Canaccord Genuity has adjusted its outlook on Viant Technology Inc (NASDAQ: DSP), increasing the price target to $13 from the previous $11, while maintaining a Hold rating on the company's shares.
The revision follows a series of investor meetings and a demonstration of Viant's new ViantAI solution, which automates much of the campaign planning and bidding process.
During the meetings, Viant's co-Founder and CEO Tim Vanderhook, co-Founder and COO Chris Vanderhook, and CFO Larry Madden highlighted the company's progress and strategic focuses. Discussions also covered Viant's continued momentum in Connected TV (CTV) and streaming audio channels, as well as their ongoing commitment to servicing the mid-market segment amidst a competitive landscape.
The firm noted that Viant Technology's shares have seen a significant increase, rising over 70% year-to-date. This surge is attributed to the company's consistent operating performance, with contribution excluding Traffic Acquisition Costs (TAC) growing more than 20% year over year for the past four quarters. Additionally, the stock has experienced material multiple expansion since the beginning of the year.
In other recent news, Viant Technology Inc. has reported a robust second quarter for 2024, seeing a 15% increase in revenue year-over-year and a 23% growth in contribution excluding traffic acquisition costs.
The company's rebranding of its AI Suite to ViantAI and strong growth in Connected TV (CTV) and streaming audio were significant contributors to this record advertiser spending. Despite challenges in the advertising landscape, Viant's focus on CTV and alternative identifiers continues to drive market growth.
The company also highlighted its position as a preferred independent self-service buy-side platform, a status bolstered by advertiser dissatisfaction with dominant industry players. Over 50% of platform spend was on CTV and streaming audio, with CTV spend growing over 40% YoY. Viant's Household ID technology and direct access program in CTV are significant differentiators in the market.
Looking forward, Viant anticipates continued growth in Q3 of 2024, with investments planned in engineering, product, and sales. The company expects low double-digit growth in overhead expenses in 2025.
InvestingPro Insights
Recent InvestingPro data aligns with Canaccord Genuity's positive outlook on Viant Technology Inc (NASDAQ:DSP). The company's market cap stands at $757.76 million, with a robust revenue growth of 20.25% over the last twelve months as of Q2 2024. This growth trend is further supported by a 15.1% quarterly revenue increase in Q2 2024, indicating sustained momentum in line with the analyst's observations.
InvestingPro Tips highlight that DSP holds more cash than debt on its balance sheet, suggesting financial stability. Additionally, the company's net income is expected to grow this year, which could contribute to the positive sentiment surrounding the stock. These factors, combined with the high return over the last year (102.74% price total return) and trading near its 52-week high (97.01% of the high), reflect the market's confidence in Viant's performance and potential.
It's worth noting that InvestingPro offers 11 additional tips for DSP, providing investors with a comprehensive analysis of the company's financial health and market position. To gain access to these insights and make more informed investment decisions, consider exploring the full range of tips available on InvestingPro.
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