Viant Technology Inc.

Hello, everyone, and welcome to Viant Technologies' second quarter 2025 earnings conference call. My name is Emmanuel, and I will be your operator today. Before I hand the call over to the Viant leadership team, I'd like to go over just a few housekeeping notes for the program. As a reminder, this call is being recorded. After the speaker's remarks, there will be a question and answer session. If you plan to ask a question, please ensure you've set your Zoom name to display your full name and firm. If you would like to ask a question during this call, please use the raise hand function located at the bottom of your screen. Thank you for your attendance today. I will now turn the call over to Nick Zangler, VP of Investor Relations for Viant.

Thank you. Good afternoon, and welcome to Viant Technology's second quarter 2025 earnings conference call. On the call today are Tim Vanderhoek, co-founder and chief executive officer, Chris Vanderhoek, co-founder and chief operating officer, and Larry Madden, chief financial officer. I'd like to remind you that we will make forward-looking statements on our call today, including but not limited to statements regarding our guidance for Q3 2025 and other future financial results, Our platform development initiatives and industry trends that are based on assumptions and subject to future events, risk and uncertainties that could cause actual results to differ materially from those projected. These forward looking statements speak only as of today, and we undertake no obligation to update or revise these statements, 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 issue today as well as the risks and uncertainties described in our quarterly report on form 10Q for the quarter ended June 30th, 2025 under the heading risk factors and in our 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 non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the news release issued today and in our earnings presentation, which have been posted on the investor relations page on the company's website and in our filings with the SEC. I would now like to turn the call over to Tim Vanderhoek, Chief Executive Officer of Buy-In. Tim?

Thanks, Nick, and thank you all for joining us today. We achieved excellent results in the second quarter, setting new records across all metrics and surpassing the midpoint of our adjusted EBITDA guidance. Revenue increased 18% year-over-year and contribution XTAC increased 16% year-over-year, both in line with our quarterly guidance. This strong growth was fueled by demand for our unique CTV offering, increased adoption of Viant's addressability solutions, and wider use of the Viant AI product suite. Adjusted EBITDA increased 18% year over year to $11.3 million for the quarter. Operationally, we continue to execute against our strategic priorities. We further advanced our CTV direct access premium publisher program through new publisher integrations. We expanded the presence of our industry leading audience and content addressability solutions, Household ID and Iris ID. And we successfully launched the third phase of our Viant AI product suite, AI measurement and analysis, designed to revolutionize reporting with on-demand insights. Our innovative solutions are resonating across the marketplace, enabling Viant to actively pursue and secure new business from advertisers with more pronounced ad budgets. More than ever before, we are engaging with major US advertisers and proactively expanding our addressable market beyond the mid-market advertiser. In a moment, Chris will discuss our evolving go-to-market strategy influenced by the ongoing rollout of Viant AI and provide an update on our growing business pipeline with major US advertisers. Before that, I will provide a detailed update on our key strategic priorities, CTV, addressability, and Viant AI. CTV was the strongest driver of top line growth in the quarter. We continue to position buy-in as the preeminent DSP for CTV advertising. And once again, our results demonstrate that we are doing just that. In the first half of 2025, approximately 45% of total ad spend on our platform was CTV, and approximately half of that spend ran through our direct access premium publishers. Unique to Viant, the direct access premium publisher program connects advertisers directly to premium CTV inventory, significantly reducing supply side fees. This means more ad spend goes directly toward working media, increasing impression win rates without the need to raise bid prices, improving return on ad spend for our customers. Notable direct access premium publishers include the likes of Disney, Paramount, Peacock, Roku, and many, many others. We recently welcomed LG, a major CTV OEM to our direct access premium publisher program. This partnership offers our advertisers an efficient supply path to reach LG's 45 million connected devices across the US. The integration also incorporates data matching, which further enhances the efficacy of Vyan's household ID for audience targeting and measurement. Furthermore, LG has integrated Viant's leading content identifier, Iris ID, allowing advertisers to target and measure based on content relevance. This leads me to our expanding leadership position in addressability. Vyance Household ID, our patented audience targeting and measurement solution, continues to see strong utilization amongst advertisers. Household ID identifies approximately 95% of US households and boasts availability across about 80% of biddable ad inventory, significantly exceeding alternative identifiers and enabling sophisticated audience targeting and measurement at unmatched scale. In the second quarter, ad spend linked to household ID increased 15% year over year as we continued to activate household ID matches with our premium direct access publishers, making their inventory both biddable and addressable. We anticipate continued growth and utilization of our household ID as data-driven advertisers increasingly prioritize the CTV channel. Our content targeting and measurement solution, IrisID, continues to ramp across publishers. Building on existing momentum, IrisID is now integrated with WURL, a leading CTV content distributor. Under the app-loving umbrella, Whirl powers over 3,000 fast channels across more than 55 streaming services and significantly expands the reach of IrisID. Notably, this partnership marks the first time Whirl's premium fast supply is available via programmatic real-time bidding within any DSP, a testament to our ability to bring new innovative solutions to market. Since acquiring Iris TV in November, 2024, the presence of Iris ID across all available CTV bid requests has grown substantially, and we expect it will continue to climb as we onboard new publishers. As a reminder, IRIS ID allows advertisers to target CTV ad inventory at the video level, enabling advertisers the ability to align their brand, product, or service with contextually relevant content. In doing so, advertisers have been shown to experience a 5X lift in brand favorability, a 3X lift in ad recall, and a 2X lift in brand awareness and consideration versus CTV control groups. As IrisID continues to be integrated amongst publishers, advertisers gain the ability to deploy contextual campaigns at greater scale, which we believe will lead to increased utilization. Finally, I'd like to provide an update on our Vyan AI product suite. We have now successfully rolled out three phases of our AI product suite with the recent launch of AI measurement and analysis in late June. Recall, the rollout of Vyan AI consists of four total phases, including AI bidding, AI planning, AI measurement and analysis, and AI decisioning. I'll very briefly touch on all four. Nearly two years after launch, AI bidding automates approximately 85% of the ad spending on Vient's platform. With AI bidding, advertisers enable Vient's algorithms to find and buy optimal ad placements across the open internet, aiming for the lowest cost while meeting their desired KPIs, which often include reach, frequency, and targeting specifications. With surging use, contribution XTAC generated from AI bidding has doubled year over year. Early in the third quarter, we rolled out our most impactful AI bidding model yet. While competing DSPs tout 1% tech fees, our latest AI bidding model delivers up to 46% reductions in media costs. We believe we are just scratching the surface with AI bidding and through continuous innovation, we can deliver even greater savings for our clients. Advertisers can only expect to achieve these types of savings from a buy-side only platform that doesn't own the ad inventory like Google and Amazon. In Q3 2024, we launched AI planning, which enables advertisers to create enterprise-level campaigns in seconds. As we have continued to build awareness across the marketplace, we have seen major US advertisers express interest. Relative to our existing customer base, these are bigger brands with more pronounced ad budgets. We are engaged with various CPGs, QSRs, retailers, and more. they all see how Viant AI can transform their business. And the feedback is consistent. There is simply nothing else in the market like Viant AI. AI planning streamlines the workload of media planning and execution teams. Users need only provide an advertiser name, budget, timeframe, and goal, and within seconds, an enterprise level media campaign designed to maximize return on ad spend is fully constructed. inclusive of budget allocation across all digital channels and publishers, audience segmentation, frequency capping, day partying, CPM pricing, and more. With a single click, the media plan is directly exported into the DSP for immediate execution, automating and streamlining tasks traditionally handled by teams of media planners and traders. It's clear to see why agencies and advertisers of all sizes are eager to work with Viant. AI planning improves workflow, drives operational efficiency, and delivers a higher return on ad spend. We are very encouraged by recent momentum and expect to win material ad spend from major US advertisers moving forward. AI measurement and analysis launched in the late second quarter and revolutionizes reporting with on-demand insights. Historically, campaign performance data has been spread across multiple dashboards, buried in spreadsheets, and has required the expertise of specialized data scientists to interpret results and identify actionable insights. AI measurement and analysis is the easy button. Built to surface actionable insights and optimization opportunities in an instant via a simple, user-friendly, chat-based interface. For agencies and advertisers, AI measurement and analysis provides on-demand answers to all campaign performance-related questions and offers optimization recommendations. These features represent a significant improvement to the user experience, and we believe they will further drive our customers to consolidate their ad spend on the Viant DSP. And finally, we expect to launch AI decisioning in the second half of 2025. We are on the cusp of providing advertisers with a fully autonomous ad solution for deployment across the open internet. AI decisioning enables advertisers to grant Viant AI the autonomy to plan, build, execute, and optimize ad campaigns in full. Viant AI is dynamic and is designed to proactively react to market conditions, adjusting campaigns as necessary to deliver the best possible outcomes. And in contrast to big tech black box competition, Vine AI is transparent, providing advertisers with unrestricted insight across campaign performance data, including publisher allocation, clearing prices, return on ad spend metrics, and more. To summarize, we delivered a strong quarter and made significant progress expanding our product capabilities across our strategic priorities, CTV, addressability, and Viant AI. Our commitment to innovation is driving unprecedented engagement with major US advertisers, presenting an opportunity for Viant to take share in a new addressable market. With demand ramping across our platform, we believe we remain well positioned to deliver sustainable long-term growth. Before turning it over to Chris, I would like to take a moment to welcome Brett Wilson to Vient's Board of Directors. Brett is an experienced entrepreneur, executive and investor with almost 30 years of experience in technology, advertising and digital media. He is the former co-founder, president and CEO of TubeMogul, an ad tech company he led from inception to IPO to a successful exit. His extensive knowledge in ad tech and AI will be crucial as we continue to innovate and accelerate our growth, and we're thrilled to have him on the board. With that, I will pass it over to Chris.