“Our team continued to execute well in the first quarter, and our strong momentum with customers translated to an acceleration in growth of advertiser spend on our platform, which increased 44% compared to the first quarter 2021 as we continued to gain share across the digital advertising market,” said Tim Vanderhook, co-founder and CEO of Viant. “Our Adelphic software is becoming increasingly strategic for larger advertisers looking for better insight on measurement and reporting across their digital advertising spend. Viant is extremely well positioned to benefit from the ongoing shifts we are seeing across the industry to digital channels amid an evolving landscape for privacy policies and regulation.”
Added co-founder and COO Chris Vanderhook, “We are pleased to see customers moving advertising budgets to Viant at an accelerating rate, driving higher spend per active customer, while we continue to see strong growth in new customer additions. We are very encouraged by the increasing number of strategic conversations we are having with larger customers who see the differentiated value in our omnichannel Adelphic software for their buying and measurement of digital advertising. We believe we have the right technology platform, supported by an expanding sales team, that can continue to drive growth in the quarters ahead.”
First Quarter 2022 Financial Highlights, year-over-year:
GAAP
- Revenue was $42.6 million, an increase of 6%
- Gross profit was $16.4 million, an increase of 4%
- Net loss was $13.6 million, or $(0.23) per diluted share of Class A common stock, compared to a net loss of $14.9 million in the first quarter of 2021
- Cash as of March 31, 2022 was $247.9 million
Non-GAAP(1)
- Contribution ex-TAC was $27.5 million, an increase of 3%
- Adjusted EBITDA was $(3.9) million, compared to $4.9 million in the first quarter of 2021
- Non-GAAP net income (loss) was $(6.8) million, or $(0.09) per diluted share of Class A common stock, compared to $2.2 million in the first quarter of 2021
Business Highlights:
- Advertiser spend across the Adelphic software(2) grew 44% in the first quarter
- Active customers(3) grew to 327 by the end of Q1 2022, representing a year-over-year increase of 61, or 23%, and a sequential increase of 18 from 309 at the end of the fourth quarter of 2021
“We are very pleased with the accelerating growth we saw in advertiser spend on our platform in the first quarter, while revenue growth was in line with our expectations as more customers are shifting budgets to our percentage of spend pricing option, resulting in our Adelphic software gaining market share,” said CFO Larry Madden. “We remain very encouraged by the demand trends we are seeing across our customer base, particularly in the entertainment, retail and travel sectors. We remain focused on investing in our business to drive long-term growth, and we believe we are well-positioned to achieve our long-term growth targets of generating $500 million in revenue in 2025.”
Guidance:
For the second quarter 2022, the Company expects:
- Revenue in the range of $52.5 million to $55.0 million, representing year-over-year growth of approximately 4% to 9%
- Adjusted EBITDA in the range of negative $(5.0) million to $(3.0) million
For the full year 2022, the Company is reiterating its previously issued guidance and expects:
- Revenue in the range of $260.0 million to $270.0 million, representing year-over-year growth of approximately 16% to 20%
- Adjusted EBITDA in the range of $25.0 million to $35.0 million, reflecting continuing investments in Viant’s growth initiatives
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 gross profit and net income (loss) on a forward-looking basis or reconcile the guidance provided for adjusted EBITDA to the closest corresponding GAAP 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 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.
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