Earnings call transcript Q2 2023

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Operator

Hello, everyone. And welcome to Viant’s Second Quarter 2023 Earnings Conference Call. My name is Catherine, and I will be your operator today.

Before I hand the call over to Viant’s leadership 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

please ask set your If firm. to question, full ensure and display you plan to a you name your name Zoom

please a the at of your during ask function bottom to like raise hand you’d the If time, use screen. the located question

now with you Viant Thank will your over call today. attendance the for Technology. to I And turn Ben Tapper

Ben Tapper

second Good quarter And Viant XXXX conference Catherine. welcome afternoon. you, Technology’s Thank earnings call. to

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

to you those we initiatives events, call development QX projected. that uncertainties remind from to like actual risks on guidance and statements XXXX make that our are I’d to and including for future our differ cause that materially subject could will based platform forward-looking results on our today, and assumptions

by or to speak statements, except These no undertake forward-looking of required obligation we statements today revise these and law. only update as as

risks information and about statements and For forward-looking cause refer statement, Safe Harbor as issued to entire to well from these please Form results for XXXX, today, may more in news SEC. materially our quarter release our uncertainties quarterly XX-Q differ -- XX, Risk report under filings ended factors on June Factors heading that the with the described the the on the other as and actual

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

our on the in of news the including posted with of measures, financial reconciliation non-GAAP non-GAAP measures which included these a comparable SEC. and company’s regarding website page today, Relations has release most the disclosures GAAP in the to financial Additional filings measures Investor are issued been the directly

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

Tim Vanderhook

on data to guidance exceeded macro amid to platform quarter Ben, both had look that AI campaigns. range the deliver momentum increasing our revenue we great and thanks, The our We as ways for rates leveraging excited I’m significantly developed share our adjusted our everyone, environment. quarter an own the joining a and drove of for improving second we our time, EBITDA. adoption today. quarter, through built drove us customers Thanks, first more productivity. our products advanced reporting same smarter efficient internally and their ad outperformance and the At in household ID, on as

billion and of As continued the of the of second want deletion XXXX, and growth see on into into year see throughout intelligence; XXXX; linear Google’s artificial rest application we $XX transition we the the a clarity accelerating bit areas and look is TV. profitability. our and these third, more growth; of how tailwinds moving of television number Connected in cookies first, a provide I them driving more we of each ongoing to on share of our

that vehicles leverages number self-driving total grow really to advertisers is way performance will The we our promise toward autonomous platform AI per an the year, for an to aggressively the on new automotive working its set At to ad autonomous sight not intelligence believe campaign the vision building platform. of of Similar tech market. we’re ad has help ad superior industry. artificial cars achieve industry the boost addressable sold Viant, of our

vision the for to hundreds and their midsized realized businesses AI is goal the We available customers making grow count new to fully from and Our autonomous unlike and to by opportunity the as to yet. hasn’t leverage scaling programmatic them millions small our envision vehicles, to into businesses. millions AI simple of our make the this customer reach key ad industry it

results automation learning in problems one-by-one improve traders’ and fashion. the to them on focused models However, that we campaign groundwork automated help been programmatic laying of solve their deep training a more have

of efficient release for the pricing. of is second more this Optimizer of advertisers form immediate quarter. our into AI-powered our benefits the in example Bid CPM This in new great the translated late One

is great how customers on consolidate publisher have ad for them inventory. achieving For into developed of who is customers, Viant leveraging the have increase a for clients we savings average our CPM opted newly budget of of value is our same which ad platform. the ad platform drives XX% Bid their over our AI of our Optimizer into the Optimizer, example incredible to achieved a AI-powered results to and to Bid more

We application the are experience to itself. programmatic deliver new largest solutions of bidding invention allowing best-in-class market real-time since AI-powered us the to results the believe customers. is AI These a of our that opportunity in the and

exciting have the share future. pipeline you more and an in excited to with We product I’m

the revenue opportunities for second Viant. start Google’s set QX which recently on, deletion they is cookies, I additional This impeding of stated in XXXX. On touched have point will of to create

I’d household ID like omnichannel marketers the other solutions does on cookie the rely to remind market. investors using to advertising our that this and technology in Viant’s the execute patented not gives like ability

than identifiers household pending accelerate ID believe that more growth ad of our the deletion will see. Google’s flowing achieved Our further has We cookies we through availability of spend requests ad across all platform. that XX% and other

ad will ad continue opportunity, TV marketer’s $XX additional the and spend an shift adoption of coming we billion third programmatic the into streaming to On market. to streaming. linear see of The dollars services

ad I’m XX% environment like our measure growth a are critical growth, spend household return factors report ability in against CTV. that the CTV, a all household over outpaced in in market space. There this is a QX fast-growing device to which in we advantage CTV. double-digit than available significant cookieless ID that on requests, happy is strong of ad to this multiple contributed a with is but rather on In our to

Americans grow. still to important attention. to and engaged so room it’s And of gets with remember why CTV much there’s Nearly significant XX% CTV

no As linear has wanes, measurement single TV dominance developed. protocol been

more allocated previously to linear the far spend of the our ad TV marketers ID, confidently to application a can With ecosystem. CTV Viant household apply sophisticated

can Viant’s growth marketers high those programmatic of and with run platform, visibility Now a this in from with campaigns use expected channel same precision the platform. the ad

strong quarter. very close, second to we had And a

initiatives strides that immediate for are and making our AI customers shareholders. on directly into our We’re value translating our

We’re results well we’re to on in as which bit. the QX touch well, financial and a for expecting excited positioned will strong Larry share

our We second into momentum to details that soon. we this pipeline are half come at event fall Innovation to and on accelerating product the update on our look an with more forward an providing

to and Now discuss over around hand our products to the customers. I Chris will more call

Chris Vanderhook

with within support a have Thanks, return our capabilities, is across their go-to maximizing for our quarter marketers mid-market, unrivaled made where wins client strong whose with another Tim. efficiency, our believe choice QX customer strong ad spend. us particularly was and measurement results along the we of on base, objective attribution

elements crucial Viant such formidable the make In solution that the differentiate a platform in the mid-market. past, us discussed and I’ve

lowest First means on the and foremost, best best to spend. product, ad you the return CPM must deliver which offer the

you form support performance in the to must customer Second, experience you is demonstrate ensure of superior to and provide seamless. measurement comprehensive the the finally, reporting. infrastructure have And

establish tech become to large partners. XX,XXX innovative the one in and attractive in we too With which than same to way, creative agencies brands more have ways, are dynamic well a ad mid-market particularly the alone, are in so agencies In themselves choices for and much looking win. suited the their mid-market preferred and marketplace U.S. is

paradigm brands break to Viant one-size-fits-all mid-market offering agencies service. free these tired and platforms way, and approaches industry-leading working is this of a In from with by tools,

platform. The the speed benefits pathways to Viant, at programmatic model well up multiple are of clients specialize But our on to self-service our in known. we get

forecasting, interface and user focus enable that targeting, Our intuitive further is unique on our that visibility enhances ramp-up, and anywhere largely unavailable reporting, while ultimately, data else. tools automation

I that own differentiate and of want right success specific customers. are in vital their two about each talk the of more our to mid-market bit a DSP us little to truly areas

leveraging For data culmination history investments been Data making in Platform, several of and the the quarters, many customers’ Data with our long that journey. sets discussed success, we’ve is effectively safely of in Viant drive Platform the to we’ve ways Viant massive a

of secure insights two and data and of provide to advertising this leverage directly have comprehensive. more And be clients. none into that how None use able commercially by way. clean campaign value competitors data competitors to Viant’s can that that able to solutions our manage providers, and implementation. with design room inserted industry-leading want that are They importantly, tool Through our a How data data suite their data viable we’re faced their deliver of privacy-friendly to be a real-time our with and record in conjunction extract nearly integrations track have to questions in warehouses all campaigns. from first-party to

household ID, impact relevant third-party Platform future-proof the next Viant of still cookies and world. with leveraged their Platform Viant our ads Google the by The is while ads able by to deletion the leverage deliver programmatic a Data customers are Clients measure our year. to impending being able those largest of as cookieless advertising in strategy for Data along being

Next, Direct more on the directly, to most advertisers reselling efficient premium supply that with owners customers as supply inventory lowering partnerships Direct our while by of for to creating by eliminating path for I costs initiative, develops content path optimization the Access. want information share a content middlemen. program monetize Access amongst our their

with a a rate media, helping Tim the and success. in Access results spend. supply to higher as as space better and Program the for has in we’re strong lower focus down fraud, performance Direct ad CTV campaign win efficient return advertisers well the to which lower chain, more that seeing is CTV. Access cost see Our With boils all on centered discussed on Direct instances ad of drive actions, of higher

Notably, premium watched the largest we’ve the some industry, most inventory partnered TV of with owners consumers. representing by many being content of in Connected the

steady of quarter, than premium new Direct more In are Program CPMs more efficient is we represented by seeking year as Access of adoption both attention lower increase customers who the second to throughout path. inventory and a our expect Direct gaining see supply clients. early, our still on Although the spend we that lot CTV by by XX% and leveraging existing Access a

technology take path alike, is ultimately, inclusion advertisers inventory an directly publishers more economics bids Additionally, Viant’s than on multiple rather publishers alternative and proud to that announce efficient and I’m their through to premium a for recent open ecosystem. to for This better Prebid.org. provides programmatic advertising leads in Prebid resellers. source

look publishers new our more customers’ more to expect this demand as all gain technology to release and channels. across to We access direct area in

I’ll by year that, of Viant customers strong as with by excellent the first half. saying seeing second our from encouraged we’re and the signals into close we’re an we’ve half the move wrapped And we

on we’ve We made best-in-class delivering so product believe the and this only far year to we focus are the continue beginning. gains

provide turn performance. financial our over now on details I’ll and you Thank it more Larry to to

Larry Madden

Thanks, Chris.

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

As contribution our adjusted and Tim quarter we momentum, exceeding end successfully on revenue guidance capitalized our achieving our ex-TAC. for the for QX first mentioned, guidance of and EBITDA high

increase the end the quarter $XX.X quarter of end prior higher versus of XX% QX for QX XX% higher was an $XX.X ex-TAC of million, our year Contribution our for than an of year and the and guidance. at period, versus period, Revenue exceeding high increase prior X% XX% high the than guidance. was million, the the

to We revenue levels. from to signs spend QX as regards see ex-TAC evidenced growth continue contribution rates and improving ad accelerating by with QX

trend of second encouraging strengthen half year. throughout expect to this the persist We and the

spending double-digit of growth retail automotive strong. also and goods verticals, we a saw our in remained rebound strong across our gambling quarter, solid both In with verticals, consumer travel, the online and verticals terms delivering across customer

saw of part of the promising our in Direct channels, terms by the a Access In robust CTV outcomes Program. in in growth we driven quarter,

to second this our our ability our of total unique respond targeted level In messaging household quarter, in spend Additionally, CTV for highly environment. over on at deliver advertisers to the customers accounted to the continue positively one-third platform. cookieless

video, perspective, both in growth accounted experienced the double-digit half platform format video, also in audio and still early a with mirrors The our the and success on CTV, its trajectory had and early CTV for the the mobile in of the more quarter. reaffirming streaming future encompassing From Streaming solid stages, strong though than spending. spend quarter. many ad remaining behind forefront our present to growth at the we in forces promising commitment audio ways had driving upward of

effect price customers of active of times scale that fixed on per of our that and the spend more spend cohort power our important the X created average basis increased It is to and on customers. our self-serve customers. Advertiser percent fixed-price customer a between continues year-over-year spend percent than by highlight the of widen to spent DSP customers gap X% and

retention higher they their of business only not propensity to also rates, percent spend have customers exhibit Our us. greater expand with a

customers We customers, during ended of the net decline XX the XXX period. a active quarter with

growth cultivating spending our deeper earnings quality around discussed high relationships centers customer As previous with levels. higher capable philosophy calls, on of customers on

strategy, shift allows on As attracting building while and away that lower growth customers, to onboarding part that long-term value actively from of greater shifting This strategic with we customers are servicing success. us partnerships gradually enduring to and focus contribute potential. end sustainable

the reflecting This year-over-year expenses. reduction totaled a business. quarter, commitment operating leverage our driving operating of operating $XX.X In the to expenses XX%. million, on reflects Moving decrease our to across non-GAAP

investing our While size we XX% product engineering and by in efficiencies, achieving to increase cost future demonstrated growth of equally a the these teams as period. same notable the remain dedicated in over

of significant a that resources, results integration balance our will initiatives generative enabled in also in had achieve efficiency technologies strike our productivity. our to remarkable investing a a have strengthening across substantially has margins. and success. organization in fewer -- increase with profound us significant transformative is in our confidence our to between grow These ability further AI resulting long-term the gains and operating The to approach end propel technologies in Our impact, teams

versus to continue we leveraging metric per the driving By AI, and positioned in is grew quarter which innovation are employee, period. we One internally both by XX% well to measure prior operational productivity cutting-edge year revenue efficiency. current use the

period an of XX.X% million the the prior we a from approximately and the EBITDA percentage year adjusted For the of of year of from generated quarter. the as million and guidance our $X.X period. million, a was second well the Adjusted from end above quarter, high quarter, representing contribution prior $XX prior ex-TAC EBITDA $X.X margin representing increase XX-percentage-point improvement for

$X.X quarter, For Class totaled non-GAAP $X.X compares year year per to excludes second $X.XX which of which the prior compares to period. million loss the a earnings net million, non-GAAP A loss prior which in the in the net a quarter, stock-based $X.XX income, in Non-GAAP compensation, of current share period. totaled

Class In the B million A and we ended terms share of count, XX.X with Class shares outstanding. quarter common

ended substantial to opportunity to translates to million capitalize and of quarter the $XXX We which outstanding. at capital solid we foundation on fully credit financial undrawn of per $XX extremely million $XXX ahead facility. continue with have to access no This working noteworthy also We a $X.XX had us end the well positions market us. cash, positive share quarter million a and in debt

As ahead about look optimistic growth to our business in QX, improvement the accelerating the we of advertising we’re rates and the continuing environment.

revenue million in third midpoint. the a the expect million, $XX XX% at of $XX For we increase the range to quarter, representing of year-over-year

increase million XX% of million of of $X.X We $XX the expect a at the contribution to the decline to And midpoint. increase which in of midpoint. represents million, the we Non-GAAP range ex-TAC representing year-over-year a at in XX% operating be finally, $X.X the million, to to adjusted million, $X.X million $XX.X year-over-year of EBITDA midpoint. are $XX.X expenses be million expect range year-over-year to $XX expected at a

marked in platform, our continue strong be relationships. unparalleled The In QX growth our strong new fostering business to service, combined execution. attracting quarter existing and of in with of drivers closing, power another

As signs share. of we economy grow well our and the our build broader further encouraging on market are positioned shows improvement, momentum to

growth and dedication position both management remains value and EBITDA shareholders topline to strong the of going all, achieve forward. robust Our to cost expansion our disciplined relentless core mission. execution long-term focus our us profile, at customers Above on financial our and to margin delivering

now prepared we remarks to that, have open I the back the with video Operator? to to will turn Operator it our questions. over and And concluded

Operator

you from Canaccord. Maria, to [Operator like Instructions] call I now begin. upon Maria First, can Ripps would

Maria Ripps

so hear my right. Can taking for okay? questions. much All Thanks me you

Tim Vanderhook

Yes.

Chris Vanderhook

Yes.

Larry Madden

Yeah.

Maria Ripps

Thanks how relative Yeah. Could touch that sort And all a QX you QX expectations? you much. function the so progressed were maybe environment share? of your to on environment of of and enabling macro results in of better-than-expected throughout -- are take maybe suggesting so sort market more strong the signs you’ve that in macro some to seen broader stronger the platform investments or far

Tim Vanderhook

first want to the one. you take Yeah. Larry,

Larry Madden

I into a we coming the it’s point, uncertainty key is January, across mean, I last out of second and said of the last Yeah. really there was January, since Board. really and stabilization this quarter, stabilized year the more have much truly we think, half here that seen

QX grew faster than QX.

we and expect We in also QX. QX our But customer to QX macro budget. that challenges. that trend in at that easier continue last impacted a Part the least QX share larger is of given were winning we are comps by of

of acceleration really the it’s in So of growth rates. terms two-fold

Tim Vanderhook

the… On

Larry Madden

going We’re to QX. is in improve not assuming economy the that

stable remains it today. it assuming as We’re is

Tim Vanderhook

second believe is the in is platform, share that is market the to very level very, which mid-market gaining the the they offer holdcos customers. well on very offer ID, what executing and their need, we’re data team do of household And performing the our question, we I product have nicely, the analytics

So believe also in but market share are believe mid-market that improving gaining I area. I macroeconomic that it we do was somewhat,

Maria Ripps

Got it.

Larry Madden

to is, improvement I would QX… retail of which other in been add CPG, nicely that one in seeing and had came that back down for quarters, like we’re a point the areas where couple

Maria Ripps

Okay.

Larry Madden

more That’s macro a development. of

Maria Ripps

of do transition XP helpful. prepared upside result with very to then That’s of you it’s you a next for incremental expect it. [ph] of this point? as think the how deletion marketers cookie think reasonable do most at year this and are Got much And sort

Tim Vanderhook

the work make cookies would no continue they until platforms the transition. marketers do. to prepared don’t that There’s utilize until with to point They most operate change current for anymore. a I say that are not they

is of operate currently replatformed it to that’s this enormous towards old privacy-friendly how get world needs In of consumer platforms -- personal it’s that or in of wall the being I a the new upside spent of lack to money identifiers in that into that ways. size opinion my terms opportunity, an

will me, to of wall cash So a replatformed. huge be that

years tested, it questioned away platform marketers environments are and I continues very yet now Our has prodded, to poked, from well think we’re multiple shift looking out been for results and for that in that cookie as so being positioned deliver ovens. these

Chris Vanderhook

And the that Meta think look in the IDFA, changes few to A immediately. you on I of Apple’s Snap you hit the even just that back saw impact YouTube. with if that and one, the had market, saw Maria, you terms later, quarters larger

when what’s the Google’s here muted on focused same been Google happen. but ad ID, mobile around the They’ve in thing XXXX aren’t people somewhat going Most exact happening cookie. the deletes is to

hit we to other expect completely we So that this these will players be more are also believe that. Google, is that of not out hit it We Meta, it’s still gardens only open come to set that cookie-based. money going to those. hit web But Snap, to all that going is a think of beneficiary walled

Tim Vanderhook

Yeah.

That’s Our businesses. a guess of our about like we Apple’s how social was the impact those estimate size The Google that. spend. the -- is platforms iOS should twice change ad best third on on have

be them. for it challenge will a tough So

Maria Ripps

Got very it. for so color. Thank much you That’s helpful. the

Operator

you. Thank

from have Martin Next we Needham. Laura up

Laura Martin

two. guys. I’ll Hi, ask

direct to one, I’m if really really targeting, which it’s advertisers open targeting and that television move to that gotten Internet. curious buying required money think any the with to very going content-based and audience-based guys into connected inclination $XX The on TV from and are first doing was they’re are is, linear willing billion to great access. your My is have substitute linear buying you you question the third you moving leg the I

Tim Vanderhook

my say is would yes. I answer

the results returns analog and over have no, that grown because digital for I think more and that the and for digital eats they’re is place all produce publishers better answer seen advertisers. was in we’ve the would sophisticated better technologies time, if first never

advertising competitive. in no no is mind crushes in addressable and traditional my broadcast is shape there or way, So, that doubt advertising, form

digital outcompete linear. part was addressed That So will far remarks. of my

marketers challenge there’s just in measured which Nielsen big are points. in are that resolve I actuals, the to measured and delivered, trying is two. those is measured way think gets that rating Digital from And the there real is verified. linear they’re a panel impressions that, gross difference a

characterize adopt channel. wouldn’t just any streaming I for -- I’ve spoken to is or to willing fully that not addressable that consumers spend certainly that in is one it It’s they’re But CTV. to waiting

Laura Martin

the Okay. Super then And really the is in interested I XX% number. second cool. thing was

you’re platform, buy-side same now customers and AI you’re a getting the implemented prices you XX% So I’d... content, your to lower for

Tim Vanderhook

results. Unreal Unreal.

Laura Martin

mean to so It the generative your that negative I sort unfortunately, the there what’s the and using for of of guys this, it get out doing I side overcharging what such been learning machine are AI? why why -- is improvement AI, now way, you’re hell using like like are mean, sort before AI I that’s able gives are new improvements because by of is great take generative you clients Is these five AI, has you years radical? XX%.

Tim Vanderhook

as difference one I I machine two you’re that generative deep it enormous number is of. learning. as proud it XX% right, wouldn’t would the and of an versus the classify classify That’s And AI. that learning we’re really applied. really were

is, the we getting is competitive already is that important believe through And CPMs DSPs. I one XX% lowest think the savings all what on we achieved cleared thing

believe do we and the raised we lowest CPMs again. we just the had bar So

goal. our is that And

pricing with technologies, to to If innovation down us this you the I the data, work the another compete sell-side one unleash behalf on in algorithms, that’s of buy-side drive going everything benefits for that and to industry, war any go reap just watch game that’s in as to to we changed discussions have advertiser we the the we the market. we can is that continue and for and breakthrough of huge

Chris Vanderhook

And all they I of nearly pricing. customers our thing one all self-service point control and out, are point think at this bid themselves so to

one that’s So piece.

well the to the control. in a worked the they has lowest end, has are price But customer achieve when Our bidding. platform always

remain that bid working of hard not it one, the price, -- but but behalf. with here, it’s opt scenes it, on into their Optimizer behind doing think when only control we’re the they only Bid insights I not them the still And AI-powered it’s they still in our we’re number new giving

great the multi-KPI-based would that is it’s CPM massive optimization. the and does, What it. this it I savings and a love And clients also is say

their with gotten -- we So response out great benefits other ad clients more so and well our is streamlined, customers and from find more performance their here. this, even We’ve pacing as of that it. even there’s

Tim Vanderhook

part more opportunity It’s the feel AI internally the for important that when invention it’s of other a is the really to we transformative itself, ad and remarks, in than go, of of and real-time prepared the numbers the given applied bidding the well. and trained properly seeing protocol the we’re chance in general, reason is tech, technology many industries it as I think, because for

Laura Martin

Great. numbers. Thank Great you much. very

Tim Vanderhook

Thank you.

Chris Vanderhook

Laura. Thanks,

Larry Madden

Thanks.

Operator

you. Thank

next Our Andrew from question from will be Boone JMP.

Andrew Boone

in Hi, back I right? the this go for strong I at guys. in The than much key expected. Congrats and is inflection takeaway If me better guys came growth stable environment, balancing to profile on the look XXXX, about macro you quarter we EBITDA a the results. you XXXX profitability? we how XXs guys think of or a do path and have do year high versus assuming next kind profitability, of margins

Tim Vanderhook

It’s hard please Larry, Yeah. you’d like year, next to to. if comment comment on

these don’t it’s well application artificial internally, AI adoption want users for They I a it. think to on then focused externally for to and is see mess how technologies. concept know do. scary up results. rates intelligence also what we’re clients to They the don’t we’re as is going going of our as of some of

world, have But we’re The But perfect perfect it. talk seeing results early customers in a about So are are numbers the certainly, those adopt to you has again, it’s world. rates. product certainly, to In the encouraging. achievable perform. adoption a watching

Larry Madden

to continue you growing I I that, would terms would we’ll say of ex-TAC contribution near anywhere our to But year, revenue innovate. next expenses and operating I make in investments grow. add -- to continue expect would not our and will strategic what see

they EBITDA hence question, will next So higher our year. to than your year are this be margins answer

Andrew Boone

then you You how And that holdco are back with certain agency how the guys so you how market think and helpful. that, go the than this needs they business? are guys middle Maria’s But to mid-market, about you how guys right? do to Thanks answered winning are I That’s the of different much. respect So right? addressing and guys wanted in question. a the

Tim Vanderhook

one, Laura’s -- spend. need customers, I about you question, holdco, mid-market and in think, the see to style broadcast we’re like, they -- a in Number These return on performance. general, it’s get bat, all mid-market you’re the the delivering ads. content, aren’t in the off lot the customers ad campaign just They right of have agencies who, buying, the buying

You’re impressions of ads. millions delivering X of

So an to the bar that clear you from high. isn’t ad very performance have

it has for perform. mid-market, acquisition big ad customer at [ph] gets impression. price the that one. is steering these customers you are number When to that it to the of cost, paying That’s A component the are

we as with So out there, we’re Optimizer. really AI standing our highlighted Bid

trading trading. The second or level I’ll say is see typically that, the mid-markets don’t carry the of we staff that programmatic

automated. has lot be to a more platform the So

level it again, focus demand automation. we same don’t because on just have have a headcount, they of that they huge So and

we why to that’s continue So win there.

to right price. dollars Meta end, and huge in partnering front what in right with the of get They right able needs need mid-market billion levels sophisticated platform the But of the user the the exactly ad at by holdcos Google, a the that’s have spend. ad ad pay and

where the in goals that’s think DSP those accomplish I helps from perspective. productivity steps and very them an efficiently employee

Andrew Boone

Thank you, guys.

Tim Vanderhook

Thanks, Andrew.

Operator

Thank you.

have from Marok Raymond we up Next James. Andrew

Andrew Marok

remaining in I guess, that for efforts list marketing that forge impact relationships sales higher how does and value well? customers are you the ones you’re optimization, you Thank customers many of terms potentially customer making as resources light can the of questions. intentional line allocate of that Understanding think XXX that in to, your guess, I with, these how which you and do taking and Yeah. sales strategy my to

Chris Vanderhook

are types doubt. predominant a The those without amount of them of customers

feel our we the customers now. good really engagement right So around with

who you’re the I highlighting spending is as the the not that customers show same ones spending that adoption don’t made higher kick the of decision them basically, think we platform. with what level just off we we it’s lower that

continue don’t to pricing that’s expect have of customers drop to those to we so mid-market, a do that aiming the although for where spend certain focused. to and customers we’re and amount, they’re are some the millions going really we’re in in we’re they going the tens want, higher Again, we if But off. of spend

Tim Vanderhook

At yeah. customers stage, with this It’s scale important to scale that with you. can

Andrew Marok

I apart with whether kind Great. you Viant talk has then Access, themselves and disintermediating evolving Direct if peers guess of in does versa. introducing And that you about coming how of space kinds a set then good of seen vice scenario? product? a side see Direct that products, supply can how everyone side future And from the the demand we’ve number or these

Tim Vanderhook

in Yeah. our so tech what advertiser. I so And eliminating the unnecessary price historically, out Well, driving think tax disintermediating, them focused the look, the or a buy-side, standpoint, one, and programmatic, a represent we of that I trading really -- possible it buy-side on the lot been I in think there’s getting from about there’s seeing. think middlemen middle. what that’s it’s lot again, I is, you’re don’t think It’s has been lowest about much

to So for bunch -- about this is, four path a with that’s concept to years, it’s there. middle This of to people going say the is would I going and want content to taking really three most probably direct this they the optimization, unnecessary attacks. a been they they’re years don’t publishers, supply continue the owner path anyone what want of direct well relationships who in on do has just has

that end, on drives, price of huge end performance. rely customers it’s us of is campaign and drive what a at campaign In the really about. the day, that’s component the performance, So to

sell-side our we’re to initiatives. don’t sell-side buy-side. demand. direct again, on We So the the -- these giving to remain completely aren’t access customers’ going It’s

Andrew Marok

color. the Thank Appreciate you.

Tim Vanderhook

Andrew. you, Thank

Operator

from Kreyer is from question Craig-Hallum. next Jason Our

Jason Kreyer

Hi, Great guys. Thank you. results.

talked we competitors your the of a so after lot bankruptcy mid-market, saw I announced a the they presence one about of had the in and You quarter, and think mid-market.

Just you of curious opportunity that? for on gain if further the an see share heels

Tim Vanderhook

with were believe end customers bankruptcy of We We I many Yeah. happened MediaMath we and product due referring was right had there. playing that that the bankruptcy, the of you’re capitalism QX to which was they MediaMath. out. the tough market think gaining bankruptcy, to the from to at a shared we offer employees. see and of MediaMath share regardless superior just I filed obviously, But it’s believed for

bankruptcy saw and we out many our into budgets of and day the MediaMath customers We had platform. flowing We MediaMath’s shared benefits of saw filing.

And was on cost there. were conviction so upside we structure. evaluating just MediaMath couldn’t get acquisition It down we an Unfortunately, their perspective. from

But I necessarily they product more and think was ultimately, felt like but We competitively there, dollars, bankruptcy. we more ad be did ad gained them we capital to day proved so file which dollars beat going our decided not and good the the deploy in not new decision. to a many organically platform customers, to

Yahoo! well, So I we’ve that. as competitor in the on a area just one, too, focused them in a compete they’re beating in at job We lot think, mid-market and good and mid-market. against that one very head-to-head we’re done the

we’re people gaining think, in I from and market unfortunate so overall, And multiple an share MediaMath was event. what happened

Jason Kreyer

fixed between my shift One revenue between fee numbers related follow-up outperformance ex-TAC for contribution greater the was would a spend. than performance. of be That GAAP if don’t models percent to speculation. revenue Larry. I know and that’s The

wondering Just add unpack the can you difference? -- if

Larry Madden

growth across all, last mean, I to rates the first and beginning -- have revenue convert. compared spend, year, ex-TAC Yeah. contribution as are of to

getting were was the when not they’re going the shift. mix through case year, we So closer. Last that

last being on that the be rates expect based another, spend, any growth year. some customer variability don’t there we metrics for but different from given be quarter were seasonality But of not of relative topline materially one growth certainly like may in to mix, rates said, different based they on

rate become price be to rates scenario. to of the total rates that and we a to Longer expect contribution growth term, as growth smaller we revenue do that smaller long-term, we’ll see ex-TAC percentage revenue, fixed quarter-by-quarter, outpace but expect continues -- do and

Jason Kreyer

Great. Thank you.

Operator

UBS. of And from day is Kuntarich our Chris from question the last

Tim Vanderhook

Chris. Hi, you there? Are

Ben Tapper

I think you’re on mute, Chris.

Chris Kuntarich

Apologies. Can hear me you guys now?

Tim Vanderhook

Yeah.

Chris Kuntarich

Great. cost great Can just we further you your XX%? just seems R&D cost about the into visibility there, to talk are have gotten the ability like you take efficiencies, efficiencies some guys group guys as growing in headcount at leverage it

Tim Vanderhook

we we’re tremendous. tools lot the efficiencies we of from last But the AI actions we productivity gains the knew of just the say in a internally cost end year. mean seeing of has I the leveraging that already amount by took had predominant Yeah. been I that would at a bag

science them campaign LLMs, top our data for our in be that of well. would as say, team and in group, our leveraging then on Whether customers utilizing performance be, whether on data that in that groups, anyone marketing and I engineering analytics

incredible Copilot, seeing -- doing just just mean I like tools GitHub the using we think we’re we’re basic there and productivity gains only surface. scratching

we’re really where looking. that’s So

going there, -- from benefits nowhere technology are those we there leverage cost the near to offset I increases more. And that some it. some AI but we’re gaining think as there’s to It’s tools

year. a of going back that’s So the that’s the to focus in remain big half

Chris Kuntarich

as Got savings the Bid where guys getting the wins you’re of we about some the of just think idiosyncratic that Optimizer out CPM definitely here. XX% you it. and stands And kind hear, AI

if like could bringing just the table? was you anecdotally, if up seeing potentially more upside quantify up. in on more quarter conversation us or conversations curious you It’s the the bringing you’re more frame guys what contribution -- open budgets Just Just help that? more from

Tim Vanderhook

talk It’s a as as savings we business Well, achieve a of customers, driver savings. we our we out. the percentage roll for model it’s make to When that about well. revenue this important

charge we So savings. general, it’s about of XX% in

And our grows for value it our so customers, create and value revenue. we creates as

in was QX. early, Adoption it was very Chris, --

these of we numbers. just So on some exciting of to wanted the data share points some

I adoption more is for have that’s So one. you and initial big widespread a adoption and our the sales team is think XXXX data with points, we savings enter scales XX% as that just Viant driver it’s The XXXX and But into the the through helps when positive future that another accelerate base. revenue in adoption customer low. by exit

Chris Vanderhook

is the going do just go budget. they say customer put I what on has And -- if was to they in that, platform, they a their typically

ad XX% that If impressions. you more you’re CPMs, means getting get is lower More reach. more impressions ad

You’re customers turns and performance increased. has, more consumers, campaign influencing making therefore, the your therefore, into that

it around campaign performance the you is, may be if $XX a That’s but pay you might the why CPM, much has perform $X. of CPM that talk be largest $XX twice determiner a it we of $X pay. example, the -- who it to Easy It’s the CPM rate price. depends it on -- price versus so is the price

helps so When hit us they we may performance. the So is share platforms it to dollars. campaign other pricing level performance important CPM be win versus of -- using,

the steadily just of adoption So the although, end effect we’re excited said circular early, it’s really is to we Tim throughout expect increase as that, about year. the it and the

Chris Kuntarich

we your adoption upside to kind earnings Are the it. the Got be held XX%? -- time going just this having or from understand ramping, that kind kind about it And XX% steady in is lower we pretty we a kind from to of conversation side, CPMs this findings. around are XX%, of early XQ I and of for as it’s maybe XX% think of

Chris Vanderhook

Yeah. XX% average. the is

we saw XX%s, high high as double-digit high So XX%s. as

depends on doing. so campaigns, And some advertising what they’re on it all

saw further on own of prior optimization bid also We increases top machine learning. using our

So there’s many benchmarks.

use customers third-party able and to were we a beat and try AI predict Some those too. well algorithm bids to as

a various by display, it. it’s So range there’s pricing I well, are products video, there of not that’s it’s a on and CTV, DSP, and CPMs worth. disparity of integrated But parties when channel the out what value doing also these arranged the it’s as third online wide all think into

algorithm come consistent and the working behalf. for their of a in channel sure behalf make on So us trader the on across and apply every ability it’s format to

learning it can time but so consistently the big can a many model times, of campaign more One a a important thing make all human. changes human and than is, only deep actually check check a

man able perform always be those going versus huge often, more tasks Machines drives savings. more So to which to consistently, machine.

Tim Vanderhook

what it’s to think that’s what we’re it publishers interestingly. when on CPMs higher I -- about auction, goes and that really, this I combine finding because lower the talk are seeing is our our is, earnings And just win earnings we’re what last -- what we’re -- getting actually, up. that getting is different, we I call. When rate see last what the so want something we seeing, CPMs not in shared to, you our Direct Access, They’re rate win

we’re that multiple identifying what squeezed. middle, are the really there we’re are intermediaries is that in So finding getting

finding AI true you efforts our on we’re price. when So really that’s getting That’s to. Bid Optimizer, combine we’re Access what market our and clients, Direct then what

making is right, make the But shake to want stronger, always increases quarter certain a changing. out, that in the sure to publishers they’re we’re be next they’re getting end, to quarter that the maybe Clearly, And sure so one getting may from market may selling next. pricing one clients fair that. be and

Chris Kuntarich

it. Got Thanks color. the for

Tim Vanderhook

Perfect.

Operator

portion. questions That concludes our

Tim Vanderhook

second team will at everyone next Innovation year execution I’d earnings our an for thank quarter Viant the an like all at incredible for joining. Day call. thank Great. the to Thanks and see we call. want later Well, to I the this earnings joining in and for you

Operator

This Thank webinar. you joining today’s now for today. everyone concludes us

You Have disconnect. may now great a day.

Viant Technology (DSP) 7 Aug 232023 Q2 Earnings call transcript