What were the key takeaways from Zeta Global Holdings’s earnings call?

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Did Zeta Global Holdings beat or miss consensus estimates last quarter?

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What does Zeta Global Holdings do and what are its main business segments?

What were the key takeaways from Zeta Global Holdings's earnings call?

- **Revenue Growth Acceleration**: 28% YoY (ex political/LiveIntent), highest free cash flow margin in company history.
- **Athena AI Breakthrough**: Voice-activated platform in client beta, targeting $100M+ incremental bookings from Zeta Live.
- **Marigold Acquisition Momentum**: 100+ enterprises to be converted to multi-use cases, 3-3.5x revenue uplift potential.
- **2026 Outlook**: $1.54B revenue (21% YoY), 23% EBITDA margin, 14% Free Cash Flow margin.
- **Operational Excellence**: 19th consecutive quarter of expanding EBITDA margins, 60% free cash flow conversion.

**【CEO Summary Section】**
- Q3 2025 revenue: $337 million (28% YoY growth ex political/LiveIntent), up from $27% in Q2 and $26% in Q1.
- Adjusted EBITDA: $78 million (46% YoY growth), Free Cash Flow: $47 million (83% YoY growth, 14% margin).
- Zeta Live 2025: 1,500 attendees (+35%), 120 product demos, targeting $100 million incremental business.
- Athena AI launch: voice-activated, conversational agent for unified marketing platform, in client beta Q4 2025, production Q1 2026.
- Marigold acquisition: 100+ enterprises, 20 of top 100 advertisers, to be integrated for multi-use case expansion.
- 2025 guidance update: Revenue $1.275B (+$11M midpoint), EBITDA $273.7M, Free Cash Flow $157.4M.
- 2026 outlook: $1.54B revenue (21% YoY), EBITDA $354M (23% margin), Free Cash Flow $209M.

**【CFO Financial Commentary】**
- Q3 GAAP net loss: $3.6M (vs $17.4M YoY), Non-GAAP EBITDA: $78.1M (23.2% margin, +320bps YoY).
- Scaled customer count: 572 (+20% YoY), Super-scaled: 180 (+25% YoY), ARPU: $579K (4% YoY growth).
- 7/10 verticals >20% YoY growth (e.g., telecom, retail, automotive), 3/10 >7% YoY growth.
- Free Cash Flow Conversion: 60% (vs 48% YoY), GAAP cost of revenue: 39.5% (13bps YoY increase).
- Share buybacks: 1.7M shares ($28M) Q3, 6M shares ($85M) YTD, 0 net dilution Q3.
- 2025 guidance: Revenue $1.275B (26% YoY ex political), EBITDA $273.7M, Free Cash Flow $157.4M.

**【Q&A Highlights】**
- Athena adoption: Direct enterprise clients expected to lead, 100% of Marigold clients on single use case for cross-sell.
- Sales pipeline: Record levels post-Zeta Live, targeting $100M+ incremental bookings.
- LiveIntent integration: 100% earn-out achievement, synergies flowing organically.
- Marigold impact: 100+ enterprises to be converted to multi-use cases, 3-3.5x revenue uplift potential.
- Telecom vertical: 20%+ YoY growth, displacing legacy marketing clouds.
- Free Cash Flow: Target 70%+ conversion by 2030, 85% buyback utilization YTD 2025.


Zeta Global Holdings Corp. (ZETA) Q3 2025 Earnings Call Transcript

- **Revenue Growth**: $308M (35% YoY), EBITDA $59M (52% YoY), both above guidance.
- **AI Innovation**: Zeta Answers delivers 30%+ engagement gains, with 44% YoY growth in AI adoption.
- **Agency Expansion**: 40% YoY increase in agency brands, direct mix at 75% driving 200bps margin improvement.
- **Free Cash Flow**: $142M guidance (54% YoY growth), with $32M Q2 share buybacks.
- **Zeta Live 2025**: Showcases AI breakthroughs with Tom Brady and Serena Williams as headline speakers.

**【CEO Summary Section】**
- Q2 2025 revenue: $308 million (35% YoY growth), adjusted EBITDA: $59 million (52% YoY growth), both above guidance.
- Launched Zeta Answers, a prescriptive AI framework enabling real-time automated actions, with examples including a state government campaign (+30% engagement) and a Fortune 100 tech company (+10% engagement).
- Expanded agency partnerships: 40% YoY increase in brands per large agency holding company, and platformed 3 additional independent agencies.
- Accelerated OneZeta adoption: 179 quota carriers (18% YoY growth), with examples like a national furniture chain consolidating acquisition, growth, and retention on Zeta's platform.
- Announced Zeta Live 2025 with Tom Brady and Serena Williams as headline speakers, showcasing AI innovations and product launches.

**【CFO Financial Commentary】**
- Full year 2025 revenue guidance raised to $1.263 billion (midpoint, +$21 million), with Q3 revenue expected at $328 million (22% YoY growth).
- Adjusted EBITDA guidance increased to $264.6 million (37% YoY growth), with Q3 EBITDA at $70.7 million (32% YoY growth).
- Free cash flow guidance raised to $142 million (54% YoY growth), with conversion rate of 54% vs. 48% in 2024.
- Share buybacks: $32 million in Q2, $69 million YTD, with $200 million new repurchase authorization approved.
- Working capital headwind expected to ease, with free cash flow conversion over 80% if neutralized.

**【Q&A Highlights】**
- **AI Adoption**: Zeta Answers driving 44% YoY growth in AI Agent Studio usage, with ARPU 19% higher for super-scaled customers using 4+ channels.
- **Agency Momentum**: Independent agencies now treated as enterprise clients, with direct mix rising to 75% (vs. 67% YoY), reducing cost of revenue by 200bps.
- **Pipeline Strength**: Sellers in their first 12 months have highest pipeline levels since 2022, with 50%+ win rates for sellers >2 years.
- **Public Sector Expansion**: Launched Zeta Data & AI Lab led by former Meta executive Nate Yohannes, targeting public sector growth with case studies like state government campaigns.
- **Cannes Lions Impact**: Increased pipeline visibility and brand recognition, with Zeta now a 'must-attend' event for global marketers.


Zeta Global Holdings Corp. (ZETA) Q2 2025 Earnings Call Transcript

- **Revenue Growth**: Q1 2025 revenue up 36% YoY to $264M, with adjusted EBITDA up 53% to $47M, driving a $2M raise in 2025 revenue guidance to $1.242B.
- **AI Innovation**: Launch of AI Agent Studio and agentic workflows enables complex marketing tasks, with a customer achieving 53% cost reduction using Zeta's AI.
- **Agency Expansion**: Independent agencies grew faster than holding companies, with 73% direct mix and 21 new scaled customers in Q1.
- **Cash Flow Strength**: Free cash flow of $28.2M (87% YoY growth) and 60% conversion, with $25M in share buybacks and plans for new repurchase program.
- **Macro Resilience**: 90%+ revenue from >1-year customers, no spending pullbacks, and ARPU growth of 12% YoY despite macro uncertainty.

**【CEO Summary Section】**
- Zeta reported Q1 2025 revenue of $264 million, up 36% YoY, with adjusted EBITDA of $47 million, up 53% YoY. This outperformance led to a raise in 2025 guidance to $1.242 billion in revenue (midpoint) and $258.5 million in adjusted EBITDA.
- The company highlighted its AI strategy with the launch of AI Agent Studio and agentic workflows, which enable marketers to execute complex tasks across the customer journey. A customer example showed a 53% reduction in new customer acquisition cost using Zeta's AI solutions.
- The agency business grew with two new independent agencies platformed in Q1 and strong growth from large holding companies, driven by Zeta's ROI-driven model and deterministic attribution capabilities.

**【CFO Financial Commentary】**
- GAAP net loss was $22 million, an improvement from $40 million in Q1 2024. Free cash flow reached $28.2 million, up 87% YoY, with a free cash flow conversion of 60%.
- Share buybacks totaled $25 million in Q1, with an additional $21 million post-quarter, reflecting capital allocation focus on reducing dilution and stock-based compensation.
- 2025 free cash flow guidance was raised to $131.5 million, up 43% YoY, with plans to initiate a new share repurchase program upon current authorization completion.

**【Q&A Highlights】**
- **AI Adoption**: CEO noted accelerated AI adoption in Q1, with no pauses from customers despite macro uncertainty. Agentic workflows are expected to drive further productivity gains.
- **Agency Growth**: Independent agencies are growing faster than holding companies, with over 1,000 potential prospects. Direct mix in agency business is 73%, up from 67% YoY.
- **Macro Resilience**: 90%+ of revenue comes from customers with >1 year tenure, and no pullbacks in spending. ARPU growth of 12% YoY and 23% for Super Scaled customers shows sticky demand.
- **Share Buybacks**: CFO emphasized reducing dilution (2025: 4-6% vs. 15% in 2024) while maintaining innovation spending, with buybacks accounting for 89% of Q1 free cash flow.
- **Long-Term Targets**: Reaffirmed 2028 plan of >$2 billion revenue, 25%+ EBITDA margin, and 16%+ free cash flow margin, supported by strong pipeline and customer retention (NRR 111%+ since IPO).

Zeta Global (ZETA)-1 May 25-2025 Q1 Earnings call transcript

- **Record Q4 Growth**: $315M revenue (+50% YoY), exceeding guidance, with AI adoption driving 40% consumption revenue growth.
- **2028 Ambitious Targets**: $2.1B+ revenue (20% CAGR), 25% EBITDA margin, and 16% free cash flow margin.
- **Agency Dominance**: ARPU up 27%, with 34 new LiveIntent customers, and 25% profit margin improvement via partnerships.
- **AI Innovation**: 126 brands adopted Data Cloud AI, 200% QoQ AI agent growth, and Zeta Direct delivers personalized ads in newsletters.
- **Profitability Expansion**: 2025 EBITDA margin 20.7%, free cash flow 10.4%, with 700bps margin improvement by 2028.


**【CEO Summary Section】**
- Q4 2024 revenue reached $315 million, up 50% YoY, driven by AI adoption and LiveIntent integration. Full year revenue exceeded $1 billion, up 38% YoY.
- 2028 plan targets >$2.1 billion in revenue (20% CAGR), 25% EBITDA margin, and 16% free cash flow margin.
- AI adoption surged: 126 brands adopted Data Cloud AI in its first year, AI agent usage grew 200% QoQ, and 1,000+ behavioral taxonomies were created.
- Customer satisfaction improved with U.S. NPS score rising 8 pts to 55, and ARPU up 32% excluding LiveIntent.
- New product Zeta Direct combines LiveIntent's publisher network with Zeta Data Cloud, enabling personalized ad delivery in newsletters.

**【CFO Financial Commentary】**
- Q4 2024: GAAP net income $15.2 million (first time as public company), adjusted EBITDA $70.4 million (22.4% margin), free cash flow $32 million (10% margin).
- Full year 2024: Free cash flow $92 million (9.2% margin), up 69% YoY; adjusted EBITDA $193 million (19.2% margin), up 49% YoY.
- 2025 guidance: Revenue $1.24 billion (23% growth), adjusted EBITDA $256.5 million (20.7% margin), free cash flow $129.5 million (10.4% margin).
- Cost of revenue improved 20bps QoQ to 40%, driven by direct channel growth and AI monetization.
- Working capital headwind of $22 million in Q4 due to agency growth and industry payment cycles.

**【Q&A Key Insights】**
- Agency business ARPU grew 27% YoY, with 34 new LiveIntent customers added to scaled base. Agency partnerships reduce costs and drive 25% profit margin improvement.
- AI adoption accelerates consumption revenue, which grew 40% YoY, compared to 2023's 20% growth.
- Political candidate revenue expected to drop to $0 in 2025, but advocacy revenue to remain at $20-25 million.
- Mobile channel adoption early but promising, with connected TV growing >100% YoY.
- No material impact from short seller report; Audit Committee confirmed accounting integrity.


Zeta Global (ZETA)-25 Feb 25-2024 Q4 Earnings call transcript

Zeta Global (ZETA)-11 Nov 24-2024 Q3 Earnings call transcript

Zeta Global Holdings Corp - Ordinary Shares (ZETA)-31 Jul 24-2024 Q2 Earnings call transcript

Zeta Global Holdings Corp - Ordinary Shares (ZETA)-6 May 24-2024 Q1 Earnings call transcript

- **Revenue Growth**: 2023 revenue $729M (+23% YoY), guiding to $875M in 2024 (+20%).
- **Profitability**: Adjusted EBITDA margin 17.8% in 2023, targeting 20%+ by 2025. Free cash flow $55M in 2023, guiding to $80M+ in 2024.
- **AI Innovation**: Launching Gen AI agents for workflow automation, with mobile revenue potential of $100M+.
- **Customer Expansion**: 452 scaled customers (+12% QoQ), 131 >$1M ARR (27% YoY growth).
- **Efficiency**: Operating expenses down 640 bps as % of revenue YoY, 2024 dilution reduced to 3.5-3.75%.
- **Strategic Moves**: Targeting GAAP profitability in Q4 2024, expanding into mobile and SI partnerships.

**【CEO Summary Section】**
- Zeta achieved record 2023 revenue of $729 million (+23% YoY) with 4 consecutive years of >20% growth, guiding to 20%+ in 2024.
- Expanded adjusted EBITDA margin to 17.8% ($129M) with 200+ bps improvement, targeting 20%+ by 2025.
- Launched AI-powered Intelligent Agent Composer to automate workflows, enabling customers to build custom Gen AI agents within Zeta platform.
- Mobile strategy aims to scale from <2% to $100M+ revenue, integrating ZMP with Zeta Data Cloud for real-time mobile engagement.
- Reduced dilution from 5% (2023) to 3.5-3.75% (2024), with management transitioning to performance-based equity.
- Targeting GAAP profitability in Q4 2024.

**【CFO Financial Commentary】**
- Q4 2023 revenue $210M (+20% YoY), full year $729M (+23% YoY), exceeding guidance by $38M.
- Scaled customers grew 12% QoQ to 452, with 131 >$1M ARR (27% YoY growth).
- Direct revenue mix >70% with 2/3 recurring, growing 15% YoY (23% ex-auto/insurance).
- Adjusted EBITDA $44.8M (+38% YoY), margin 21.3%, up 280 bps YoY.
- Free cash flow $55M (+39% YoY), guiding to $75-85M in 2024 (48% EBITDA conversion).
- 2024 guidance: $875M revenue (+20%), $166M adj. EBITDA (19% margin).
- Automotive/insurance headwinds (~10% revenue) expected to resolve in 2024.

**【Q&A Highlights】**
- **AI & Mobile Impact**: CEO sees $100M+ opportunity for mobile, with Zeta ID enabling deterministic attribution. Gen AI agents will reduce marketing resource burden.
- **Sales Cycles**: Agency partnerships shorten sales cycles (e.g., Fortune 500 contracts in weeks vs. months for direct sales).
- **Gross Margins**: Bottomed at 60% in Q4 2023, with upside from migrating agency customers to direct channels.
- **Cash Deployment**: 2024 free cash flow ($80M+) will be used for buybacks, M&A, and balance sheet strength for SI partnerships.
- **Customer Retention**: 111% net revenue retention (118% ex-auto/insurance), with 3+ year customers spending 3.6x first-year ARR.
- **Agency Growth**: 3 new HoldCo partners started at >$1M ARR, scaling faster than initial HoldCo.
- **CTV Expansion**: CTV revenue +30% QoQ in Q4, leveraging Zeta Data Cloud for hyper-targeting.

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