Viant Technology Experiences Growth Amid Changing Advertising Landscape

In its recent earnings call, Viant Technology Inc. (NASDAQ: DSP) reported an impressive second quarter for 2024, showcasing a 15% increase in revenue compared to the previous year and a 23% growth in contribution excluding traffic acquisition costs (ex-TAC). The company emphasized its push toward establishing itself as the preferred independent self-service buy-side platform, fueled by advertisers’ dissatisfaction with larger industry players.

Key developments included the rebranding of its AI Suite to ViantAI and a significant expansion in programmatic channels, particularly in Connected TV (CTV) and streaming audio, which contributed to record advertiser spending. While Google announced plans to continue using cookies, Viant remains optimistic about its long-term strategy, concentrating on CTV and alternative identifiers to drive market growth.

### Key Takeaways
– Viant Technology’s revenue saw a 15% year-over-year increase, while contribution ex-TAC rose by 23% in Q2 2024.
– The rebranding of ViantAI aims to enhance digital advertising campaigns through automation.
– Over 50% of platform spending focused on CTV and streaming audio, with CTV spending growing more than 40% year-over-year.
– Viant’s Household ID technology and direct access program in CTV distinguish it in the marketplace.
– The company expects sustained growth in Q3 and has provided guidance for revenue, contribution ex-TAC, non-GAAP operating expenses, and adjusted EBITDA.
– Discussions during the Q&A session centered on the penetration rates of AI-enabled services and the evolving role of Netflix in Viant’s advertising technology stack.

### Company Outlook
– Continued growth is expected in Q3 2024.
– The company looks forward to increased spending from existing customers and the acquisition of new, scalable clients.
– Investments will focus on engineering, product, and sales, with anticipated low double-digit overhead expense growth in 2025.

### Bearish Highlights
– The company recognizes a challenge in raising awareness among political advertisers, which may hinder growth in that sector.

### Bullish Highlights
– Viant leads in CTV and streaming audio, and the adoption of ViantAI is contributing to market share gains and overall growth.
– The Direct Access program is expected to further boost CTV spending.

### Q&A Highlights
– Questions focused on the adoption of AI services by clients, Netflix’s role in the ad-tech ecosystem, and the factors influencing AI solution adoption.
– Viant discussed the ongoing market shift from cookie-based advertising to alternative identifiers amidst the industry’s changing dynamics.

Viant Technology’s strong second-quarter performance signifies a strategic shift in the advertising industry towards more targeted and efficient solutions. As the company continues to innovate and capture market share, its emphasis on CTV and alternative identifiers positions it favorably in an environment moving away from traditional cookie-based methods.