DSP - Earnings call transcript Q2 2021

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Operator

Hello, everyone and welcome to Viant's Second Quarter 2021 Earnings Call. 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, this webinar is being recorded. After the speakers' remarks, there will be a question-and-answer session. you things attendance over thank will and We turn now to Instructions] for today, your I [Operator Nicole Borsje. Nicole. ahead, go Please,

Nicole Borsje

Great. financial afternoon Technology's Good Thank to you, Viant the and second conference results welcome XXXX call. quarter Kelsey.

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

about the and For SEC. Safe our and may XX-K press release as that forward-looking on with report results issued refer the and cause in entire from materially Form other to the to risk factors filings today more uncertainties as information described differ our statements annual Harbor please statement, actual well

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

release the like our are would measures Chief Tim? disclosures turn to financial and highlight to supplemental today, of measures to Viant. provide Additional reconciliation earnings to over point on Vanderhook, presentation included like website I we Relations a quarter. would Investor Officer issued also filings in posted press now of our to to Executive in non-GAAP the Co-Founder call Tim a and with non-GAAP the our I GAAP regarding including these SEC. that out

Tim Vanderhook

to that today's strong delivered and call. Viant Nicole, thank for second you, you quarter. I am joining pleased report Thank a everyone

from Consumers, differentiated expect use channel, by interest owners the over which continuing performance channel, benefit Our and in content CTV the in their continue long-term. their key quarter, advertisers technology and a any on of campaigns. advertising and XX% to strong our TV and the to agencies TV, growth software we largest continue representing secular advertisers but grew grow XXX% number continue decade to fastest-growing with growth was to execute experience connected and to only adopt we our to in ex-TAC. driven of our as this area. also had of by the channel our Contribution We metric, across build is not metrics starting of connected

the we On customer a great front, quarter. had

We continue XXXX. end to to at our total the bring QX, expand to customers of active adding XXX reach XX our

the announced large key and You our here user substantial WWC, advertising better may the recall we a of during adjusted It We in is called I metrics. EBITDA. across very software for will for experience am guidance or our of that Chris World release improvements Without early call. our advertiser a customers call performance later high-end on Cookies. progress driving by last details earnings more signs success. our Contribution the exceeded revenue, provide many and ex-TAC encouraged

to Larry, guidance that, the over more detail. hand excited and for see are our raising building We for the momentum year. are financial With I'll our call to

Larry Madden

us Thanks, you joining Tim. everyone for Thank today.

I'll encouraged certainly drivers market QX, is in the will as and traction QX of the current is expectations gaining software be I during some financial of our the well the the year our by our XXXX. reviewing as key also are We quarter. This testament in performance, QX operational a highlights strong which to And full and I today. for believe our afternoon, of discussing performance the some be

Before items. a I numbers, into housekeeping get cover I'd like few the to briefly

posted our to supplemental Relations we to accompany presentation. to have additional effort around performance, provide As website today's our Nicole mentioned, and slides in financial an details Investor

how will what to now was to has is Additionally, with as order ex-TAC. been finally, Previously, verticals, It a we revenue platform no Contribution these have metrics purely disclosure requirements, customer this reported And on we be formats. in mainly ex-TAC be certain change. name change based adjusted calculated. comply referred how will we reporting on on and referred metrics channels spend. as is SEC in key previously There to around

report that prior trends not terms spend, we approach in metrics not meaningful did methodology. given materially platform we in disclose an will in to more This disclosure, ex-TAC. change provide Contribution change of versus the However, the total effort and a these does now on

issued had key we the more a that, previously in the the discuss let highlights across a and In customer solid our than key some of quarter, across retail delivered and me our with travel for and high-end At above all doubled verticals. CTV recovery metrics. financial operational So we results guidance our quarter. level, QX, high business

Our in in increase solid customers also our technology is continued as and evidenced active to pay the investment dividends, team by our quarter. beginning in

for revenue of million, For was ex-TAC quarter, compared QX the platform $XX.X XXXX. year-over-year. increased the quarter, XX% versus XX% of increase $XX.X the last of And XX% Contribution total increase an an was year, to for quarter GAAP million spend

during said, in is quarter. represented CTV. drivers of continued QX from ex-TAC of one the our biggest Tim Contribution momentum XX% CTV in grew and the As of growth total Contribution XXX% our ex-TAC

in all the total, than out CTV other TV. ex-TAC quarter, saw of other streaming XX% across also Contribution digital quarter. In the channels including from We linear home solid grew and growth audio, channels during

market our to expect We software strong going contributor to to growing as growth a gain continue and advertising continues important forward, channel. across CTV this our be share to

perform of automotive Contribution the Contribution we QX. quarter, weakness XX% the and quarter in ex-TAC as QX our verticals. Contribution the Contribution represented verticals to represented ex-TAC chip XX% ex-TAC. verticals, terms see video across driven Non-COVID total QX verticals, as ex-TAC I well of increasing impacted travel a ad with our a retail automotive recovery verticals during travel and across the XX% formats, and In result Contribution global began in experiencing by across with certain during in our retail, of impacted in respect grew to growth XX% said, customer auto travel XX% COVID still XX% also continued in representing Retail, grew ex-TAC shortage. of QX, total and to quarter. With and of

customers. Our well the and particular verticals entertainment exceptionally offerings, and highlights percentage quarter. QX, CPG, pricing healthcare during continued across outpace Viant's agency growth In our our growth price perform fixed which with to also continued to in its continue subscription pricing spend model of strength across

end At On compared we the customer saw had XXX customer active of end ex-TAC the QX, an increase and during of active QX XXX,XXX the for X% QX, Contribution at at representing of of active Contribution Average customers the totaled number momentum customer in average period. the the the front, XXX,XXX XXX the of QX, quarter. XXXX. customers of to at end ex-TAC active end the per strong versus

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

of stock-based million Turning excluding compensation. the QX. I operating expense prior excluding of versus given in numbers the basis, XX% stock-based beginning our expenses $XX.X in stock-based operating through discussing a impact significant now to flowing expenses non-GAAP totaled increase compensation briefly XX% on operating year, the year, will of quarter, expenses, QX an Total the and higher be compensation this than

last quarter, time, quarters by and same candidates. of growth throughout efficiencies many attract past qualified in efficiencies of the years total our the growth had approach quarter XXX%. second also ahead. ultimately our labor At in the market, Through invest in We to $X.X for to to continue continue the a XX% in operational representing to year, we we XX-months. drive company. the a end extremely QX our investment aggressively the increase will technology profitability and drive in the compared the increased our focused Despite growth, come. in over Adjusted to for on million invest we $X.X million people year-over-year was We headcount balancing drive automation further to to driving believe while continue competitive revenue operational EBITDA business of

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

to at margin ex-TAC a As business, our EBITDA we Contribution as continue adjusted remains of mid the targeted to XX%. long-term scale percentage

metric which for QX income gain the XXXX, excludes of forgiveness stock-based of it a PPP and relating XXXX. also net use our represents comp, We non-operating the from excluding loan income, also net non-GAAP to of of $X.X million

profile totaled For $X.XX From the of diluted for net with we we extremely income versus stock take of for us. and quarter. $XXX.X de earnings class $X in QX generated the positions non-GAAP activities last operating the Non-GAAP million sheet loss minimis market that the quarter, our million balance totaled believe in of a the growth opportunity quarter, year. cash. to $XX,XXX well ended flow $X.X rapidly in cash common of We front quarter $X.X million year, compared net A from growing of healthy to advantage us perspective, and cash a share of million per last

vesting to turn In end terms of by for the second-half remainder to the share a the RSUs by our expect XXXX. $XX.X finally, XXXX. in million Class of the increase $XX of share approximately and of as A of to year, now count, count million of common end we result QX I'll outlook And primarily the

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

about year COVID we a what for uncertainty As with being we for the a approach XXXX, our are said, associated guidance guidance, recent we XXXX given uptick the significant cases full throughout second-half know based think the pragmatic on That U.S. taking we increasing increasing today. are of in

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

full that year will basis year-over-year XX approximately the QX, in I higher the points our both higher and revenue that, U.S. be Excluding to QX, in XXXX, ex-TAC for will XXXX call from projected for we've X% now political for Chris. XXXX growth X% a rates spend With on turn higher benefited and basis. Contribution for over

Chris Vanderhook

Larry. Thanks,

Our aggressively significant building focused WWC, the will me release and we approach growth see to to enormous us. remain our or technology plan the our on business of and World brings in Without changed. to Viant's given ahead we not has go-to-market Cookies. opportunity continue revenue This invest called We software

participated the Let even digital a onboarding, release provides early digital directly unified across it important household our time. identifiers the provides already and really to to advertising including me the and their testing highlight This throughout measuring user new of and This right who advantages. access to available just from percentage difficult time WWC addition of take like using or cookies first utilize new take customers for do reporting now. for further have we've experience, into our customers are the available third-party all onboarding planning, streaming onboarding World in a a of program Number is like and our Number substantial customer one, number our thank ways drive WWC Number enables those these emerging DSP. already had three, plug exist to our physical great want TV, our forecasting, ID two, options advertisers provide pull we've DSP. this and scale, some our time onboarding to attribution. the of enabled leadership with email Advertisers the with to is in onboarding to across exist, small a ID and on nearly marketers I have moment households customer household or and trends. other where Adelphic our some up in managed their agencies in of can more we've ad provided grown to cookies to than from first-party our completely, feedback XX% experience beta software, addresses Connected private of the advantages our data. environments. more I'd that years. XXX enhancements. first-party to immediately areas the continuing position customers data this and for We means software. our beta of announced Without feedback. valuable to to all received customers received lot reach feedback on mobile on private that solves capping, addressable phones U.S. believe million consumers We We've don't by opportunities than make June, available channels audience context. million addressable positive cookieless audio frequency experience, inventory XXX the Cookies to which forecasting, and clients addresses, only user that also more buying

precision ID Gone over days with are results marketers. over same delivering empowering Our improved we their over the and control measurement, advertising customers of campaigns. four, the Number CTV the and and for believe superior to and of consumers. reach is incredible is WWC ad showing frequency

acquisitions increase our saw of XXX%. new customer During an period, beta by our private over clients average

cookie. lead versus better total We us allocate In utilizing that their saw reach ultimately money a who potential of they the which control average, reaching were were ID and with to plan clients on household able frequency new customers. and clients in less XX% to more waste addition, beta increase our the ads, told to

to able the of see benefits our We Without results, a are Cookies. and now these initial are operating in readily very World clients encouraged by

love. environments about All said, content of If now. Connected then TV, is better experience cookieless really the consumers like content WWC right help are can a experience owners better delivering they that frequency when a streaming for we better we that manage creating consumer and

enable their to On the be outcomes. back can business driving of we brands while this, relevant

which WWC revenues release. success planning customers more drive new and of our increased believe beta will improvement our new ultimately phase the of private to release event and to later. and in propel the customer on details more that WWC Given release, sales based that of the in and our to to also performance. this and We're open on our in ahead. More We continue week investment exciting advertising software September we people adopt marketing the customer experience continued beta, the quarters years moved to come allow will software better increase user wins a

Tim Vanderhook

Thank you very much, Chris.

Chris Vanderhook

And Viant market executing interest The our and Viant. digital we're ad is television to booming. attention strong plan. year. is winning in of your you and for second-half in the today connected expect thank want a your we of ahead I

Operator

first come our will [Operator Instructions] with Canaccord. And Maria question Ripps from

Maria Ripps

expected mid-market follow-up. cetera? added agencies, ask And then larger those you Can thank just have your list. quick we you at I it taking of what to direct, you client a much Are than about agencies, I this additions customer about Alright, from so added? questions. customers for talk customers type like et just quarter, my you seems wanted more you customers way

Tim Vanderhook

new we customers Just of If and predominantly had quarter use there a little were characterize had most bit on a We those net doubt. on predominantly that agencies. I customer they did have client where agencies. were to the that, been but don't agencies, And additions some from, those direct came haven't ones who in platform. great no

Maria Ripps

for time? to with for per of to be specific this prior cohorts clients? then cohort maybe spend you there do is on anything the terms par And average secondly, your it. over And expect cohort Got new highlight of this verticals in customer

Tim Vanderhook

longer clients for the them to Contribution say longer ex-TAC they're expect on platform, time. their of similarly. on on trend similar The expect been we do look to part, who've we to I'll second Just period a

expect was of in we direction. first again, your them to What So Maria? trend that same part the question

Chris Vanderhook

of customers. Verticals new

Tim Vanderhook

you on have do Larry, data any that?

Larry Madden

No.

Tim Vanderhook

expect their I ex-TAC. agencies, way Contribution just Yeah, terms in percentage me we of earlier, their that of just terms most the out of those broke highlighted in follow customers add, being similar of the they trends would the let in that general,

Maria Ripps

so in queue. get you I'll thank much. back Alright, the

Operator

[Operator Instructions] Needham. Laura now move We'll to Martin with on

Laura Martin

Okay. numbers you guys. Hey, great

and race beat quarter. Another

congratulation. So

growth going on your to the with So, hard CTV, because I'm Larry customers in start revenue of you like their is I'm are you the nearly you're guys? CTV customer times non-CTV a to Is adding three find because growth? kind CTV you're you going seeing for coming your is adding more to that attracting? of CTV, ask Or, the customers that you're existing of one. waiting do But it

Tim Vanderhook

else anyone if to add. wants and start I'll

be environments. they're we for DSPs in the DSP and that cookie-based customers Connected cookieless most cookieless there's advertisers list and where to that environment. I on competitive cookie with think see to list, CTV solutions desktop sticking happens TV the us come testing vendor channel, in mobile exciting Certainly, the them the channel.

leave in benefit that to new continue from And We customers. the for Larry. attracting rest I'll

Laura Martin

Okay. My on I don't Larry is second okay, it. get - for question

revenue growing at have quarter at guidance of growing next I And So for XX% is the the your XXX% and revenue XX% of yet XX%. XX%.

it at that light this quarter momentum is slowing the weeks down into that's now speed current what So of four stopping? is the right

Larry Madden

you. Thank Laura. question, Good

we saw So, customers our we retail coming certainly especially encouraged back. and in by with travel QX, are what

close automotive said, eye still heavily. guidance I impacted surge. say to continues mentioned, variant we we're today. know takes certainly being the pretty That what Delta what U.S. as is would in consideration on happening into today our I keeping As being that's is a the

to view rising uncertainty have caused the we guidance, taken increased we've by not. It's While cases. conservative somewhat COVID the a due

to rates really growth had good second-half. But other year out of an terms QX the is easy point I would about certainly this year. feel of relative comp last thing QX in The we of

certainly, best percentages. numbers. right our on of do going putting to We beat you we're today, are what And being relative to terms now. with cautious the we'll out But in COVID with what's saw these comfortable

Laura Martin

Thanks guys. results very you much. Great

Larry Madden

Thank you.

Operator

move Boone to with Andrew We'll Instructions] on JMP. [Operator

Andrew Boone

guys, Hi, thanks for the taking question.

CTV, the of customers how it given broadly across that you Like, seems in the about that's Just in talk get But Is formats? like of the to tip spend and you to to guys more do differentiated. think can about budgets? the ad customers strength on on very terms bringing way other moving right me spear that? more

Tim Vanderhook

than we by competitive But our as way board. we believe Absolutely. on obviously and a channels The the we're and by the is easy is you the see. have investment And more do more can more need We've channels model, hit to in getting you business that client. the and of hitting a increase any that right is sense platforms. invested to area, area in CTV, now definitely you

and to we think getting channels. terms have in bounce in the of mobile started clients think more with multiple And back rebalancing of I saw I desktop. a a that you into bit

think to that continue. is digital audio also out I grow. and area I continue I as that'll that those exciting another going of are well to think homes, think

say or of clients, areas. our solutions now the piece drives I should in measurement results and for We're measurement cookieless our I'll is seeing right lot great other other this. So by great results driving of a say way CTV they're

and channels. to it's naturally diversify more So I these into they're think just spending going more of their

Chris Vanderhook

measurement to the that and before. in running add that, customer it's have these they There's to DSPs. precision cookie-based customer just with would way capabilities can that the And operate dollars I think comfort through that level lots I at comfort environments stake the I they're strategies of with same Andrew just same and they acquisition cookieless getting in it's platform. think

Andrew Boone

just of DSPs feel sense. kind you just like can other far the total just competitive makes How is do the from talk of testing a set between and customers now terms then it live, WWC in market? about differentiation on the That set? with out product you that apart and And you

Tim Vanderhook

these all what the that. it using, to and way invented of to look market is of is people-based lot at identifiers industry brought almost are Not the have coalesce, that the forward. in XXXX, the we moved to identifiers Viant a calls where was you think I everyone Well, they're But closer people-based. today, participants if industry

I and think our from first launching a we competitors expanded one time for to our gap, the platform. We've and moat wide onboarding many. are identifier grown in have type onboarding of their

all So a we through user address our customers. onboarding, added for self-service interface physical

trying on So software, trying our their to I problems functionalities, have the in bringing this our they think at point, that lead where to fix same those expand are we're we're features competitors and marketers.

Chris Vanderhook

other point, one measurement. Andrew also And around is just

clients as huge. ad of sales. that well opposed we like for sales, think link that to we've our done Being years. exposure It's Things offered. capabilities long e-commerce because I do in-store we've just platform, the are to attracted is something measurement extremely able to many that with

of moat. to in also with, companies integration Our area, in. the those receipts creates able integrated we're be brands is that in sales another of terms to bring to amount big That enable

So, always We've cycle know we long feel product there. felt positioning, a great. have lead but we we great about our

Andrew Boone

you. Thank Great.

Operator

there And comments? no are do any you Tim, or closing further questions. have Larry, Chris

Tim Vanderhook

very do see want to who of execution work with a Thanks We problems. you new much, just bringing the quarter so our in you of thank for solutions Viant you. you their all challenge forward much. appreciate we'll for and to us us customers thank And next No, great to and continue I team to quarter.

Operator

today's And that conclude call. earnings again, does

may now disconnect. You

Viant Technology (DSP) 13 Aug 212021 Q2 Earnings call transcript