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 revenue of $337 million, up 28% year-over-year excluding political and LiveIntent, accelerating from Q2's growth rate. Adjusted EBITDA was $78 million, up 46% year-over-year, and free cash flow was $47 million, up 83% year-over-year, representing a margin of 14%. The actual EPS came out at $0.22, beating estimates of $0.1839. The company's revenue growth, excluding political and LiveIntent, has been consistently accelerating, with a growth rate of 26% in Q1, 27% in Q2, and 28% in Q3, highlighting the durability of its growth.
Publication Date: Nov -14
The company's financial performance was strong, with revenue growth accelerating and adjusted EBITDA margin expanding. The free cash flow margin was 14%, up from the previous year. The company's ability to generate strong cash flow is a testament to its profitable growth model.
Zeta raised its 2025 revenue guidance to $1.275 billion, representing a 26% year-over-year growth rate excluding political and LiveIntent. The company also provided an initial 2026 outlook, expecting revenue of $1.54 billion, which implies a growth rate of around 20.8% according to analyst estimates. For 2026, Zeta expects adjusted EBITDA of $354 million, representing a 23% margin, and free cash flow of $209 million.
Zeta's current valuation metrics are as follows: P/E Ratio of -180.49, P/B Ratio of 5.97, P/S Ratio of 3.99, EV/EBITDA of 106.18, and Free Cash Flow Yield of 3.19%. The high EV/EBITDA multiple suggests that the market is pricing in significant growth expectations for the company. With the company's guidance for 2026, it remains to be seen whether Zeta can meet or exceed these expectations.
The company's operational performance was strong, with the fifth annual Zeta Live event being the most successful yet, with a 35% increase in attendance. The company also saw strong executive participation, with decision-makers representing over $100 billion in annual marketing spend. Zeta's pipeline for 2026 is strong, with a year-over-year growth rate of 21%, consistent with its last two years of guidance.
Zeta's growth is being driven by its AI-powered marketing platform, with the company highlighting its data advantage, native integration, and ability to deliver a 6x return in revenue to clients. The company's acquisition of Marigold is also expected to contribute to revenue growth, with the potential to increase revenue by 3 to 3.5 times for clients using multiple use cases.
Zeta's AI Agents Fuel Holiday Records: Platform Usage Up 153% as AI Activity Grows 25x YoY
Dec -03
Zeta: Waiting For The ARPU Growth Reaccelerating
Nov -29
Zeta Global Holdings Corp. $ZETA Holdings Cut by Advantage Alpha Capital Partners LP
Nov -28
Envestnet Asset Management Inc. Has $420,000 Holdings in Zeta Global Holdings Corp. $ZETA
Nov -27
Zeta Global Increases 2025 and 2026 Guidance following the Completion of the Marigold Acquisition
Nov -24
Total Economic Impact Study Finds Zeta Marketing Platform Delivered 6x Return on Ad Spend Driven by AI-Powered Marketing
Nov -18
Whetstone Sells out of $7 Million Zeta Global Position: Is This a Red Flag for Investors?
Nov -17
The Hidden Engine Behind Zeta's Surge
Nov -15
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: 9.1
Yield: 0.0
Momentum: 9.0
Volatility: 3.3
1-Year Total Return ->
Value: 6.5
Growth: 6.7
Quality: 6.5
Yield: 0.0
Momentum: 6.0
Volatility: 3.7
1-Year Total Return ->
Value: 1.0
Growth: 8.9
Quality: 8.6
Yield: 0.0
Momentum: 3.0
Volatility: 7.0
1-Year Total Return ->
Value: 8.1
Growth: 7.8
Quality: 5.3
Yield: 0.0
Momentum: 3.0
Volatility: 3.3
1-Year Total Return ->
Value: 4.8
Growth: 6.1
Quality: 4.5
Yield: 0.0
Momentum: 3.0
Volatility: 3.0
1-Year Total Return ->
Value: 3.1
Growth: 4.4
Quality: 4.8
Yield: 0.0
Momentum: 1.0
Volatility: 2.0
1-Year Total Return ->