Viant Technology (DSP): A Growth Engine Fueled by CTV Dominance and Smart Capital Allocation

The digital advertising landscape is undergoing a seismic shift, with Connected TV (CTV) emerging as the dominant channel for consumer engagement. Amid this transformation, Viant Technology (NASDAQ: DSP) has positioned itself as a leader, leveraging AI-driven innovation and disciplined capital allocation to fuel growth. Its first-quarter 2025 results—highlighted by 32% revenue growth, 45% CTV revenue contribution, and a 76% surge in adjusted EBITDA—underscore its ability to capitalize on secular trends while strengthening its financial profile. For investors seeking exposure to a company at the intersection of AI, CTV, and value creation, Viant presents a compelling opportunity.

The CTV Boom and Viant's Strategic Edge

The rise of CTV is undeniable. As viewers abandon traditional linear TV for streaming platforms like Netflix, Disney+, and Hulu, advertisers are following suit. Viant's Q1 results reflect this shift: CTV now accounts for 45% of total advertiser spend on its platform, up from 38% in 2024. This growth is no accident. The company's ViantAI platform—which recently won the AI Excellence Award—enables hyper-targeted ad delivery using proprietary identifiers like Household ID and IRIS ID, ensuring precision in an era where third-party cookies are fading.

This tech stack isn't just about growth—it's about margin expansion. Adjusted EBITDA rose to $5.4 million in Q1, a 76% year-over-year jump, with margins improving 360 basis points to 13% of contribution ex-TAC. This efficiency stems from Viant's ability to scale its AI-driven operations while reducing reliance on costly third-party data. The company's focus on CTV, streaming audio, and digital-out-of-home (DOOH)—which collectively represent most of its revenue—ensures it stays ahead of competitors still tied to legacy models.

Financial Fortitude and Share Buybacks: A Catalyst for Value

While Viant's GAAP net loss narrowed slightly to $3.3 million, its non-GAAP metrics tell a stronger story: non-GAAP net income jumped 109% to $2.8 million, and non-GAAP EPS doubled to $0.04. These figures signal operational strength and a path to profitability as margins continue to expand.

The company's balance sheet reinforces its flexibility. With $173.9 million in cash (down from $205 million due to share repurchases), Viant has prioritized returning capital to shareholders. Since May 2024, it has spent $46.5 million repurchasing 3.5 million shares, reducing the total outstanding shares to 63.1 million. In May 2025, the board authorized an additional $50 million for buybacks—a clear vote of confidence in the stock's undervalued status.

Despite its strong fundamentals, DSP's valuation remains muted. At a trailing P/E (non-GAAP) of ~50x, it trades at a discount to peers like The Trade Desk (TTD) and PubMatic (PUBM), which command multiples in the 60–80x range. This gap narrows further when considering Viant's superior margin trajectory and the secular tailwinds in its favor.

Risks and the Case for Long-Term Value

As with any tech investment, risks loom. Regulatory scrutiny of AI and data privacy could complicate Viant's ID solutions, while a slowdown in ad spending—driven by macroeconomic pressures or a shift to alternative platforms—could dent growth. However, the company's proprietary tech stack and focus on high-margin CTV segments position it to weather these challenges better than peers.

Viant's Q2 2025 guidance—revenue of $77–80 million and adjusted EBITDA of $10.5–11.5 million—hints at further margin expansion. If achieved, these results could catalyze a revaluation of the stock, especially if buybacks continue to shrink the share count.

Investment Thesis: A Rare Growth Play at a Reasonable Price

Viant Technology checks all the boxes for a compelling growth investment: it's capitalizing on a $50 billion CTV ad market that's growing at ~15% annually, executing margin improvements through AI efficiency, and deploying cash strategically to boost shareholder value. With a balance sheet that allows for continued buybacks and a valuation that doesn't yet reflect its potential, DSP offers a rare blend of growth and value.

For investors, the path to upside is clear: Viant's AI-driven platform and CTV dominance create a moat against competitors, while its financial discipline ensures returns are prioritized. With shares down ~20% year-to-date (despite strong fundamentals), now may be an opportune time to build a position.

In a sector littered with commoditized players, Viant stands out as a high-margin, tech-led growth story poised to thrive in the next era of digital advertising. The confluence of secular trends, margin expansion, and shareholder-friendly capital allocation makes it a standout buy in a shifting landscape.