DSP - Earnings call transcript Q1 2021

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Operator

Hello, everyone and welcome to Viant's First Quarter 2021 Earnings Webinar. My name is Kelsey and I will be your operator today.

Before I hand the call over to the Viant team, I would like to go over just a few housekeeping notes for the program.

As a reminder, today's webinar is being recorded. After the speakers' remarks, there will be a question-and-answer session. will the I Nicole over And Borsje. Instructions] now webinar turn to [Operator Nicole. go Please, ahead,

Nicole Borsje

on are future that Kelsey. assumptions our risks Madden, remind make you, we Technology statements Results call today's Operating like CEO; on could XXXX to forward-looking Viant and to are those and Co-Founder Chief projected. First Financial that to Co-Founder Chief call and Financial that uncertainties Chris On I'd obligation We Vanderhook, Call. subject and Thank Conference afternoon company's Quarter you results undertake Good except Larry results by differ events, as these from today welcome Officer; and law. based Vanderhook, actual and no will cause update the Tim required to to the Officer. materially

information differ to our the Safe the on For public S-X well today actual that our materially the Form registration statement, as from factors offering news please initial more to cause entire described SEC. statements related filings in refer and to with uncertainties other and issued Harbor may results and our statement about release risk forward-looking as

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

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

Tim Vanderhook

the propositions. first in will and we to joining we some of touch today. reporting first exceeded performance still value strong then year you, financial as guidance new continue Viant's way positioning in growth our that current our Nicole. everyone, to finally market market, be quarter are board. in you Viant's to are how the we quickly plan Thank business. digital and We're quarter excited you I afternoon, trends public strengths our discuss advertising since I'll and and our thank across us on Good on in That and results for can story company touch the relatively a driving and prior

connected financial Adjusted million. Revenue in $XX.X year-over-year. strong XX% the the the to EBITDA X% million, are first on advertising is on expected totaled at due grew increase providing CAGR an with runway highlights XXXX. continuing U.S. market in to has year-over-year of the $X.X increasing Here billion digital quarter of more $XXX More by Viant see quarter. is trends for growth, XX% Larry total television an programmatic XX% massive U.S. momentum moment. which and growing a and customer secular U.S. the is increase of a Viant in focus the advertising cover growing media several and has addressable us market, financials detail to at and advertising. adaption will significant is primarily through spend with expected specifically, to growth. the a grow to XX% represent focus market CAGR XXXX for We XX% a continued.

By Viant XXXX, undergoing back gives identification people-based us trends to a ad preferred connected XXXX. billion to TV, these scale our secular our content. approach, in using on attributed U.S. at a a to connected patented to And believe be Taking confidence QX of this raise strong resulting our year for TV directly We disruption and expertise XX% CAGR continued has our story. and television for and is the the spend full to internet-enabled industry outlook XX% and in results. grow household of XXXX. internet adaption the Connected step our become TV CTV streaming a of expected market the the $XX Additionally, forecasted is the vehicle is in significant population video which as Connected be

as theme of to industry all We A early than key people-based of have advertising. and real and measure in target a aggressively approach advertising are cookies under digital They pioneers the differentiated across using rather measure return their the solution. to segments advertising customer also approach advertising. investment. digital that people to complex. are buying committed ads is defend very these across pressure inherently their software the is to data-driven Yet, spending agencies channels Viant's is brands and on

offers key such way across and depth where spend measurement return tech as other sales call whole and opens cannot. simply -- one where build using around business but Planning, highest inventory data-driven a incorporate understood first, also measurement, Adelphic marketers represent superior a unlike the measure proven. breadth that Adelphic of software, can self-service greatest noise a them key software. of actual and omnichannel are finally, programmatic real a on channels, has with that be advantage solutions: tightly-integrated world matching the ROI two a marketers ad advertising opportunities advantages cookies, Our of unique platform ecommerce available world the deterministic transforms people framework DSPs, offered DSPs identifiers of Adelphic, audience it's process where identification marketers approach. other versus Adelphic buying big their changes based new them IDFA the landscape; allows people; to This workflows in-store into We segments on of data the a measurement in gives delivers data of three and cookies can and not our are insights omnichannel people based where marketers components do

changes during different just identification ID. filed year identification, known leading ago household many, Household ID advantage want customers because world Apple ID and solution a our Second anchored household only connected years a and Facebook everybody looking the IPO. solutions remind that Household now, internet-connected happened and is internet it's Viant and process, to patented it. more a the ID many right today. otherwise at email-based role its patent of the are diminishing moment future by had anticipated We've the for sustainable. Google a a the solution to it built from had cookies Viant's long strengthen same so as cookies. us in making differentiator they for for look digital competitive key household for our which a approach household, is Recent Advertising as develops positioning competitive This is advertising. supply standardized our organization it without that enables for a we privacy-friendly industry. we is product that This online our bid the are stream, I as of like take using us. ecosystem presence monetize the platforms bidstream, from bidstream is digital DSPs other data and passing among The from for identifiers framework based things, standards validating independent the exchanges set this interacts a an vast to summarizes and Adelphic's the the which with of entirety screen by people-based called of at is the to on publishers Through X through space on ad Interactive May framework millions identifiers apps. digital year. derived standard this the programmatic chart industry advertising across on need to of This side sites Adelphic programmatic by advertising their May majority the of relies XX Bureau,

and growth. and more. more partners customers why company that Chrome present This yet Viant's challenges isn't bidstream XX% at just during can to Household the changes ID Google are has why for later it. you the of relying to of only is and period, reason Household at the and represents currently drop ID the new is see bidstream. a Fox Viant's to company planning We're has close time browser in as for roadmap on time Household a But cookies our this a because always agnostic us see, will mobile building Household are XX% cookies by for for is with of a and tailwind are device XX% this the tomorrow. present ID delete huge the scaled Mews of Chris zero IDs catalyst today. call. year's Viant. we of number on partnership a the the be and is discussing ID This is will been ID that As media Viant Viant's end the future

We developing advertising have track solutions, we to through guide record technology marketers next of have the expertise this environment. a long generation and ever-changing

in more we to experience decade. the in have more last near than we than ad-supported technology TV, from Nowhere XX TV connected proven was connected and has Xumo sold service that a are and More is Comcast ago, connected companies streaming benefiting years video-on-demand most term Unlike in experience that for which year. television. that than apparent been founded

of earnings last During we our marketers. effectiveness connected for on call, is accelerating. our The TV the momentum solutions Viant's and discussed IPO

over it strength market announced in will the CFO we partnerships of which conviction that the surface strong discuss CTV share CTV. us roadmap and and gives gains, value a what about technology our quarter our scratching are do Madden, can Larry to just testament now more are we Viant's I'll product turn of proposition. the New who during to

Larry Madden

Thanks, joining and everyone, thank Tim, you, today. us for

of from as for QX the key grew quarter. XX% across continued half effects the begin XXXX travel X% all are above a in and and growth are saw we in during of during which optimistic QX retail the over total through by continues remarkable momentum poised QX for year the the We rebound our operational total by excellent represented our and investments so discussing as very I'll some well end the increase the a of operational far will despite high the increased some challenges we of in some the momentum previously our to QX drivers on platform a in spending across guidance on in guidance clients. of strong encouraged spend, also sales that, XX% TV COVID-related remain and and of current let building first CTV platform of primarily QX delivered marketing the customer spend year pandemic. XX% our video-related continued and performance, full the and and solid as we key dividends basis. also to of Total key move key we all solid quarter. encouraged issued represented financial the reviewing and is and metrics. platform, XXXX. highlights verticals with in With XXXX a driven was our highlights grew second across be for year We've certain full includes expectations the in QX we Connected as discuss spending on some At and strong our growth This our as be quarter. quarter over level, see economy spend looking certainly quarter, quarter. believe high QX paying our are in we an which in XXXX. metrics And Today, half financial the first year our spending on Overall me our of I COVID as

We to to CTV to market expect industry channel. contributor going be strong growing expertise solution forward important this CTV continue gain growth share continues and across leading as a our and our to

terms of on as platform compared three automotive of specifically, quarter. our customer our during these three macroeconomic More as to year. important continue XX% QX to all verticals, indicated, In spend XX% continued platform be verticals hold three spend verticals, of expected, I we QX travel total budgets, spend other these across the conditions previously the XXXX but in in verticals negatively related to quarter back across impacted pandemic. pre-COVID. customer by Conversely, COVID to XX% customer retail and remember, customers total the down represented And increased last

As we travel, believe in through to we we accelerated come normalized move automotive more growth poised as XXXX, the quarters. for are and levels retail coming back

up to travel at growth weak Automotive spend recovery solid seeing with already believe customers. chip half QX a second our early as strong signs this current are resolved, and with contribute retail spending also industry auto in pick will point, wide shortage we gets but XXXX. remains in We of of in the and

was first XX% ex-TAC, QX Now key for the of on Revenue quarter. the performance in our million moving quarter increase to of the revenue focus of year-over-year. $XX.X revenue compared an increase to we evaluating metric performance quarter, was an $XX.X GAAP revenue for for XXXX. X% the million,

revenue media net and data contribution costs. reminder, ex-TAC a third As represents after deducting the all party

revenue and increase As mentioned, driven platform. revenue was the CTV-related by I significant growth in on GAAP largely our already QX, our both in in spend ex-TAC

pricing subscription to its This our and price percentage strength of outpace customers. across model Additionally, spend our highlights growth continues continued fixed price Viant's with offerings. growth agency across

also our customers spend spend and as of percentage indicated, rates increase we've retention As consolidate very time they their platform. high over budgets had typically on

and end Another Average generated last active Since we the in customers end end of seen we of the ex-TAC X%. totaled set we base the year, revenue end both customers an COVID-related QX metrics increased that of average Customer compared saw existing $XXX,XXX define on $X,XXX of customer revenue to revenue are an the ex-TAC customer at revenue customer. the the to XXXX, per active generating in our ex-TAC $XXX,XXX at minimum momentum of prior QX, now per customer. that of metrics focus key the over We additions XXXX. consecutive and the customers XX-month per average have of active our number in assess QX XXX quarters ex-AC at we versus active active the business. downturn, growth a customers are revenue number ex-TAC within active the of we of customer XXX period. of the any track active three of of At increase and had QX

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

sales continue ramp expect momentum forward, another up As engine to around which acquisitions, serve customer in as going we further we to and forward. our XXXX will ultimately growth fuel new investment

expenses. operating to now Turning

the $XX.X have particularly totaled the flowing operating expenses flat based increased to prior expenses we period. the excluding over through on a non-GAAP Total essentially beginning with impact compensation. that compensation operating that significant stock XX% headcount period. same the going in compensation numbers QX, by Given stock-based is million This basis stock-based report of our excluding notable our quarter, intend in given forward, we year

XXX focused remain Chief Officer and the you high and efficiencies Co-Founder of give goal years investment which growth Vanderhook a the the bit increase headcount revenue represented to of you In new share about the employees, in ultimately Chris color will significant driving end but of a some number year-end recent with were for additions, with our on on of roughly coming profitability hires to growth with details. balancing operational continue driving and let Operating moment, more a The come. with level since an these me We our little side. business, quarter many sell XX%

of there. continue recruiting to increase some are XXXX, representing for candidates QX including XX%. reap extremely a from to rewards the we qualified was of out million tech EBITDA compared $X.X attracting Our the year-over-year of efforts Adjusted best in $X.X as quarter companies million

period the ex-TAC margin quarter revenue Our XX% in as year. adjusted of EBITDA a last percentage compared to was XX% same the in

we and the term As to mid continue of a our as XX%. business, at scale percentage ex-TAC long to target adjusted EBITDA remain margins revenue

terms is by net we of net intend business. income, which net which represents the metric report In based excluding the to measure more compensation. also believe focus a performance stock and on the appropriate non-GAAP of We this operating income of to income, metric

rapidly cash, growing quarter to take last for totaled million front year-over-year quarter. sheet million finally, of the activities increase $XXX.X the extremely income turning from market common net $XXX,XXX Class from basis. net our in and a million we our us. $X.X six versus non-GAAP $XX.X $X.X representing in net profile advantage of the year, million quarter Non-GAAP of the of cash year. flow $X.XX for February. includes with QX A We quarter, We in proceeds which generated cash us the of per balance times to to stock compared believe the And perspective, on healthy of operating of growth ended a share For totaled that well IPO positions million an $XXX.X guidance. last now earnings nearly opportunity in generated From

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

two signs An range GAAP $XX million, $XX.X approximately we XX%. EBITDA in which XXXX to second and represents around year-over-year early As revenue confidence early growth recovery verticals of in year in some of a XX%. travel, to about our at of gives to million approximately adjusted performance. retail background of XX% increased in XXXX, uncertainty the or XX% ex-TAC range and quarter the of XX% in early said That us automotive a we of a million the year-over-year the customer $XX.X there across three we of we demand COVID-impacted that With range our $X.X guidance, ex-TAC million, $XX recognize markets, fair growth the of being margin of QX expect revenue is key for our represents think segments. that overall $X are to XX%. still to of which end in our in of of million the as to percentage including advertising million amount Revenue

meet beginnings that not our call that, we move increased over needs the as of platform to and believe investment now in across uniquely continue XX%. retail our the $XXX the now million With range to ex-TAC XXXX, with their to $XXX guidance $XXX advertisers world are and we million build And EBITDA full expect the of turn growth Chris XXXX. which we million, as range million, represents a In previously of of margin rely sales momentum to GAAP through our year post-cookie in between million, which our to year-over-year does million XX% issued positioned of revenue customers, percentage For the as XX% $XX and approximately raising expect to travel we XX% and marketing Chris? and growth return-to-normal Revenue of of of and $XX Vanderhook. adjusted in range we will the to represents I finally browsers the over-indexing on to in ex-TAC $XXX a and agencies revenue of our or a continued identifiers. Couple across summary, approximately to year-over-year XX%. we're XX%. CTV,

Chris Vanderhook

Larry. Thank you,

continue in QX in and year. continue in invest and software. our customer will already through customer the consecutive execution We within partnerships second is third trend categories: of quarter we investment second three our of the in This technology. starting adoption, quarter growth on we spend off and are the into that to strong is primary our omnichannel growth half believe focused future the and very and of rest the

expansion Officer an Chief strategy Kendra Our key growth, past In of C-suite starts to the have with attract our to organization. announced People and we including best propel few to people. Viant's in which several that with is who continue will intention the the employee accelerate investment weeks, brightest experience help our the operations. people She lead and Angier, will and talent hires

As Larry tech programmatic strong and mentioned, big are sales coming of technology direct leading with companies. we've sales and recruiting software many experience us leadership increased sales from -- other our extensive across footprint, which to

For of our Google veteran about had excited up. We're to appointed we to agency the contributions created newly their Head forward Fahey, of David expansion Partnerships our the of time a prospects Viant. example, the look ramp new once to and at members partnerships company holding team drive continued ad they've recently to Agency role of

of CTV. announced rich another superior exciting targeting, return goal with want last ability We've the content CTV enhance marketplace, available data customers' CTV. announcements ad a believe to all Next, validate omnichannel spend and delivering continue we've for to talk a product couple about experience. enables in DoubleVerify, with successful weeks, integration I the In with premium on Optik's some Tru our data to also which and partnerships which successful of enhances integration will that customers' announced our we

software both and spend this software clients for a to their programming TV Later within making to connected households talking addition, our ad provides TiVo, and which linear called forward ad better and some a partnership our our of technology. streaming leveraging Cookies. millions announcing across I'm excited time we stands television. U.S. partnership release quarter, In I connected large targeting about technology-agnostic investments company, Without data particularly TiVo World for WWC, will in campaigns. linear for about this be want and look now we recent audience which exposure and measurement both both for today, with a are

cookieless to As like your our our approach test Household ID to to recall, cookieless internet people-based as television. can continue spend they they available as customers our continued customers these so has scaled the We've will the with Household environments ad impressions easily continues amount ID of adapt connected to on in been grow grow.

becoming the now choice is ID preferred our Household scaled by customers. Our

and the app. plan now are to WWC Adelphic, enhanced always any empowered release of marketers or ID made using against with supply partner, capabilities our data site, With Household channel, Household at will standard using the easy seamlessly conversions ID, household it this more to reporting our dying we to incorporate release, cookie. versus measurement the but be with enhancing by our We've

without when test competing was They who ID each in WWC seeing Household purchasing see over spend. With placed Household actually devices importantly, and since be will of return relying order identifiers. their results was a on to are greater connected a increased household platforms utilizing But cookies. reached their in campaign We the television. that other to ID pizza how a scaled show website to many household completed in that television, ad able national an XX% ID utilized were when excess performance our when for our There a many household cannot Household client went versus was cookies was the an that world just an and the other We able allows something experiencing in has is budgets more This chain. ID our customer's release to upstart skip our XXX% for measured left are not our do. how or that marketers shown beat Adelphic. connected by true a they customer pizza Recently, marketers households on that we times exact customer ad.

spend will been our customers. Our their for agencies on ensure release marketers and that for WWC a ad their that return and to provide platform has focus proves our

spending performance have will We are in release should this customers' increased that even campaign software. confident improving in bigger Adelphic our result an our in impact on which

software. negotiated and Marketers of channels increase premium leveraging and content And in week, separately in we ultimately this announced with to of will better CTV. deals of will insights our for release their it owners new content seamlessly with Deals customers owners, select The Viant for across results which continue will their content specifically for of marketplace speaking both a better advertisers the from ID to and owners directly flexibility Media, deep are upfront owners addition the monetization announcing deals This within and we premium content partnership News in own ad capabilities be we allows others also inventory and all with our Household direct measurement Adelphia. that or currency expand release drive cookieless their partnership with going have the can to leverage software which WWC, with this like source to our environments. Fox be audience roster integrations our premium the forward. In

is Lastly, amount the our queries impressions as ad to second, receives. we of continue need business, our to that which or total per our QPS scale increase will we software

our and we're With more seeing we times last up QPS, the the three innovation quarter. product, the reported in efficiency continued now in the efficiency mediator from times than four

as so going Tim. With are are of at its industry. the the about technical in we it making. believe the will I'm infrastructure Viant that We business, confident that we lowest that to excited progress to back I'm pass cost do scales that we

Tim Vanderhook

trends advertising channels. much ways. Marketers and more and is and habits within rates formats increase. projections Thanks, Alongside strategic targeted and growing this to fast consumer reach an in are growth for revenue that Chris. in in well-positioned digital There new consumption the future their ability Viant dynamic, at growth. are we're spend is people embracing and seeing new increase

coming agencies are our We out their agencies people-based embracing complexity of return on advertising anxiety investment. more take the Brands on XX and ID expertise competitive Connected importantly, and started finally and which years is ultimately vision, Our Household maximize TV. we rely fruition. brands help most ago our scale Viant's and They and and than advantages. to approach, the and

your start ahead. and and quarters very to in want you the our are for with XXXX building be on are in your our the to We to look We excited today interest to for year. guidance pleased Viant. forward thank raising momentum I attention

Operator

will Instructions] line from your Needham. we [Operator open. And now first Martin is Laura take Laura, our with question

Laura Martin

see guys and you me? Can hear

Tim Vanderhook

can you. I hear

Operator

well. you ahead. Please hear can We go

Laura Martin

Fantastic. a Great. follow up. I'll just ask one and then

can drive universal can people-based your ID? talk that think doesn't household talk ID about but how on tech successful understand about you you solutions will whether web? you in open be work So, universal cookies, will I whether growth ID rely and understand I the CTV Household for Internet great uses it you there feel Could that the But in does really is ID open talk that? outside CTV. personal about for like get that. are a I would you faster for guys of

Tim Vanderhook

right Yes, question. that. get question to We'll thanks follow-up your for the after

in taken of Our taken is competitors have approach, users. We've the cookie. an identifier ID approach those a Household which aggregating hash a email different as a replacement for

is statistics to back scale. the shared slide, all the we Going in this about

versus where scale, launched talks look on website of to we which enable It data connecting So, terms scale is user and in in logged X.X at if really today, momentum hasn't with the even really UID we're which XX% zero. our that ground ID, has stages, at it's household ground with is coming in CTV a many lead facto such now And of kind the on forward, in the way, strong way becoming this idea because it's for delivering market in is years. in de the been around work can driven theoretically to audience forward a targeting new all other what this for advertising But marketers targeting. what's of need. might work world that going works a One cookie-less way challenge important about for vehicle a everyone an so side in the is email is of segments, measurement; still there happen. any

the biggest measure biggest that the unified of website. see one a ways that is, we actually ID can buy on their yes, but think they marketer and can responses gaps of happening through ads are the I one

website ability and UID you of website. taking automotive, buying brings marketers The is measure on attribute ad categories a If of those are the key drove to them place household think interactions many these which that that differentiator place key simply that activities on advertisers to like ID taking to it's these relative broad the transactions aren't online, X.X.

just terms, layman's this the user to ad attribute decide that our loses and conversion marketer let come show that email I purchase or So will with let's conversion to publisher, into software a website. identifier, based CNN the perform actually on record that report, me which that the and to that the on conversion marketers say key any email and action; there hash say is appropriate I to website where app. and ad an and if in visibility message later logged which buying an is drove not Contrast UID the X.X, able a in, being attached,

don't Relative don't their product selling targeting marketers a anything. the household adoption register X.X, we would adopt look marketers have frictionless on everyone's actual the we ID, include UID a equally to and as framework publishers a the side, marketers we challenges to website, bigger require to when are this So to entire at system; require lot you website. and focused a well, on aren't stop there's on to of

across i.e. XX%, place a same Our ad which XX% and today, same currently bidstream. seamlessly than is programmatic is achieved we've more, works XX% cookies scale system now pixel, with delivery, now bigger setup of in of the same that's the

and So be think adoption how ID substantial. our frictionless, are is it surpassed more our to and is solution more going what we cookies household and our as in towards marketers implementation, bidstream, approach truly understand the the has far today

Laura Martin

X%. now from my the growing you. that was growth second thank overall it's XX%. for about of your XX% you. then revenue, is only revenue recollection maybe CTV your question IPO was XX% follow-up Larry, And But Okay, it's because My

about happening what's like What's autos at business but total in in growing happening at revenue not in to by of by in versus the shrinking, So growing the CTV XX%? the mobile? vertical -- display? be be IPO ad can date at talk What's for travel, revenue order to but X% what's by you XX% happening

Larry Madden

things would of Couple I Laura. question, Great to that. say

as of a generally from a shifting seeing CTV, certainly into are for these we marketers. So, better basically and desktop away mobile; advertisers trend ROI CTV dollars provides

as in provide, CTV well CTV. and Tim from what this the said, trade works the significant true both on seeing is particular in benefiting can trend in platform measurement, were and Our you're which increase the we extremely targeting as

particular, more not response oriented, Additionally, -- travel typically more is if desktop. to mobile much targeted in retail, clients verticals, at and at into which but and you automotive typically are direct get look

did these So in verticals do QX, we said, coming quarters. we these in quarter. reverse the as being during desktop in the mobile sectors trend will improve in decline expect the declines see that That modest and

Laura Martin

much. helpful. Super guys. Thank Thanks, you very

Operator

Ripps Our come go from Maria with next Maria, question please ahead. will Canaccord.

Maria Ripps

Yes. Can hear you me?

Tim Vanderhook

can. we Yes,

Maria Ripps

much. so Thanks

And results. guys your see the there. strong your all guidance, point, and to on year much quick And around at raising that outlook? good have congrats then, takes I puts and how you of color some I you I follow-up. visibility it's impact do potentially And full are sort could So this appreciate guess what But have it? a

Tim Vanderhook

want take you that? do Larry, to

Larry Madden

I'll beginning of the take Yes, that.

good very some of we're there. So visibility. done we certainly May, you there be work Honestly, QX, with the middle still we -- have in to have is now know,

I the a cycles as lot our back with we're what agencies planning marketers general think is seeing matter a and the have of half, in shortened.

been in we're momentum seeing term and confidence the a getting having this COVID, verticals and and now by retail, said, less CTV, through visibility the in the have in lot that terms travel terms we seeing in gives commitments, of really through seeing in That impacted in do to with when discussions of of of While we're in continuing have based the in came it's can starting the we on sales came play COVID especially after longer being back we're of heavily and positive increase come a forward year we're planning more and cycles of lot the of shorter that. terms terms of feedback going terms now QX, factors, into what in investments, that with that that we're in second in a us right terms half. very

Maria Ripps

Great.

or Obviously, to seems on refresh like pretty it and QX expansion much driven stronger you us on it Just profitability a maybe margin you comment flow upside? there two? this came can to that? in implies your maybe any is just And strong just of driving Can more the changes by or year philosophy maybe through. follow around next your on what's investment guidance, broadly, the over year it profitability are revenue pace up

Larry Madden

Yes, guidance will our part to that so we've higher so first the EBITDA, certainly that the that, through increased EBITDA. of hence revenue, flow relative to

The through the other but of of expected XXXX doing majority end large in the of terms plans we we're by we seeing though, were headcount, the things we in QX. what our terms way hiring we're of investment, incremental pace, on thought

very of originally efficiencies we with back pulling are not we've of in what done, That's the always investment. we're on had That continue us as efficiency in we talked So, can we kind But terms where in money expected. squeeze of Chris in line focused look non-personnel for out our to we and huge mediator results about product. areas budgets. and the at a finding business. savings

the it's done most it's to of we investing end it really the continuing QX, truly the second is with that I half. in think increased forward that So, the can lack getting the that a team not of benefit by of by increased investment. revenue, efficiency, and or growing investment such second drive from We're half and

In terms of margin will growth. come that obviously, with revenue expansion,

in since invest plan percentage we to XXXX, we opportunity a continue near even we revenue advantage that which forward. we before to up can, take will has is think ex-TAC, what as get going invest as to mid will been with XX%, investment, the IPO. margin the are We we that in of to went to term But continue our

Maria Ripps

Got you it. much. very That's very helpful. Thank

Operator

if like audience, a you would raise a please to As your to ask question. the hand reminder

of open. your move your find bottom is feature Raymond the James. the Aaron line the your screen. hand You at part the raise can lower to Kessler Aaron, on in menu We'll with of

Aaron Kessler

A to guys. forward? how then behind bit we us percentages Can just should a and away a Then, increased revenues, on [indiscernible] Thanks, the those think couple give see the as Thank of and pace into a cookieless what clients? pipeline, next move agencies see increased sequentially. the [ph] I percentage that shift from feature as of I noticed reason questions, are a maybe some starting the two, starting maybe over direct we feature, the given just conversations cookieless cost from to you so? suppose going a that, the those you of about that conversations you you. with Are year direct shift or to

Tim Vanderhook

Thank you, Aaron.

looking I you're operations? terms In costs, of direct at assume platform

Aaron Kessler

Yes, direct percentage. cost as a

it QX? GAAP went in to I XX% up XX% of about revenues about think versus the

Tim Vanderhook

headcount, a on is One increase a Part on year-over-year going of -- couple basis up there. something in the is is of that which XX%. things like

that QX. be important at comp If basis, from you let thing me be a lot -- a stock-based look of notice that, our we're pulling let excludes operating restart which quarter-over-quarter it first in why we million on in to me we're non have $XX our talking plus GAAP to expenses about that. OpEx, total -- Hence going the to

if I in at headcount. sure essentially If got that XX expenses flat I'm and year just that your the made, not over you significant despite right. last operating sure excluding investment to the SBC, look the make last months, we that I additional it's with have is fact pretty want question. answers

Aaron Kessler

gap the looking was between. at I just Yes,

in a it gap a than revenue think the saw bit that the widened quarter. the seems ex-TAC previous little we versus more cap revenues, I

Tim Vanderhook

Yes, that's included that in a $XX portion stock-based number. of is comp in million of that

Aaron Kessler

got it. Then feature the cookieless pipeline? of around it maybe and comment what for conversations you just pace Okay, can if on means the

Larry Madden

for have changes It's are start the day, that news understand is this they whether to Clients definitely educating ready that months be clients ago, whereas happening in Yes, years. six-seven every and have we ID definitely, be this ready pace come increased. the you in getting of this. ecosystem, for it conversations

is the increasing. So, pace definitely,

we I help a think those all point apparent One everything embedding to ID the a hires I delete our cookies. buying bit, other just towards be going that us I But other throughout are we're section. XXXX sales New think are really WWC half previously is interest the to year. areas is real essentially did real going out, household customer conversations. Google when more really in think that in quite payoff adoption is kick that We in seeing want come the platform, going say effectively release, us second where to we of solutions. thing the does starting really increase and to making new in testing not

Our leaning be to know I they are got forward agency partners ready. because

we we more that So, of throughout even the expect as up the pace to year. go pick end

Aaron Kessler

you. Thank Great.

Operator

go please Our final question ahead. will come from Rocco Strauss. Rocco,

open. is line Your

Rocco Strauss

much. hear me. from have you you right. Thank hope two very All I I can me.

take I'm the that? That 'XX question. rate, a educational to here. the driven have generally, IDs fiscal ID like like is that X.X more was seems desk. other to your if Viant or probably ID ID peers around you one versus Myspace it off or what The then monetizing more of high retail would of capacity guidance, given like use that on just the planning like an it curious at midpoint or assets is again. XX% already extent still I your be is first I'm using guess of trade one you're Then using old year commentary unified a in which bit any or to of household one unified quite the seems kind contributing and

us will versus that services here, walk your drive within well that be through it operated mix as third helpful guess, party like Thank you owned additional any I if up? that and as kind revenue may could checkpoint you. So, inventory of

Chris Vanderhook

next for emphatic first. and That based from the in Rocco, platform, plans, UID the we to No, and market X.X really one questions. an ID we household off Larry answer the when is leave irrelevant data under Myspace set launched do thanks take Myspace the I'll data our XXXX, question. first for programmatic driven a totally changed Is of I'll set? to Viant the brought all that. people Viant it name at it to used not

email. time was the approach Our at

ability software But with to The trade email point. basic from a is XXXX. data concept had since desk simply is issue our the their hash architecting there. for don't the accept So, re that identifier have publishers email that the that publisher we've

Project Certainly, problem really which a identifier device media it universally So, email be of bid change bidding to if paid called framework. the this that see likely in a own six like identifier able Prior XX% connected through all to subscribers. of our companies, a hash IAB half dealing portion email every it desk it's was The pass it address television have of bid in a that renamed their to with has it it if experience off UID storage email doesn't a email the their tech sends have important and and does. publisher have the and better ad it, in is household publisher going to identifier don't being internet, we major that able through. head anyone the X.X or It stream, capture wide entire data false and the will being It big ability given just an past hashed household that and through, any it available to UID authenticate X.X, But for premise it for industry since scaling years. devices of no see on identifier. XX% rely what an simply to Reorg. identifier to called was we comes is publishers effort, the we because to an be requests the the identifier scale history just large available X.X. all but But on buying captures point approach, this that don't We female UID trade on the past say aggregates required. doesn't

So, that for the hash email you take we they scale household well. of move what's rate of ID will leave time the the once over the the believe course I'll our corner as to the of is identifier. Larry, it see on competitors around that all

Larry Madden

is percentage we show treatment. than GAAP that revenue. terms take a different different of of is a rate higher take GAAP in because not is we our model. The ex-TAC is revenue in the as a so models Rev number much in revenue with ex-TAC have accounting reason our Rocco, pricing Rev rate, Spend

we on costs. Rev but revenue essentially on fixed because Our it's our It we after spend percentage and media number, data our represents and out is But represents is deducting on spend costs of option, data it GAAP GAAP a and number. spend media the pricing ex-TAC that not spend option, the it's then revenue rate pricing what takes a subscription have media not disclose. different but focus and you a by such options; is data net to do divided do all option when take fixed that of of GAAP normalizes ex-TAC a that the not it Rev would revenue, spend, metric three pricing But spend costs. out you divided is Rev ex-TAC that by

Rocco Strauss

All right. Great, you. Thank guys.

Operator

now Andrew please ahead go Now take from question with Andrew, we Boone. a your will question.

Andrew Boone

terms can you perception Hi, the of share on guys. I of have much. of Thanks kind in Thanks any And feet of the base touch guys client so and in street? scaled that more progress to wanted for just taking kind you and the Salesforce just guys as the question. [ph]. up terms getting

Chris Vanderhook

the let's has, IPO, foremost, talk and the candidates marketplace. product its from the coming First the in pipeline. really post just of the in Viant about quality

going partnerships that agency it's on these of I in I can halo that from from scaled the think is accuracy it's works on the come huge [ph], ecosystem. on the to came We market, and have level nature Stayhi today. the on much mentioned team. have companies our go frictionless of team. could attracts our you scale that and that the the it because recognizing individuals left Google. of When heading Viant everyone product us ID Kendra great quality Really, and lead to in a board caliber and current in Officer, Chief about brings use we join on the the a brand the David individuals coming People up talent, to industry higher

the I think that's big what's talent drawing here. it

Larry Madden

really there. well by hire We're half. the to making we're As there, hires way of far as second headway we're sales majority on our those the going that hopeful

but companies technology to work think both are we're to second that plan want are make I great across said, hiring well to be think, great right they point sure seeing the Our brand to want hiring impact. and through we absolutely the candidates who people people, as other we're note, I they half. Tim to We the plan I and make through a One here, is coming understand an want coming obviously, way. our challenger from opportunity

them. I been they clients more coming, I for think it's very think like the hear to don't I want to we company What is moving the as like don't. well. think, see refreshing challenger they us A commercially consistently clients, just Google,

for sales also We clients. are great times lot you're of great A hires, when faces you're having familiar those conversations. providing getting

well. So, back about we're they're It's give in going them seen ramp some still going year. to up, as that We're but early. of the to what we've time half the excited to contribute pay dividends

Andrew Boone

of clarify, to and and event a be question, we capacity and more scaled sales a fully this see as this that may Just running? Larry start to XXXX more get of is up but

Larry Madden

planned we of bring so this Certainly fully much That's many year it clearly, the XXXX. half had get that do than ramped, have in we in it. the more But but first some effect trying XXXX. we will half we second were as expect always why of and profound of them on benefit of very to aggressive terms in

Tim Vanderhook

the there and doing in and their because on this cookie We've our patented as Google execute accuracy now, our rely day-to-day. just and to Chrome many, Really, one we cookie, can from competitors that events looking to years the no is experience for. of a ID still be going cookie scale about When of really matter are process. biggest to most. Google got Yes. the whose system the the really out that pulls many rug business deleting business is clear talk for marketers get of right let's has that which see accelerators

when So have again, pipe we'll really QPS the and down cookie behind we getting is of then focus see And all bringing Chrome their XXXX the our pulls all in from zero. actually cookie that competitors ready XX% for to Google This on the software. hiring. and team goes what

Andrew Boone

Great, thanks, guys.

Operator

further Tim, turn are There you it questions, for any to Larry. no closing remarks. and Chris I'll back

Tim Vanderhook

to our is and here you to want everyone work look brainpower for wouldn't Thanks, that everyone. say every without forward thing just and build level the day. tremendous Thank And Last you level we want us to I come. you employees. for the to each you, quarters be I thank of dedication, bring much of your to in that. momentum very thank We to effort today. continuing all future joining

Operator

so you does conclude today's Thank this you your participation. thank much. for webinar. all We again, And

may now disconnect. You

Viant Technology (DSP) 14 May 212021 Q1 Earnings call transcript