GICS Sector : Technology
Zeta Global Holdings Corp.operates an omnichannel data-driven cloud platform that provides enterprises with consumer intelligence and marketing automation software in the United States and internationally.Its Zeta Marketing Platform analyzes billions of structured and unstructured data points to predict consumer intent by leveraging sophisticated machine learning algorithms and the industry's opted-in data set for omnichannel marketing; and Consumer Data platform ingests, analyzes, and distills disparate data points to generate a single view of a consumer, encompassing identity, profile characteristics, behaviors, and purchase intent.
Zeta reported a robust Q4 with revenue growth of 28% year-over-year to $395 million, surpassing expectations. Adjusted EBITDA was $95.1 million, up 35% year-over-year, with a margin expansion of 174 basis points. The company also generated positive GAAP net income and $55.8 million in free cash flow. Earnings per share (EPS) came in at $0.28, beating estimates of $0.23.
Publication Date: Mar -01
The company's revenue growth was driven by a strong increase in customer count, with 602 customers, up 14% year-over-year, and super-scaled customer count grew to 184, up 24% year-over-year. Scaled customer ARPU was $625,000, up 8% year-over-year, and super-scaled customer ARPU was $1.8 million, up 5% year-over-year. The company's net revenue retention rate was a record high of 120%, indicating strong customer loyalty.
Zeta's AI investments, started 8 years ago, are yielding significant results, with the introduction of Athena, a super intelligent agent, driving interest and engagement. The company views large language models as foundational technologies, and its partnership with OpenAI is expected to drive efficiency and accelerated revenue growth. As David Steinberg mentioned, "Athena is helping clients drive greater return on investment, both from a workflow management perspective and from a return on ad spend."
With a P/S Ratio of 3.55 and an EV/EBITDA of 113.51, the market is pricing in significant growth expectations. Analysts estimate next year's revenue growth at 16.3%. Given the company's strong track record of innovation and customer expansion, it's likely that Zeta will continue to outperform expectations. The company's guidance for 2026 is bullish, with revenue expected to grow 35% to $1.755 billion, and adjusted EBITDA expected to reach $391 million.
Zeta's financial health is robust, with a free cash flow yield of 4.0% and a net debt to EBITDA ratio of -3.09, indicating a strong ability to generate cash and a net cash position. The company's return on invested capital (ROIC) is 0.48%, and return on equity (ROE) is -4.43%, which, while not impressive, is expected to improve as the company continues to grow and expand its customer base.
DNB Asset Management AS Invests $2.42 Million in Zeta Global Holdings Corp. $ZETA
Mar -04
Zeta Global Holdings Corp. (ZETA) Presents at Morgan Stanley Technology, Media & Telecom Conference 2026 Transcript
Mar -03
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Feb -26
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Feb -25
Zeta Global Holdings (ZETA) Q4 Earnings and Revenues Top Estimates
Feb -25
Zeta Global Holdings Corp. (ZETA) Q4 2025 Earnings Call Transcript
Feb -25
The 12.53% growth of Direct Platform from Zeta Global Holdings Corp. is driven by increasing demand for data-driven marketing solutions, expansion into new industries, and strategic partnerships. Additionally, the platform's ability to provide personalized customer experiences, enhance customer engagement, and improve ROI for clients are key growth catalysts.
Zeta Global Holdings Corp.'s Integrated Platform growth of 12.53% is driven by increasing demand for omnichannel marketing, rising adoption of cloud-based solutions, and growing need for data-driven customer insights. Additionally, the platform's ability to provide a single customer view, enhance customer engagement, and improve ROI measurement are key growth catalysts.
A cloud-based marketing platform that enables businesses to manage customer data, create personalized marketing campaigns, and analyze customer behavior.
A customer relationship management system that helps businesses manage customer interactions, track leads, and analyze sales performance.
A cloud-based data management platform that enables businesses to collect, store, and analyze large amounts of customer data.
A customer identity resolution platform that helps businesses create a unified customer profile across multiple channels and devices.
A data analytics platform that provides insights into customer behavior, preferences, and trends.
The threat of substitutes for Zeta Global Holdings Corp. is moderate due to the presence of alternative digital marketing solutions.
The bargaining power of customers is high due to the availability of multiple digital marketing service providers, giving customers the power to negotiate prices and services.
The bargaining power of suppliers is low due to the company's strong relationships with its suppliers and the availability of alternative suppliers.
The threat of new entrants is moderate due to the presence of barriers to entry, such as high capital requirements and regulatory hurdles, but also the attractiveness of the digital marketing industry.
The intensity of rivalry is high due to the presence of many established players in the digital marketing industry, leading to a highly competitive market.
| Value | |
|---|---|
| Debt Weight | 50.50% |
| Debt Cost | 5.91% |
| Equity Weight | 49.50% |
| Equity Cost | 9.51% |
| WACC | 7.69% |
| Leverage | 102.01% |
Value: 1.3
Growth: 8.0
Quality: 8.7
Yield: 0.0
Momentum: 8.0
Volatility: 3.3
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Value: 1.8
Growth: 8.9
Quality: 8.6
Yield: 0.0
Momentum: 3.0
Volatility: 7.0
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Value: 6.2
Growth: 6.7
Quality: 6.4
Yield: 0.0
Momentum: 4.5
Volatility: 3.7
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Value: 8.4
Growth: 7.8
Quality: 5.3
Yield: 0.0
Momentum: 2.5
Volatility: 3.3
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Value: 4.6
Growth: 6.0
Quality: 4.6
Yield: 0.0
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Volatility: 3.0
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Value: 3.1
Growth: 4.4
Quality: 5.2
Yield: 0.0
Momentum: 2.5
Volatility: 2.0
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