On Monday, Canaccord Genuity maintained a Buy rating on Viant Technology Inc (NASDAQ:DSP) and increased the price target to $22.00, up from the previous $18.00. Currently trading at $18.88, the stock has delivered an impressive 174% return year-to-date. The adjustment follows a significant surge in Viant's share value, which saw an approximate 62% increase in November.
Viant Technology reported robust third-quarter results, surpassing their guidance with higher revenue, contribution excluding Traffic Acquisition Costs (ex-TAC), and adjusted EBITDA. The company achieved impressive revenue growth of 23.7% in the last twelve months, with a strong financial health score according to InvestingPro. The company's growth has been attributed to the strong performance of its Connected TV (CTV) platform spending.
The introduction of ViantAI has also been met with a positive response from the market. Since its launch in mid-September, the company has garnered 500 early access sign-ups. Viant's management team anticipates that ViantAI will propel market share expansion by enhancing Return on Advertising Spend (ROAS) and operational efficiencies for larger advertisers, and by making programmatic advertising more accessible for small to medium-sized businesses (SMBs).
Additionally, Viant has recently announced the acquisition of IRIS.TV, a prominent global CTV content data platform. This acquisition is expected to enable more precise targeting capabilities down to the individual video file while ensuring privacy compliance.
InvestingPro subscribers can access 15+ additional exclusive insights and detailed valuation metrics to better evaluate this acquisition's potential impact on Viant's future growth.
In other recent news, Viant Technology has reported a robust Q3 2024, with a 34% increase in revenue and a record $14.7 million in adjusted EBITDA. The advertising technology company also announced its acquisition of IRIS.TV, a content identification platform expected to enhance its Connected TV targeting capabilities.
This integration has already demonstrated significant results, such as a 300% lift in ad recall and a 152% increase in sales for a campaign with Carl's Jr. Looking forward, Viant Technology projects Q4 revenue to be between $82 million and $85 million, maintaining strong growth into 2025.
Further, Viant Technology's contribution ex-TAC increased by 21%, reaching $47.4 million. The acquisition of IRIS.TV is expected to significantly enhance the company's CTV advertising capabilities, and the new AI-driven advertising platform, ViantAI, is anticipated to democratize programmatic advertising. However, the company anticipates a low-double-digit to low-teens growth in operating expenses for 2025 due to the acquisition adding overhead.
Lastly, Viant Technology added over 30 new customers in Q3, each generating an average of $400,000 in contribution ex-TAC. The integration of IRIS_ID and Viant Household ID is expected to improve ad targeting and performance, setting a positive tone for the company's future.
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