Viant Technology Inc. (NASDAQ:DSP) About To Shift From Loss To Profit

Viant Technology Inc. (NASDAQ:DSP) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Viant Technology Inc. operates as an advertising technology company. The US$628m market-cap company announced a latest loss of US$3.4m on 31 December 2023 for its most recent financial year result. The most pressing concern for investors is Viant Technology's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for Viant Technology

According to the 6 industry analysts covering Viant Technology, the consensus is that breakeven is near. They expect the company to post a final loss in 2023, before turning a profit of US$153k in 2024. So, the company is predicted to breakeven approximately a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 78% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for Viant Technology given that this is a high-level summary, but, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. Viant Technology currently has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which usually has a high level of debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Viant Technology which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Viant Technology, take a look at Viant Technology's company page on Simply Wall St. We've also compiled a list of important aspects you should further research:

1. Valuation: What is Viant Technology worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Viant Technology is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Viant Technology’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.