Viant Technology Announces Second Quarter 2021 Financial


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.

Viant Technology Inc



Source link

Comments are closed.