Viant Technology Inc.DSP
Viant Technology Inc. Income Taxes Disclosure
Income Taxes
The provision for income taxes differs from the amount of income tax computed by applying the applicable U.S. statutory federal income tax rate of 21% to income before provision of income taxes due to Viant Technology LLC’s pass-through structure for U.S. income tax purposes and the valuation allowance against the deferred tax asset in the current and prior-year periods. For the year ended December 31, 2024, the Company recognized income tax expense of $0.2 million due to current federal and state taxes payable, resulting in an effective tax rate of 2.0%. For the year ended December 31, 2023, the Company recognized income tax expense of $0.2 million due to federal and state taxes payable, resulting in an effective tax rate of (1.5)%. For the year ended December 31, 2022, the Company did not recognize an income tax expense or benefit, which resulted in an effective tax rate of 0.0%.
The Company is the sole managing member of Viant Technology LLC and, as a result, consolidates the financial results of Viant Technology LLC in the consolidated financial statements. Viant Technology LLC is a pass-through entity for U.S. federal and most applicable state and local income tax purposes following a corporate reorganization effected in connection with the IPO. As an entity classified as a partnership for tax purposes, Viant Technology LLC generally is not subject to U.S. federal and certain state and local income taxes. Subsequent to the IPO, any taxable income or loss generated by Viant Technology LLC is passed through to and included in the taxable income or loss of its members, including the Company. The Company is taxed as a corporation and pays corporate federal, state and local taxes with respect to income allocated from Viant Technology LLC, based on the Company's 25.9% economic interest in Viant Technology LLC.
The provision for income taxes attributable to the Company was as follows:
| Year Ended December 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| Current: | |||||||||||||||||
| U.S. federal income tax | $ | 3 | $ | 47 | $ | — | |||||||||||
| State and local income tax | 246 | 104 | — | ||||||||||||||
| Foreign income tax | — | — | — | ||||||||||||||
| Total current provision | 249 | 151 | — | ||||||||||||||
| Deferred: | |||||||||||||||||
| U.S. federal income tax | — | — | — | ||||||||||||||
| State and local income tax | — | — | — | ||||||||||||||
| Foreign income tax | — | — | — | ||||||||||||||
| Total deferred provision | — | — | — | ||||||||||||||
| Income tax (benefit) provision | $ | 249 | $ | 151 | $ | — | |||||||||||
A reconciliation of the statutory tax rate to the effective tax rate for the years presented are as follows:
| Year Ended December 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| Income tax benefit (expense) at federal statutory rate | 21.0 | % | 21.0 | % | 21.0 | % | |||||||||||
| Income passed through to noncontrolling interests | (17.5) | % | (13.7) | % | (15.8) | % | |||||||||||
| State and local taxes, net of federal benefit | 1.6 | % | 1.2 | % | 0.8 | % | |||||||||||
| Permanent items | 1.5 | % | (1.7) | % | (0.3) | % | |||||||||||
| Stock-based compensation | (9.1) | % | (14.6) | % | (2.9) | % | |||||||||||
| Credits | (4.2) | % | 3.3 | % | 0.8 | % | |||||||||||
| Uncertain tax position | 0.6 | % | (1.4) | % | — | % | |||||||||||
| Executive compensation | 3.0 | % | — | % | — | % | |||||||||||
| Other, net | (0.8) | % | (2.2) | % | 0.9 | % | |||||||||||
| Valuation allowance | 5.9 | % | 6.6 | % | (4.5) | % | |||||||||||
| Total effective rate | 2.0 | % | (1.5) | % | 0.0 | % | |||||||||||
The tax effects of temporary differences that give rise to a significant portion of the deferred tax assets and deferred tax liabilities are as follows:
| As of December 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| Deferred tax assets: | |||||||||||
| Net operating loss carryforwards | $ | 1,355 | $ | 1,513 | |||||||
| Tax credits | 1,098 | 642 | |||||||||
| Investment in Partnership | 10,145 | 8,524 | |||||||||
| Other, net | (69) | 238 | |||||||||
| Subtotal | 12,529 | 10,917 | |||||||||
| Valuation allowance | (12,529) | (10,917) | |||||||||
| Total deferred tax assets | — | — | |||||||||
| Deferred tax liabilities: | |||||||||||
| Other, net | — | — | |||||||||
| Total deferred tax liabilities | — | — | |||||||||
| Net deferred tax (liabilities) assets | $ | — | $ | — | |||||||
In assessing the realizability of deferred tax assets, the Company considers whether it is probable that some or all of the deferred tax assets will not be realized. In determining whether the deferred taxes are realizable, the Company considers the period of expiration of the tax asset, historical and projected taxable income, and tax liabilities for the tax jurisdiction in which the tax asset is located. Valuation allowances are provided to reduce the amounts of deferred tax assets to an amount that is more likely than not to be realized based on an assessment of positive and negative evidence, including estimates of future taxable income necessary to realize future deductible amounts. As of December 31, 2024 and 2023, the Company has recorded a valuation allowance against its deferred tax assets of $12.5 million and $10.9 million, respectively, as management determined it is not more likely than not that the deferred tax assets will be realized.
As of December 31, 2024 and 2023, the Company has federal net operating loss carryforwards of approximately $5.4 million and $6.1 million, respectively. As of December 31, 2024 and 2023, the Company has state net operating loss carryforwards of approximately $3.6 million and $3.8 million, respectively. The federal net operating losses carry forward indefinitely and state net operating losses begin to expire in 2032. As of December 31, 2024, the Company has federal and state research and development tax credits of approximately $0.8 million and $0.7 million, respectively. The federal credits will begin to expire in 2044 and the state credits carry forward until exhausted.
A reconciliation of the beginning and ending balance of total gross unrecognized tax benefits is as follows:
| As of December 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| Beginning balance of unrecognized tax benefits | $ | 158 | $ | — | |||||||
| Gross increase based on tax positions related to current year | 84 | 55 | |||||||||
| Gross increase based on tax positions related to prior years | 10 | 103 | |||||||||
| Ending balance of unrecognized tax benefits | $ | 252 | $ | 158 | |||||||
The unrecognized tax benefits, if recognized, would not have an impact on the Company's effective tax rate assuming the Company continues to maintain a full valuation allowance position. As of December 31, 2024, no significant increases or decreases to the Company's uncertain tax positions are expected within the next twelve months.
The Company's U.S. federal and state returns are open to examination for all periods ending December 31, 2021 and thereafter. However, to the extent allowed by law the tax authorities may have the right to examine prior periods where net operating losses were generated and carried forward and make adjustments up to the amount of the net operating loss or credit carry forward amount.
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About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.