DSP - Earnings call 4 2020 | Viant Technology Inc.

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Operator

Hello, everyone, and welcome to Viant's Fourth Quarter Full Year 2020 Earnings Call. My name is Kiara, and I will be your operator today.

Before I hand the call over to the Viant team, I'd like to go over a few housekeeping notes.

As a reminder, the webinar is being recorded. [Operator Instructions]

attendance your for you today. Thank turn I Bergman over Maili call The will Blueshirt now with Group. to the

Maili Bergman

Thank you, Kiara. Good afternoon, everyone, and welcome.

We call these as today projected. We and statements statements, results to on except based cause no from that forward-looking events, assumptions those materially uncertainties future subject will on law. to obligation actual required and could undertake by differ that make are risks our to update

and differ SEC. about release information cause that entire offering materially please from statement, factors Form other statements March we XX, press to with more For as the actual refer forward-looking public in described and filings S-X well statement may uncertainties our our on the on harbor to safe related as initial the results to and registration risks issued our

During will we non-GAAP present and GAAP today's call, financial measures. also

including SEC. non-GAAP Officer release the of regarding over the with of today measures, to disclosures Vanderhook, issued to like Viant. to in we a Additional included Tim measures, Executive press the Chief turn non-GAAP I now reconciliation call would filings are our Tim? these GAAP and

Tim Vanderhook

Officer, afternoon, Madden. joined everyone. our Financial by Operating Chris Good Vanderhook; Chief our today Officer, and Chief I'm Larry

our first company. are to you call welcome We as a pleased public earnings to

helping Before complete employees, to investors in process. we of an begin, new thank I exciting would our customers us partners, part journey like our and all of for a IPO being

we success, excited today. our You be been and are in have instrumental all to here

fourth discussing the our minutes in to Given a from company, overview giving our this public few spend you I'll our an quarter. business, is a of as first addition highlights call

is by billboards solves Square, it Times helpful simple. and very do laptops the think ads ad, on some and I digital streaming we and at making to channels advertising offer software we that into on across Before I a problem TV inherently like background smartphones complex, get ads into numbers, digital Buying fit it how industry. Viant what in our broader would the be

of using early and We are pioneers rather households and measure of cookies target individuals than real advertising. digital an approach advertising, people-based to

software, customers of Our identity and our ad whole people-based utilizes resolution, new with empower advanced a omnichannel segmentation integrations a capabilities spend reporting of and return that level self-service advertising audience measurability. on Adelphic, combination

We believe a U.S. in in a opportunity entire like ours, through disruption be this software time, But lot there over that of drivers were presents the advertising of change the industry in a will for tremendous and transacted long-term Viant. XXXX.

understand television advertisers been to help people-based return one advertising widespread uniquely their marketing ROI advertising We emerge However, consumer the linings understanding better has adoption software, to with believe are focus investment. on pandemic from gaining of adjusting a few dollars. positioned their their of the of we of silver on connected and a Adelphic, our marketers the

to now numbers. Turning the

to $XX.X year-over-year year-over-year and a XX% $XX.X representing XX% the We ending strong of million, on to million, revenue a various year are ex-TAC of In navigating as million, QX, sequentially environment. delivered $XX.X and margin to EBITDA with pleased quarter. our compared Revenue challenges X% adjusted a the an an percentage note fourth macro amid third quarter of XX% ex-TAC. grew increase we unstable grew revenue results, after XX%

spending some the fourth While of we specifically persisted the quarter, the verticals. course in in challenges certain year over ad the faced of lighter

health packaged goods trends promising fourth a and a number Viant. From of materializing the strong sustainable demand in standpoint categories. for entertainment, seeing tailwinds into consumer in we are care saw We quarter, vertical

universal including for continue pullback has the advertisers softness very by We XXXX, amid fourth us pandemic. automotive been travel spending been and retail, historically ad categories impacted there This quarter. us, a throughout see verticals. in in these to industries have These and in important the

see to in continued XXXX. have represents we TV-related side, spend in with our platform channel in accelerating growth XX% CTV flip connected fastest of growth the now growing advertising. On

property into this and continue I XXXX, long feel in at a will that for excel positioned are believe from is a We in is CTV the TV accelerating expertise advertising. connected Our us growth connected software big uniquely we area later. in an that and TV intellectual go-to differentiator strongly the More on term. platform is our to point making where of competitors exact

that Well, is a advertising. what makes approach unique to the marketplace, bit first, talk about Viant want our to I fundamentally in people-based and

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people-based support the end, that is Now cookies has to for era an coming begun. finally

be Our our to a natural their and continue want us partner the reach to for strong who patents agencies their marketers what intellectual to their give consumers and investment. property advertising and measure ability to get household around they ID

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have expanded with household In scope since. XXXX, we filed identification patent Internet-connected our additional filings the original and around

allow property Viant strong market cookie-less that in for technology be and a leader environments. will our audiences reaching processes in around We to intellectual protection have

around recognize an our competitors and our of Some identify to our intellectual property protection position Internet-connected household. our ability

have they on the superior household. were touted focus tracking that Over to our their X:X capabilities the years,

be name few. whether packaged is automotive, reminded is vertical more why or to cookie-based approach decisions, of We practical than categories household approach. retail, always that goods, household a they have consumer clients fact, That in a X:X a entertainment are, purchase our most advertising travel,

exciting addition connected and purchase cookies being because device approach a channels In the advertising not categories TV require household home of new shared of most exist involve some the in do a TVs. on these like to household-level connected decisions,

marketers. cookie-based Perhaps is making growing are other technology key in are our built people-based measurement advantage cookie-less and biggest Most differentiator the that technology, capabilities on large CTV. channels a DSPs people-based for of environment us like the superior for approach the

Marketers today have measuring investments. of effectiveness advertising in the interest their strong a

the to they view advertise. advertising them return all to their their modern validate is Our people-based marketers in This marketers gives measure DSP are both XXX-degree Adelphic on channels view what which and holistic the of spend sales, across of which enables in-store investments. e-commerce requiring ad

and software audience-based from for Google XXXX across recent across growth We the this rapid capitalize beyond. platforms We open As them we is web. Marketers it our to ad ad the for positioned that forward, the partners with cookies Adelphic will as no our web. that in open uniquely is connect on longer to are marketers and migration and tailwinds new buying business help audiences television both, pending through in believe their away to the clear be connected their opportunity. DSP targeting allow changes looking look use going they the announcements to can see

without view happens cookies a Our line of time in that the XXXX. is the migration world to

adopting and to inflection We people-based software are the point buy electronically primary their advertising. marketers as of now their DSP measure at

more those Other is XX% to challenges. replace some efforts ubiquitous the forcing to is all log to apps In household challenges sites vastness The are publishers many, and certainly in into the approach the e-mail of in on our ubiquitous order of Internet cookie. different believe website this who available be cookie to view to a every and to cry approach. scale the Internet, Adelphic approach, to users of for environments. their our logged-in was ubiquity industry greatest cookie-less but software with up on There our their The consumers is household universal ad reach them the the XX% many enable to web identification available is will by of all consumers contrast over from by be ID the to impressions received Internet turning has household on ad require approach of of in the content, the log basis our We the the fourth that universally. our of marketers quarter, time why open available nature their will than able impressions a with software. address will get far the for the into which potential

that, hope ahead Larry more performance. opportunities overview provide that for hand our the to I'll highlights I CFO, detail financial Viant. to the call on our Madden, With over

Lawrence Madden

joining for us and Tim, Thanks, to today. thanks everyone

minutes I few also fourth Before results, we on I that into operating and of key briefly investors of focuses measures. our will to discussing a the some financial quarter metrics be will like reminding I'd discussing non-GAAP today. certain management spend that be get

Our found results, between and a release. can our with GAAP financial be GAAP in along results, non-GAAP reconciliation earnings

subscription. As X our different fixed for pricing customers: price, we many options spend of of know, you offer percentage and

of multiple customers depending customers, our option As in have choose. we a transacting our treatment, pricing which result with on different ways accounting revenue

revenue or net normalize pass-through key and that As the the costs. call ex-TAC options, ex-TAC traffic what focus revenue revenue, keep. the ex-TAC. Simple accounting we we X order all treatment Revenue pricing represents result to terms, different metrics in a acquisition revenue direct non-GAAP across on costs reflects we of

platform spend platform metric We a our revenue aggregate that the metric platform the believe ultimately of options. gross customer This performance. growth important growth our drives overall X momentum spend pricing is been in growth engagement is platform helpful as business we measure in our platform, across Another representing spend. of metric the is different have on a in our on spend engaging discussing

I'll turn financials. the now that, to With

growth saw year-over-year, as the note we out from by in connected in as quarter. the continued in were spend, As the fourth and compared that was XX% QX great the spend We in momentum XX% growth primarily quarter of momentum pleased close which platform represented QX. up spending significant to quarter year an driven in Total approximately results on saw with spend high acceleration ex-TAC. Tim growth TV a on in to third the XX% total increase revenue demonstrated continued the grew on discussed, of XX% by includes in X/X impacted with platform, and fourth This verticals COVID, was accelerating we spend represented platform verticals rates well customer continue over a impacted be spend customer related in to retail, year-over-year the spend total QX. in The spending platform QX the X% namely declining to our Video-related during overall of CTV, be quarter. X pandemic across platform these being XX% total said, with to over represented important on macroeconomic XXXX most total That on COVID travel, conditions verticals which the negatively automotive QX. the These by platform weak pre-COVID. basis. in our performance

adjusted was During verticals XXXX, of through customer there across customers the pullback X to significant a these the pandemic, as year. that end the extended

COVID-impacted for result XX%. across the spend a As year these verticals declined over XXXX, full platform X

care the across over these other including total QX, customer the platform. verticals, which full the Similarly, across XX% momentum the other increased spend all verticals CPG, and increased Across for in platform health and strength spend XXXX. XX% on year entertainment, demonstrates total

verticals expect the near momentum move customer across further verticals we weak the XXXX, across through do these travel normalization we our expect platform. retail, we in the While term, to and automotive driving remain the as

an the revenue our quarter, platform GAAP on million, fourth as revenue pricing Now an given pricing between on for Revenue the accounting revenue deducting closely different QX fourth pass-through of with revenue ex-TAC, gross we million quarter $XX.X X% increase key increase costs. was revenue recorded focus varies compared mirrors metric moving different to for more of the that pricing spend out option. performance, from $XX.X point would option our our relationship year-over-year. evaluating is before in XXXX. platform was depending treatment, to Revenue options revenue the I GAAP XX% of performance. and fixed spend

did lower in percentage as Therefore, it percentage spend growth XXXX, net QX subscription pricing our in to growth and customers spend the recorded of across GAAP in With in mix. of the platform GAAP accelerates this year trend revenue a fixed is customers rates of relative these rates spend result and spend ex-TAC as options, will and and than subscription platform change as costs. full of price revenue revenue

our is to that than the X% political was the spend ex-TAC of note less our total was QX, that CTV-related were quarter. In related of mentioned and by as significant increase during by GAAP both I impacted as spend a on in growth One revenue revenue largely QX, COVID customer continued the verticals platform well momentum advertising. in less thing during the driven across

increase with consolidate quarter, budgets customers. as retention This spend business our a Lastly, and percentage positive they their percentage the spend in within significant had very we high is customers typically spend during on increase the have over platform. as of the rates spend a time of

of metrics key per ex-TAC any of base to customer assess business. metrics ex-TAC prior that are track the active over an customer We active increased customer. and focus the that $X,XXX within active our are customers revenue additions revenue momentum ex-TAC existing in of average number set XX-month the as minimum the generating period. Another we revenue a define of on customer the we and Customer

the at end of end customers had of active 'XX. of XXX to the QX, we As XXX compared

automotive in lowered active spending travel the customer year retail, was decline our pullback throughout primarily which customers, modest a temporarily across count. due and to This the

a directly we pullback testing increased across increased the during months Conversely, active COVID. ex-TAC existing per to average XX% related in summer saw our base spend spring customer also as revenue saw $XXX,XXX. in to platform and We XXXX, customer

while increase is our to number active using generated ex-TAC per increase software the focus, active customer. revenue of to the continuing moving Our forward, customers

the a As I customer software, as comfortable time they using more typically, spend once benefits over mentioned earlier, with they increase platform. become the of our starts

newer X in customer that mature ex-TAC have as fact the revenue platform. many Given we the we the continue on active new expect to onboarded grow customers these last to for years, customers

a growth in active for number significant of we convert. of and have believe attract opportunity terms can that potential we also the We customers

base During XXXX, and years. investment in the opportunities to and in sales we our intend to customer coming on scale capitalize increase these marketing our significantly

Traffic now Total are platform decline Turning QX our which year-over-year operating of in X%. QX associated with expense. compared fixed acquisition XXXX. declined to option, million operating expenses included or $X.X costs representing were in million million, operations a expense, pricing to $X.X in $XX.X

of enabled in Net despite driven top XX% other as a by Mediator us coupled entertainment, million end in head $X.X in versus our cloud-related COVID-related commensurate achieved XXXX. areas product, XXXX as in savings and count the to a quarter total line were the of have with QX in such the without increase savings increase travel efficiencies of grow OpEx.

QX, cost our queries a second compared costs year Xx enabled Xx efficiency for terms in same Our meaning process us QPS or Mediator achieve to product QPS to the per of ago. a in we can the

quarter We in a periods. million expect XX%. the this efficiency million was to $X.X of further scale year-over-year in $XX.X to coming XXXX, representing Adjusted EBITDA QX increase in the compared

Our of quarter adjusted period. the to XX% XX% same a the percentage revenue EBITDA in were margins in ex-TAC as compared

EBITDA reflection adjusted a top Our growth on and profitability. line both in our bottom is focus growth line of

of achieve believe to make long-term intend a in from as XXXX, of we margins to a we percentage we While perspective, can investment mid- revenue EBITDA adjusted XX%. ex-TAC

for CapEx activities essentially cash was million year $XX operating XXXX. in from compared Total million full From for $XX.X a million, $X.X net the we XXXX. generated flow the unchanged XXXX from perspective, to cash of year

generate to us in cash net the $XXX million sales technology and to completed the growing extremely ability proceeds recently opportunity. IPO, in with from market marketing to Our invest coupled take further our rapidly of advantage positions well flow, and

investments from XXX previously scale growth headcount, I are headcount year as terms the we the continue mentioned, represents business. at growth demonstrates XX% in our ended we of In employees, This year-end. of we which, as the making prior to continued

with in front opportunity total a approximately continue marketing headcount the to of we as in increase to invest focus in XX% sales XXXX expect us. in We growth XX% to and particular

finally, guidance. turning now And to

market, positioning the in in stages the early we feel we're and market on in great discussed, Tim capitalizing of very programmatic advertising about for the opportunity a world. our As cookie-less

the about customers. As is the XXXX particular, in including demand Travel, year travel, we of year, that some half each a performer a recognize we in not and uncertainty there's a end retail segments. guidance, strong are our fair did around our our see we advertising QX markets, amount customer us, recovery think we and travel very in automotive of of and with for first still in early typically in key

believe over impacted the While areas, -- first recovery a be we do to expect XXXX be key of time in also we verticals. full we key these continue customer will in in half these

reflects best guidance normalize our judgment our to to a continue Our today how post-COVID as world. of relative business will in

the approximately which to With a range that and of $XX.X approximately range revenue growth And expect of a million to $X.X the background, $XXX which ex-TAC represents revenue of adjusted of $XXX for in or to of to which growth adjusted represents the EBITDA GAAP of million of million $XXX range which XX% $XX or to the XX% ex-TAC a in of $XX quarter $X.X XX%, the million million million, XX% of of XXXX, range in approximately year-over-year million, for XX%. we EBITDA represents XX% $XX year-over-year range the to year-over-year revenue revenue GAAP range million a to of change to year-over-year percentage X% ex-TAC of to full we revenue XX% growth million ex-TAC the percentage year the in XXXX, as XX% X% to $XX.X to a million margin million, expect million, to $XX XX%. represents margin revenue of in in $XXX XX% of and of first as

to to briefly remarks, for like to a housekeeping Tim Before XXXX. touch few I closing call on turning back would relative the items

our employee have incentive our plan pre-IPO long-term new a converted we in indicated plan. S-X, equity into as incentive First,

of time IPO. the into incentive the Specifically, converted employee at we the pre-IPO units RSUs

approximately costs. software associated which, approximately of of with As $XX RSUs, will a be capitalized million million $XX stock-based include development will compensation as these result, our XXXX results

increased payroll and and connection taxes, also amortization in taxes incur with brands. these will payroll We expense depreciation employer

compensation The to of be in the will now public second determined a as result want value expect the of vest. is the the entity to XXXX, item on I size that, at which stock-based generate based benefit they of a sizable we the RSUs point part out in expense XXXX, tax of as

recall, loss Up-C will the allocated IPO, used count. you structure as XX% income such the of we taxable approximately public current share part or If on entity that an based our of be

of through passed income So XX% taxes of taxable of XX% apply members with income to LLC. being the to taxable the

Our impacted Connection being we company. million with this, overhead XXXX increased XXXX representing public by will to million expect component results associated with $X of $X an insurance cost such incremental D&O most significant with to a be in also incur incremental expense. of the

the back now With to call turn Tim. that, over I'll

Tim Vanderhook

Thank comment closing. just I Larry. you, on want to

to Our focus customer. per while number intend increase generated moving using in to to revenue drive our We forward ex-TAC our increase customers and growth. in sales is active XXXX of continuing the marketing active to our software increase investment

As over our guidance, continuing EBITDA. growth you've accelerate XXXX XXXX adjusted generate seen expect from while in we levels, solid to to

believe our have While for opportunity continued significant that established, well growth. company we we is

architectural very analyst very competitive the to television strong, We We property keeping and material be trends significant moat for you the create of look connected and active continued present with on and progress. opportunities technology, our to to forward and regard that people-based have a investor interaction rise updated intellectual growth intend significant and advantages Viant. towards approach a

as with building and moderator company. back this to very look fourth turn I'll Q&A. the first our results begin quarter call in a are to pleased in forward the to on over public year now we the closing, In our momentum

Operator

Canaccord. Maria from The line [Operator question comes at first of Instructions] Ripps the

Maria Ripps

results. Congrats on strong

the update quick the easier in help have And versus revenue of force through I So follow-up. to in see. is expansion to your year, force extent that comps. sales half first, us acceleration do of the strength sales maybe implies far? expect on so really And can a progress your of year? And obviously, which you second some To sort the what to first the half the great of guidance is then expansion contribute you revenue terms

Tim Vanderhook

Great. handle do to want you Larry, that?

Lawrence Madden

which the To total is are certainly Yes. of about by XX% to date, pretty we've we sales We investment. approximately looking -- achieved sizable that. increase probably team in a do XX% XXXX,

been active so far. very and we've So had in success recruiting have

takes to it a approximately to truly new think truly them generally in seller able months drive I ramp of X speaking, terms revenue. being a be

will the in XXXX. perhaps But and will So then definitely I bit more full some beginning not for we see more force accelerating QX sales think see the of see the we half, second we really begin a in we will benefit to full QX. benefit, in it -- obviously, sure. addition will But in

Maria Ripps

about quick as some is as marketplace. just that into Amazon just about it? And supply your talk through to expanding follow-up. working I what process? a talked TV And How connected maybe ask it? key you you Great. you are Can wanted chain. you're milestones lengthy And about where in are

Tim Vanderhook

For growing platform to who over and with integrate Amazon wherever or us, over a we buy want we to and We we integration with their are as Fire today, there. DSP is on have do but integrate TV so marketer, content do Fire spend distributing Roku, behalf works content obviously who owners can a electronically direct TV both. Fire large not out a measure the it. of TV Amazon advertising, marketer And their wants the

that lot points for So entry times, a there's different inventory. of

today, integrated today. Fire are the not So in we interested, would we TV Amazon be but

Operator

comes Sheridan And your from next at UBS. question Eric

Eric Sheridan

Maybe X, I if can.

see of of force, sort of what and with to long or how And going 'XX for sort saw medium just the recent on broader that in on us solve the industry term, side? And or better for maybe have the you the do we most sort the a that they after the 'XX reframe growth you think over to QX, sense up granular scaling to it's bit make new you investors more trying against into what breakdown maybe the investment the just so in platform then need broader to can period. I goals of of but some you're and in of Moving growth as the question, should from do investments the want you're product to how sales breakdown any the quarter? wrap critical show or understanding to client you new the about give advertiser that

Tim Vanderhook

take part question. that it. I'll first Got the of Thanks, Eric.

We really Our sales around putting sales and is we're our marketing and just around based. front in feet educating sport, rates believe in our street. of contact investment We are the close that people more increasing. about the more on them solution clients, know more

So have to we more more and of to educate. to conversations. those want continue This year continuing is definitely

in putting more is more country So marketing side educate investment going the the help sales to across us clients. and

I like been And close rates our have said, increasing.

in So first would aimed we're to largely do the do which that. at and excited that. investment sales our marketing to way adding of well I really is our we're half year, on that say the

Lawrence Madden

I of your of client a QX. growth. would part in part nice second terms the question We address of -- the in uptick see did

QX, up from of from we That what was did said, customers. lull at things. XXX during spring year where and summer the late seeing we've And think testing, bit a we with. QX with of -- we're have One, a increased X we active As of we level I XXX. which seen is ended were

from that bit And customers, and seeing percentage the price of spend into quite QX. in fixed saw also the a conversion we're of the customers we

Operator

Laura from at comes question next Your Needham. Martin

Laura Martin

okay? Can you hear me

Tim Vanderhook

Laura, Yes. Yes.

Laura Martin

CTV of because advantage competitive a matter the a first replacement but pushback XX% my would to does CTV as one, you're be, versus you're light to what you the CTV curious is growth, to faster environment. speed would look, having that if say, the So investors moving cookies, towards reported since cookie-less I'm actually, is growth look, X% say at doing that in

CTV part moving you from total your that? How as becomes see do your of advantage bigger aren't you revenue? away competitive a So

Tim Vanderhook

marketers CTV would do still they and I what measurement focused is on or say want Well, are of in to invested CTV. targeting in

So all -- They're bringing not and across of offering. holistic really we're just -- TV them more a investments. their

target and channel works help Every it's channel both. longer a buy-in. can they sales So how they in understand measurement cycle them the can every across to

growing because for a some guess, CTV I CTV compatibility. backwards It's we So is we've natural want property website still quite in we're happening. of It's intellectual been certainly, think growth choice understand there visitors. there. -- And They there. to rates I market our is will But time. why above

They still want retarget targeting do apple that across to mobile on today. I less and understand devices are desktop how do and cookie

of lot think our versus going on ID a in that's just market a I the channel. it's ecosystem process. education on works And within in-app slow how Safari. solution different each in in mobile, the education the So Even

And all the over. of and But story so same it's over understand getting to marketers that.

ID has household Our huge penetration.

of dashboard scale measure for serve And worked a their ad whether today. spend, entire their CTV, it getting target trying we're exists all In to and or cookie marketers. what them QX, money. on the requests, We XX% think actually the don't Chrome, I to ad that's It's to it consistent was the want where want to Safari be be in-app, one channel educate a DSP. what for marketer's they're We solution.

on little one piece add just that, I'll And Laura.

tailwind a for As cookie-less environments grow, that's us.

they So place cookie -- use that was platforms a CTV are cookie-based cookie competitive less really is approaches. natural a

There cookies they're ID no is many an space. are there. times for that that looking not So in

that is we're where perspective. the So framework really massive both from a able environment show to we platform and cookie-less the people-based differentiation in overall have,

So to our continue grow, wheelhouse. that's right as these environments in cookie-less

Laura Martin

would be were second the quite My bit X about Super better. margins helpful. a

a tack was than we lower bit thought. quite Your

you Or into of reported just you're spend, robust which margins was net. the revenue is have because sort is, customer extra revenue saying of more outsized spend from all when subscription Larry stream, You faster it the Or that one? of of come than getting My does that of like percent stream, question that that these transferred of activision because seeing growth percent what are upside about TAC, third that like did revenue because had higher really did come it's have margins. doesn't we direct have mix? the

Lawrence Madden

entirely can driven really But to of Hopefully, I can contributed you any Laura. on I healthy case, the hear significant That's side. the in lost my by is growth that I me, spend percentage one, that yes, EBITDA almost margin. Sure. what take video. apologize. margin the

Tim Vanderhook

want costs just the on which our also would is QPS lower or is I helping Mediator us servers to one our thing handle add all product, of this. to

we've team efficiency about further engineering from that had year-over-year huge and seen expect period, breakthroughs, Our scale. and the Xx to compared has that talked we we've

we've significant breakthroughs is the lowering while actually for programmatic had cost is costs our all players our rising. are and QPS that QPS substantial

year. see play this so that And out we continuing to

Operator

JMP. at Our next Ron comes question Josey from

Ronald Josey

bit Great verticals. to a here. more, see the the on Tim, results to little I ask wanted

just mentioned retail the continued first I back seeing that are You benefits, in but autos, some of quarter. travel, you're headwinds coming in some think,

So just talk about how little ramp And newer question might benefits Larry, when high then bit on of a to spend the in the this expect see just be here, about in percentage sort up you Just you're of following to verticals? can that? you on thinking you quarter. the And rebound a more the earlier, rate. retention a mentioned

the the on of talk XXX those just the you've now So clients on length platform. clients Maybe platform. got about

and and on, go usage think the percentage I a forward. on right, how buying, more a impact of maybe of because you from might spend just your thoughts Just guidance that going lifetime longer you're

Tim Vanderhook

part of first the take question. that I'll Ron,

it's song which we're really travel So And verticals it's the back, really the rollout. vaccine heavy and are largely not customers. -- dependent. as coming the of I would our them on say in same that signals. there, of Everyone's I is would as we think I say, kind really, with far dependent buying timing the singing discussion travel, seeing,

first really trying back half expect be a normalizing I do spend half to QX on clear, do lot levels travel. that that that, some the that looking capture and summer more the but expect Just spending in think in I their really, there year, travel we're we in to -- will typically the half. them be they're of of to first the QX, to year, start does the spend of

a On retail, that's thing. I'd say similar

the seeing really one really, think believe automotive, for they comes up, the it retail lot plants around, A lots, that, things can't some most around they restaurants and put get of thereof back will open economies on retail have the side to production we certain of ad I really last orders and stay-at-home As would that spending able the components are When food, those lag. that. around like I specifically the back say, we're that And therefore, production, shortage now. right aren't typically the don't and them. the microchips recently, released,

that So to second -- back that, take well. normal want you half Larry, in do to that the the question? -- hopeful returns as but we're I expect levels

Lawrence Madden

Sure.

terms spend we number are customers of that the of platform. In percentage terms of the QX even increasing in yes, using spend of customers, in percentage the of seeing

decreases its third mean, as As they the to and we increases talked I they're used typically, modest happens first that really typically reporting platform what two, about pretty XXXX. getting getting platform, budgets, of year move capabilities since used budget to forward significantly, many further on then into before, the in year customers the in our the year, have spending so and been

bunch side. a of added spend XXXX in have on the We definitely percentage

customer, definitely move an in average clients, terms definitely we they they of definitely it, to the on spend consolidate of look active the that from get and platform stickier of which uplift as once will So to in uplift they're time and forward. with over of comfortable terms are ex-TAC come per revenue they these terms percentage continue in forward budgets

continue. that we to trend So expect

Operator

BofA. Schindler question from Our comes next Nat at

Nat Schindler

that And but So pushing concept and dig ID Google, made going They Google to belief not individualized that individualization. get there the allow you Unified in out other clear had just personalization, is future at their back about regulators and ad but Google person. for is digital obviously, clearly are allow targeting. own as to this discussion -- their to was it concepts that sounds they're a for single that are X.X Floc that related person you fingerprinting not allow won't and it the they with how that are very but for will you like and will the doing

think term, Google there what they data household themselves, How as against do you're a you well? analysis? doing and is And at will doing? regulators longer could you're more And affect look what go they way household could

Tim Vanderhook

question, Yes. first I'll take Thanks part. the for Nat. the

highlighted the alternate the Google, around of logged for IDs the kind part, think in. e-mail I getting or around most

most they thing this that said they lack first think I notably -- scale. the that will believe

probably They that that's look, is investment. marketers track largest individual challenge the what that, advertising looking view think would well. for us, that's So consumers. to our measure -- as say I I for their aren't to want just they're getting

a well. There's that that specifically all a new It it the think regulation is our on regulation, California. to CCPA more ballot lot challenges to have will around I that in view consumer. better I with. continue? But more disclosure I something think is is contend believe measurement This that that disclosure, platforms look, we in with a terms does year. we saw the believe has one CPRA. of e-mail inherently as was of this

consumer A is going more better informed to for everyone. be

to really is deregulation about we've more a that not the it worried the we're because from disclosure consumer trend been standpoint So seeing.

that expect continue. to we So

approach consumers. better. As think individual it's doing the We're household, tracking better of around it's for not far our We as consumers. we think

about. advertising measure interested their that that really or their would That's them we're If that's what about you they they're to with is, That's line Google household. our concept I They're talking still somewhat it own marketers similar effectiveness say segment the But level. enabling up a platform. ultimately, individuals, is not market backing We're first-party to use think care data. allowing of are and about on data the in but these our in certain doing cohorts. is exact to it, the are want around enabling with a that difference the targeting marketers it what match households still they're we in. of same it's what

it's to come It's just ours black continue But where enables with walled to side do like approach. this and platform do up People-based off. box seeing regulation I to around individual really own you're them not not data states expect their too, that. to that, add

said think this. national to be Apple consumer this you as what you any approach as advertising, will into look unified Apple that you in do personalized whatever in is some the will allow long can says who want allow. there the or long as as do term, opt leader the you I so They at And consumer if But more saying? space, more, and

And Apple. disclosure, then where and saying that's the have allow. the in-app more ecosystem across So you consumer it's

I that platform. say So from opt-in consumer is approach, their a an that's would probably the aggressive farthest, most on which

Chris themselves think So good actually works. direct we similar cohort Floc to not approach data household and what we're it But aware Google's how our households used. is it think made mentioned, more, is more users, these a categories, mail to approach for it of while is I get They it's more keywords consumers. making where available, around as are interest more like of or tying we're

Nat Schindler

more follow-up on one this. And

will basis, do addressed announcement longer-term they have of about are do other used? YouTube estates wall this certain And by ever both like? formats that be those more likely coming on and you made that think less them or Just their you how make the Google a Does and out and up to think their properties by for opened garden regulators? being

Chris Vanderhook

walled don't part by really to Yes. been quite means. off search, some expect don't for very expect We We I'll Google similar. the first course that any reverse that of the Yes, has YouTube time, that. take

So to remain going I I that's unchanged. don't -- think

Operator

comes James. at on question you're from Aaron, the line. Kessler last Your Raymond Aaron

Aaron Kessler

Google for A advertisers kind going couple of around supporting announcement that to of kind since from increased kind questions. or Maybe just Are their kind reaction has IDs? first, any of interest of you advertiser alternative your seeing of the people-based they're approach. be not made sense

thoughts growth XXXX, maybe good to on on inventory expanding. get maybe thoughts CTV levels be your for kind outlook Then of

less XXXX. I home stay have supply some throughout we we've may also think historically, But little at been a then constrained. headwinds from

be on Just for think thoughts rates, your we XXXX? how should that thinking you growth get about overall, CTV

Tim Vanderhook

Aaron, was again, that. take What much. Sorry, writing it, first What I again? question, was I'll too your was

Aaron Kessler

Yes.

kind is IDs? seeing announced supporting kind increased conversations recently first of The since question of not just that you they're alternative are Google

Tim Vanderhook

it's Well, us. for been positive I'll say definitely a huge

for the foundation recipe this history believe also for out amount the this years around been was biggest opportunity that cookies going we've in lot in our the future. really evangelizing that a based, been -- on that cookie is So a is the say, base is announcements, and fact -- people and away space. so our that validated one would for of a I clients going wasn't our I got a people definitely track the us. from new that us, will opening outreach for probably, of we've tremendous it that are to of we up focus speaking I to aspect, just on household, talk be this building

code However, what people I'll what said, what of also say lot to is trying Google say. a didn't that Google

We end cookies that say that haven't about been been a really talking means means We've -- want because to up we've that don't that in caught an the been predicting. certain -- things. coming I to fact certain

cookie-based marketer, So laptop if phone. retargeting for away. if doing or an cases, will That consumers you're you're a individual use go instance,

platforms. else. competitive somewhere That significant up We XXX marketplace, DV go and in both those to the on dollars believe needing dollars end

going this of think be think those thing. good we're We it's dollars. that We increases think beneficiary we competition. to So a a

positive. So quite piece need a be I exactly they would And really, is on been what our for right what means, are not will activities solutions basis. level marketers, go-forward education able be going it's what last a clients, they say The this going do bit them the to a to for of forward?

about talk that to that something every our from we It's our to need and day. believe they perspective. clients hear We us, team need

the growth for year. be we do this but big for -- us you to take this want a CTB Larry, So XXXX, question? expect to tailwind

Lawrence Madden

the QX, the expect driver, I we that big we're a a certainly around it, part year. that in -- we we're It be Yes. specifics throughout I but big into going in of way QX rates our now and mean, and of growth big, not XXXX. that continue It's still growth think through the XXXX most giving to continued. will had

Aaron Kessler

well. I quickly just kind industry that's for on guess thoughts growth Maybe the CTV your question. of the more of as

thoughts on for in growth the industry. Your CTV XXXX

Tim Vanderhook

industry grow the the to rates. I I For to industry, don't exact industry think at it's mean, continue going -- remember I estimates. I But think

use our I connected visits is, smartphone our blind the pulls television show think above case our their the market. spots gaining market for And key website. to the the share I marketer's laptop add-on really have we're an competitors think That's interaction. connected television, growth because measure and It's cookie-less that in environment. big or being out to I someone ability

markets, doubt, excited I Consumers no excited the television. television. think But connected connected are about about advertisers are

and think on now market would feels direct-to-consumer streaming So it and of these But a has that I the who's same. that platforms, someone content more in of the kind been is I all expect coming Xumo as the market of the kind just unbound the to it's consumers the side, all content, every of Internet-connected this exploding angle, founder device. marketers, really this and feels the like business on other on new

same, revolution It similar Apple to first felt mobile feels it came, explosion expect a really of the of connected The introduced when that. to smartphone be limitless smartphone Android the similar the where very smartphone. to in would the TV, more I and

Chris Vanderhook

that content. add around one add to into I think which would of moving there the just want XXXX, on to half is is 'XX and back I point in color unique

getting Xumo, limiter us the of was typically studios. the big As out really for when content we mentioning, was Tim started first

those large was end windows. at of you ad-supported of windows, that the not studios the process monetize or either streaming content, in tail their If thought think or very

to Now direct Media, streaming, to you're Warner you're seeing streaming. direct like saying companies Disney going going

Comcast seeing as that You're well. with NBC

that taking them the straight the studio and So putting are of they're the into out they platforms. fact streaming the

it's is And going and really, really think I streaming. to follow there. to going continue to huge really for dollars consumers, the are increase

Tim Vanderhook

and question. efforts We're employees here their I our All thank work. of to at and all their that I want believe today last hard because time, our of -- was for this I dedication just again contribution. right.

the investors members Thank great much. with you future. our Have very So to thank to we team in forward a in and of all day. analysts, of new Viant. And you you interacting more look

Viant Technology (DSP) 22 Mar 212020 Q4 Earnings call transcript