Le Lézard
Classified in: Science and technology, Business
Subjects: EARNINGS, Conference Call, Webcast

Viant Technology Announces Second Quarter 2022 Financial Results


Viant Technology Inc. (Nasdaq: DSP), a leading people-based advertising software company, today reported financial results for its second quarter ended June 30, 2022.

"Advertisers are continuing to turn to our omnichannel Adelphic software platform for buying and measurement of digital advertising, even as consumer spending patterns are putting pressure on advertising budgets across the industry," said Tim Vanderhook, Co-Founder and CEO, Viant. "We were particularly pleased to deliver strong growth in advertiser spend on our platform, which increased 32% year-over-year amid this challenging backdrop. We remain well positioned to continue gaining share in the digital advertising market as we help our customers drive tangible ROI from their advertising dollars with our people-based platform. We are also very excited to have welcomed Dustin Kwan as our Chief Product Officer and expect his eight years of experience building Amazon's DSP will further elevate the many strategic conversations we are having with larger customers."

Second Quarter 2022 Financial Highlights, year-over-year:

GAAP

Non-GAAP(1)

Business Highlights:

"We have continued to see customers shifting their spend to our more flexible percentage of spend pricing model, particularly in this more challenging environment for advertising budgets," said Larry Madden, CFO, Viant. "Long term, we believe this shift will be a meaningful driver of growth in advertising spend on our platform, though in the near term the shift continues to impact our GAAP revenue results. We are continuing to invest strategically in our people and software to capitalize on our very large and growing market opportunity, while balancing these investments against our profitability targets."

Guidance:

For the third quarter 2022, the Company expects:

We are withdrawing our previously announced guidance for annual revenue and adjusted EBITDA for fiscal year 2022 due to current macroeconomic conditions and uncertainty in the market.

Contribution ex-TAC, adjusted EBITDA, adjusted EBITDA as a percentage of contribution ex-TAC, non-GAAP net income (loss), non-GAAP earnings (loss) per share of Class A common stock?basic and diluted and non-GAAP operating expenses are non-GAAP financial measures. These non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information provided in accordance with GAAP. Reconciliations of these non-GAAP financial measures to Viant's financial results as determined in accordance with GAAP are included at the end of this press release under "Reconciliation of Non-GAAP Financial Measures." For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see "Non-GAAP Financial Measures" in this press release. We are not able to estimate net income (loss) on a forward-looking basis or reconcile the guidance provided for adjusted EBITDA, adjusted EBITDA as a percentage of contribution ex-TAC, and non-GAAP operating expenses to the closest corresponding GAAP financial measures on a forward-looking basis without unreasonable efforts due to the variability and complexity with respect to the charges excluded from these non-GAAP financial measures; in particular, the measures and effects of our stock-based compensation related to new equity grants that are directly impacted by unpredictable fluctuations in our share price. We expect the variability of the above charges could have a significant and potentially unpredictable impact on our future GAAP financial results.

Conference Call and Webcast Details:

Viant will host a conference call and webcast to discuss its financial results on Tuesday, August 9, 2022 at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). A live webcast of the call can be accessed from Viant's Investor Relations website. An archived version of the webcast will be available from the same website after the call.

About Viant

Viant® (NASDAQ: DSP) is a leading advertising software company that enables marketers to plan, execute and measure omnichannel ad campaigns through a cloud-based platform. Viant's self-service Demand Side Platform, Adelphic®, powers programmatic advertising across Connected TV, Linear TV, mobile, desktop, audio, gaming and digital out-of-home channels. In 2022, Viant was recognized as a Leader in the DSP category, earned Great Place to Work® certification and Co-Founders Tim and Chris Vanderhook were named EY Entrepreneurs of the Year. To learn more, please visit viantinc.com.

Presentation

Viant Technology LLC has been determined to be the predecessor for accounting purposes and, accordingly, the consolidated financial statements for periods prior to the IPO and the related organizational transactions have been adjusted to combine the previously separate entities for presentation purposes. Amounts for the period from January 1, 2021 through February 11, 2021 presented in this press release represent the historical operations of Viant Technology LLC. The amounts as of June 30, 2022 and for the period from February 12, 2021 reflect the consolidated operations of Viant Technology Inc.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words such as "guidance," "believe," "anticipate," "expect," "estimate," "target", "intend," "project," "plan," or words or phrases with similar meaning. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. Forward-looking statements contained in this press release relate to, among other things, Viant's projected financial performance and operating results, including our guidance for revenue, advertiser spend growth, and adjusted EBITDA, as well as statements regarding Viant's opportunity to gain additional market share, and the expected shift in advertising spend to the more flexible percentage of spend pricing option as a meaningful driver of growth. Forward-looking statements are based on current expectations, forecasts and assumptions that involve risks and uncertainties, including, but not limited to, the market for programmatic advertising developing slower or differently than Viant's expectations, the demands and expectations of customers and the ability to attract and retain customers and other economic, competitive, governmental and technological factors outside of our control, that may cause our business, strategy or actual results to differ materially from the forward-looking statements. We do not intend and undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law. Investors are referred to our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, for additional information regarding the risks and uncertainties that may cause actual results to differ materially from those expressed in any forward-looking statement.

(1) For a discussion on how we define, use and calculate these non-GAAP financial measures and a reconciliation thereof to the most directly comparable GAAP financial measures, see "Non-GAAP Financial Measures" and the supplementary schedules under "Reconciliation of Non-GAAP Financial Measures" in this press release.

(2) We define advertiser spend across our platform as the total amount billed to our customers for activity on our platform, inclusive of advertising media, third-party data, other add-on features and our platform fee we charge clients. See "Operational Metrics" for a discussion of how we use this metric and why it is useful to investors.

(3) We define an active customer as a customer that had total aggregate contribution ex-TAC of at least $5,000 through our platform during the previous twelve months. See "Operational Metrics" for a discussion of how we use this metric and why it is useful to investors.

VIANT TECHNOLOGY INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited; in thousands, except per share data)

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenue

 

$

51,200

 

 

$

50,411

 

 

$

93,829

 

 

$

90,555

 

Operating expenses:(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Platform operations

 

 

30,950

 

 

 

31,715

 

 

 

57,144

 

 

 

56,059

 

Sales and marketing

 

 

17,286

 

 

 

20,553

 

 

 

31,042

 

 

 

34,738

 

Technology and development

 

 

5,011

 

 

 

8,031

 

 

 

10,014

 

 

 

13,931

 

General and administrative

 

 

11,725

 

 

 

14,075

 

 

 

22,808

 

 

 

24,495

 

Total operating expenses

 

 

64,972

 

 

 

74,374

 

 

 

121,008

 

 

 

129,223

 

Loss from operations

 

 

(13,772

)

 

 

(23,963

)

 

 

(27,179

)

 

 

(38,668

)

Interest expense, net

 

 

21

 

 

 

241

 

 

 

173

 

 

 

476

 

Other expense (income), net

 

 

299

 

 

 

1

 

 

 

303

 

 

 

(68

)

Gain on extinguishment of debt

 

 

?

 

 

 

(6,110

)

 

 

?

 

 

 

(6,110

)

Total other expense (income), net

 

 

320

 

 

 

(5,868

)

 

 

476

 

 

 

(5,702

)

Net loss

 

 

(14,092

)

 

 

(18,095

)

 

 

(27,655

)

 

 

(32,966

)

Less: Net loss attributable to noncontrolling interests

 

 

(10,691

)

 

 

(14,440

)

 

 

(21,062

)

 

 

(26,206

)

Net loss attributable to Viant Technology Inc.

 

$

(3,401

)

 

$

(3,655

)

 

$

(6,593

)

 

$

(6,760

)

Loss per share of Class A common stock:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.24

)

 

$

(0.32

)

 

$

(0.47

)

 

$

(0.59

)

Diluted

 

$

(0.24

)

 

$

(0.32

)

 

$

(0.47

)

 

$

(0.59

)

Weighted-average shares of Class A common stock outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

14,114

 

 

 

11,500

 

 

 

13,962

 

 

 

11,500

 

Diluted

 

 

14,114

 

 

 

11,500

 

 

 

13,962

 

 

 

11,500

 

(1) Stock-based compensation and depreciation and amortization included in operating expenses are as follows:

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Stock-Based Compensation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Platform operations

 

$

1,303

 

 

$

5,540

 

 

$

2,389

 

 

$

8,701

 

Sales and marketing

 

 

2,426

 

 

 

11,914

 

 

 

4,605

 

 

 

18,727

 

Technology and development

 

 

1,425

 

 

 

5,029

 

 

 

2,594

 

 

 

7,968

 

General and administrative

 

 

2,614

 

 

 

7,203

 

 

 

4,556

 

 

 

11,381

 

Total stock-based compensation

 

$

7,768

 

 

$

29,686

 

 

$

14,144

 

 

$

46,777

 

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Depreciation and amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Platform operations

 

$

2,748

 

 

$

1,941

 

 

$

5,059

 

 

$

3,694

 

Sales and marketing

 

 

?

 

 

 

?

 

 

 

?

 

 

 

?

 

Technology and development

 

 

223

 

 

 

383

 

 

 

818

 

 

 

763

 

General and administrative

 

 

255

 

 

 

300

 

 

 

503

 

 

 

594

 

Total depreciation and amortization

 

$

3,226

 

 

$

2,624

 

 

$

6,380

 

 

$

5,051

 

VIANT TECHNOLOGY INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited; in thousands, except share data)

 

 

As of June 30,

 

 

As of December 31,

 

 

 

2022

 

 

2021

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash

 

$

207,248

 

 

$

238,480

 

Accounts receivable, net of allowances

 

 

93,481

 

 

 

110,739

 

Prepaid expenses and other current assets

 

 

2,911

 

 

 

2,967

 

Total current assets

 

 

303,640

 

 

 

352,186

 

Property, equipment, and software, net

 

 

22,525

 

 

 

22,331

 

Operating lease assets

 

 

19,688

 

 

 

?

 

Intangible assets, net

 

 

1,222

 

 

 

1,786

 

Goodwill

 

 

12,422

 

 

 

12,422

 

Other assets

 

 

397

 

 

 

406

 

Total assets

 

$

359,894

 

 

$

389,131

 

Liabilities and stockholders' equity

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

28,239

 

 

$

32,877

 

Accrued liabilities

 

 

31,558

 

 

 

34,086

 

Accrued compensation

 

 

7,603

 

 

 

12,247

 

Current portion of deferred revenue

 

 

64

 

 

 

1,317

 

Current portion of operating lease liabilities

 

 

2,014

 

 

 

?

 

Other current liabilities

 

 

1,245

 

 

 

2,531

 

Total current liabilities

 

 

70,723

 

 

 

83,058

 

Long-term debt

 

 

?

 

 

 

17,500

 

Long-term portion of deferred revenue

 

 

?

 

 

 

5,234

 

Long-term portion of operating lease liabilities

 

 

18,994

 

 

 

?

 

Other long-term liabilities

 

 

?

 

 

 

765

 

Total liabilities

 

 

89,717

 

 

 

106,557

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

 

 

 

 

 

 

Preferred stock, $0.001 par value

 

 

 

 

 

 

 

 

Authorized shares ? 10,000,000

 

 

 

 

 

 

 

 

Issued and outstanding ? none

 

 

?

 

 

 

?

 

Class A common stock, $0.001 par value

 

 

 

 

 

 

 

 

Authorized shares ? 450,000,000

 

 

 

 

 

 

 

 

Issued ? 14,393,501 and 13,920,868

 

 

 

 

 

 

 

 

Outstanding ? 14,253,800 and 13,704,638

 

 

14

 

 

 

14

 

Class B common stock, $0.001 par value

 

 

 

 

 

 

 

 

Authorized shares ? 150,000,000

 

 

 

 

 

 

 

 

Issued and outstanding ? 47,082,260 and 47,107,130

 

 

47

 

 

 

47

 

Additional paid-in capital

 

 

89,276

 

 

 

82,888

 

Accumulated deficit

 

 

(29,380

)

 

 

(20,139

)

Treasury stock, at cost; 139,701 and 216,230 shares held

 

 

(861

)

 

 

(2,648

)

Total stockholders' equity attributable to Viant Technology Inc.

 

 

59,096

 

 

 

60,162

 

Noncontrolling interests

 

 

211,081

 

 

 

222,412

 

Total equity

 

 

270,177

 

 

 

282,574

 

Total liabilities and stockholders' equity

 

$

359,894

 

 

$

389,131

 

VIANT TECHNOLOGY INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited; in thousands)

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(27,655

)

 

$

(32,966

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

6,380

 

 

 

5,051

 

Stock-based compensation

 

 

14,144

 

 

 

46,777

 

Provision for (recovery of) doubtful accounts

 

 

51

 

 

 

(200

)

Loss on disposal of assets

 

 

305

 

 

 

8

 

Gain on extinguishment of debt

 

 

?

 

 

 

(6,110

)

Amortization of operating lease assets

 

 

1,311

 

 

 

?

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

17,206

 

 

 

26,220

 

Prepaid expenses and other assets

 

 

65

 

 

 

(1,753

)

Accounts payable

 

 

(4,652

)

 

 

(5,126

)

Accrued liabilities

 

 

(2,528

)

 

 

(4,939

)

Accrued compensation

 

 

(4,607

)

 

 

(1,831

)

Deferred revenue

 

 

(6,486

)

 

 

(1,082

)

Operating lease liabilities

 

 

(957

)

 

 

?

 

Other liabilities

 

 

(1,096

)

 

 

(478

)

Net cash provided by (used in) operating activities

 

 

(8,519

)

 

 

23,571

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(397

)

 

 

(266

)

Capitalized software development costs

 

 

(3,941

)

 

 

(3,750

)

Net cash used in investing activities

 

 

(4,338

)

 

 

(4,016

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Proceeds from issuance of common stock, net of underwriting discounts

 

 

?

 

 

 

232,500

 

Taxes paid related to net share settlement of equity awards

 

 

(861

)

 

 

?

 

Payment of member tax distributions

 

 

(14

)

 

 

(6,805

)

Payment of offering costs

 

 

?

 

 

 

(2,608

)

Repayment of revolving credit facility

 

 

(17,500

)

 

 

?

 

Net cash provided by (used in) financing activities

 

 

(18,375

)

 

 

223,087

 

Net increase (decrease) in cash

 

 

(31,232

)

 

 

242,642

 

Cash at beginning of period

 

 

238,480

 

 

 

9,629

 

Cash at end of period

 

$

207,248

 

 

$

252,271

 

Non-GAAP Financial Measures

To provide investors and others with additional information regarding Viant's results, we have included in this press release the following financial measures that are not calculated in accordance with U.S. generally accepted accounting principles ("GAAP"): contribution ex-TAC, adjusted EBITDA, adjusted EBITDA as a percentage of contribution ex-TAC, non-GAAP net income (loss), non-GAAP earnings (loss) per share of Class A common stock ?basic and diluted and non-GAAP operating expenses. The Company's management believes that this information can assist investors in evaluating the Company's operational trends, financial performance, and cash generating capacity. Management believes these non-GAAP financial measures allow investors to evaluate the Company's financial performance using some of the same measures as management.

Contribution ex-TAC is a non-GAAP financial measure. Gross profit is the most comparable GAAP financial measure, which is calculated as revenue less platform operations expense. In calculating contribution ex-TAC, we add back other platform operations expense to gross profit. Contribution ex-TAC is a key profitability measure used by our management and board of directors to understand and evaluate our operating performance and trends, develop short- and long-term operational plans and make strategic decisions regarding the allocation of capital. "Traffic acquisition costs" or "TAC" refers to amounts incurred and payable to suppliers for the cost of advertising media, third-party data and other add-on features related to our fixed CPM pricing option and certain arrangements related to our percentage of spend pricing option. In particular, we believe that contribution ex-TAC can provide a measure of period-to-period comparisons for all pricing options within our business. Accordingly, we believe that this measure provides information to investors and the market in understanding and evaluating our operating results in the same manner as our management and board of directors.

Adjusted EBITDA is a non-GAAP financial measure defined by us as net income (loss) before interest expense, net, income tax benefit (expense), depreciation, amortization, stock-based compensation and certain other items that are not related to our core operations, such as restructuring charges, transaction expenses and the extinguishment of debt. Net income (loss) is the most comparable GAAP financial measure. Adjusted EBITDA as a percentage of contribution ex-TAC is a non-GAAP financial measure we calculate by dividing adjusted EBITDA by contribution ex-TAC for the period or periods presented.

Adjusted EBITDA and adjusted EBITDA as a percentage of contribution ex-TAC are used by our management and board of directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short- and long-term operational plans. In particular, we believe that the exclusion of the amounts eliminated in calculating adjusted EBITDA can provide a measure for period-to-period comparisons of our business. Adjusted EBITDA as a percentage of contribution ex-TAC, a non-GAAP financial measure, is used by our management and board of directors to evaluate adjusted EBITDA relative to our profitability after costs that are directly variable to revenues, which comprise TAC. Accordingly, we believe that adjusted EBITDA and adjusted EBITDA as a percentage of contribution ex-TAC provide information to investors and the market in understanding and evaluating our operating results in the same manner as our management and board of directors.

Non-GAAP net income (loss) is a non-GAAP financial measure defined by us as net income (loss) adjusted to eliminate the impact of stock-based compensation and certain other items that are not related to our core operations, such as restructuring charges, transaction expenses and the extinguishment of debt. Net income (loss) is the most comparable GAAP financial measure. Non-GAAP net income (loss) is a key measure used by our management and board of directors to evaluate operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, we believe that the elimination of stock-based compensation, gain on debt extinguishment, and certain other items that are not related to our core operations provides measures for period-to-period comparisons of our business and additional insight into our core controllable costs. Accordingly, we believe that non-GAAP net income (loss) provides information to investors and the market generally in understanding and evaluating our results of operations in the same manner as our management and board of directors.

Non-GAAP earnings (loss) per share of Class A common stock?basic and diluted is a non-GAAP financial measure defined by us as earnings (loss) per share of Class A common stock?basic and diluted, adjusted to eliminate the impact of stock-based compensation and certain other items that are not related to our core operations, such as restructuring charges, transaction expenses, and the extinguishment of debt. Earnings (loss) per share of Class A common stock?basic and diluted is the most comparable GAAP financial measure. Non-GAAP earnings (loss) per share of Class A common stock?basic and diluted is used by our management and board of directors to evaluate operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, we believe that the elimination of stock-based compensation, gain on extinguishment of debt and certain other items that are not related to our core operations provides measures for period-to-period comparisons of our business and provides additional insight into our core controllable costs. Accordingly, we believe that non-GAAP earnings (loss) per share of Class A common stock?basic and diluted provides information to investors and the market generally in understanding and evaluating our results of operations in the same manner as our management and board of directors.

Non-GAAP operating expenses is a non-GAAP financial measure. Total operating expenses is the most comparable GAAP financial measure. Non-GAAP operating expenses is defined by us as total operating expenses plus other expense (income), net less TAC, stock-based compensation, depreciation, amortization, and certain other items that are not related to our core operations, such as restructuring charges and transaction expenses. Non-GAAP operating expenses is a key component in calculating adjusted EBITDA, which is one of the measures we use to provide our quarterly and annual business outlook to the investment community. Additionally, non-GAAP operating expenses is used by our management and board of directors to understand and evaluate our operating performance and trends, to prepare and approve our annual budget and to develop short- and long-term operational plans. We believe that the elimination of depreciation, amortization, stock-based compensation, TAC and certain other items not related to our core operations provides another measure for period-to-period comparisons of our business, provides additional insight into our discretionary costs and is a useful metric for investors because it allows them to evaluate our operational performance in the same manner as our management and board of directors.

These non-GAAP financial measures should be considered in addition to, not as a substitute for or in isolation from, the Company's financial information calculated in accordance with GAAP and should not be considered measures of the Company's liquidity. Further, these non-GAAP financial measures as defined by the Company may not be comparable to similar non-GAAP financial measures presented by other companies, including peer companies, and therefore comparability may be limited. The presentation of such measures, which may include adjustments to exclude unusual or non-recurring items, should not be construed as an inference that the Company's future results, cash flows or leverage will be unaffected by other unusual or non-recurring items. Management encourages investors and others to review Viant's financial information in its entirety and not rely on a single financial measure.

Reconciliation of Non-GAAP Financial Measures

The following tables show the reconciliations of the Company's non-GAAP financial measures contained in this press release to the most directly comparable GAAP financial measures.

The following table sets forth a reconciliation of revenue to gross profit to contribution ex-TAC for the periods presented (unaudited; in thousands):

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenue

 

$

51,200

 

 

$

50,411

 

 

$

93,829

 

 

$

90,555

 

Less: Platform operations

 

 

(30,950

)

 

 

(31,715

)

 

 

(57,144

)

 

 

(56,059

)

Gross profit

 

 

20,250

 

 

 

18,696

 

 

 

36,685

 

 

 

34,496

 

Add back: Other platform operations

 

 

11,485

 

 

 

13,503

 

 

 

22,594

 

 

 

24,444

 

Contribution ex-TAC

 

$

31,735

 

 

$

32,199

 

 

$

59,279

 

 

$

58,940

 

The following table sets forth a reconciliation of net loss to adjusted EBITDA for the periods presented (unaudited; in thousands):

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net loss

 

$

(14,092

)

 

$

(18,095

)

 

$

(27,655

)

 

$

(32,966

)

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

21

 

 

 

241

 

 

 

173

 

 

 

476

 

Depreciation and amortization

 

 

3,226

 

 

 

2,624

 

 

 

6,380

 

 

 

5,051

 

Stock-based compensation

 

 

7,768

 

 

 

29,686

 

 

 

14,144

 

 

 

46,777

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on extinguishment of debt

 

 

?

 

 

 

(6,110

)

 

 

?

 

 

 

(6,110

)

Adjusted EBITDA

 

$

(3,077

)

 

$

8,346

 

 

$

(6,958

)

 

$

13,228

 

The following table sets forth the calculation of net loss as a percentage of gross profit and the calculation of adjusted EBITDA as a percentage of contribution ex-TAC for the periods presented (unaudited; in thousands, except percentages):

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Gross profit

 

$

20,250

 

 

$

18,696

 

 

$

36,685

 

 

$

34,496

 

Net loss

 

$

(14,092

)

 

$

(18,095

)

 

$

(27,655

)

 

$

(32,966

)

Net loss as a percentage of gross profit

 

 

(70

)%

 

 

(97

)%

 

 

(75

)%

 

 

(96

)%

Contribution ex-TAC

 

$

31,735

 

 

$

32,199

 

 

$

59,279

 

 

$

58,940

 

Adjusted EBITDA

 

$

(3,077

)

 

$

8,346

 

 

$

(6,958

)

 

$

13,228

 

Adjusted EBITDA as a percentage of contribution ex-TAC

 

 

(10

)%

 

 

26

%

 

 

(12

)%

 

 

22

%

The following table sets forth a reconciliation of net loss to non-GAAP net income (loss) for the periods presented (unaudited; in thousands):

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net loss

 

$

(14,092

)

 

$

(18,095

)

 

$

(27,655

)

 

$

(32,966

)

Add back: Stock-based compensation

 

 

7,768

 

 

 

29,686

 

 

 

14,144

 

 

 

46,777

 

Less: Gain on extinguishment of debt

 

 

?

 

 

 

(6,110

)

 

 

?

 

 

 

(6,110

)

Income tax benefit (expense) related to Viant Technology Inc.'s share of adjustments(1)

 

 

390

 

 

 

(250

)

 

 

809

 

 

 

(316

)

Non-GAAP net income (loss)

 

$

(5,934

)

 

$

5,231

 

 

$

(12,702

)

 

$

7,385

 

(1) The estimated income tax effect of the Company's share of non-GAAP reconciling items are calculated using an assumed blended tax rate of 25%, which represents our expected corporate tax rate, excluding discrete and non-recurring tax items.

The following table sets forth a reconciliation of earnings (loss) per share of Class A common stock?basic and diluted to non-GAAP earnings (loss) per share of Class A common stock?basic and diluted for the periods presented (unaudited; in thousands, except per share data):

 

 

Three Months Ended

 

 

Three Months Ended

 

 

 

June 30, 2022

 

 

June 30, 2021

 

 

 

Earnings
(Loss)
per
Share

 

 

Adjustments

 

 

Non-
GAAP
Earnings
(Loss)
per
Share

 

 

Earnings
(Loss)
per
Share

 

 

Adjustments

 

 

Non-
GAAP
Earnings
(Loss)
per
Share

 

Numerator

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(14,092

)

 

$

?

 

 

$

(14,092

)

 

$

(18,095

)

 

$

?

 

 

$

(18,095

)

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add back: Stock-based compensation

 

 

?

 

 

 

7,768

 

 

 

7,768

 

 

 

?

 

 

 

29,686

 

 

 

29,686

 

Less: Gain on extinguishment of debt

 

 

?

 

 

 

?

 

 

 

?

 

 

 

?

 

 

 

(6,110

)

 

 

(6,110

)

Income tax benefit (expense) related to Viant Technology Inc.'s share of adjustments(1)

 

 

?

 

 

 

390

 

 

 

390

 

 

 

?

 

 

 

(250

)

 

 

(250

)

Non-GAAP net income (loss)

 

 

(14,092

)

 

 

8,158

 

 

 

(5,934

)

 

 

(18,095

)

 

 

23,326

 

 

 

5,231

 

Less: Net income (loss) attributable to noncontrolling interests(2)

 

 

(10,691

)

 

 

5,952

 

 

 

(4,739

)

 

 

(14,440

)

 

 

18,899

 

 

 

4,459

 

Net income (loss) attributable to Viant Technology Inc.?basic

 

 

(3,401

)

 

 

2,206

 

 

 

(1,195

)

 

 

(3,655

)

 

 

4,427

 

 

 

772

 

Add back: Reallocation of net loss attributable to noncontrolling interest from the assumed exchange of RSUs for Class A common stock

 

 

?

 

 

 

?

 

 

 

?

 

 

 

?

 

 

 

178

 

 

 

178

 

Income tax benefit (expense) from the assumed exchange of RSUs for Class A common stock(1)

 

 

?

 

 

 

?

 

 

 

?

 

 

 

?

 

 

 

(43

)

 

 

(43

)

Net income (loss) attributable to Viant Technology Inc.?diluted

 

$

(3,401

)

 

$

2,206

 

 

$

(1,195

)

 

$

(3,655

)

 

$

4,562

 

 

$

907

 

Denominator

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares of Class A common stock outstanding?basic

 

 

14,114

 

 

 

?

 

 

 

14,114

 

 

 

11,500

 

 

 

?

 

 

 

11,500

 

Effect of dilutive securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restricted stock units

 

 

?

 

 

 

?

 

 

 

?

 

 

 

?

 

 

 

2,521

 

 

 

2,521

 

Nonqualified stock options

 

 

?

 

 

 

?

 

 

 

?

 

 

 

?

 

 

 

?

 

 

 

?

 

Weighted-average shares of Class A common stock outstanding?diluted

 

 

14,114

 

 

 

?

 

 

 

14,114

 

 

 

11,500

 

 

 

2,521

 

 

 

14,021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share of Class A common stock?basic

 

$

(0.24

)

 

$

0.16

 

 

$

(0.08

)

 

$

(0.32

)

 

$

0.39

 

 

$

0.07

 

Earnings (loss) per share of Class A common stock?diluted

 

$

(0.24

)

 

$

0.16

 

 

$

(0.08

)

 

$

(0.32

)

 

$

0.38

 

 

$

0.06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Anti-dilutive shares excluded from earnings (loss) per share of Class A common stock?diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restricted stock units

 

 

 

 

 

 

 

 

 

 

4,781

 

 

 

 

 

 

 

 

 

 

 

?

 

Nonqualified stock options

 

 

 

 

 

 

 

 

 

 

3,898

 

 

 

 

 

 

 

 

 

 

 

67

 

Shares of Class B common stock

 

 

 

 

 

 

 

 

 

 

47,082

 

 

 

 

 

 

 

 

 

 

 

47,436

 

Total shares excluded from earnings (loss) per share of Class A common stock?diluted

 

 

 

 

 

 

 

 

 

 

55,761

 

 

 

 

 

 

 

 

 

 

 

47,503

 

(1) The estimated income tax effect of the Company's share of non-GAAP reconciling items are calculated using an assumed blended tax rate of 25%, which represents our expected corporate tax rate, excluding discrete and non-recurring tax items.

(2) The adjustment to net income (loss) attributable to noncontrolling interests represents stock-based compensation attributed to the noncontrolling interest of our company outstanding during the period.

 

 

Six Months Ended

 

 

Six Months Ended

 

 

 

June 30, 2022

 

 

June 30, 2021

 

 

 

Earnings
(Loss)
per
Share

 

 

Adjustments

 

 

Non-GAAP
Earnings

(Loss)
per
Share

 

 

Earnings
(Loss)
per
Share

 

 

Adjustments

 

 

Non-
GAAP
Earnings
(Loss)
per
Share

 

Numerator

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(27,655

)

 

$

?

 

 

$

(27,655

)

 

$

(32,966

)

 

$

?

 

 

$

(32,966

)

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add back: Stock-based compensation

 

 

?

 

 

 

14,144

 

 

 

14,144

 

 

 

?

 

 

 

46,777

 

 

 

46,777

 

Less: Gain on extinguishment of debt

 

 

?

 

 

 

?

 

 

 

?

 

 

 

?

 

 

 

(6,110

)

 

 

(6,110

)

Income tax benefit (expense) related to Viant Technology Inc.'s share of adjustments(1)

 

 

?

 

 

 

809

 

 

 

809

 

 

 

?

 

 

 

(316

)

 

 

(316

)

Non-GAAP net income (loss)

 

 

(27,655

)

 

 

14,953

 

 

 

(12,702

)

 

 

(32,966

)

 

 

40,351

 

 

 

7,385

 

Less: Net income (loss) attributable to noncontrolling interests(2)

 

 

(21,062

)

 

 

10,838

 

 

 

(10,224

)

 

 

(26,206

)

 

 

32,612

 

 

 

6,406

 

Net income (loss) attributable to Viant Technology Inc.?basic

 

 

(6,593

)

 

 

4,115

 

 

 

(2,478

)

 

 

(6,760

)

 

 

7,739

 

 

 

979

 

Add back: Reallocation of net loss attributable to noncontrolling interest from the assumed exchange of RSUs for Class A common stock

 

 

?

 

 

 

?

 

 

 

?

 

 

 

?

 

 

 

250

 

 

 

250

 

Income tax benefit (expense) from the assumed exchange of RSUs for Class A common stock(1)

 

 

?

 

 

 

?

 

 

 

?

 

 

 

?

 

 

 

(61

)

 

 

(61

)

Net income (loss) attributable to Viant Technology Inc.?diluted

 

$

(6,593

)

 

$

4,115

 

 

$

(2,478

)

 

$

(6,760

)

 

$

7,928

 

 

$

1,168

 

Denominator

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares of Class A common stock outstanding?basic

 

 

13,962

 

 

 

?

 

 

 

13,962

 

 

 

11,500

 

 

 

?

 

 

 

11,500

 

Effect of dilutive securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restricted stock units

 

 

?

 

 

 

?

 

 

 

?

 

 

 

?

 

 

 

2,919

 

 

 

2,919

 

Nonqualified stock options

 

 

?

 

 

 

?

 

 

 

?

 

 

 

?

 

 

 

?

 

 

 

?

 

Weighted-average shares of Class A common stock outstanding?diluted

 

 

13,962

 

 

 

?

 

 

 

13,962

 

 

 

11,500

 

 

 

2,919

 

 

 

14,419

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share of Class A common stock?basic

 

$

(0.47

)

 

$

0.29

 

 

$

(0.18

)

 

$

(0.59

)

 

$

0.68

 

 

$

0.09

 

Earnings (loss) per share of Class A common stock?diluted

 

$

(0.47

)

 

$

0.29

 

 

$

(0.18

)

 

$

(0.59

)

 

$

0.67

 

 

$

0.08

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Anti-dilutive shares excluded from earnings (loss) per share of Class A common stock?diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restricted stock units

 

 

 

 

 

 

 

 

 

 

4,781

 

 

 

 

 

 

 

 

 

 

 

?

 

Nonqualified stock options

 

 

 

 

 

 

 

 

 

 

3,898

 

 

 

 

 

 

 

 

 

 

 

67

 

Shares of Class B common stock

 

 

 

 

 

 

 

 

 

 

47,082

 

 

 

 

 

 

 

 

 

 

 

47,436

 

Total shares excluded from earnings (loss) per share of Class A common stock?diluted

 

 

 

 

 

 

 

 

 

 

55,761

 

 

 

 

 

 

 

 

 

 

 

47,503

 

(1) The estimated income tax effect of the Company's share of non-GAAP reconciling items are calculated using an assumed blended tax rate of 25%, which represents our expected corporate tax rate, excluding discrete and non-recurring tax items.

(2) The adjustment to net income (loss) attributable to noncontrolling interests represents stock-based compensation attributed to the noncontrolling interest of our company outstanding during the period.

The following table presents a reconciliation of total operating expenses to non-GAAP operating expenses for the periods presented (unaudited; in thousands):

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Platform operations

 

$

30,950

 

 

$

31,715

 

 

$

57,144

 

 

$

56,059

 

Sales and marketing

 

 

17,286

 

 

 

20,553

 

 

 

31,042

 

 

 

34,738

 

Technology and development

 

 

5,011

 

 

 

8,031

 

 

 

10,014

 

 

 

13,931

 

General and administrative

 

 

11,725

 

 

 

14,075

 

 

 

22,808

 

 

 

24,495

 

Total operating expenses

 

 

64,972

 

 

 

74,374

 

 

 

121,008

 

 

 

129,223

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other expense (income), net

 

 

299

 

 

 

1

 

 

 

303

 

 

 

(68)

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Traffic acquisition costs

 

 

(19,465

)

 

 

(18,212

)

 

 

(34,550

)

 

 

(31,615

)

Stock-based compensation

 

 

(7,768

)

 

 

(29,686

)

 

 

(14,144

)

 

 

(46,777

)

Depreciation and amortization

 

 

(3,226

)

 

 

(2,624

)

 

 

(6,380

)

 

 

(5,051

)

Non-GAAP operating expenses

 

$

34,812

 

 

$

23,853

 

 

$

66,237

 

 

$

45,712

 

Operational Metrics

We have also included the following operational metrics in this press release: Advertiser spend and active customers.

We define advertiser spend as the total amount billed to our customers for activity on our platform inclusive of the costs of advertising media, third-party data, other add-on features and our platform fee we charge clients. We evaluate our customers' usage of our platform and assess our market penetration and scale based on the percentage change in advertiser spend. The percentage change in advertiser spend is a key measure used by our management and our board of directors to evaluate the demand for our products and to assess whether we are increasing market share. Our management uses this key metric to develop short- and long-term operational plans and make strategic decisions regarding future enhancements to our software. We believe the percentage change in advertiser spend across our platform is a useful metric for investors because it allows investors to evaluate our operational performance in the same manner as our management and board of directors.

We define an active customer as a customer that had total aggregate contribution ex-TAC of at least $5,000 through our platform during the previous twelve months. For purposes of this definition, a customer that operates under any of our pricing options that equals or exceeds the aforementioned contribution ex-TAC threshold is considered an active customer. Active customers is an operational metric calculated using contribution ex-TAC, a non-GAAP financial measure. Active customers is a key measure used by our management and board of directors to understand and evaluate our operating performance and trends, develop short- and long-term operational plans and make strategic decisions regarding future enhancements to our software. We believe active customers is a useful metric for investors because it allows investors to evaluate the Company's operational performance in the same manner as our management and board of directors.


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