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Viant Technology Inc. (DSP)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 delivered record first-quarter performance: revenue $70.64M (+32% YoY), contribution ex-TAC $42.73M (+25% YoY), and adjusted EBITDA $5.40M (+76% YoY), all above the high end of guidance .
  • Connected TV (CTV) reached a new high, comprising over 45% of total platform spend, with video at 62% and emerging channels (CTV/audio/DOOH) at 54% of spend, underscoring secular mix shift to premium addressable video .
  • Q2 2025 outlook guides revenue to $77–$80M, contribution ex-TAC to $47.5–$49.5M, non-GAAP OpEx to $37–$38M, and adjusted EBITDA to $10.5–$11.5M, with ~3–4% of expected Q2 spend deferred to 2H25 due to tariff-related timing shifts .
  • Capital allocation remains a catalyst: buybacks total $46.5M since May 2024 (3.5M shares at $13.12 avg) and authorization was increased by $50M on May 5, 2025 .

What Went Well and What Went Wrong

  • What Went Well

    • “Record first quarter results” with beats on revenue, contribution ex-TAC and adjusted EBITDA versus guidance; “well positioned to outperform the broader advertising industry” .
    • CTV mix eclipsed 45% of total advertiser spend; 55% of CTV spend ran via Direct Access, reducing supply-side fees and improving working media efficiency .
    • Non-GAAP net income rose 109% YoY to $2.82M; adjusted EBITDA margin expanded +360 bps YoY to 13% of contribution ex-TAC .
    • CFO: “Adjusted EBITDA increased 76% YoY… exceeding the high end of our guidance by more than 27%,” with continued operational discipline and strong cash, no debt .

  • What Went Wrong

    • GAAP net loss of $(3.31)M, with diluted GAAP EPS of $(0.07) on Class A shares, reflecting investment and seasonality, despite strong non-GAAP profitability .
    • Non-GAAP OpEx rose 20% YoY to $37.33M, including incremental costs from IRIS.TV (Nov’24) and Lockr (Feb’25) acquisitions; organic OpEx +14% YoY .
    • Tariff uncertainty caused ~3–4% of expected Q2 revenue/CXT to be pushed to 2H25 by a handful of mid-sized customers (consumer goods/retail), muting May–June growth rates .

Financial Results

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD Millions)$79.92 $90.05 $70.64
Contribution ex-TAC ($USD Millions)$47.35 $54.36 $42.73
Adjusted EBITDA ($USD Millions)$14.68 $17.09 $5.40
Adjusted EBITDA Margin (% of CXT)31% 31% 13%
Non-GAAP Diluted EPS ($USD)$0.15 $0.15 $0.03
Consensus vs. Actual (S&P Global)Q3 2024Q4 2024Q1 2025
Revenue Consensus Mean ($USD Millions)*$68.97$83.97$67.39
Revenue Actual ($USD Millions)$79.92 $90.05 $70.64
Primary EPS Consensus Mean ($USD)*$0.13$0.21$0.00
Primary EPS Actual ($USD)**$0.15 $0.15 $0.03
Primary EPS – # of Estimates*444
* Values retrieved from S&P Global.
** Presented as non-GAAP diluted EPS per company disclosures.

KPIs and Mix

KPIQ3 2024Q4 2024Q1 2025
CTV share of platform spend (%)n/a“over 40%” for FY 2024 “over 45%” in quarter
Video share of spend (%)n/a“just north of 60%” for FY 2024 62%
Emerging channels (CTV, audio, DOOH) share (%)n/an/a54%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent Guidance/ActualChange
Revenue ($M)Q1 2025$65–$68 $70.64 actual Raised/Beat
Contribution ex-TAC ($M)Q1 2025$40.5–$42.5 $42.73 actual Beat (high end)
Non-GAAP OpEx ($M)Q1 2025$37.25–$38.25 $37.33 actual Maintained/in-range
Adjusted EBITDA ($M)Q1 2025$3.25–$4.25 $5.40 actual Raised/Beat
Revenue ($M)Q2 2025n/a$77–$80 New
Contribution ex-TAC ($M)Q2 2025n/a$47.5–$49.5 New
Non-GAAP OpEx ($M)Q2 2025n/a$37–$38 New
Adjusted EBITDA ($M)Q2 2025n/a$10.5–$11.5 New

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024)Previous Mentions (Q4 2024)Current Period (Q1 2025)Trend
AI initiatives (ViantAI)Launch noted; autonomous DSP vision Phased rollout: AI Bidding (80% of spend), AI Planning live; AI Measurement in early Q2, AI Decisioning 2H25 AI Bidding now 85%; AI Planning driving workflow gains; AI Measurement imminent; Decisioning 2H25 with transparency vs “black box” Accelerating adoption
CTV leadership & Direct AccessRecord CTV spend; IRIS.TV acquisition CTV >40% of FY spend; Direct Access >50% of CTV spend CTV >45% of total spend; Direct Access >55% of CTV spend; strategy to be premier CTV DSP Strengthening mix
Addressability (Household ID, IRIS_ID)IRIS.TV acquired; Household ID growth Household ID match rate lifted to 95% (TransUnion); IRIS partner expansion (Paramount/TCL) Household ID across ~80% of biddable inventory; +33% YoY spend linked; IRIS_ID doubled presence, strong lift metrics (Upwave) Broader scale
Tariffs/macron/a in PRStrong start to 2025; seasonality noted; Q1 guidance ~3–4% Q2 revenue/CXT defer to 2H25; limited to ~5 mid-sized customers; resilience elsewhere Temporary timing shift
Regulatory/legal (Google ad tech case)n/an/aDOJ ruling could open YouTube access to third-party DSPs; breakup viewed most beneficial Potential tailwind
Competitive landscape (Amazon/Trade Desk)n/aCost concerns in adtech stack; moving upmarket within mid-market Amazon seen strong in retail media; limited open web DSP threat; pricing efficiency vs incremental fees elsewhere Favorable positioning

Management Commentary

  • CEO: “We delivered record first quarter results… propelled by strategic alignment to proliferating digital channels including CTV, streaming audio and digital-out-of-home… Household ID and IRIS ID continues to ramp, and ViantAI remains in the early stages of adoption” .
  • COO: “Over 55% of CTV spend is now running through our Direct Access premium publishers… supply side fees are significantly reduced… increasing impression win rates without the need to raise bid prices” .
  • CFO: “Adjusted EBITDA… exceeding the high end of our guidance by more than 27%… strong cash ($174M), no debt… increased buyback authorization by $50M” .
  • On macro and tariffs: “Our Q2 guidance reflects the deferral of approximately 3% to 4% of expected Q2 revenue and contribution ex-TAC to the second half of 2025… timing driven, not structural” .

Q&A Highlights

  • Tariff impact and Q2 deferral: Less than 10 advertisers (mainly consumer goods/retail) shifted ~3–4% of expected Q2 spend to 2H25; April growth remained within guided range, with typical month-on-month build .
  • CTV and Direct Access economics: No fee charged for Direct Access; benefit accrues via better ROAS and higher spend; continued expansion with major publishers adopting Household ID and IRIS_ID .
  • Identity differentiation: Viant’s Household ID centers on physical address-based, people identifiers; contrasts with Google’s enabling of IP addresses (digital identifiers) and continued AdX limitations .
  • Pricing and competition: Advertisers balk at incremental fees elsewhere; Viant emphasizes efficient take rates, transparency, and U.S. focus versus costly global infrastructure burdens at peers .

Estimates Context

  • Revenue beat: Q1 2025 actual $70.64M vs S&P consensus $67.39M (+$3.25M, ~+4.8%)* .
  • EPS beat: Q1 2025 non-GAAP diluted EPS $0.03 vs S&P Primary EPS $0.00* .
  • Prior quarters: Q4 2024 actual $90.05M vs $83.97M*; non-GAAP diluted EPS $0.15 vs $0.21* (mix of accounting definitions likely; Viant reports non-GAAP diluted) .
  • Estimate counts: Q1 EPS consensus based on 4 estimates; revenue consensus on 6 estimates*.
    * Values retrieved from S&P Global.

Where estimates may adjust:

  • Raising FY and Q2 revenue/CXT estimates likely on persistent CTV momentum and noted April strength; modest Q2 shift (~3–4%) moves into 2H25, supportive of back-half revisions .
  • EBITDA margin trajectory improving through year despite near-term OpEx from IRIS/Lockr; management reiterated expectation of revenue growing faster than expenses in 2025 .

Key Takeaways for Investors

  • Secular CTV shift is translating into mix and growth: 45%+ of spend in Q1, video 62%, emerging channels 54%, with Direct Access reducing fees and lifting win rates .
  • Identity moat expanding: Household ID at ~80% of biddable inventory and 95% match rate (via TransUnion); IRIS_ID presence doubled among CTV bid requests; measurable lift outcomes attract budgets .
  • Execution and profitability: Non-GAAP net income +109% YoY; adjusted EBITDA +76% YoY; margin expansion expected through 2025 despite M&A-related OpEx .
  • Guidance strong despite macro timing noise: Q2 guides to record performance across spend, revenue, CXT, EBITDA; ~3–4% spend timing shifts represent backlog to 2H25 .
  • Capital returns as signal: $46.5M repurchased since May 2024; +$50M authorization adds flexibility to support shares during volatility .
  • Competitive/regulatory setup: Potential DOJ remedies could open YouTube demand to third-party DSPs; Viant’s independence, pricing efficiency, and CTV focus position it well versus walled gardens .
  • Near-term trading lens: Emphasize CTV momentum beats versus consensus and buyback expansion; monitor Q2 monthly pacing and tariff headlines—management flagged typical intra-quarter build with timing deferrals mainly into 2H25 .

Notes on Non-GAAP Measures

Company highlights contribution ex-TAC, adjusted EBITDA, non-GAAP EPS and non-GAAP OpEx; reconciliations are provided in the press release and 8-K exhibits .