Zeta Global's Q4 2024 Earnings Call: Unpacking Contradictions in Macroeconomic Outlook, Agency Growth, Political Revenue, and AI Impact

These are the key contradictions discussed in Zeta Global Holdings Corp.'s latest 2024Q4 earnings call, specifically including: Macroeconomic Environment, Agencies' Role in Revenue Growth, Political Revenue Expectations, and AI Impact on Growth:



Record Revenue and Earnings Growth:
- Zeta Global reported record revenue of $315 million for Q4 2024, up 50% year-over-year, and record adjusted EBITDA of $70 million, up 57% year-over-year.
- This growth was driven by strong performance in marketing and AI adoption across the platform.

AI and Agentic AI Adoption:
- AI agent usage grew nearly 200% sequentially in Q4, with 126 brands adopting the Data Cloud AI within its first year of launch.
- The surge in AI adoption is attributed to the integration of AI products into various aspects of the marketing platform, enhancing efficiency and revenue growth.

Agency Business and ARPU Expansion:
- The number of brands spending at least $1 million with Zeta increased by 28% year-over-year.
- The growth in ARPU is due to agencies moving more brands and volume to Zeta, benefiting from its cost-effective data offerings.

Scaled Customer Base and Retention:
- The scaled customer count reached 527 as of December 31, 2024, up 17% year-over-year.
- Net retention for the year was 114%, reflecting strong customer loyalty driven by efficient and effective AI-powered marketing solutions.

Zeta 2028 Plan and Future Growth:
- Zeta's 2028 plan targets over $2.1 billion in revenue, aiming for a 20% organic revenue CAGR over the next four years.
- The growth is supported by new product offerings, expanded vertical expertise, and leveraging AI innovations to drive higher adoption and consumption revenue.