Viant Technology Inc.

Hello everyone and welcome to Viant's first quarter 2021 earnings webinar. My name is Kelsey and I will be your operator today. Before I hand the call over to the Viant team, I would like to go over just a few housekeeping notes for the program. As a reminder, today's webinar is being recorded. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, please use the raise hand function located at the bottom of your screen. If you plan to ask a question, please ensure you have set your Zoom name to display your full name and firm. We thank you for your attendance today, and I will now turn the webinar over to Nicole Borgia. Please go ahead, Nicole.

Thank you, Kelsey. Good afternoon, and welcome to the Viant Technology first quarter 2021 financial results conference call. On today's call are Tim Vanderhook, co-founder and CEO, Chris Vanderhook, co-founder and chief operating officer, and Larry Madden, the company's chief financial officer. I'd like to remind you that we will make forward-looking statements on our call today that are based on assumptions and subject to future events, risks, and uncertainties that could cause actual results to differ materially from those projected. We undertake no obligation to update these results except as required by law. For more information about factors that may cause actual results to differ materially from forward-looking statements and our entire Safe Harbor statement, Please refer to the news release issued today as well as the risk and uncertainties described in our registration statement on Form S-1 related to our initial public offering and other filings with the SEC. During today's call, we will also present both GAAP and non-GAAP financial measures. Additional disclosures regarding these non-GAAP measures, including a reconciliation of GAAP to non-GAAP measures, are included in the news release we issued today and in our filings with the SEC. I would now like to turn the call over to Tim Vanderhook. Tim?

Thank you, Nicole. Good afternoon, everyone, and thank you for joining us today. We're excited to be reporting strong first quarter results that exceeded our prior guidance across the board. I will quickly touch on our financial performance in the quarter, and then, since we are still in our first year as a public company, and some of you are relatively new to Viant's story and positioning in the digital advertising market, I'll touch on Viant's strengths and value propositions, That way we can discuss current market trends and finally how we plan to continue driving growth in our business. Here are the financial highlights for the quarter. Revenue in the first quarter totaled $40.1 million, an increase of 5% year over year. Adjusted EBITDA grew 51% to $4.9 million. Viant is continuing to see strong connected television growth, an increase of 66% year over year, and momentum in customer adoption has continued. Larry will cover the financials in more detail in a moment. Viant has a massive and growing addressable market with several secular trends providing us with significant runway for growth. We focus primarily on the $259 billion US advertising market, which is expected to grow at a 12% CAGR through 2025 due to the increasing focus on digital advertising. More specifically, the U.S. programmatic advertising market is growing at a 21% CAGR and is expected to represent 48% of total U.S. media spend by 2022. Additionally, the TV industry is undergoing significant disruption as Internet-enabled connected television has become the preferred vehicle for streaming video content. By 2024, 66% of the U.S. population is expected to be using connected TV, which is resulting in a CTV ad spend to grow at a 25% CAGR and forecasted to be a $27 billion market in 2025. We believe these secular trends and the continued adoption of our people-based approach Our patented internet-connected household identification and our scale and expertise in connected TV directly attributed to our strong Q1 results. And this gives us confidence to raise our outlook for the full year of 2021. Taking a step back on the buy-in story, we have a differentiated approach to the digital advertising industry as the early pioneers of people-based advertising, an approach of using real people rather than cookies to target and measure digital advertising. A key theme across all customer segments is that buying ads across these channels is inherently very complex, yet brands and agencies are aggressively committed to data-driven advertising. They're also under pressure to defend their spending and measure their return on investment. Viant Software is the solution. Our self-service software, Adelphic, transforms workflows and opens into a whole new world of omnichannel opportunities where the business ROI can be understood and proven. Adelphic has three key tightly integrated components. Planning, where marketers build their audience segments using one of the greatest advantages of Adelphic, its people-based approach. This gives them a deterministic data matching process that offers insights on real-world identifiers versus cookies that do not represent actual people. A buying platform where marketers are offered the highest breadth and depth of omnichannel advertising inventory available across the programmatic landscape. And finally, a data-driven measurement where Adelphic delivers superior measurement of return on ad spend in a way other DSPs simply cannot. We calm the noise around big tech changes such as cookies and IDFA with two unique solutions. First, our people-based identification data framework allows marketers to incorporate e-commerce measurement. But unlike other DSPs, marketers can also measure in-store sales channels, a key advantage of our software. Second is our patented process, internet-connected household identification, otherwise known as the Viant Household ID. This is a leading competitive advantage for us in a world without cookies. I just want to take a moment to remind everybody that we filed a patent for our internet connected household identification so long ago that it happened during the same year Facebook had its IPO. We've anticipated the role of cookies diminishing for many, many years and built a product and solution for it. Household ID is the future-looking solution our customers are using right now, today. Viant's household ID is a key differentiator from email-based ID solutions because it's anchored at the household, making it more privacy-friendly and sustainable. Recent changes by Google and Apple only strengthen our competitive positioning as they are validating the need for a people-based approach to programmatic advertising. The entirety of the programmatic advertising ecosystem relies on a standardized framework which is set by the Interactive Advertising Bureau, an independent organization that, among other things, develops industry standards for the digital advertising industry. This framework, as we look at it, is called the bid stream, which enables publishers and supply side platforms to monetize their digital ad space by passing standard online identifiers to DSPs like us. Through this bid stream, Adelphic interacts with the vast majority of exchanges across millions of sites and apps. This chart on the screen summarizes the presence of different digital identifiers based on data derived from Adelphic's bid stream from May 4th through May 11th of this year. As you can see, Viant's household ID is present 80% of the time in the bid stream during this period. Cookies are only present at 56% of the time because Google Chrome has yet to delete it. This number will drop close to zero by year's end, and mobile IDs are currently at 20% of the bid stream. Vyant's household ID is scaled, agnostic to browser cookies and device ID changes, and represents a huge tailwind for Vyant. This is the reason why customers and partners are relying on us more and more. Chris will be discussing our roadmap for the future of household ID and a new partnership with Fox News Media later on the call. But this is why we see the household ID as a catalyst to Vyant's growth. Viant isn't just a company that is building for the challenges of today. We're a company that has always been planning for tomorrow. We have a long track record of developing next-generation advertising technology solutions, and we have the expertise to guide marketers through this ever-changing environment. Nowhere is that experience more apparent than in connected television. Unlike most companies that are benefiting in the near term from connected TV, we have streaming and connected TV experience and technology that has been proven for more than a decade. More than 10 years ago, we founded Zumo, an ad-supported video on demand service which was sold to Comcast last year. During our IPO and on our last earnings call, we discussed the effectiveness of Viant's connected TV solutions for marketers. The momentum is accelerating. New CTV partnerships announced during the quarter and our strong technology and product roadmap gives us conviction that we are just scratching the surface of what we can do in CTV. I'll now turn it over to CFO Larry Madden, who will discuss more about our market share gains, which are a testament to the strength of Viant's value proposition.