DSP - Earnings call transcript Q4 2021

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Operator

Well, hello, everyone. And welcome to Viant's Q4 2021 Earnings Call. My name is Keelson, I'll ill be your operator today.

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

As a reminder, this webinar is being recorded. there a remarks session. speakers’ the will question-and-answer be After attendance you [Operator thank your today. Instructions] we for And I turn will now Brad Samson. things over to go Please Brad. ahead,

Brad Samson

you. Thank

Chief Such obligation will materially statements Co-Founder and On uncertainties Officer; Financial and and on Officer. could call today actual assumptions from that outlook, call Tim those differ industry subject as statements We projected. those Chief Co-Founder include future the today that our economic we events, based are Larry risks except Madden, Chris forward-looking Chief and and Vanderhook, On our Operating may make Officer; results cause by financial to our conditions. to to law. Vanderhook, Executive statements, required or undertake update no are

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

call, and and non-GAAP metrics. operational financial today's we GAAP some will measures During discuss

and GAAP definitions are non-GAAP regarding Additional in and in operational measures, with issued SEC. our included we press today to the release measures reconciliation a filings these metrics including and the disclosures of non-GAAP

Let Viant. me Chief turn Vanderhook, the of call over Officer Executive to Tim

Tim Vanderhook

of off proud And afternoon. incredibly year. first terrific a year achieved cap team quarter welcome I together as accomplishments to am we Good everyone. public last XXXX, We fourth had and fantastic of this a company. the a our

principle laptops, challenge witnessed them Internet better than team, is our reach again in smartphone Chris every of to in the expanded leader once no the your to deliver. its revolution, TV. to that the expansion single have year. continues on and now my and has witnessed to our desktop expand it computers, commercialization the life I and its the team As I've that watch feeling One foundational is world there

on to question those the all advance for substantial our what visions the answering identify R&D given an company, alarm to managed It digital advertising has focused created sounding thinking to expansions were advertisers. investments brand but we that transact identifiers accelerate that on with belongs in this those the people-based of way started new we to us. introduced translate entirely being to company Our XXXX, us and In And tech. it from called means by to does belong the that was one any big approach. all of the not Internet

Adelphic and their moving they web. just can open is the advantage marketers biggest This new physical this across stores, more to are from and cookies gain where our mobile retail Our moves people from like owns app, include based based you assigned and number, information number an companies, industry replaces our and entire expands big consumer’s it address, on tech the DSP consumer ability people-based consumer not your cookie-based This but to with control. takes email. enabling Adelphic friendly the away The also controls, create DSP is experiences of in power name, DSPs just phone model and their to transformed foundation consumer. across unified any exist. channel, XXXX, on opt-in control privacy cookies not we puts a rebuilt the the opt-out away In of the from joining to customers real newly platform that back to model the Adelphic do data when our software shift consumer a on and the to using data, the operate software website their

most And Our of fully and leadership team's the realized seven a past over Viant industry. today. been it's by early years our evangelism creation catapulted into has now position

from growth in market of of of emerging have XX our to in And We the all market the year outperformed EBITDA in challenges, as are quarters. some are the at finished growth unwavering and past and for adjusted has Since years growing is financial TAC spend to It to advantages, CTV further XXXX. leader is in gives advertiser last million. to contribution the web. back $XXX three largest of of year, XX out we positioned revenue. million. our the we become back open that those the grown Viant advertiser of the the driver We XXXX XXXX. we confidence February IPO, gaining to with a believe we guided continued our channel we have spend me At at achievements in very despite in all channel. that what share always our million confirm significant $XX.X on accelerate year, XX% on customer ex million new well I our This we across all financial our in segments. of to is known. IPO be guided $XXX finished last back growth $XX overall, CTV Based targets. strongly We XXXXs

as engagement. is demand the model leverages gambling, new advertiser role is important, verticals, companies, with verticals. talking I'm in customer and correct, These addressable business the new of The Our huge to more direct-to-consumer and for as industry's growth acquisition DSP with expand strong about becoming tailwinds. cryptocurrencies, strongest our examples. legalized strong, and customer the market are just continues

seen addition acceleration verticals, we In retail an new exciting have these customer media to of networks.

owners, It are buy their addressable list companies they're created seems data about advertising shelf buying. management delivery ways advertising advertising new address who to also every business. are day platform, lakes premium or this measurement transaction But data ad a power It all telecommunications another customer goes moving businesses rooms consumers space clean robust this a apps, like time models digital as consumer from business viable explosion in it's transparent are increases a connected content we capabilities, software DSP, on. market. and the products looking long looking a But identity that of manufacturers, and digital to building not our the when the a first remember the retailers total DSP as they us As ago, being the platforms ad opportunities, and read revenue into dramatically to new monetize for have, businesses. resided win will DSPs their party is can for companies, business. for agencies, business. and for opportunities build just of not it too on critical best new I users data are all television only hardware partner these huge retailers to These requires

We opportunity fully to the autonomous. investments digital strain there. and digital programmatic on to industry go. to advertising That's make see our want Eliminating technologies traders Looking an in needs machine learning right we advertising where further to accelerate ahead, making artificial lead blockchain the and autonomous. intelligence,

further Viant trust XXXX and our As XXXX lot is market Chris up, to developing on provide more our investors model roadmap, bigger. story more them. deliver big deploying Chris about best-in-class XXXX. it color business in those I about, strategic and proved strategic proven and think understanding this endeavor shown grow to are elevating winners, technology, it's takeaways that We will throughout a be that our and - talk designing just which have whole brand we to our partnerships. success we scale, something the our sustainable as the going market. with vision, will In accelerate a our roadmap getting his But talked be emphasize is is our to going point, on that are, away. I strategy our to be I increasingly to There we our will one results hand just and of want about stronger multiple to growth. I wrapping much strategic our org, The than company's can I to grow of our in profitably. expanding a progress cookies we key assets position want in include already XXXX pillars At pillars remarks. model further in off for this investing key customer presence, five the entered infrastructure from

Chris Vanderhook

year don't more in our in grow the ahead. or simply or headcount year because want more another future past. tremendous success sector bit their exist Tim linear opportunity more Growth is they adding because the focused talk the to money. and a just grown they've on little for about into last investing Companies how. by this afternoon I still the not

build strive a last a next what the Our company has nearly the invest as to and and will the team the thought take on a a to our key about period time and campaigns spend. next be pillars. use, company, our powerful of supported easiest delivering Developing phase roadmap. strategic to pillar first that the the where need years. we phase order measuring five through is in quarter way To software ad that in to our it Adelphic We're compete will robust customer’s XXX for most by and will technology lot effectively, we these best-in-class and make effective return most the

CTV That's today's start now on distinguishing as over back record our without for it build achieve already we the used the opportunities. as use businesses. of early technology over And of been that, a enable XXXXs, benefits XX US doesn't people. our you advertising. future, we or I our easy be early advertising by and should consumers. But platform future available our excited to take one of further. If advertising tell behavioral households, that. vision investments to Venmo Our XX% towards in working Developing have is for built in software. our track all XXXX. is on leading the to for innovation, the eTrade, Viant much in Adelphic millions best-in-class autonomous it to of developed XX% identity going happen Amazon years. We delivering that for the bidding this because software can and be to of XXXX, pioneered I of Household space in technologies in touched challenge it's we're have of ID for that and because Tim covers plan that in new can Tim we're autonomous great of for

buy this accelerating product augmented by development. investment in require for investment our opportunities So strategic will continued and build pillar versus in teams in potential engineering XXXX,

it anywhere spending. launched in changes going clients on for only Viant, and to an is provides our The scale operationalizing focused our making a the but ad it felt easy In dinner expand our on is of our mission processes and to facing customer customer our and new XXXX. to the customers also clients, talk successful we primarily about embracing the It help team success of in and it second going a make success impact that We XXXX, measure meaning organizational platform. key is infrastructure differentiator that people, truly be roadmap think and our also ad process brands at model, will This teams But ultimately coordination to company's infrastructure, We driving with our is it's their organizational buy scaling in pillar base. the is our model. to customer cultural not our by strategic systems table. support handle make Viant growth customer model our to members. our success are the customer

among into interested and their returns. Another driving can in faster we holding companies is XXXX Open stories how to need agencies peers. awareness brands become will we can Today, is This key campaign Web XXXX. with in overcome improve we their we so roadmap that But New we is market. market greater awareness higher in one of seeing The in brand success to drive the mid elevating that the need continue to in key our presence. launched many major pillar to our drive point hurdles they

hand great dataset developing new these are throughout company streams. examples I with our we educating these use engage believe customers, a and measurement require bring strategic next customer towards the XXXX. MSAs already to is their our making also their our in businesses ad the rapidly strategic are to year to such built, get to customers for our key drove thanks the scale, driving members customer us, driving many will plan our our driven a Those being brand mentioned all also model personal for campaigns. we've team sales these in and to partners. partnerships with our year, sales we position designing and marketing in many infrastructure organization, resources XX% and and final a investment offer partnerships. a extend some as elevating want market agency raisers partners With increase a to to an brand to nearly key deploying revenue by strategic customer we way and over with XX% XXX opportunities Traditionally, our while into want and because all increase increased growth, the In our tight these partners of expanding ad another in of making for powered our XXXX this teams, roadmap delve commentary. lot partner. we we programs Madden some Many company's supply. presence provide ID entities to addition financial different our Larry concerted Last the to we to best-in-class are success our In verticals But the technology, last as party requesting my our already data the Household and a year. to lot more Tim new customer of to opportunity Viant a from The plan. need approach market, have team technology more a revenue but first and in unique happy segments. a quarter pillars looking earlier are than strategic to our in didn't third Q&A, the prospective key platform, now give of detail And phase add the partnerships. partners in of the pillar potentially the team continue I who approximately XX%. XXXX, our to proactive by of labor expanding increased has by business, success we But new color such our expand focus aspects I supporting customers digital of exciting a enable CFO, new Tim fun. more XX%. company's of

Larry Madden

And Chris. Thanks, you everyone joining for thank us today.

remind supplemental to accompany like I to to everyone that Relations posted our Before we have website presentation. I'd begin, Investor financial slides today's

last exceeded have As report guidance went public the we our EBITDA previously we expectations to fourth that consecutive pleased we February Tim are quarter exceeded mentioned, again since QX. once our That issued revenue and represents that in in of year. for we

expectations year business afternoon, of testament the the We an performance our seeing the which key our we are current XXXX, term me the our year in accelerated, strong expectations for for and record we is year, XXXX, operational will going which some our platform well and some platform. discussing customer Viant's of also full that, continue new increasing to the into business. as our XXXX quarter QX for the and continued highlights be across discuss acceleration the QX and finished financial scale XXXX. With spending highlights full and year on results let very footing. In yielding longer financial as will a throughout of expect to adoption I This and XXXX performance,

Further recent not digital see We where mobile, increasing identifiers adoption release. across over connected team are continue contribution out year. investment technology customer and also by per increase the and of ex number as our of has significant paid home. evidenced the average active as exist customer all such cookies limited, the WWC do device or TV, to dividends, benefits With active in channels of audio streaming the software the TAC and or last customers our in

ramping on benefited spend, and the the We effect trend is longer expected the also continue. that of platform, from are cohort to customers they

the increased the period. across the over quarter an ex year. was top prior million, for advertisers prior increase XX% In of increase over TAC And was for quarter of an spend million, contribution fourth year the the Revenue XX% terms line for quarter $XX.X our platform metrics, XX%. of total $XX.X

an XX%. total For million, the increase over advertisers And for full TAC the across of year XX%. was year. increased year an ex the XXXX, Revenue million, contribution $XXX.X year spend our platform XX% the $XXX.X of was prior for increase

using drive our as increase of all our across buy move Adelphic half as expect XXXX. by now through Currently, measurement Our recent customers, to all advertisers an WWC ad that ID And platform. we adoption continues they the spend and we in leverage can channels. unique their and our software measure ID on and Household to release to for targeting increase Household omni-channel digital are WWC number seamlessly

drivers CTV nearly of in CTV last year of tripled growth of of QX of TAC segment our overall for and momentum of biggest from XX% on customers this in XX% the CTV ex our in market represents invested In outpacing XX% of over in the Contribution mix. two One the - during contribution our the and TAC QX both grew platform. growth now years CTV. full customers our our ex nearly continued Contribution far half invested quarter, from ex in has digital and is XXXX total TAC advertising. rates represented

represented TAC year, ex For CTV full contribution XX% the grew XX% XX% of total. from the to and

of also across growth audio in mobile, and streaming digital saw home out the quarter channels. We solid

trends people platform targeting of We for performance spend our on these based are capabilities ad uniquely our expect these as to along the with suited to continue customers drive and channels. measurement software our approach, in return

customers customer XXXX, representing with is new of QX, and did had quarter. and out front, fell average strong in last our the spend of in customer year over is two tied of approximately the biggest period, roll On momentum auto additions year from count XXX per thirds of XX election not ex in show customers of in the of increase year, an therefore success represented new period. continued additions the continued to in then At the to in Despite The supply active agencies, due the active - nine our end QX. customers of versus up the lack in - TAC customers off customer political active year-over-year. contribution at all the auto to and XXXX. we customers customers QX the we The And political the driver is additions and off roll discussed. customer issues XXX cycle customer the which customers XX number the market in of up an prior XX% of chain mid strong

in the addition the line versus of at customer of the contribution these nine customers, at QX our is of With X%. active we TAC growth of saw end increase exception loss ex active with year-over-year totaled end customers a and new the per in QX QX. of of in the Average XXX,XXX QX XXXX, representing $XXX,XXX

spending increased call active As we XXXX QX, continue the least with of new in around with in year the XX difference coupled XXXX. retention and represents the capabilities cash they increases Tuning and marketers In positions representing going organization, ex and the ex effect. plus for TAC average momentum extremely that $X sales, year, agencies spending EBITDA XX%. to totaled have million affirms to well advertising number continue continued XX% million both performance percent investments platform primarily Growth that operating XX% are forward, which see $XXX.X spending million and their to at adjusted XX%. the technology and we customer on ramp expenses, customers landscape. increase resonating and technology our XXXX, customers increased customer a planned by and emphasis on between TAC rates benefit made the been growth spend our this in what quarter respectively. to the and full also and full and XX% now increasing customers The beyond, per The attributable nearly the approximately fast we of Adjusted for quarter in expect top and the in contribution one least sales, growing of active our of existing operating acceleration number acquisitions, our of expenses. the for platform In the the the at customers $XX.X per also marketing software by customers investment total are year-over-year by increases programmatic of In an us headcount year infrastructure. year and increased particular cohort from new XX customer. we platform, we for the XXXX, are with on we ramping contribution marketing tech longer across

added in are under and our in We XXXX. growth will incredibly in many qualified our we to to a spend investment increases. to team team about 'XX accelerate experienced to drive the continue across further share market attract members this to new talk platform extremely growing continue candidates, more I advertiser intend minute, Despite and but for the quarter margin quarter. far XXXX customer ex in new to original EBITDA was estimates to momentum we percent wins, the revenue, platform. TAC a and and speaks our our Adjusted exceeded ex relative the increased of the adjusted plan, million was contribution for we for EBITDA as which across $XX.X contribution XX% TAC the seeing

year, EBITDA margin For $XX.X full XX%. million adjusted the and was EBITDA adjusted our was

Class non-GAAP and quarter, totaled income, earnings the quarter. non-GAAP $X.XX share A $XX.X stock comp, For per the net excludes for based which totaled million

And year, year full of perspective, with from per XXXX, approximately totaled and $X outstanding. over an we generated or totaled income net share operating earnings $XXX $XX.X a million increase per net From in XX% million XXXX. we flow the million ended activities A For of cash cash cash, the $XX.X Class in non-GAAP $X.XX. share non-GAAP

said, to M&A the using do judicious some being put cash future to use our to in the market customers. in of recognize to for We we work our current and and deepen That of expect plan capital the our this environment opportunistically cash. capabilities expand be

our that of profile rapidly in opportunity year with growing us debt sheet amount a ended of position us. $XX.X take to healthy advantage of availability growth under also totaling well extremely and balance credit. million We modest line We significant our front of market and the believe the

[ph] million count, the XX.X million year of total terms and share In shares XX.X with A shares Class we outstanding ended in outstanding. common

XX.X approximately Class to result XX.X The to and to the increase expected shares approximate A activity increase million outstanding of of end million. plan. are XXXX, the primarily we total the our term share common long vesting under count increases incentive For expect

we discuss for point want have guidance our giving this guidance which the for that to simplified metrics I Before out we XXXX, are do I quarter.

eliminating what and to should be two on for focusing most by contribution metrics be going we EBITDA. measured guidance are ex revenue adjusted the forward, we We believe important TAC, which

Given that to percent ex of growth is most our over option less time. spend pricing drive contribution will TAC forward, going expected important become our of

We continue on to contribution ex will however report TAC forward. going periodically

purposes, we ex modeling well rates to our XXXX. year turn TAC contribution for expect rates for For and growth I'll to revenue as for XXXX, now our guidance be that, QX similar growth outlook. in to long full as term With

Tim great and about our positioning. feel strength As discussed, we

the a capitalizing are We opportunity programmatic advertisers. market in of stages early for growing very fast on

quarter the further our quarter, least XXXX. biggest XX% of in obviously QX growth of compared accelerate across to XXXX, we For of platform to our QX the advertisers is first year. spend most X% in expect QX recently with at and XX%

And further year-over-year accelerate to of industry full with our XXXX, of the $XX compared we seasonally represents as XXXX. across platform QX to in advertisers the XX% in million revenue is expect at growth on our the $X volume negative million lowest quarter. least We of XX% spend million, adjusted expect X% to range growth year to range for of $X EBITDA million, And approximately $XX to which XX%.

of growth in million. and million of $XX expect $XX in range represents $XXX range adjusted revenue which approximately the to million to XX% of XX% We the $XXX EBITDA year-over-year to million,

revenue represent CAGR term XXXX. in longer achieve four a These our targets year included at $XXX also at to million, expect least release by we have expect represents what of which XX%. we We targets of XXXX, By earnings today. least

adjusted ex least XX%. expect as margins percentage at contribution EBITDA We of a TAC

to like would investments we the points I make a few to making. and guidance our concluding, Before relative are

well the year First of the accelerate on QX in market overall I expect said, for XX%., QX of as to gain growth in the guidance, continue share terms excess rates is at least platform we QX, increase from to programmatic XXXX advertisers and by to and levels expected as expected market. in US full spend

fixed percent of growth outpacing growing going believe than expected across number are increasing to of new from spend. And provide at spend rates, of will forward. customers continued which are are spend growth going which We increasing of we a far growth is in seeing their percent of option, outside straight platform spend percent customers pricing faster across existing acceleration for And spend our price. now the

As using we've our before, price customer. a significantly value a lifetime option said fixed of greater that customer spend of of pricing the percent than is

after XXXX in growth of revenue in percentage year that drag and putting pricing QX given dynamic drive whereas for As we increase share fixed over spend short customer spent platform predictable of percent over a spoken a option. of the higher is rates. as TAC. price Percent matter, price spend spend have our revenue ramped attracting on basis, fixed recorded clients acquisition full consistent more customers cohort significantly retention spend rates, This our to on our fully once retention have and customer. rates time by spend on higher On a growth the driver, platform term of efforts is market growth and we've before sales is and time, as require less more revenue more from off. a spend percent our spend traffic costs, effect more Ultimately ramp recorded deducting versus percent is significantly

to fixed longer option, option software - transitioning fixed more agreement than more meant of to percentage were test our before with profitable a as an for pricing us. term customers up Our price spend is pricing

pain term value While and this revenue creates growth better rates, terms some creation market us term for of share in short gains. long we positions believe it

especially is due seasonality, trend this Given the growth in revenue to the of quarter. in lower revenue base QX in magnified terms rates

growth revenue improve levels. from grow QX, expect spend We in QX to overall as levels rates beginning

the year the X% revenue total with reminder by of of XX%. a growth revenue and finished in last grew we first As QX year, quarter in

advertisers The terms impact that that areas in based of of share. and in is the continue XXXX other will growth XXXX, our critical EBITDA – of platform Tim the for business on we we further investing the In drive closely and based market our fact conditions ultimately planned investments be and on factors spend in and to unfolds. expected investment wide level market across our part as guidance to intend results, determined of will range in on monitor XXXX mentioned, as accelerate urine 'XX

with of to headcount and the annualization on from terms we additions, for XXXX. in come of roughly cash the new XXXX half in half XX% XXXX, investment side expenses expense approximately expect increase in two XX% headcount adjusted investment operating thirds the to XXXX, personnel of So coming increase will coming from

We increase by XX%, headcount cloud end also us XXX the the expect total expected in supporting increase put advertiser expense XXXX north our supporting year. of growth the XXXX. is Increased in in approximately to would of the - by support heads which spend to costs

our build to further critical expect up investment automation ease of as is in upon We to to ramp as scaling software, which use the spend. of initiatives, our well customer

We awareness gains further solution accelerate incremental also increase investments, marketing our marketplace. in short growth in although our will We forward. term share these EBITDA and and going be XX market investing the the to believe further the partnership initiatives in impacting will of

on of as target our business is investment for XX% become by sustainable In focus future. Beyond XXXX, charge we we closing, margins normalized, profitable a our expect more XXXX. EBITDA the to towards building and

fast so share increase a of our growing will to we this that, part make of capture scale, market. can investments continue we As meaningful to

share we with solution forward, utmost our have marketers. We increasingly resonating grow market is the as going consistently our can confidence that

come. become to are cookies many and As less positioned to for less prevalent, for IDs and that we device believe outside we growth continue years

as going the agencies acceleration are platform today, conviction evidenced by spend that the around centered advertisers our and marketers responding into to Our solution is XXXX. we seeing how across in are

massive. market many back believe prepared to is lines addresses addressable remarks [ph] total landscape. firmly digital operator our - uniquely the are in with concludes today's Our will of solution that, digital over today. And today's Operator? And marketers now it and we I open dynamic That to facing that the the questions. that our effectively challenges of turn

Operator

from Canaccord. [Operator Thank so with will we Maria Ripps you first much. And Instructions] hear

Tim Vanderhook

Maria, are you there?

Operator

Maria. Maria. Hi, go unmute ahead Yeah, us? hear can Maria, and you yourself,

Maria Ripps

All right, hear you can now? me

Operator

We you so sure can. Thank much.

Maria Ripps

Easter from you I Can sort you maybe talk just up. back for seen sort related anything so first so about this in later there clients just Can of this quick between much just we is to seeing from this about being shifted platform. of models, QX guidance are to terms campaigns taking sort you year? have bit QX? this why sort this you've between pricing of a your the growth dynamic seen to little I – follow revenue wanted question. you disparity and quarter to there much. especially then different spend year? Thank for sort sort Thanks why have talk that, anything on Perfect. to of go a of my And in of that? in Is shifted of And being then QX the

Tim Vanderhook

Yeah.

scaling pricing Just so like on on this fill much that's increasing Larry, on based we of year, you the saw percentage first can crazy, last incredible. headline, option. are in We're some than levels explosive guide growth higher Clients question. market spend know, definitely share, for as in where the your spend, our comments. seeing

We ones to are straight also pricing seeing even new spend percentage go options. of customers, our

our It advertiser growth of on But to item. a the bit short term year. share total those the disparity. So you adding ton we total market that revenue, it's we're think of and little watch the on percentage the little a winning now, if spend. normalized spend the throughout bit also of right spend, line pain is revenue side But

Larry Madden

And you're…

Tim Vanderhook

Our shift QX? QX to of

Larry Madden

commentary I grasp specifically. the any that, have around Just on firm Easter around around right now, Easter, don't real

Maria Ripps

for of in in and it's highlighted quarter it. sort I that you about the second think a strength Thanks much you that. talked mobile, question, bit so strength mobile little you. my second for And Got here

going if through? So just as the context be would talk That platform? about Google very rolls across And that put out you can the been privacy that apps for changes helpful. restrictions industry maybe of your that could iOS what on you has means new Android, maybe in the

Tim Vanderhook

we're future, And for Yeah, ways social We networks, I was looking similar effective. think what that mobile new potentially In when marketers digital away to is cost from the referring were move Android has app deprecated. that done. Apple less of which alternative became caused the trying to what ID you're saw Apple new platforms. what IDFA, being pulled advertising

and their back the advertising response When digital again, marketers, market. going money when ID, same to shift that providers. I of more Android change you Apple Android that's to mobile and was most to Google new their money put into deleting that try think as app at you does the look made saw to IDFA,

drive no installs, make in would back the ways - is more that change, up there. cost Android that market I to money those effective are So now a to similar ways app expect because traditional for looking the longer going

fair that find home or it to Household new for So a of that I believe relying new we've share in win to the efficient opportunity we're brand of previously, we its apps and Android most view And use that the ID. money the and a ecosystem given cost was market going our way. not mobile proven, that, as IDFA across entire as spoken I’d, needs on

So think see how for us, react. we'll a marketers I opportunity. And it's big

Maria Ripps

you. That's Thank very helpful.

Operator

We will Laura to Martin with now Needham. move on

Laura Martin

Yes.

Tim Vanderhook

Hi, Lauren.

Laura Martin

Hi.

other has So EBITDA like model guiding promise it's strong QX. I'm now in you, taken as tech EBITDA And your for these you our to EBITDA one over you're down start to XXXX And over with desk delivered XX%, trade our EBITDA. ad much not than delivery going suggested 'XX. you lower because than of us XXXX just companies, by said, every

pressure, all growing times as I've because So than explanation all why faster revenue. tech love market would five have I margin got I massive this you over delivered an ad understand we don't that's companies.

said, industry. yet I the it's the got under going bigger, then, entire scale and And the going you're So is on, What margin. like deliver please? to

Tim Vanderhook

think when increasing you investments, we our one, going 'XX, you us think, that. if number were at I continue look in so to we're know, I year last public, we went

the year, Larry mature bit much to business. this little say a As let's stated tune, more then, probably higher

at. to that from we're more We and after that. they significantly, That's where invest share. see heard gaining continue share market in to to go want going are looking gains, And we're I to pretty think investors market we've

stepping range on think that guidance. a up our the are we wide definitely level did investment. pretty investment, of So give I But level we of

half So if year of by to we play to want the in add color? And you second that Larry, anymore we're are year. - basically going - the

Larry Madden

going other in to invest” say “under I that Yeah, the we market challenges. challenges, factor. one labor did Certainly XXXX. overall was the I mean, labor we mentioned

back So XXXX. money now coming is some of that into

beat. under part was our invested which XXXX, probably $X million EBITDA of in we about So

plus So We're is the the which hires that's XXXX, of into $XX on coming plus million heads full annualization back in another investing investment. additional $XX XXXX, new of million. about

well those talk, of those the [ph] we - all of initiatives, pillars some sets we're putting we're as XXXX. of strategic plus, So behind money initiatives putting all in

So dropping of our creating EBITDA relative it a short term is year. the to prior

Laura Martin

like How super it autos to likely, then going does much and come much if didn't understand political chip had in supply and upside does percent And back, that political in helpful. of if 'XX? like it how want it's down? so we give years verticals back. because this of single two 'XX, know but us, much that. autos, it two you when digit to that will give back you revenue that's I those to back of shortage, Thanks auto, is and ago? sort Okay, for But we your there's how no don't chips, so you How no come the you much there's are have get come revenue? that get political 'XX said year, sure, in

Tim Vanderhook

take Let Larry, it.

Laura Martin

Okay.

Larry Madden

QX this mean, We look is XX% I think year. QX, QX, QX be auto to XXXX. if our of at QX, revenue in was Yeah. auto growth for you X% of going revenue in of guidance about

smaller to this base kind with. So that certainly is begin impacting our revenue of QX, given

we've in not that mean, us. been think revenue further less QX. believe significant uptick I significantly in We deteriorate X% quarter as has reported, QX. it's, than know, have you down a auto. will in for each assumed of We I

resolved have 'XX, be the a the coming now, Obviously, upside. And We in kind supply to of least. were we get But uptick hoping lot a back issues haven't that's for at of not significant significantly, that that. in year. do in chain that we're planned assuming would that

Laura Martin

Super your how here. founders helpful the it for path Supply ask for Could path My give thoughts supply and you last model. the optimization Green, [ph] supply affects right, path DSP? Jeff optimization. I'll the on rage all optimization, one, us Thanks.

Tim Vanderhook

would realm. connected to that integrations direct to direct and are assuming The our in of I'm Desk companies you're say a of huge mean, same media major referring launch Trade I OpenPath, television, I Yeah, publishers, that in the going with chunk

are connected at But of television So some yield them how we it. formalized works, that's product. didn't and own is a very of kind their management have good run

to partner their there So is owners provide I do them want there believe bids with or is inventory a going publishers to on going them bifurcation, today. that we them yield to be directly to deliver own. be And management and

of many the management little out organically that is to the open [ph] the there. role for DSPs SSVs way. rest more important and of would an I yield say electronic to certainly CTV web So built provide need integration, bit play a But them kind that

for think of party our on kind and I smaller do third a our I companies with That's bifurcation, companies So see that of have themselves, bifurcation a the yield bit it And today. Do the see management. anything? we a bigger take. more integrations currently you rely

Larry Madden

the being mean, by like really SCOs their need sure we are a before gets dollars path differently parties, optimization make middlemen customers. marketer inventory, want the Now, they [ph] That's the ultimately is DSP. want of different inventory, that's what owner, of spots, supply our changing changing don't lot to to it ad most hear securing to those is from - going content the to I with their a to hands see from used but where dollars the the that

about for, Sometimes sure and really there's that developed to that know, use possible as an a direct you know, have, making our platform. year, you as We content is know, well transparent the that SSP, in [ph] you owners that owner clearly very only content can over you're

how go the content SPO. how that much spirit that's the fully let honest, how transparent. of think that's going - and So that's the that's of dollar, one until SPO be never transparency is I whole to really owner, And is this marketers industry the to about real think

Laura Martin

Thank guys. Thanks, helpful. you. Super

Larry Madden

Thank you.

Tim Vanderhook

you. Thank

Chris Vanderhook

Laura. Thanks,

Operator

JMPs, And the next Andrew has question. Boone

Andrew Boone

about guide. the you the there guys off with I'll of implication for afternoon. key talk Good just beyond confidence Thanks guys. accelerate drivers Hi, acceleration my the year, believe And can revenue you guys that, revenue? that just XXXX just this taking your can re questions. and start you why of

Tim Vanderhook

brought share how that I me, we've and talked seeing gains seeing look additions then we for at - where market more and of areas we're where customers think the we're further history number that the and in we there. and to, in perform we can effect mean we consistency had the of on, I cohort adding Yeah, we number push

initial So in I advertisers would the impact out three we've had one the of say it's the XX I only deceleration. grown where we quarters, COVID being past spend years. XX the mentioned

to live and So leads service cohort effect the they're pushing themselves. on spend platform. their a get self DSP that consolidates busy it's are the confidence of factor ad you on when offer campaigns and your and, where customers trained the comfortable that That platform all they

in area. strides that big seeing we've the market And in Holdco's dividends in the in And we're mid made that towards the XXXX. year. think advancements I future pay we've great made

the the cadence So confidence. us executing, us, to is our that effect, I that of and customers gives the cohort think number it's company the

the and there. companies, a types content commentary, new we to it telecom an networks, Tim that QX, yes, this have in networks, long XXXX, of normalizes the built. brands that's we Holdco's, platform, need that And I'll on read, more. in team is of to about see But The every definitely talked of the going just on talked more Fortune a right with DSP. That's focused truly focus platform this that that to investing to customers, we're of retail a the on year, about, customer XXX a those market about, maybe on the we have year. to add there. seeing direct, media And guidance great success little term we continue to the bit good and segments they advertising whether our entire on lot ultimately course be leads there's Other team aged is, And more think advertiser only an of offer be a gave. it talked that. the customer to on it like the platform have are that add technology put businesses customer that cohort. is new this we that as as after. those media But on it put as just have it was as there. growth agencies, there's share. owners continue we whether succinctly, a that spend it talked watch these larger line a trajectory accelerate being lot Andrew, customers our growth, the they're in the on believe whether and but after like cohorts hiccup – be highlighted if after, as really Larry maybe you big know, very brands types, to but explosion continues way seems here seems that look day that in remember, take they we core we revenue time we're lot we looking new long they success on if We're that, and The we is to we're think spend age that, that later these and in - We And customer about, whole have of Just dollars. but I a spend that really team of focus concerted you Tim spend build a just we go in we over a give you, platform, in going you having to things years

Andrew Boone

and difference of what relate, ties gross a the talking spend, to I This question I there more implies just what platform? the terms it may of And But of XX% adoption aligned? closely you revenue revenue the mundane, be XX% they're not you in were but as little that kind of help understand about. spend, the Maria's can just me to just so think bit versus of why right, of

Tim Vanderhook

Yeah.

that to price pricing percentage QX, them scale And spend our fixed they had were are of and The about. those customers, they were a they're in trying good in to spend, continue them we So on they to disparity if option, there. gave customers - Holdco spending we And are to in the accelerate is, there. sell percentage that. were to do discounts talking couple their moving their that is as customers That's we a customer. to we're - expect news are spend the going are spend, expect percentage 'XX. Those that

Larry Madden

anomaly an Andrew. continue disparity We So going that expect naturally QX, a that forward. don't of in was bit to

Andrew Boone

So - crystal just right. clear,

saw So take we TAC revenue margin comes but kind what to rate, quarters, that? not back rates, ex is in take to prior of fair way read

Tim Vanderhook

Correct.

Andrew Boone

Okay.

if building don't are would Thanks there just to share. are any And the about just And clients. so continuing awareness metrics sorry, where a help know spend can there building about on big that be last with talked question think of you That Can going brand picture And your XXXX. right, you that much. how talk you just you is the I like, brands just about in on potential survey in you has been process, great. any But focus forward? awareness XXXX.

Tim Vanderhook

Yeah.

our about, of the presence. elevating that key we our brand pillars street. had So kind Part feet that of force one and sales so on was that of is talked

in force. on concerted this As about made feet effort additions wasn't just sales talked in street. the our a the investments. This we've - we made previously isn't We our

was [ph] presence brand first Viant the elevating holding our our companies. one - The within

We that. on have a team whole focused

brands. great from other Google professionals. hired have and We've large We

So the that making we're we really progress feel there. confident about

buy lot customers we enterprise, our move The was hear the [ph] the on client other directly that platform, want need the to brand themselves. to for mandate on from we call in they a or of what agency they client what the

their XXXX. What in experts the those to that we'll big we've really 'XX, that's So group in conjunction that vertical categories clients continue in with in of talk kind are to expand our agencies. built enterprise

where don't are we journey? at can track but there. I it have up in are that's we terms Andrew, with DSPs, So good our that's accelerating going impact. ad XX platform. open campaign with outsized then job a [ph] did to 'XX, out have outside good raise a thought we've around level where new I really ultimately and out. our But spend at you, All have we're spot. that our really going follow level of But if at platform, elevating leadership numbers, that is mean, to continue Viant in awareness onto service? of we And things on We would from offline of in marketing. those that that those we awareness, on of really in there, web that, do point and a push advertisers are we where I you did specific that the of we'll the our

Andrew Boone

guys. much, so Thanks

Operator

on moving Andrew Raymond James. right, Marok with All to

Andrew Marok

share period Hey, I force that hires, taking there XQ. for to specific thanks then wanted in for you metrics talk that know your from and XX sales the on the my any get is a platform. any force? sales or you drivers a there's But the new CTV come of they acceleration? I about ramp are new can would bit hires productivity as that, guess, growth that questions. deltas Thanks. XQ point acceleration onto I to, to And in the point on there

Tim Vanderhook

Yeah.

to big acceleration that rollout done CTV, which [ph] just a has in So really well. launch point really a is WWC our

had advertisers Larry adopted As have said, approximately that. XX%

we at but and that in channels, look CTV. the CT, you less focused ID around definitely or in it's CTV If other stats squarely cookieless gave

our are we've spending. performance they clients performance, to reiterate, previously about talked When we're just seeing seeing this, ID So their increased when using increased also see Household but and CTV. accelerate

dead the… very driving just of that's CTV the on that's and in growth on our a on, platform. reason that's acceleration big And So

Andrew Marok

hires, New metrics… sales force

Tim Vanderhook

again, Could Andrew? ask question that Sorry. Yeah. you

Andrew Marok

Yeah, sure.

onto the sales some metrics know, there's people any ramp force your sales I come platform, you but of new hires? for new period share can productivity a Just as

Tim Vanderhook

about so stated, we Yeah, increased as in I XXXX. XX%

seen from them. We have contribution

where in contribution tell QX. expect And see in We QX feel say we’ve we to already good in increased We are we large meet and impact as uptick about way hired. our I in XX% pipeline's I well, to the of beyond. all majority from on all made last will year, hit bringing their I quarter. didn't didn't, strong. team - think another the ready them the mentioned, will did the we're tremendous that you going But we I really goal the can but members, new we've first

that's really make I to going So second a - have think going we're to half. robust

Andrew Marok

Thank you appreciate it. much. very Really

Tim Vanderhook

Thank you.

Operator

that does your And We We today earnings so all right. you that have much for joining again conclude our all participation. time thank is everyone All the thank we us today. This questions. for you for conference.

now may You disconnect.

Viant Technology (DSP) 11 Mar 222021 Q4 Earnings call transcript