GlobeNewswire Inc | Aug 12, 2021 04:05PM EDT

August 12, 2021

IRVINE, Calif., Aug. 12, 2021 (GLOBE NEWSWIRE) -- Viant Technology Inc. (NASDAQ: DSP), a leading people-based advertising software company, today announced financial results for its second quarter ended June 30, 2021.

We had a very strong second quarter, highlighted by revenue growth of 66% and continued momentum with Connected TV, which more than doubled year-over-year, said Tim Vanderhook, co-founder and CEO of Viant. Our people-based approach to digital advertising and patented Household Identification technology remain key differentiators that attract customers to our platform as they look to drive tangible ROI from their marketing investments. We are encouraged by the momentum we are seeing across our business and are raising guidance for the full year across all key metrics.

SecondQuarter2021FinancialHighlights:

-- Revenue: Revenue was $50.4 million, an increase of 66% year-over-year. -- GrossProfit: Gross Profit was $18.7 million, an increase of 58% year-over-year. -- Contribution ex-TAC: Contribution ex-TAC was $32.2 million, an increase of 61% year-over-year.(1) -- NetLoss: Net Loss was $18.1 million, or ($0.32) per diluted share of Class A common stock in the second quarter, compared to Net Loss of $0.03 million for the same period in 2020. -- Non-GAAP Net Income: Non-GAAP Net Income was $5.2 million, or $0.06 per diluted share of Class A common stock in the second quarter of 2021.(1) -- Adjusted EBITDA: Adjusted EBITDA was $8.3 million, an increase of 203% versus $2.8 million for the same period in 2020.(1) -- Adjusted EBITDA margin: Adjusted EBITDA margin as a percentage of Contribution ex-TAC was 26%.(1) Net Income (Loss) as a percentage of Gross Profit, the most comparable GAAP measure, is not meaningful due to the Net Loss for the period.

BusinessHighlights:

-- Contribution ex-TAC from Connected TV grew 105% year-over-year in the second quarter and represented 41% of total Contribution ex-TAC. Gross Profit, the most comparable GAAP measure, is not calculable by channel because Other Platform Operations expenses cannot be allocated by channel. -- Total Platform Spend increased 58% year-over-year in the second quarter. (2) -- Total Active Customers grew to 288 by the end of the second quarter, a sequential increase of 22 from 266 at the end of the first quarter of 2021. Average Contribution ex-TAC per Active Customer increased to $438 thousand in the second quarter.(3)

We once again exceeded our guidance across all metrics and demonstrated accelerating growth across our business, said Larry Madden, CFO of Viant. In addition to doubling our Connected TV business, we had solid growth of 40% in all other channels during the quarter. We saw recovery in some of our core advertiser verticals that were hit the hardest by the pandemic, and at the same time are continuing to invest in our people and technology to drive growth in the quarters ahead.

Forthethirdquarterof2021,theCompanyexpects:

-- Revenue in the range of $48 million to $50 million, which represents year-over-year growth of approximately 19% to 24%. -- Contribution ex-TAC in the range of $32.5 million to $33.5 million, which represents year-over-year growth of approximately 16% to 20%. -- Adjusted EBITDA in the range of $4 million to $5 million, or Adjusted EBITDA as a percentage of Contribution ex-TAC of 12% to 15%.

Forthefullyear2021,theCompany is raising guidance and now expects

-- Revenue in the range of $205 million to $210 million, which represents year-over-year growth of approximately 24% to 27%. -- Contribution ex-TAC in the range of $137 million to $142 million, which represents year-over-year growth of approximately 24% to 28%. -- Adjusted EBITDA in the range of $29 million to $32 million, or Adjusted EBITDA as a percentage of Contribution ex-TAC of 21% to 23%.

Contribution ex-TAC, Adjusted EBITDA, Non-GAAP Net Income (loss) and Non-GAAP Earnings (Loss) per Share 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. We are not able to estimate gross profit and Net Income (loss) on a forward-looking basis or reconcile the guidance provided to the closest corresponding GAAP measures without unreasonable efforts on a forward-looking basis 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.

ConferenceCallandWebcastDetailsViant will host a conference call to discuss its financial results on Thursday, August 12, 2021 at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). A live webcast of the call can be accessed from Viants Investor Relations website. An archived version of the webcast will be available from the same website after the call.

About Viant

Viant is a leading people-based advertising software company that enables marketers and their agencies to centralize the planning, buying and measurement of their advertising investments across most channels. Viants self-service Demand Side Platform (DSP), Adelphic, is an enterprise software platform enabling marketers to execute programmatic advertising campaigns across Connected TV, Linear TV, mobile, desktop, audio and digital out-of-home channels. Viants Identity Resolution capabilities have linked 115 million U.S. households to more than 1 billion connected devices and is combined with access to more than 280,000 audience attributes from more than 70 people-based data partners. Viant is an Ad Age 2021 Best Places to Work award winner and the Adelphic DSP is featured on AdExchangers 2021 Programmatic Power Players list.

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, 2020 through February 11, 2021 presented in this press release represent the historical operations of Viant Technology LLC. The amounts as of June 30, 2021 and for the period from February 12, 2021 reflect the consolidated operations of the Company.

Forward-LookingStatementsThis 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, 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, the Companys projected financial performance and operating results, including projected Revenue, Contribution ex-TAC and Adjusted EBITDA, as well as statements regarding our market opportunity, advertisers spend, investments in our people and technology and recovery from the effects of COVID-19. 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 the Companys expectations, the demands and expectations of clients and the ability to attract and retain clients 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 filings 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.

MediaContact:Karen Castillo-PaffVice President Communications, Viant Technology Inc.press@viantinc.com

InvestorContact:The Blueshirt GroupNicole Borsjeinvestors@viantinc.com

(1)Contribution ex-TAC (previously referred to as Revenue ex-TAC), Adjusted EBITDA, Non-GAAP Net Income (loss) and Non-GAAP Earnings (Loss) per Share are non-GAAP financial measures. See the supplementary schedules in this press release for a discussion of how we define and calculate these measures and a reconciliation thereof to the most directly comparable GAAP measures.

(2)Platform Spend, a measure of customer engagement, was previously referred to in our registration statement on Form S-1 as platform usage.

(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. We define average Contribution ex-TAC per Active Customer as Contribution ex-TAC for the trailing twelve-month period presented divided by Active Customers.

VIANT TECHNOLOGY INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except per share/unit data)(Unaudited)

Three Months Ended Six Months Ended June June 30, 30, 2021 2020 2021 2020 Revenue $ 50,411 $ 30,425 $ 90,555 $ 68,585 Operating expenses ^(1): Platform operations 31,715 18,589 56,059 42,192 Sales and marketing 20,553 5,742 34,738 12,872 Technology and 8,031 1,984 13,931 4,134 developmentGeneral and 14,075 3,891 24,495 8,547 administrativeTotal operating expenses 74,374 30,206 129,223 67,745 Income (loss) from (23,963 ) 219 (38,668 ) 840 operationsInterest expense, net 241 244 476 525 Other expense (income), 1 5 (68 ) 16 netGain on extinguishment of (6,110 ) ? (6,110 ) ? debtTotal other expense (5,868 ) 249 (5,702 ) 541 (income), netNet income (loss) (18,095 ) (30 ) (32,966 ) 299 Less: Net lossattributable to (14,440 ) ? (26,206 ) ? noncontrolling interestsNet income (loss)attributable to Viant $ (3,655 ) $ (30 ) $ (6,760 ) $ 299 Technology Inc.Earnings (loss) per Class A common stock/unit:Basic $ (0.32 ) $ (0.08 ) $ (0.59 ) $ 0.30 Diluted $ (0.32 ) $ (0.08 ) $ (0.59 ) $ 0.30 Weighted-average Class Acommon stock/units outstanding:Basic 11,500 400 11,500 400 Diluted 11,500 400 11,500 1,000

(1)Stock-based compensation, depreciation and amortization recorded in the condensed consolidated statements of operations above were as follows:

Three Months Ended June Six Months Ended June 30, 30, 2021 2020 2021 2020 (in thousands) (in thousands) Stock-based compensation:Platform operations $ 5,540 $ ? $ 8,701 $ ? Sales and marketing 11,914 ? 18,727 ? Technology and 5,029 ? 7,968 ? developmentGeneral and 7,203 ? 11,381 ? administrativeTotal $ 29,686 $ ? $ 46,777 $ ?

Three Months Ended June Six Months Ended June 30, 30, 2021 2020 2021 2020 (in thousands) (in thousands) Depreciation and amortization:Platform operations $ 1,941 $ 1,853 $ 3,694 $ 3,790 Sales and marketing ? ? ? ? Technology and 383 402 763 803 developmentGeneral and 300 285 594 561 administrativeTotal $ 2,624 $ 2,540 $ 5,051 $ 5,154

VIANT TECHNOLOGY INC.CONDENSED CONSOLIDATED BALANCE SHEETS(In thousands)(Unaudited)

As of As of June 30, December 31, 2021 2020 Assets Current assets: Cash $ 252,271 $ 9,629 Accounts receivable, net of allowances 63,747 89,767 Prepaid expenses and other current assets 4,219 4,487 Total current assets 320,237 103,883 Property, equipment, and software, net 20,946 13,829 Intangible assets, net 2,400 3,015 Goodwill 12,422 12,422 Other assets 373 371 Total assets $ 356,378 $ 133,520 Liabilities, convertible preferred units and stockholders' equity/members' equityLiabilities Current liabilities: Accounts payable $ 24,537 $ 29,763 Accrued liabilities and accrued compensation 27,320 34,388 Current portion of long-term debt ? 3,353 Current portion of deferred revenue 1,637 2,725 Other current liabilities 2,310 9,427 Total current liabilities 55,804 79,656 Long-term debt 17,500 20,182 Long-term portion of deferred revenue 5,617 5,612 Other long-term liabilities 405 453 Total liabilities 79,326 105,903 Convertible preferred units and members' equity Convertible preferred units ? 7,500 Members' equity ? 20,117 Stockholders' equity Preferred stock ? ? Class A common stock 12 ? Class B common stock 47 ? Additional paid-in capital 102,040 ? Accumulated deficit (6,759 ) ? Total stockholders' equity attributable to Viant 95,340 20,117 Technology Inc./members' equityNoncontrolling interests 181,712 ? Total equity 277,052 20,117 Total liabilities, convertible preferred units and $ 356,378 $ 133,520 stockholders'/members? equity

VIANT TECHNOLOGY INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)(Unaudited)

Six Months Ended June 30, 2021 2020 Cash flows from operating activities: Net income (loss) $ (32,966 ) $ 299 Adjustments to reconcile net income (loss) to net cash provided by operating activities:Depreciation and amortization 5,051 5,154 Stock-based compensation 46,777 ? Recovery of doubtful accounts (200 ) (140 )Loss on disposal of assets 8 ? Gain on extinguishment of debt (6,110 ) ? Changes in operating assets and liabilities: Accounts receivable 26,220 16,307 Prepaid expenses and other assets (1,753 ) (13 )Accounts payable (5,126 ) 2,204 Accrued liabilities and accrued compensation (6,770 ) (10,134 )Deferred revenue (1,082 ) (958 )Other liabilities (478 ) (1,176 )Net cash provided by operating activities 23,571 11,543 Cash flows from investing activities: Purchases of property and equipment (266 ) (159 )Capitalized software development costs (3,750 ) (3,678 )Net cash used in investing activities (4,016 ) (3,837 )Cash flows from financing activities: Proceeds from Paycheck Protection Program Loan ? 6,035 Proceeds from issuance of common stock, net of 232,500 ? underwriting discountsPayment of member tax distributions (6,805 ) ? Payment of offering costs (2,608 ) ? Net cash provided by financing activities 223,087 6,035 Net increase in cash 242,642 13,741 Cash at beginning of period 9,629 4,815 Cash at end of period $ 252,271 $ 18,556

Non-GAAP Financial Metrics

We use financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (GAAP), contribution ex-TAC, Adjusted EBITDA, non-GAAP net income (loss) and non-GAAP earnings (loss) per share. 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 measures allow investors to evaluate the Companys financial performance using some of the same measures as management.

In calculating contribution ex-TAC, we add back other platform operations expense to gross profit, the most comparable GAAP measurement. 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.

Adjusted EBITDA is defined by us as net income (loss), the most comparable GAAP measurement, before interest expense, net, income tax expense (benefit), 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. Adjusted EBITDA and Adjusted EBITDA as a percentage of contribution ex-TAC are key measures 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. Adjusted EBITDA as a percentage of our non-GAAP metric, contribution ex-TAC, 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 traffic acquisition costs.

Non-GAAP net income (loss) is defined by us as net income (loss), the most comparable GAAP measurement, adjusted to eliminate the impact of stock-based compensation and certain other items that are not related to our core operations, such asrestructuring charges, transaction expenses and the extinguishment of debt. 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 another measure for period-to-period comparisons of our business and provides additional insight into our core controllable costs.

Non-GAAP earnings (loss) per share is defined by us as earnings (loss) per share, the most comparable GAAP measurement, adjusted to eliminate any 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. Non-GAAP earnings (loss) per share 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 extinguishment of debt and certain other items that are not related to our core operations provides another measure 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 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.

These non-GAAP financial measures are designed to supplement, and not substitute the Companys financial information presented in accordance with GAAP. The non-GAAP measures as defined by the Company may not be comparable to similar non-GAAP measures presented by other companies. 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 Companys future results, cash flows or leverage will be unaffected by other unusual or non-recurring items.

The following tables show the reconciliations of the Companys non-GAAP financial measures to the most directly comparable GAAP financial metrics included in this release.

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

Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (in thousands) (in thousands) Revenue $ 50,411 $ 30,425 $ 90,555 $ 68,585 Less:Platform (31,715 ) (18,589 ) (56,059 ) (42,192 )operationsGross profit 18,696 11,836 34,496 26,393 Add back:Other 13,503 8,209 24,444 16,993 platformoperationsContribution $ 32,199 $ 20,045 $ 58,940 $ 43,386 ex-TAC

The following table sets forth a reconciliation of net income (loss) to Adjusted EBITDA for the periods presented (unaudited):

Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (in thousands) (in thousands) Net income (loss) $ (18,095 ) $ (30 ) $ (32,966 ) $ 299 Add back: Interest expense, net 241 244 476 525 Depreciation and 2,624 2,540 5,051 5,154 amortizationStock-based compensation 29,686 ? 46,777 ? Less: Gain on extinguishment of (6,110 ) ? (6,110 ) ? debtAdjusted EBITDA $ 8,346 $ 2,754 $ 13,228 $ 5,978

The following table presents the reconciliation of net income (loss) as a percentage of gross profit to Adjusted EBITDA as a percentage of contribution ex-TAC for the periods presented (unaudited):

Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (in thousands, except for (in thousands, except for percentages) percentages)Gross profit $ 18,696 $ 11,836 $ 34,496 $ 26,393 Net income $ (18,095 ) $ (30 ) $ (32,966 ) $ 299 (loss)Net income(loss) as apercentage of N/M (0 )% N/M 1 %gross profit^(1)Contribution $ 32,199 $ 20,045 $ 58,940 $ 43,386 ex-TACAdjusted $ 8,346 $ 2,754 $ 13,228 $ 5,978 EBITDAAdjustedEBITDA as apercentage of 26 % 14 % 22 % 14 %contributionex-TAC

(1) Management believes that net loss as a percentage of gross profit for the current periods presented is not comparable to the prior year period presented due to the impact of stock-based compensation recognized in the current period.

The following table presents the reconciliation of net income (loss) to non-GAAP net income (loss) for the periods presented (unaudited):

Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (in thousands) (in thousands) Net income (loss) $ (18,095 ) $ (30 ) $ (32,966 ) $ 299 Add back: Stock-based 29,686 ? 46,777 ? compensationLess: Gain on extinguishment (6,110 ) ? (6,110 ) ? of debtLess: Income tax effectrelated to Viant (250 ) ? (316 ) ? Technology Inc.'s share ofadjustmentsNon-GAAP net income (loss) $ 5,231 $ (30 ) $ 7,385 $ 299

The following table presents the reconciliation of earnings (loss) per share to non-GAAP earnings (loss) per share of Class A common stock for the three and six months ended June 30, 2021. Earnings (loss) per share was not adjusted for the three and six months ended June 30, 2020 because there were no expenses related to stock-based compensation, gain on extinguishment of debt or other items that were not related to our core operations in those periods (unaudited):

Three Months Ended Six Months Ended June 30, 2021 June 30, 2021 Non- Non- GAAP GAAP (Loss) per Earnings (Loss) per Earnings Share Adjustments per Share Share Adjustments per Share (in thousands, except per share data) Numerator Net loss $ (18,095 ) $ ? $ (18,095 ) $ (32,966 ) $ ? $ (32,966 )Adjustments: Add back: Stock-based compensation ? 29,686 29,686 ? 46,777 46,777 Less: Gain on extinguishment of debt ? (6,110 ) (6,110 ) ? (6,110 ) (6,110 )Less: Income tax effect related to ViantTechnology ? (250 ) (250 ) ? (316 ) (316 )Inc.'s share of adjustments ^(1)Non-GAAP net income (loss) (18,095 ) 23,326 5,231 (32,966 ) 40,351 7,385 Less: Net income (loss) attributable tononcontrolling (14,440 ) 18,899 4,459 (26,206 ) 32,612 6,406 interests ^(2)Net income (loss) attributable to Viant (3,655 ) 4,427 772 (6,760 ) 7,739 979 Technology, Inc.?basicAdd back: Reallocation of net lossattributable tononcontrolling interest from the assumed ? 178 178 ? 250 250 exchangeof RSUs for Class A common stockLess: Income tax effect from the assumedexchange of ? (43 ) (43 ) ? (61 ) (61 )RSUs for Class A common stockNet income (loss) attributable to Viant $ (3,655 ) $ 4,562 $ 907 $ (6,760 ) $ 7,928 $ 1,168 Technology, Inc.?dilutedDenominator Weighted-average shares of Class A common 11,500 ? 11,500 11,500 ? 11,500 stock outstanding?basicEffect of dilutive securities: RSUs ? 2,521 2,521 ? 2,919 2,919 Weighted-average shares of Class A common 11,500 2,521 14,021 11,500 2,919 14,419 stock outstanding?diluted Earnings (loss) per share of Class A common $ (0.32 ) $ 0.39 $ 0.07 $ (0.59 ) $ 0.68 $ 0.09 stock?basicEarnings (loss) per share of Class A common $ (0.32 ) $ 0.38 $ 0.06 $ (0.59 ) $ 0.67 $ 0.08 stock?diluted Anti-dilutive shares/units excluded fromearnings (loss) per share of Class A common stock/unit?diluted:Non-qualified stock options 67 67 Shares of Class B common stock 47,436 47,436 Total shares excluded from earnings (loss) per 47,503 47,503 share of Class A common stock/unit?diluted

(1) The estimated income tax effect of the Companys share of non-GAAP reconciling items are calculated using an assumed blended tax rate of 24%, 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 and gain on extinguishment of debt attributed to the noncontrolling interests of the Company outstanding during the periods presented.