Viant, the ad tech company that bought MySpace, sees shares surge 90% in IPO

Chris and Tim Vanderhook, COO and CEO of Viant.

Viant

Viant Expertise, per chance the most contemporary ad tech company to pass public, seen shares pop extra than 90% after the corporate launched its preliminary public offering Wednesday. 

Viant operates a seek recordsdata from-facet promoting platform, or DSP, called Adelphic. It change into once priced at $25 per part, nonetheless opened at $44, and closed the day at $47.72. The company debuted on the Nasdaq below the symbol “DSP.” 

It’s per chance the most contemporary public entrant to a scorching ad tech market. The company’s IPO comes roughly two weeks after digital ad company Taboola acknowledged it deliberate to pass public by way of a merger with ION Acquisition Corp, a explicit acquisition corporation (SPAC). In December, sell-facet promoting platform PubMatic also launched its IPO. And Kubient, every other player, went public in August of closing year.

A most contemporary model from MKM Companions acknowledged ad-tech IPOs procure had a mixed music file in the overall public markets, nonetheless that there change into once a resurgence recently with PubMatic and Magnite getting a “warmth reception” from investors. 

Viant change into once launched by brothers Tim, Chris and Russ Vanderhook in 1999. The company got social networking company Myspace in 2011. Later that year it helped start associated TV platform Xumo, which change into once got by Comcast closing year.

Time Inc. bought a 60% stake in Viant in 2016, which Meredith got by way of its procure acquisition of Time in 2018. The Viant founders took assist assist an eye on of the corporate in 2019.

The company, which has about 300 workers, competes with gamers indulge in The Change Desk and with part of Google‘s ad tech commerce. The machine is dilapidated by marketers and their ad agencies to centralize shopping for, planning and dimension of advertising and marketing and marketing across channels indulge in desktop, cell, associated TV, streaming audio and digital billboards, the corporate acknowledged in its S-1 filing sooner than the IPO.

Viant COO Chris Vanderhook acknowledged the corporate had a “neatly-organized” year in 2019 sooner than getting hit by the broader Covid-associated ad slowdown closing year. 

“I would narrate the different in entrance of us available in the market is this programmatic different,” he told CNBC in an interview Wednesday. “It’s rising finally rapid, over 20% a year. However, the total U.S. ad market as of late is about $200 billion. Only about 40% of that is bought programmatically or by machine.”

Viant says its DSP is neatly-positioned as a “folks-based” platform, versus one which’s based on cookies, which exercise inner most data kept to your net browser. Google plans to deprecate its make stronger for third-birthday party cookies in its Chrome browser by next year. Viant, as an alternative, says it makes exercise of “precise-world identifiers” to name clients. As an illustration, the corporate says it links data indulge in email, name, take care of and cell phone number to digital identifiers indulge in a cell promoting ID or put. This helps Viant goal digital ads to the merely viewers.

CEO Tim Vanderhook added that whereas some DSPs level of interest squarely on shopping for, the corporate has built-in data and dimension capabilities into its machine, making it “finally sticky” with purchasers.

MKM Companions wrote of their most contemporary model that they suspect about the corporate’s level of interest on “folks-based advertising and marketing and marketing” and tailwinds in programmatic promoting and associated TV are “sure sustainable investment positives.”

But they also pointed out some dangers, announcing that it had a “lumpy 2020,” with essential annualized earnings declines and “just a runt of a slack recovery.” They also illustrious the fragmented competition in the ad tech rental from companies indulge in The Change Desk and Google.

Disclosure: Comcast is the proprietor of NBCUniversal, the parent company of CNBC.

Nominations are open for the 2021 CNBC Disruptor 50, a listing of inner most start-united states of americausing leap forward technology to grow to be the next technology of massive public companies. Post by Friday, Feb. 12, at 3 pm EST.

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