax effect related to Viant Technology
    Inc.'s share of adjustments (1)
         (250)  (250)     (316)  (316)
    Non-GAAP net income (loss)  (18,095)  23,326   5,231   (32,966)  40,351   7,385 
    Less: Net income (loss) attributable to noncontrolling
    interests (2)
      (14,440)  18,899   4,459   (26,206)  32,612   6,406 
    Net income (loss) attributable to Viant Technology, Inc.—basic  (3,655)  4,427   772   (6,760)  7,739   979 
    Add back: Reallocation of net loss attributable to
    noncontrolling interest from the assumed exchange
    of RSUs for Class A common stock
         178   178      250   250 
    Less: Income tax effect from the assumed exchange of
    RSUs for Class A common stock
         (43)  (43)     (61)  (61)
    Net income (loss) attributable to Viant Technology, Inc.—diluted $(3,655) $4,562  $907  $(6,760) $7,928  $1,168 
    Denominator                        
    Weighted-average shares of Class A common stock outstanding—basic  11,500      11,500   11,500      11,500 
    Effect of dilutive securities:                        
    RSUs     2,521   2,521      2,919   2,919 
    Weighted-average shares of Class A common stock outstanding—diluted  11,500   2,521   14,021   11,500   2,919   14,419 
                             
    Earnings (loss) per share of Class A common stock—basic $(0.32) $0.39  $0.07  $(0.59) $0.68  $0.09 
    Earnings (loss) per share of Class A common stock—diluted $(0.32) $0.38  $0.06  $(0.59) $0.67  $0.08 
                             
    Anti-dilutive shares/units excluded from earnings (loss) per share of Class A common stock/unit—diluted:                        
    Non-qualified stock options          67           67 
    Shares of Class B common stock          47,436           47,436 
    Total shares excluded from earnings (loss) per share of Class A common stock/unit—diluted          47,503           47,503 

    (1) The estimated income tax effect of the Company’s share of non-GAAP reconciling items are calculated using an assumed blended tax rate of 24%, which represents 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 and gain on extinguishment of debt attributed to the noncontrolling interests of the Company outstanding during the periods presented.


    Primary Logo

شارك على،