Viant Technology: A Rising AdTech Challenger in the AI-Powered CTV Market

Summary: A High-Growth AI-Driven AdTech Play

• AI-powered, high-growth mid-cap stock in the digital ad space with strong long-term upside potential.
• Booming CTV Market Opportunity: $60B+ in TV ad budgets are shifting to Connected TV (CTV), and Viant (DSP) is positioned to capture market share.
• AI-Driven Competitive Edge: Viant’s AI-powered programmatic advertising, including ViantAI and Household ID, enables privacy-first, cookie-less targeting in a changing ad landscape.
• Strong Financial Performance: Consistently exceeding expectations with 34% YoY revenue growth, 52% YoY EBITDA growth, and expanding margins.
• Strategic Acquisition of IRIS.TV: Enhances Viant’s CTV targeting and measurement capabilities, strengthening its long-term competitive position.
• Undervalued Growth Stock: At $24 per share, Viant offers a solid potential upside, with an estimated future price of $39 based on 15% annual revenue growth, 14% profit margins, and a P/E of 50.
• Financial Strength & Shareholder Returns: $215M in cash, zero debt, and ongoing share buybacks signal strong financial health and management confidence.
• Key Risks: Competition from larger DSPs (The Trade Desk, Google, Amazon) and advertising cyclicality. However, Viant’s AI differentiation and growing market share mitigate these concerns.

Company Overview

Viant Technology (NASDAQ: DSP) is a leading advertising technology company specialising in programmatic advertising solutions, with a strong focus on Connected TV (CTV) and AI-driven advertising. The company differentiates itself with cookie-less, people-based targeting solutions, notably Household ID, and an expanding suite of AI-driven tools like AI Bid Optimizer and ViantAI, its newly launched fully autonomous advertising platform.

Viant's strategic positioning in the CTV and streaming audio markets has led to record advertiser spending, with its Direct Access program connecting brands directly to premium CTV publishers like Disney and Paramount. Its recent acquisition of http://IRIS.TV further strengthens its AI-powered contextual targeting capabilities, positioning it as a major competitor in the digital advertising space.

Financial Performance

Viant delivered good Q3 2024 results, exceeding the high end of its guidance across all key financial metrics:

• Revenue: $79.9M (+34% YoY)
• Contribution ex-TAC: $47.4M (+21% YoY)
• Adjusted EBITDA: $14.7M (+52% YoY)
• Adjusted EBITDA margin: 31% (+6pp YoY)
• Cash Position: $215M with zero debt

The company has now posted seven consecutive quarters of 40%+ YoY Adjusted EBITDA growth, demonstrating strong operating leverage. The growth was broad-based, led by Healthcare, Consumer Goods, Travel, Automotive, and Political verticals, with record CTV ad spending (+50% YoY) and double-digit growth in streaming audio.

Looking ahead to Q4 2024 earnings report (expected March 5th 2025), Viant expects another strong quarter:

• Revenue guidance: $82M–$85M (+30% YoY)
• Contribution ex-TAC guidance: $51M–$53M (+22% YoY)
• Adjusted EBITDA: $16M–$17M (+27% YoY)
• Adjusted EBITDA margin: 31%–32%

Viant’s cost discipline has allowed it to scale profitably, with non-GAAP operating expenses growing 11% YoY in Q3, despite significant investments in AI and platform innovation.

Growth Catalysts

1. AI-Driven Ad Tech Differentiation

Viant continues to strengthen its AI-powered programmatic advertising capabilities. Its ViantAI platform, launched in Q3, enables fully autonomous advertising, allowing advertisers to input budgets, content, and target ROI while AI optimizes ad placement.

The AI Bid Optimizer tool has already demonstrated 35% savings in CPM costs for advertisers, making Viant’s platform more attractive to brands seeking efficiency.

2. CTV & Streaming Audio Expansion

Viant's biggest growth driver remains the CTV ad market, which saw 50% YoY growth in Q3. With $60 billion in linear TV budgets shifting toward CTV, Viant is well-positioned to capture a growing share of this market.

The acquisition of http://IRIS.TV strengthens Viant’s CTV targeting capabilities, allowing advertisers to place ads when viewers are most engaged. Streaming audio is also emerging as a strong revenue stream, accounting for 10% of ad spend on Viant’s platform.

3. Household ID & Privacy-Focused Solutions

As third-party cookies phase out, Viant’s Household ID and people-based identity solutions offer a privacy-compliant alternative for advertisers. This unique advantage differentiates Viant from cookie-based DSPs and increases advertiser retention.

4. Strong Balance Sheet & Share Buybacks

Viant’s $215M cash balance and zero debt provide ample resources for strategic acquisitions and share repurchases. The company repurchased 1.4M shares for $14M in 2024, with $36M remaining under its buyback program—a sign of management’s confidence in long-term value creation.

Risks

1. Competitive Landscape

Viant operates in a highly competitive space, facing major DSPs like The Trade Desk (TTD), Google’s DV360, Amazon DSP, and Yahoo DSP. While its AI and privacy-first solutions offer differentiation, these larger players have deeper resources and wider industry penetration.

2. Ad Spend Cyclicality

The advertising industry is sensitive to macroeconomic downturns. While Viant’s Q3 performance was boosted by political ad spending, Q4 and 2025 could see lower ad spend in certain verticals if economic conditions soften.

3. Maintaining Profitability

After years of unprofitability (2021–2023), Viant became profitable in 2024. However, if operating expenses outpace revenue growth, margins could be pressured, impacting valuation.

Valuation & Investment Thesis

At a current stock price of $24, Viant appears undervalued given its strong growth trajectory. Based on assumed 15% revenue growth over the next 5 years, a 14% profit margin, and a future P/E ratio of 50, the estimated future stock price is $33.31.

This represents a solid upside, from current levels, making Viant a compelling long-term investment in the rapidly growing CTV advertising space.