How did ZETA's EPS outperform forecasts in Q4 2024?
4/9/2025 11:20am
Zeta Global Holdings (ZETA) reported an EPS of $0.06 for Q4 2024, which outperformed the analyst estimate of $0.224 by $0.16. This indicates a positive surprise, suggesting that the company's performance for the period exceeded market expectations. Here are some key factors that may have contributed to this outcome:
1. **Strong Revenue Growth**: Zeta Global reported fourth-quarter sales of $315 million, which is a significant increase from the same period last year. This growth in revenue is a key driver of earnings and suggests that the company's business is expanding and generating more profit.
2. **Strategic Share Buyback**: The company completed a successful share buyback program, which likely boosted investor confidence and had a positive impact on earnings. Share buybacks can enhance earnings per share by reducing the number of shares outstanding.
3. **Cost Management**: Zeta Global made progress towards profitability, reducing its net loss from $187.48 million to $69.77 million during the same period last year. Improved cost management and reduced losses contribute to higher earnings.
In summary, Zeta Global's EPS outperformance can be attributed to strong revenue growth, strategic share buybacks, and cost management. These factors combined to deliver earnings that exceeded market expectations.