Viant Technology: AI To Drive Profitability And The Stock

seekingalpha06-10

Viant Technology combines people-based and digital identifiers and uses AI for innovative cookie-less advertising solutions.Viant is projected to turn profitable in 2024 due to strong revenue growth ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2442847228?lang=en_US&edition=fundamental","thumbnail":"https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1165610493/image_1165610493.jpg","is_english":true,"pubTime":"2024-06-10 21:14","share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","id":"2442847228","market":"sh","top_or_hot":-1,"title":"Viant Technology: AI To Drive Profitability And The Stock","media":"seekingalpha","content":"<div>\n<p>Viant Technology combines people-based and digital identifiers and uses AI for innovative cookie-less advertising solutions.Viant is projected to turn profitable in 2024 due to strong revenue growth ...</p>\n\n<a href=\"https://seekingalpha.com/article/4698372-viant-technology-ai-to-drive-profitability-and-the-stock\">Source Link</a>\n\n</div>\n","source":"seekingalpha","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Viant Technology: AI To Drive Profitability And The Stock</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nViant Technology: AI To Drive Profitability And The Stock\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-06-10 21:14 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4698372-viant-technology-ai-to-drive-profitability-and-the-stock><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Viant Technology combines people-based and digital identifiers and uses AI for innovative cookie-less advertising solutions.Viant is projected to turn profitable in 2024 due to strong revenue growth ...</p>\n\n<a href=\"https://seekingalpha.com/article/4698372-viant-technology-ai-to-drive-profitability-and-the-stock\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0056508442.USD","symbol_name":"贝莱德世界科技基金A2","start_time":0,"source_url":"https://seekingalpha.com/article/4698372-viant-technology-ai-to-drive-profitability-and-the-stock","article_id":"2442847228","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1165610493/image_1165610493.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2442847228","pubTimestamp":1718025241,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"Viant Technology combines people-based and digital identifiers and uses AI for innovative cookie-less advertising solutions.Viant is projected to turn profitable in 2024 due to strong revenue growth a","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0056508442.USD":"贝莱德世界科技基金A2","BK4122":"互联网与直销零售","BK4574":"无人驾驶","LU1854103824.USD":"M&G (LUX) POSITIVE IMPACT \"A\" (USD) INC","PARA":"Paramount Global","LU0238689110.USD":"贝莱德环球动力股票基金","BK4561":"索罗斯持仓","LU0456855351.SGD":"JPMorgan Funds - Global Equity A (acc) SGD","LU1839511570.USD":"WELLS FARGO GLOBAL FACTOR ENHANCED EQUITY \"I\" (USD) ACC","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","IE00BJTD4V19.USD":"NEUBERGER BERMAN US LONG SHORT EQUITY \"A1\" (USD) ACC","LU0052756011.USD":"TEMPLETON GLOBAL BALANCED \"A\" (USD) INC","GOOG":"谷歌","LU0642271901.SGD":"Janus Henderson Horizon Global Technology Leaders A2 SGD-H","DSP":"Viant Technology Inc.","DIS":"迪士尼","GOOGL":"谷歌A","TTD":"Trade Desk Inc.","LU0719512351.SGD":"JPMorgan Funds - US Technology A (acc) SGD","LU0310800379.SGD":"FTIF - Templeton Global A Acc SGD","IE00BMPRXN33.USD":"NEUBERGER BERMAN 5G CONNECTIVITY \"A\" (USD) ACC","AMZN":"亚马逊","LU0109392836.USD":"富兰克林科技股A","BK4023":"应用软件","LU0310800965.SGD":"FTIF - Templeton Global Balanced A Acc SGD","LU0965509010.AUD":"AB LOW VOLATILITY EQUITY PORTFOLIO \"AD\" (AUDHDG) INC","BK4592":"伊斯兰概念","SG9999015945.SGD":"LionGlobal Disruptive Innovation Fund A SGD","LU0557290698.USD":"施罗德环球可持续增长基金","LU0011850046.USD":"贝莱德全球长线股票 A2 USD","LU1316542783.SGD":"Janus Henderson Horizon Global Technology Leaders A2 SGD","LU0175139822.USD":"AB FCP I Global Equity Blend A USD","LU0097036916.USD":"贝莱德美国增长A2 USD","LU0070302665.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) ACC","LU0466842654.USD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"A\" (USD) ACC","BK4576":"AR","BK4123":"调查和咨询服务","BK4566":"资本集团","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","ON":"安森美半导体","LU1861215975.USD":"贝莱德新一代科技基金 A2","LU0444971666.USD":"天利全球科技基金","LU1861220033.SGD":"Blackrock Next Generation Technology A2 SGD-H","LU0289941410.SGD":"AB FCP I Dynamic Diversified AX SGD","IE00BKVL7J92.USD":"Legg Mason ClearBridge - US Equity Sustainability Leaders A Acc USD","EXPGY":"Experian plc","BK4077":"互动媒体与服务","BK4579":"人工智能","BK4141":"半导体产品","LU0211328371.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (MDIS) (USD)   INC"},"translate_title":"Viant Technology：人工智能推动盈利和股票","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"TTD":1,"AMZN":1,"GOOGL":1,"GOOG":1,"EXPGY":1,"DSP":1,"DIS":1,"PARA":1,"ON":0.9},"content_text":"Viant Technology combines people-based and digital identifiers and uses AI for innovative cookie-less advertising solutions.Viant is projected to turn profitable in 2024 due to strong revenue growth and margin expansion.This growth is expected to drive the stock price higher due to its attractive valuation level.   LukaTDB/E+ via Getty Images Viant Technology (NASDAQ:DSP) uses AI (artificial intelligence) along with human insight to give advertisers a comprehensive picture of their return on ad spending. Viant is expected to grow revenue and earnings at strong double-digit rates in 2024 and beyond, according to consensus estimates. This growth should help drive the stock higher at a strong pace from an attractive valuation level. Viant Technology's Business Background Viant is an advertising tech company that aims to provide its clients with key insights for their marketing campaigns. One of DSP's solutions is AI Big Optimizer, which uses AI to analyze past big opportunities to predict the lowest media cost for ads. Another solution is Household ID, which is a human-based innovation that combines personal and digital identifiers into household profiles. DSP's Viant Data Platform enables marketers to control their own data while providing actionable insights for their marketing initiatives. Viant also offers Holistic, a multiple-channel DSP for marketers and their agencies to manage multi-channel campaigns and to access metrics for each channel. Viant Identity Graph eliminates the need for cookies by matching individual people-based identifiers with digital identifiers, allowing marketers to target consumers in a privacy-conscious way. Viant also offers other solutions. Viant differentiates itself by being people-based as opposed to cookie-based. Viant's strategy is to match their data sets with those of other companies such as Experian (OTCQX:EXPGY), Axiom, and others. Viant's CEO, Tim Vanderhook, stated that 99% of the other DSP's typically use cookies and rely on big tech for those identifiers. The issue with cookie-based identifiers is that they are set to expire at some point. By combining both people-based and digital identifiers, Viant's solutions are set up for the future without expiration dates. DSP also differentiates itself by analyzing data for the entire household rather than just for individuals. This allows marketers to reach potential customers across multiple devices within each household. Viant's people-based solutions also allow each marketing channel to be tracked and analyzed, whether it is in-store or online. Viant Technology's Growth Catalysts Viant Technology's solutions have been experiencing strong demand from key markets. The largest impact for Viant was the CTV (connected TV) market. Viant increased revenue by 28% in Q1 2024 over Q1 2023. Viant stated that this was driven by a 50% year-over-year increase in the CTV market. Viant is growing market share for CTV as customers are striving to get the best bang for their buck for their advertising campaigns. DSP attributes its direct access program for this market share growth. Direct access connects Viant's customers directly to premium CTV-related companies such as Paramount (PARA) and Disney (DIS). Viant pointed out that $60 billion worth of linear TV budgets are shifting to CTV. Streaming audio is another growth driver for Viant. Streaming audio accounted for 10% of ad spending on Viant's platform in Q1. The company pointed out that advertisers like streaming due to its premium content, its ability to scale, and for its targeting capabilities. The combination of CTV and streaming audio accounted for more than half of ad spending on Viant's platform in Q1. DSP believes that its Household ID solution is the key for market share growth going forward. This makes sense as advertisers have been shifting their budgets to these types of channels. Customers that have used Household ID are experiencing increased reach and improved monitoring of their campaigns. Ultimately, Viant is striving for its programmatic advertising to be developed towards autonomous advertising. Autonomous advertising allows advertisers to input their ad budget, ad content, and target ROI and the platform will do the rest. This is accomplished through machine learning. This will allow advertisers to focus more on the ad creation while the technology does the rest. Viant is investing in innovation to make this a reality. In the meantime, Viant sees its AI solutions as a key differentiator in the market. AI Bid Optimizer, Chat with Data, and AI Recommendations are effective while helping to simplify the execution of advertising campaigns for customers. For example, AI Bid Optimizer helped customers achieve 35% average savings from a CPM (cost per thousand impressions) perspective. Viant's Attractive Valuation Since Viant Technology had net losses from 2021 through 2023, I think it is appropriate to use the price/sales [P/S] ratio to value the stock. This will allow us to value the company based on revenue. Viant is trading with a trailing price/sales ratio of 0.61x and a forward P/S of 0.58x. P/S ratios below one are considered attractively undervalued. For context, the Software Application industry which Viant belongs to is trading with a much higher P/S of 6.52. The reason for Viant's low valuation is because the company was unprofitable from 2021 through 2023. The good news for Viant is that the company is expected to turn a profit in 2024. Consensus estimates from the six Wall Street analysts that cover Viant Technology are calling for positive EPS of $0.40 for 2024. This is a significant improvement over the negative $1.33 EPS from 2023. Viant is expecting to achieve a 14% increase in revenue and a 25% increase in adjusted EBITDA for Q2 2024. The consensus and company estimates look achievable to me, since Viant expects to benefit from its investments in new AI-related solutions going forward, such as AI Bid Optimizer 2.0 and Viant Chat with Data. Furthermore, Viant expects to outpace the expected growth of the U.S. programmatic advertising market of 15% to 16% as stated in the Q1 2024 conference call Q&A session. I expect these higher-margin solutions to boost Viant's net income margins in Q2 through Q4. This is supported by consensus analyst projections, which forecast positive net income margins for the remaining quarters in 2024. The increased margins are enough to push EPS into positive territory for 2024. Viant's Technical Perspective   Viant Technology (DSP) Weekly Stock Chart with RSI (TradingView) I am using Viant's weekly chart, where we can see a U-shaped recovery for the stock. The stock was previously trading in the high $60s back in 2021. The sharp drop was a result of Viant moving from being profitable in 2020 to being unprofitable from 2021 through 2023. However, Viant's focus on offering effective solutions while incorporating AI can drive margins higher, which is likely to also drive the stock higher. The purple RSI indicator at the bottom of the chart pulled back from an overbought condition. However, the RSI is still bullish since it remains above the 50 level. The stock could pull back further, where there is support around $8. Ultimately, I think that if Viant is able to achieve positive net income in Q2 through Q4 as expected, then the stock should continue higher. However, if revenue or earnings expectations come in lower than expected in future earnings reports, then the stock could decline further. One key derailer for the company and the stock is if Viant is unable to effectively sell its cookie-less ad solutions and if sales come in significantly below expectations. Another risk for Viant is the threat of increased competition. Viant competes with large companies such as Alphabet (GOOG) (GOOGL), Amazon (AMZN), Yahoo DSP, and The Trade Desk (TTD). It is possible that these companies use similar strategies or more popular strategies for ad solutions and take market share away from Viant. If Viant's costs increase at a faster pace than revenue, then the company could fail to maintain profitability, which could be another derailer for the stock. Viant Technology's Long-Term Investment Outlook My opinion is that Viant will continue to grow its niche for cookie-less, AI-based ad solutions. Viant has effective growth strategies, which have been proven from the company's recent revenue growth. Viant is confident that the company can grow faster than the U.S. programmatic ad market. Viant's solutions can help make running ad campaigns more efficient for advertisers. With all of that said, I think the stock has a good chance to continue its rise over the long term. The low valuation provides plenty of room for the stock to increase as revenue and earnings increase at strong paces.  I would expect Viant to be diligent in achieving and maintaining profitability going forward. This can be achieved through continued development of Viant's innovative ad solutions. Viant's successful deployment and sales of its innovative AI-based ad solutions could lead to multiple years of profitability. That could lead to multiple years of an increasing stock price.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.24.1","shortVersion":"4.24.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2442847228"}