Nathaniel Schindler

Asked for an explanation of the strong Q1 EBITDA performance relative to seasonal trends and expected expense ramp-up for the rest of the year, and inquired about the long-term target for adjusted EBITDA margin.

Answer

The strong Q1 EBITDA was due to a combination of factors including top-line performance and slower hiring, not a change in expected expense structure for the year. The company is targeting a long-term adjusted EBITDA margin in the 40% range within 3-5 years, aided by AI initiatives.

Nathaniel Schindler highlighted the strong Q1 EBITDA, which is seasonally unusual, and asked about expected expense trends for the rest of the year. He also asked for the company's long-term target for adjusted EBITDA margin.

Answer

CFO Sagi Niri attributed the strong Q1 EBITDA to a combination of a top-line beat, provision reversals, margin expansion, and slower hiring. He confirmed the company is maintaining its full-year guidance out of caution. For the long-term outlook, he stated that with initiatives like GenAI, Nexxen aims to reach an adjusted EBITDA margin in the '40-ish' percent range within three to five years.

Nathaniel Schindler noted the unusually strong Q1 EBITDA, which is typically a seasonally weaker quarter, and asked for clarification on expense expectations for the rest of the year. He also inquired about the company's long-term target for adjusted EBITDA margin.

Answer

CFO Sagi Niri reiterated that the Q1 EBITDA strength came from a combination of top-line outperformance, a provision reversal, margin expansion, and slower hiring. He stated there are no unusual expenses planned and the company remains cautious with its full-year guidance. For the long-term, he projected that Nexxen could reach an adjusted EBITDA margin in the 40-ish percent range within three to five years, aided by investments in Gen AI and other efficiencies.

Nathaniel Schindler inquired about Viant's ability to move upmarket amid advertiser pushback on high adtech stack costs and asked for a direct comparison of Viant's pricing model versus competitors like The Trade Desk.

Answer

COO Chris Vanderhook and CEO Tim Vanderhook confirmed they are successfully moving upmarket by winning larger, U.S.-based national advertisers. They positioned Viant as a more efficient partner, highlighting value-based pricing and no-fee programs like Direct Access. Tim Vanderhook argued that competitors have inflated take rates to subsidize unprofitable international operations, a cost Viant doesn't have, allowing for more competitive pricing and fewer incremental fees.

Nathaniel Schindler asked about the broader ad tech market, noting reports of a post-election brand spending drop-off in late Q4, and questioned if Viant experienced similar trends. He also asked about Q1 expense seasonality.

Answer

COO Chris Vanderhook and CEO Tim Vanderhook stated that Viant saw sustained strength through Q4, including December. They suggested that any market weakness was likely concentrated in companies with high exposure to display advertising, which relies on cookies and last-touch attribution. Chris Vanderhook also confirmed the typical Q1 seasonality in operating expenses due to events like CES and an all-company conference.