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On Wednesday, Scotiabank (TSX:BNS) analyst Nat Schindler adjusted the price target for Viant Technology Inc (NASDAQ:DSP) to $26.00, a decrease from the previous $27.00, while maintaining a Sector Outperform rating. The adjustment came after Viant’s stock experienced a rise of approximately 7% in after-hours trading. With a market capitalization of $938 million and an impressive 70% return over the past year, the company’s performance was notable, as it reported a strong beat in a challenging macroeconomic environment and amid heightened investor scrutiny in the ad tech sector. According to InvestingPro analysis, Viant maintains a "GOOD" overall financial health score, suggesting solid fundamentals.
Viant’s Contribution ex-TAC (CXT) surpassed expectations, although its adjusted EBITDA was slightly below consensus, primarily due to integration costs associated with the acquisitions of IRIS.TV and Lockr. Despite the mixed results in the first quarter, Viant’s second-quarter guidance was robust, aligning with consensus at the midpoint for CXT (around $48.5 million) and falling within the EBITDA guidance range of $10.5 million to $11.5 million. The company has demonstrated strong revenue growth of nearly 30% in the last twelve months. InvestingPro subscribers can access 12+ additional key insights and detailed financial metrics to better understand Viant’s growth trajectory.
Schindler’s commentary highlighted the strength of Viant’s second-quarter performance, suggesting that if other ad tech companies display similar trends, Viant’s shares could continue to ascend. The analyst’s outlook remains positive, citing attractive growth, beneficial exposure to connected TV (CTV), and a promising set-up for the remainder of 2025. Although estimates were slightly revised to reflect a modest change in the expected performance for the rest of the year, the price target was only slightly reduced from $27 to $26.
The report concluded with an anticipation of further industry insights, pointing to Magnite Inc’s (MGNI) earnings release after the market close on Wednesday as the next potential indicator for the ad tech sector. Schindler’s remarks underline a continued bullish stance on Viant, emphasizing the company’s strong positioning in the market despite the recent adjustments.
In other recent news, Viant Technology Inc. reported its first-quarter 2025 earnings, surpassing analysts’ expectations. The company posted an earnings per share of $0.03, contrasting with a projected loss of $0.07. Revenue reached $70.6 million, significantly exceeding the anticipated $41.58 million, marking a 32% year-over-year increase. The company’s adjusted EBITDA rose by 76% to $5.4 million, reflecting robust financial performance. Viant Technology’s focus on connected TV (CTV) advertising continues to drive growth, contributing to a 45% share of total platform spend. Looking ahead, Viant forecasts second-quarter revenue between $77 million and $80 million, representing a 19% year-over-year growth. The company also anticipates continued expansion in CTV and AI-driven solutions. These developments highlight Viant’s strong market position and operational efficiency in the digital advertising space.
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