Why Viant Technology Stock Was Soaring Today

Viant Technology (NASDAQ: DSP), a cutting-edge digital advertising specialist that leverages artificial intelligence (AI) to bolster competitiveness, reported its third-quarter results. These were well received by investors, not least because of a crushing beat on revenue. In midsession trading, Viant's stock price was up by a healthy 18% as a result.

Top-line triumph

Viant's revenue grew by 7% year over year to just under $85.6 million. Stripping seasonal factors (such as political advertising) out of the mix, that growth is 19%. The opposite dynamic occurred with net income according to generally accepted accounting principles (GAAP); this fell by 34% to $996,000, or $0.06 per share.

However, that per-share figure was high enough to top the consensus analyst projection of $0.05. Meanwhile, pundits following Viant were expecting far less on the top line; their collective estimate was barely above $52 million.

The company wasn't shy in highlighting its wins during the quarter, arguably the most prominent of which was its designation as advertising platform for storied brewery Molson Coors. In terms of financial victories, it managed to generate record advertising spend in both the connected TV (CTV) and streaming audio segments.

Growth on tap

Peering into the near future, Viant believes prosperous times are ahead. It cited growth areas such as CTV and partnerships enabled by its ViantAI platform as likely sources for revenue growth. This should be aided by tie-ups with major brands such as Molson Coors.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.