Viant Technology Inc. (NASDAQ: DSP)

Sector: Technology Industry: Software - Application CIK: 0001828791
Market Cap 175.08 Mn
P/B 7.51
P/E 95.00
P/S 0.54
ROIC (Qtr) 7.05
Div Yield % 0.00
Rev 1y % (Qtr) 7.08
Total Debt (Qtr) 22.63 Mn
Debt/Equity (Qtr) 0.97

About

Viant Technology Inc., often referred to as DSP, is a prominent player in the advertising technology industry. The company operates a cloud-based demand side platform (DSP) that empowers marketers and their agencies to plan, buy, and measure advertising campaigns across a multitude of channels such as desktop, mobile, connected TV, linear TV, in-game, streaming audio, and digital billboards. The company's primary offerings include its DSP, Viant Data Platform, AI Bid Optimizer, and Direct Access. The DSP is a self-service platform that allows advertisers...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 36.02M provides robust 1.59x coverage of total debt 22.63M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 161.29M provide 32.94x coverage of short-term debt 4.90M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 373.62M provides 16.51x coverage of total debt 22.63M, indicating robust asset backing and low credit risk.
  • Tangible assets of 373.62M provide exceptional 611.49x coverage of deferred revenue 611000, showing strong service capability backing.
  • Operating cash flow of 36.02M provides strong 58.96x coverage of deferred revenue 611000, indicating service delivery capability.

Bear case

  • Operating cash flow of 36.02M barely covers its investment activities of (31.76M), with a coverage ratio of -1.13, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (31.76M) provide weak support for R&D spending of 29.37M, which is -1.08x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 161.29M provide limited coverage of acquisition spending of (10.55M), which is -15.29x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of 36.02M shows concerning coverage of stock compensation expenses of 24.14M, with a 1.49 ratio indicating potential earnings quality issues.
  • Operating earnings of (7.03M) show weak coverage of depreciation charges of 21.90M, with a -0.32 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Software - Application
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SAP Sap Se 288.31 Bn 34.60 6.72 10.73 Bn
2 CRM Salesforce, Inc. 248.32 Bn 34.38 6.16 11.14 Bn
3 SHOP Shopify Inc. 212.27 Bn 119.19 19.85 1.12 Bn
4 INTU Intuit Inc. 180.73 Bn 43.89 9.30 6.78 Bn
5 UBER Uber Technologies, Inc 178.38 Bn 10.72 3.60 12.19 Bn
6 NOW ServiceNow, Inc. 146.98 Bn 84.91 11.60 2.40 Bn
7 ADBE Adobe Inc. 144.48 Bn 20.77 6.23 6.64 Bn
8 ADP Automatic Data Processing Inc 108.20 Bn 26.16 5.18 9.77 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.07 2.65
EV to Cash from Ops. EV/CFO 0.72 13.37
EV to Debt EV to Debt 1.15 57.69
EV to EBIT EV/EBIT -3.70 19.12
EV to EBITDA EV/EBITDA 0.96 15.00
EV to Free Cash Flow [EV/FCF] EV/FCF 1.42 14.69
EV to Market Cap EV to Market Cap 0.15 -92.28
EV to Revenue EV/Rev 0.08 4.60
Price to Book Value [P/B] P/B 7.51 4.26
Price to Earnings [P/E] P/E 95.00 -136.90
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -3.95
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.25
Dividend per Basic Share Div per Share (Qtr) 0.00 0.15
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.52
Interest Coverage Int. cover (Qtr) 0.76 -52.32
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -2.76 -259.78
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -21.34 9,763.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.61
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 23.28 -263.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 44.59 56.46
EBIT Growth (1y) % EBIT 1y % (Qtr) 4.92 -225.15
EBT Growth (1y) % EBT 1y % (Qtr) 83.89 -86.10
EPS Growth (1y) % EPS 1y % (Qtr) 71.43 123.84
FCF Growth (1y) % FCF 1y % (Qtr) -55.65 -36.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 22.97 95.08
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.82 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 1.35 3.75
Current Ratio Curr Ratio (Qtr) 2.62 8.16
Debt to Equity Ratio Debt/Equity (Qtr) 0.97 0.17
Interest Cover Ratio Int Coverage (Qtr) 0.76 -52.32
Times Interest Earned Times Interest Earned (Qtr) 0.76 -52.32
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 4.60 -100.06
EBIT Margin % EBIT Margin % (Qtr) -2.17 -164.24
EBT Margin % EBT Margin % (Qtr) 0.68 -116.94
Gross Margin % Gross Margin % (Qtr) 100.00 58.20
Net Profit Margin % Net Margin % (Qtr) 0.60 -121.65