Earnings call transcript Q3 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Hello, everyone. And welcome to Viant’s Third Quarter 2022 Earnings Conference Call. My name is Kelsey, and I will be your operator today.

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

As a reminder, this webinar is being recorded. remarks, be speakers’ question-and-answer the after there a will session. And Instructions] [Operator

you We things today and Sandra, over your I attendance Sandra thank you. with over for Magnus will to Technology. Viant to now turn

Sandra Magnus

you, XXXX results quarter Good Technologies financial And to conference welcome Thank Viant Kelsey. third call. afternoon.

Chief Operating the Larry Officer; and Vanderhook, Madden, call Vanderhook, Chris Chief Tim are Officer; On Officer. and Co-Founder today Financial Co-Founder Executive and Chief

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

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

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

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

turn would Tim. Executive Officer to the of like I now Tim to Viant. over call Vanderhook, Chief

Tim Vanderhook

on third operating X% spend everyone prior $XX.X rates as million, you ex-TAC advertiser a growth period quarter, the share a the and $XX.X in the in results contribution third was year decrease of good we decrease platform prior earnings advertising for environment. million, market versus digital quarter year-over-year, In gain posted Total of ahead the Thank continue the joining a spend year market. period. We us versus quarter to of was X% for grew third call. ad amidst challenging XX% our our revenue

from This creates fixed on paying contribution a year-over-year customers services master to price a we on drag spend XXXX. subside agreements spend of drag basis revenue was contracts to up based again, continue dynamic Once spend. transition a the near-term, existing and and the their to that advertiser platform on in but significantly expect in on ex-TAC percent

as continues buy to platform to and across resonate measure advertising Our self-service in channels. market Adelphic a digital leading DSP plan,

We continue many to choose consolidate as into expand ad our to customer spend relationships their platform.

results a ROI gives buyers and to them inventory, interests money. relevant publisher for target to higher allow criteria are This and to ability access buyer. buyers on a programmatically time the Adelphic variety the that We in valued customers saving of customer. the based

on any the Most provide helps adjustments. look boost importantly, in reporting campaign challenging we detailed the buyer necessary campaign and investments. their return on the the of as advertising are even make more assess to necessary benefits performance. economic times These This buyers effectiveness to

to the we seeing call want I the macroeconomic take across to Before over a are turning to moment Chris, address what landscape.

we and throughout While we on continuing deceleration it advertiser strong, in was spend is into in QX platform of advertising the growth a the our spend saw quarter QX. saw

significant been and will in on slowing later in this we growth categories has call. bellwether more deceleration retail provide Specifically, like detail the

ahead is during adapt company benefit allowing these crucial uncertain quickly and been has and pivot to a us necessary. Our as as needed. able This nimble stay times, the to of curve

compared XXXX. EBITDA so quarter to to priorities product in non-GAAP changes to will and reduction generate X% in make We operating company in is we to quarter the a continue previous positive expenses in delivered the third the position our

of like tailwinds. growth. for Viant big remind poised to adjust see to While we have continue our future to everyone the to more line long-term I we with in be the outlook, tailwinds continue costs three economic would that strong

large movies and significant in companies and prefer ad-supported be for First, watch Netflix to even still content, TV we the applications. releasing favorite rates the With their like connected expect shows Disney growth streaming future. people to TV more through

of to achieve of ourselves ROI and Marketers enables shift addressability favor the continue marketers $XX next a TV traditional as more their more shifted to programmatic will television connected higher of of be TV than to budgets linear away to the five than we The billion streaming. still over from see years. beneficiary in

emerging is up Next channels.

for emerging We are now it of is TV have large they to an channels. Connected shoots emerging always as tailwinds. focused future one largest to channels our channel the green us, be on used but

for and become fast-growing emerging The for has to advantage streaming There big two to in books go-to marketers consume and important a advertising. method listeners music, buying very audio opportunity take is Streaming of the podcasts. next channels this channel. are in-game programmatic audio and significant

makes in media audio changer measurability potential addressability almost only be The over as of their advertisers to streaming a platform X% total its of it into understand Although better to streaming our today, the are spend year definitely the show up connected across has audio that plans. game how past rates audio to growth identical industry best and the incorporate TV.

this spend of customers inside for environment. new ways this ads of highly programmatically. place and is that buy of advertising first are to the recently hours reaching we Viant opportunity, industry to offer unique who Minecraft, programmatic formats users the sector the in ad ads millions As in-game access DSP announced our engaged with moving to quickly

entertainment fan advertising, advertising possibilities digital form be many This relatively future the already in but new potential it base, gathered resulting industry. for large may a programmatic has to

of on performance based focus any measurement and our building capabilities strong deliver buying ad will type in Last growth economy.

platform be ROI. to measurable highest delivering is advertisers most goal Our for the the our

rich while the times business platform and environment must our on opportunity ever, also valuable. makes capabilities we believe as nature strong ahead remain acknowledge as Viant of that we the of long-term sense our offering flexible consumer more the challenging all shifting view in

now updates turn Chris across to discuss the key I over to Chris? some will business. things strategic

Chris Vanderhook

one our capabilities more partnerships, our market of today. leading to the to we the continue on expand self-service bringing platforms out Thanks, the and value In Tim. building while third quarter, customers,

measurement all continue agencies see of behind point return a again, with independent a marketers channels and ad DSP DSP brings We position and a the across our omnichannel industry-leading calculate fully to seeking strong as offering measurement strong of capabilities, on that strongest spending differentiation self-service is that spend, reinforcing that accurately integrations it. our leadership has untapped tailwinds

the last year-over-year. strong the year, Over customers increasing we have customer with wins XX% seen of number active

customer over Additionally, same increased spend XX% per period. active the

than continue spending with of As buying an to more channels. vast or strong channels they across campaign through more spend number spending advertisers channels. experienced in all their increasing two Adelphic majority The consolidate performance, customers three across

year-over-year represents a spend to our we X% years saw is across Connected XX% ago and channels. advertiser of similar TV advertiser spend we grew few with saw Connected a and what trajectory growth TV. accelerated strong growth QX largest XX%, QX, now from on total now X% in in audio to to audio In in QX growth

also growth mobile We and across strong of saw XX% desktop.

The to fact of we operate mobile, gardens. spending desktop, economy. advertisers that flexibility and that major benefit given greater walled highest across a meaning gardens. give shift drive many beneficiaries the walled we is a that means web It fallout be in digital present the the is TV, audio, benefit platforms to programmatic all Open that ROI, from omnichannel, budgets connected them channels will the not in-game uncertainty can are out-of-home in the that

to on in political comment categories platform. as strong saw to with the like also on and the QX. macro third environment spending our such We spend record respect in travel services. We advertising in quarter I’d recorded growth in financial growth

us category represents this saying by focus that on caveat to category confidence spend future on advertiser overall a this but would gives I platform, growing Although, in percentage to of continue small periods. our

spend in slowdown strong quarter, certain did the had -- year we XX% experience in we strong in growth of had verticals. a Although a a we although year-over-year

fastest but the staying see We like QX saw than of extending backdrop signs continue began Amid growing slowdown spending, into automotive is also show been in CPG, our to in and in the of we to spending category, customers. QX. softness to retail, close have verticals that now the we lower our normal

product clients measurement, by ultimately continuing These into We next greater from narrowing spending. means move our which ad focus we are they around their factors roadmap are performance-based want see to results year. focus as

product continue number of work capabilities customers our measurement. our rely unique substantial performance. on industry-leading our our A One management biggest in to of be will to priorities drive campaign

our and will As leadership more throughout measurement recession, a platform us to consolidate performance-based spend. buying increases allow

As campaign performance continues advertisers. to be a top priority for

products, invest that We performance continue in an intelligence campaign artificial improve in utilizing machine fashion. automated to learning and further

differentiator building lot and success but I that. and products. a our our focus an these not Adelphic have only software of in automation will is are of our clients our software, a spending more money. with important about component as core time on customers on save seeing drive within This this previously it area talked Our will

to recently we their customer an hosting On data data front, that companies the Snowflake will integration are advertisers, Snowflake. with Snowflake allow their customer owners announced match with Many our ID. content partnership with Household and data any

for like to data big to eliminating and allow content less owners will users and delivering owners while as addressable As will midstream, companies authenticate towards win available advertisers Snowflake inoperability with advertising easily a responsibly the Google. industry their content addressable Apple is offer on reliance to This be in be for the moves measured. advertising,

category leadership. the of extremely Lastly, our of am I proud industry-wide recognition

by their We Fall in are GX Grid platforms once again leader named XXXX as report. the demand-side in

provide as Viant recognized leader platform their cross-channel from Report of advertising. a the third-party self-service stems advertising our Enterprise also for value strength directly we validation GX in quarter this omnichannel on This based Additionally, Grid is the customers. to for

us gains. today sustainable forward The will and on help long-term we growth up focused move share market set ongoing platform advances as are we for

across We a that measurement solution, fully in with are well all is leading self-service market an channels platform offering. the and industry-leading buy-side positioned integrations independent a

turn our Madden, things our to to now me over discuss CFO, financials. Larry Let Larry?

Larry Madden

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

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

in considering we reflecting across Tim within over advertiser platform the As in guidance mentioned, quarter. economy. and quarter the increased the especially both level QX, spend of EBITDA across the pleased for Advertisers of and year spend period, revenue market state XX% our the platform share continued current our were with prior are gains our the

expectations of and QX. afternoon, will performance, I during current key for some QX highlights of the discussing financial quarter our operational the and drivers be the This our

terms basis our over period In quarter, X% advertiser a for spend metrics year-to-date across the third prior from the the platform as said, increased prior advertiser On prior over XX% I September, increased year. quarter. topline the XX% through of and year spend has

the over the quarter. decrease a million, And of of quarter. X% and of year and period was $XX.X revenue prior prior the prior quarter, versus versus was contribution X% third X% an a year increase $XX.X the TAC X% versus In million, prior decrease ex the

our -- As a recorded is from after recorded option TAC, before whereas deducting recorded price is TAC. traffic at is spend reminder, or revenue pricing percent deducting revenue fixed costs of acquisition

make Therefore, a our on we revenue to percent contribution option spend, up the part pricing of will near-term relative have as of spend continues rates. a mix the our growth drag to year period, and ex-TAC advertiser prior larger

While improve we rates have seen negatively relative becomes as rates revenue the to mix we this over move trend XXXX quarters two mix ex-TAC spend converge that and impact has forward significant. continue to such less impacted impact expect the contribution to growth to growth rates, in shift shift advertiser begin of the of we last and and the growth

levels began environment. customers spending quarter. As continued decelerating adverse call, some mentioned growth throughout mid-QX, our we with rates reducing year-over-year their trend to QX macroeconomic normal on the throughout earnings This due beginning the

pricing Conversely, be resiliency The continuing adopt percent spend evidenced resilient pricing option to and tends action, pullback our pronounced by fixed challenging customers has our pricing much to has using of their this spend our demonstrated times. greater been less macroeconomic during across increase price which especially as option.

customers always our on and in goal provides creation. use creates deeper percent customer consistent, been for through driven new continues platform as relationship existing we more our pricing be with Increasing customers option to the XXXX believe our and The of their value long-term has percent of our expanding in predictable spend spend spend a platform adoption option. growth by of pricing our it of

of percent that that believe is our significantly greater customer. a pricing than the of using price option We lifetime value customer a of fixed spend

on retention spend budgets spend they customers spend average using of to ramp on option our percent using time, fixed that a higher customers our QX, percent X over times our leading As consolidate of platform, rates. In of price option. pricing nearly pricing customers

and quarter, totaled operating in quarter-over-quarter the a a representing as to ex-TAC which the between Non-GAAP expenses, year-over-year increase is difference contribution XX% and X%. defined decrease $XX.X million EBITDA of

year-over-year and months product investments XX and technology increase of our expand is sales result capabilities to over teams. enhance The our made last the we the

to We gains. growth accelerate scale have share market investing been and business, the drive

significantly Tim as in the worsening given and quarter versus slowed expenses of However, operating QX conditions, we non-GAAP pace by discussed, macroeconomic QX. investment the X% reduced in

which the For we $X.X negative of line was quarter, expectations. generated in million, with adjusted our EBITDA

our diluted negative quarter, non-GAAP excludes and share stock of common loss, $X.XX negative for $X.X A loss per the non-GAAP compensation, the For was totaled which quarter. stock-based net million Class

perspective, we liquidity with in million no a of $XXX From the working debt. capital $XXX cash, ended positive quarter million and

our environment. With our demand, higher QX. advertisers a for guidance inflation that, volatile of and creates I are weakening challenging consumer to environment Many will now turn a demand which navigating with

is advertiser in due which there uncertainty, we in to the a be spend macroeconomic believe QX climate in The QX, is this we continuing worsening wider Given of for guidance. our QX. pullback range experienced could reflected outcomes

have with option seen rates declining that advertiser in month fixed our spend year-over-year each we period. over spend June, actually price across growth decelerate Since pricing

I fixed compared resilient As said, less of to spend. as times to price percent adverse during tends macroeconomic be

the either announcing to the market many XXXX is comp QX to price significantly In fixed across close effort in in labor significantly as or heightening layoffs. across on employment QX cooled, being XXXX, the board the in did reduced spending customers for labor. jobs capitalize is In a hiring These this spend QX an have vertical exceptionally companies well and impacted vertical year. we last with freezing XXXX, demand customer price. out challenging fixed Additionally, by negatively customers of across

trend As retail, to the vertical we QX in also significantly continued of slowed customer Chris has growth spend and retail across mentioned, our largest our That into a decline expect now as macroeconomic QX, vertical, result QX. in environment. challenging across

X% year-over-year. expect a well levels, XX% is normal advertiser between basis, factors, see seasonal QX. to quarter-over-quarter the below typically Based On expect to between on and in we XX% advertiser over decline spend QX XX% we QX these spend and increase we uptick which in

expect decline option across declines spend in percent XX%. pricing due of our factors of expected a to we partially million, decline The represents by offset $XX across the the which XX% in For continued revenue pricing fixed to discussed, revenues opportunity. of to range QX, to $XX due million growth year-over-year pronounced our price

total is decline employment our decline half revenue of in at for driving our the year-over-year The jobs across expected revenue QX. guidance midpoint and customer vertical the of expected

XXXX, good verticals XXXX is weakness challenges The in market. the due was that potential the we expect minimis a to news do vertical continued impact across have to not across spend throughout jobs on labor appoint this material as de and

XX%. expected to which Contribution represents QX, $XX the year-over-year in a ex-TAC of is of million for be million range XX% to to decline $XX.X

is year. price to trend percentage percent a in and across the the price decline a Importantly, the forward contribution by fixed is spend being QX expected This less becomes to This continue versus of as spend. model total smaller revenue. ex-TAC going prior fixed than smaller expect versus mix of is of driven spend increased we

spend In further of XXXX. as contribution we to QX, we price growth expect also rates of to smaller converge TAC to the total another continues share fixed advertiser into as move growth metrics, a trend represent we continue expect and rates

million, $XX.X increase a a million to and expenses X% for In of non-GAAP operating change QX, we of to XX% which to positive expect $XX.X range X% of X%. year-over-year a negative terms now of represents quarter-over-quarter

uncertainty costs. aggressively As ongoing manage intend we prioritize the mentioned, to rigorously we given macro and

finally, positioned QX. positive that we we the align EBITDA $X.X negative year. that expect to the of such cost are for of XXXX in positive our the the to million deliver For may economy And EBITDA million range $X in irrespective to we intend pose structure challenges

expansion. difficult In rates, and represent closing, while we confident EBITDA other shortages growth topline remain among to and interest long-term headwind, inflation, factors, supply ability chain in a are higher and to a certainly deliver contributing near-term market our

our us capitalize believe market in opportunity front of the We us. to of will points enable successfully on differentiation

to We economic challenging this strong the and our enable even these balance times other side weather come us cost storm and disciplined are will during that stronger. sheet confident management out

with the now Operator to prepared today that our will the back and video concludes That over turn open questions. to I remarks Operator? to

Operator

[Operator Laura, question so Laura our Thank And Larry. Company. you come go Great. Needham please currently go Martin much, first Instructions] Laura, from you if unmute. & are you and ahead will with ahead. Yeah. muted,

Laura Martin

I Right now got it.

Okay.

Sorry.

Operator

problem. No

Laura Martin

phone. Different still technology, my working I am on

two. got I Okay.

may your is the the things are the hearing And one tracking So next on of first about home? has it’s ID in one your what that D.C. is been dependent great Would that affect Household of privacy. we regulators or is, the been data ISP one Household is not go the things from a your ID Household ID ISP ID. after

Chris Vanderhook

data is dependent ID Household the Our on home. in not ISP

don’t impact. believe any I So it would have

Laura Martin

answer. Fantastic

Okay. Great.

So I the sure guidance. other make to thing is, I just understand want this

go XX% right? I to growth So we to are QX. QX going growth in negative that XX% XX% negative to reading Am in from

Larry Madden

That’s correct.

Laura Martin

what they to a Hawaii. decel and So in this How period? possible They XX-day do? of did just went left kind is

Tim Vanderhook

Larry continual to June, the continues mentioned, have deceleration month seen as we every since economy as Well, about single worsen. although,

year contributor, accelerate that very with jobs the spend on being to biggest that a in And are pretty would year-over-year. industry was the point we second chunk you of to spending, retail I decline think I a than significant that’s ours one large last different contributing place impacts is year. this a expecting

Laura Martin

means fourth their what cancelling ad quarter. are that Guys for is campaigns

Tim Vanderhook

Predominantly lot in holiday bump And that not just you fourth see. retail, into in quarter. seeing think we we show quarter. well. are really we been of the not seeing a have you up it But, are It’s doing always -- the fourth see I haven’t just really could fastest-growing our category. the holiday, that’s yeah, extremely you spending the that’s where big been the seen and in it drag

Laura Martin

guys. Okay. Thanks,

Tim Vanderhook

not one or of on any haven’t seen those anything customers just that, And point like we be clear, the it’s in lost to just increase We spending. that that.

Larry Madden

more thing we -- I fixed to grow. Percentage it I price would continues side side mean are well. seeing fixed the the add side one business. as of on spend

it in expect QX. grow to We

expect the to a continue particularly the than And our price growth. spend at going the But of to faster ex-TAC percentage by far is is it that we of majority impact market. negative spend. the expect and on now forward. And We fixed grow the revenue growth to

Laura Martin

Thank you.

Tim Vanderhook

Thanks, Laura.

Operator

to JMP. on Andrew with move Boone will We

Andrew Boone

is Thanks last holding I questions. touch my Hi, for about side this a what thinking that other the year, they taking to you that to terms you sure about in wanted a clients of just make guys. to Can few -- on that there whether six through downturn. are on of this. doing point these months, talk the guys in weeks on are

Chris Vanderhook

Yeah.

focus, So thing brand-based more to certainly around about opposed we that I first as as say the greater seeing campaigns. is, spoke would I a earlier performance-based are campaigns

on So we see We there. we a excel shift going think there.

that -- more specifically broad but retail, really retail. think just this than and I know within I So reaches

really there. We doing well are

ROI. these shift the is the can’t same is I all their platform about, to option like though lets this long company what continue predict the macro. when I channels software or omnichannel it those lasts, can’t to how is same we are, spending I it with on in to today ability so highest macro, gives what What all get is and Nearly them -- will an web up. predict say But is open the most this that of that of

gardens particular start or are If budget. single-channel [Technical companies, the system, that the of they Why app pull walled in strictly they important? operating some Difficulty] is app. performing that mobile a like that, mobile

that in talked -- customers this goals you to and So is for three spends and is about them are incredible it our now shows set way you our easily channels, ROI they can the of are system I the more an are automated too, majority whatever reach buying platform and they shift have. in or does how which that we seeing, up

So losing at I am these worried customers about not all.

talk, I are would that really that’s I for of macroeconomic certainly think, damaged. It say think businesses most is factor. their and too, these I a customers

what’s of economy I marketers, what’s and a of if think both lot to in giving the that to in uncertainty going the these other pause categories. and uncertainty consumer is in happen retail spending

Andrew Boone

auto deck, down and to year-over-year. CPG Going the were XX%

past, process ago. one, you I auto think have in and like you is you just stop you where the of about broader We half adding hardening a guys that terms your guys good verticals? and highlighted in the going diversification it through just exposure that done year you platform just talk advertiser vertical have in Can broadening set. are for a guys are the guys -- more by job terms across clients, have to various Yes, you

Chris Vanderhook

Yeah. find or demand-side a them and leading in think DSP substantially Most looking I Well, and sales of categories to platform are the payment are utilizing programmatic with we out look, we regularly. that a conversations point they advertisers to our pounding are invested advertising there. for different are force up having active currently out this that’s

of diversification, we have terms know -- do issues? I or concentration, concentration any revenue Larry, think in I

Larry Madden

at There’s is total XX%, largest, pretty Not. even XX% no -- it than and our at more Not have one our there’s spend. one still is But no that’s this we verticals No. grouped vertical point. broadly. of our though Retail all. declining

Tim Vanderhook

But in little of question will what I your Andrew, say reading in bit. a diversification, terms

and basis. heavy year stated, Larry category on that jobs dried up material -- the a has the a there’s category us end we in big and of largely as There on On don’t no last was have employment, up go-forward towards that impact -- understandably. on that

of category that -- I have that becomes will we large. broke up Outside new advertising we categories. of lot or constantly there’s a a say few that, of Every years, pops are new

give gaming an the casino like will I example in online and you So space.

category largely there. extremely We few was years didn’t have a ago. a just That that well done

to go, up usually quickly pretty attack mobilized recessions we And and that. ones typical pop we So categories and are as quick new pretty around those. some are down

Andrew Boone

it pass then on. and will One I more

just salesforce you or about made EBITDA Can over that to EBITDA Clearly, significant want guys the for profitability as year. you investments priorities think XXXX? guys focus talk in investments have you last kind to your on highlighted about terms the we continue You in XXXX. of of in maintain

Chris Vanderhook

Definitely.

I our be and -- going around engineering. to around priorities are we remain product think will opportunistic

spend Although, crazy what to we say going there. I like will is, are not

to we are know it but market up measured, in there’s be pick We talent is that opportunity great going the to and tone. great that a

have we will We great set are around in overall, we deliver what But XXXX. happens really what say product confident are going economy, that positive in a next will we well roadmap as are that, to year we of just, is we measured And our in. into going regardless cost going EBITDA year. to that the up the be

Andrew Boone

Thanks, guys.

Operator

we And from now Canaccord. Ripps with Instructions] [Operator Maria hear will

Tim Vanderhook

Maria. Hi,

Maria Ripps

Yeah. expand just so question on was I already Thank verticals to much covered. and wanted my last my apologies for you if question. this the around taking

of So area your seeing signs an of that we are are this auto over hearing the about upside could of of and Is be that sort on something the quarters? you of end very early couple vertical. in sort next recovery

Tim Vanderhook

Well, on…

Larry Madden

I…

Tim Vanderhook

converted go Larry. -- I ahead,

Larry Madden

positive. quarters we seeing know, take That as this down of of the small interestingly was represents total. going that I lot, to have talked has a I been starting actually at relatively are QX, a to turn probably -- It say that it in But can enough just you point. to signs vertical that. about we the percentage eight

Maria Ripps

all That’s I much. so you have. Thank Great.

Operator

Marok now Andrew will from we with James. hear Raymond And

Andrew Marok

my Thanks questions. Great. taking for

the just in towards extent broadly Q&A this either ad we the to consolidating reduced working or that little previously are think, I ad that that partners back of You spend of spend down bit they is of the session. a more pulling But the shutting or result are outlook kind on companies spend point, the with. spoken -- have number just

came between Just think relationships of once that and it how spend to reacquire trying two be business to back? easy either those or would the scenarios differences the

Chris Vanderhook

shut spending good Yeah. those Thanks, No. they lost customers down don’t our not That’s have and I entirely. in that a have case, -- we it’s question. Andrew.

I dive With lost It’s jobs the to of that spend customers. really of -- lot due of the I exception the this again, what no vertical, would there. say haven’t environment have and we don’t those they just a

I still a They But our we We fully are what will spend. comes be clients. back, are software. It’s our those still will point, when deceleration in spend to that But in have of fully it is, say confident. software. more confident your are that yes, we of

Tim Vanderhook

And remind benefit of when budgets, but business budgets Yeah. to are needs as advertising flexibility It’s pause the the to to this is ready soon back advertising. just to everyone, on programmatic reaccelerate. pause your they is as the turn first to programmatic

cycle the advertising have many, their and I that button fixing We low, they are seen this many to sure first times back they the am will own and while just a this is pushed business be programmatic turn on.

Andrew Marok

that has can changed? kind trajectory around that you XX%, and $XXX XX% are could, the revenue reading deck, slide into thinking the like intentions of how for Got in million early Thank line and you light reiterating by it draw of it. XX% now maybe margins. EBITDA Thank I if you. tough and your conditions the assuming through you. of lasts And more, XXXX, looks I the that us then one for guess in just

Tim Vanderhook

if Yeah. I customers, acquisition, mean the on customer customer when new cohorts first current our arrive the look the in the a based new has go could where in with acquisition half maybe we cohorts. I expected XXXX, hiccup outer think, at the that expected of and growth

consolidating well platform on doing believe very and are we we more scaling winning it, talked those of model the cohorts the the spend as planned. they customers and we though, have As see are We business and still customers about is continuing we spend. the of percent

need puts number else So in XXXX Chris, add? I that that my don’t risk to see mind. any anything to

Chris Vanderhook

No.

Andrew Marok

Thank Great. you.

Tim Vanderhook

Thank you.

Operator

been has Kreyer the question. Jason Craig-Hallum’s next

Jason Kreyer

QX from and I in highlighted and Okay. about want of CTV just a well. talk QX cadence Very channel the reacceleration you perspective, QX, of to the audio.

Just better? holding QX, that more falling there as versus categories there resilience into are you go are off that or up are specific still others you are seeing

Chris Vanderhook

Jason. I I seeing hi, really are on an didn’t uptick around what uptick guide, Yeah. that. I we We are if is back give those you are we our to from QX mean, get you give we overall. splits. -- -- we an look have think I’d to that -- mean seeing any any guide didn’t seeing at

I it split largely would in admittedly and a on the with normally wider consistent quarter for saw bit expect we are QX. now be But in have you But was we than what don’t a would I our we where right guide little give. to

late And to such was for the COVID. seeing coming part are of COVID a out coming cycle that planning XXXX of There similar that cycle very is balance of again. late just really out we we a are of and real seeing planning

and already they are we air December, up the even still so speaking don’t you -- I by some with still which point. And for typically in largely budgeting It’s think see. that this know clients, planned

would me for but a to to the I would on that, you give read tough largely I just say, consistent. top, it So, off expect be

Tim Vanderhook

speaking… broadly But

Jason Kreyer

Yeah.

Tim Vanderhook

and give Larry? most overarching think performance … that’s budgets shift now. brand advertising we have advertisers budgets have I way the to that seen advertising right

Larry Madden

continues channels, grow, to It With total. kind albeit I even little consistent is, relatively fact, to the of of bit streaming the QX small in a across the being percentage exception get audio, a was which going more specific. in

Jason Kreyer

you or that with some spend platform stick that on that X% the on get pricing a two? maybe to does of advertiser to the on in fixed and give model client then Larry, that, usually customer Okay. quarter the fee you an lead just churn the convert opportunity the opportunity when them pullback, sees when back them more to and over a models,

Larry Madden

Yeah.

reducing those and/or those I think more budgets of posing of budgets. some it’s

clients there’s always are about they of opportunity are in of pushing percentage talking -- in life really it always to price was of whether convert Tim clients kind are cetera. we are not spend, to the programmatic constantly their leading, et cycle, But capabilities, converting. to terms the and fixed our where mentioning we we aren’t As they the trading depends have clients

that change. tough in doesn’t We and So times. that good in do times

Jason Kreyer

you. Thank

Operator

with And we from [ph] hear Kantareg Chris will now UBS.

Unidentified Analyst

hear me you Can Hi. okay?

Tim Vanderhook

Yeah. ahead, Go Chris.

Unidentified Analyst

on Chris Lloyd. Hi. Great. for

negative -- between delta trying should retail how thinking into guide would and that Should those Just and for trends? maybe XX% guess, Are about Would XQ? an down thinking we specifically guiding into to the already we it at down of as the guide? to? versus playing XX% the that down down about be we in Just end spin how XX% thinking up we XX% decelerating spend digging into be you curious I XQ how playing should are understand in retail advertising be October? acceleration you be about

Tim Vanderhook

to want Larry, do you that. take

Larry Madden

it in I saw kind low four was, obviously, months last decline consistent really with each Yeah. the mean, where a or we back. in October’s the increases. of single-digit since months really June, we of decel October and firstly, terms are, month five the

a November, November down. than going into that down is seeing that are we So bit went October more

because we retail it On decline. impactful, do to is side expect the that

As part I said earlier, impact that an important it. the vertical is our and certainly largest so of that of is

In range, I uncertainty the out the there. terms of -- it’s given significant mean, just

ordinarily we than a giving of terms in range pragmatic being just wider mid-quarter. would, especially are We

range understanding what’s But sense exactly wider Just given not fully what’s we the uncertainty. sense have the good We a to made going happen? happen. increased to of to felt going --

Unidentified Analyst

that widen in? for Got those, about jobs verticals baked it. baked we these of of you is in And to think are X kind tail the about or as long of Tier out to that is the assumption a weakness verticals, Tier -- couple have starts should guidance an at all be that there it and already -- really into type seeing it of thinking retail is starts kind X, you. we Is like, that

Larry Madden

I certainly for jobs, -- we doing better, verticals what in retail, example, I is with went a strong give certain there QX even think that actually but sense. are is -- mean are COVID, There still through travel, as that in true. to are you

Unidentified Analyst

And then…

Tim Vanderhook

to retail… Again guide, the specifically, answer it’s baked in to certainly

Unidentified Analyst

Okay.

Tim Vanderhook

Retail and…

Unidentified Analyst

I see.

Tim Vanderhook

I train lost my thought… of just

Larry Madden

Jobs.

Tim Vanderhook

Jobs. Thank you.

Unidentified Analyst

it. Got

Okay.

an in makes So weakness, further pace that of accelerating not retail, but retail weakness if sense. that at

Chris Vanderhook

accelerated certainly Well, downward QX. from

Unidentified Analyst

Okay.

to of return how next year? would scenarios happen profitability, just thinking be double-digit play Okay. should EBITDA we about and just to for stepping back And for just that to to out? maybe thinking for return margins to you like type about need the What to XXXX

Tim Vanderhook

hiring year of get at just double-digit of pretty EBITDA. the at, to start tremendously our plans say look of to to back the were thinking an the of we what we of the I acceleration as ahead it and take pace that slowed will think relative spend curve. I would kind we stay we will

through the they much just overall of very near-term operating nothing to spending to It’s just There’s terms are this that we expenses, In keep hiccup. mid- about more achieve to able under to managing management’s be control. future. growth we feel like in have on

Unidentified Analyst

Understood. Thank you.

Operator

Tim, today? Larry, our of today. have any any for closing or you comments session concludes That Chris question-and-answer for do

Chris Vanderhook

for joining That’s will we you call and year. see next Thanks it. the

Operator

does for holidays Chris. much Everyone, and so seeing Thank earnings thank Okay. joining this your you us thank today. look you you next all everyone. Again, you call. participation to Happy for forward conclude today’s much, we We earnings. so

Viant Technology (DSP) 9 Nov 222022 Q3 Earnings call transcript