AdTech and Media: Viant Reports a Strong Q3 and Announces Acquisition of Iris TV
A leading advertising software company that enables marketers to plan, execute and measure omnichannel ad campaigns through a cloud-based platform, Viant Technology, Inc. (DSP) had a strong third quarter, exceeding guidance across all key metrics. Revenue grew 34% year-over-year (y/y) to $79.9M, and contribution ex-TAC grew 21% to $47.4M. The company saw record quarterly spend on its platform, driven by continued strength in CTV and streaming audio, which together accounted for around 50% of total platform spend.
Viant also announced the acquisition of Iris TV, a content ID platform for CTV that will enhance Viant’s CTV offerings and enable more precise targeting and measurement for advertisers. Viant’s AI-powered products, such as Air Bidding, are also driving increased adoption and efficiency for customers.
In Q4, Viant expects revenue of $82M -$85M, representing 30% y/y growth, and contribution ex-TAC of $51M -$53M, up 22% y/y. The company expects adjusted EBITDA of $16M -$17M million, up 27% y/y. For FY2024, Viant now expects revenue growth of 27%, contribution ex-TAC growth of 22%, and adjusted EBITDA growth of 51%.
The company’s ability to continue growing above market despite tough comparisons, demonstrates the strength of its business model. However, a few cautions we cited around Viant’s fixed-price managed services business, which resulted in a higher take rate (TAC) and lower contribution ex-TAC growth compared to revenue growth in Q3. The company also has modest expectations and slightly higher-than-expected contribution from political advertising, however, is not a major focus area for the business.
Tim Vanderhook, Co-Founder and CEO of Viant stated, “We delivered outstanding third quarter results, with revenue, contribution ex-TAC, and adjusted EBITDA surpassing the high end of our guidance. For the second consecutive quarter, advertiser spending on our platform hit a new record, fueled by unprecedented CTV spending. We’re excited to build upon our CTV targeting and measurement capabilities with the acquisition of IRIS.TV, which we announced today. In addition, the recent introduction of ViantAI has captivated advertisers and aligns with their increasing desire to explore innovative, efficient and more cost-effective alternatives in programmatic advertising, further fueling our growth.”
