ZETA(ZETA)
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ZETA(ZETA) - 2025 Q1 - Quarterly Results
2025-05-01 20:05
Exhibit 99.1 May 1, 2025 Zeta Global Reports 15 th Straight "Beat and Raise" Quarter NEW YORK – Zeta Global (NYSE: ZETA), the AI Marketing Cloud, today announced financial results for the first quarter ended March 31, 2025. "Our commitment to delivering predictable, profitable and measurable ROI is driving continued market share gains and has contributed to our 15 th consecutive "beat and raise" quarter," said David A. Steinberg, Co-Founder, Chairman, and CEO of Zeta. "Our focus on AI innovation, highlighte ...
Zeta: Ambitious 2028 Growth Targets Set Against Ultracheap Valuation
Seeking Alpha· 2025-04-25 14:55
Core Insights - The stock market is currently experiencing elevated volatility, with heightened emotions and tensions as the critical Q1 earnings season approaches [1] - So far, companies that have reported earnings have managed to navigate the situation relatively unscathed, but investor caution remains [1] Industry Analysis - Gary Alexander, with extensive experience in covering technology companies and advising startups, provides insights into the themes shaping the industry today [1] - His contributions to Seeking Alpha since 2017 and presence in popular trading apps like Robinhood highlight the relevance of his analysis in the current market context [1]
EdgeTI Appoints Mr. Eric Slater, Sr. VP of $3B Data and AI Firm ZETA to Board of Directors
Newsfile· 2025-04-25 07:01
Core Insights - Edge Total Intelligence Inc. has appointed Eric Slater to its Board of Directors effective April 23, 2025, following the resignation of Brett Paulson, who will continue in an advisory role [2][6][7] Company Overview - EdgeTI is focused on enhancing situational awareness and accelerating action through its real-time digital operations software, edgeCore™, which integrates multiple software applications and data sources [8][9] - The company aims to improve profitability and agility for global enterprises, service providers, and governments by transforming siloed systems and data [9] Eric Slater's Background - Eric Slater is a seasoned technology executive with a strong background in artificial intelligence and asset management, having held senior roles at Bridgewater Associates, Citadel, and Instinet [3][4][6] - He currently serves as Senior Vice President of Zeta Labs, leading the development of advanced AI capabilities for Zeta Global's marketing cloud platform [4][6] - Slater co-founded UrgentIQ, an electronic medical records platform, successfully raising $4.5 million and achieving a strategic exit [5] Strategic Fit - The CEO of EdgeTI, Jim Barrett, emphasized that Slater's technical depth and strategic insight align well with the company's target market, which seeks to leverage emerging technologies for sustainable growth [7]
ZetaDisplay AB (publ) announces successful issue of new bonds
Globenewswire· 2025-03-21 15:30
Core Viewpoint - ZetaDisplay AB has successfully issued new senior secured bonds amounting to SEK 500 million, with strong demand from institutional investors, and plans to redeem existing bonds while applying for a listing on Nasdaq Stockholm [1][2][8]. Group 1: Bond Issue Details - The bond issue amounts to SEK 500 million with a tenor of three years, carrying a floating interest rate of 3m STIBOR plus a margin of 6.50%, and was placed at par [1]. - Settlement of the bond issue is expected around April 4, 2025, and the company intends to list the bonds on Nasdaq Stockholm [2]. Group 2: Tender Offer for Existing Bonds - The company conducted a tender offer for its existing senior secured bonds (ISIN SE0018742488), offering to purchase them at 102.325% plus accrued interest [3]. - The tender offer expired with valid tenders amounting to SEK 166.25 million, and all valid tenders were accepted [4]. Group 3: Redemption of Existing Bonds - The company intends to exercise its right for early redemption of existing bonds, with a redemption date set for April 17, 2025, at a price of 102.325% of the nominal amount plus accrued interest [5][6]. - The redemption is conditional upon the successful issuance of the new bonds and satisfaction of conditions for disbursement of net proceeds [7]. Group 4: Additional Information - The existing bonds will be de-listed from Nasdaq Stockholm in connection with the redemption date [8]. - Pareto Securities and Nordea Bank acted as bookrunners for the bond issue [8].
ZetaDisplay announces expiration date for tender offer
Globenewswire· 2025-03-21 08:30
Core Points - ZetaDisplay AB announced a tender offer for holders of its existing senior secured bonds, offering to purchase them for cash at a price of 102.325% plus accrued but unpaid interest [1][2] - The tender offer will expire on 21 March 2025, coinciding with the close of the book building process for the new SEK denominated senior secured bonds [2] - Settlement of the tender offer is expected to occur on 4 April 2025, contingent upon the successful issuance of the new bonds [2] Company Information - The tender offer is part of the company's strategy to issue new senior secured bonds [1] - The company has provided contact information for its Dealer Managers and key executives for further inquiries [3]
ZETADISPLAY CONTEMPLATES ISSUANCE OF SENIOR SECURED BONDS AND ANNOUNCES CONDITIONAL TENDER OFFER FOR ITS OUTSTANDING 2023/2026 BONDS
Globenewswire· 2025-03-14 06:30
Core Viewpoint - ZetaDisplay AB is planning to issue new senior secured floating rate bonds amounting to SEK 500,000,000 to refinance existing debt, fund potential acquisitions, and finance general corporate purposes [1][2]. Group 1: Bond Issuance - The company has mandated Pareto Securities and Nordea to arrange investor meetings starting March 17, 2025, to explore the issuance of new bonds [1]. - The new bonds will have a tenor of 3 years and are subject to market conditions [1]. Group 2: Tender Offer - ZetaDisplay is offering holders of its existing bonds to tender their bonds for purchase at a price of 102.325% plus accrued and unpaid interest [3]. - The tender offer will expire upon the close of the book building process for the new bonds unless extended or terminated by the company [3][4]. Group 3: Settlement and Redemption - Settlement of the tender offer is expected to occur approximately ten business days after the expiration date, potentially on the same day as the settlement of the new bonds [4]. - The company will issue a notice of voluntary early redemption for any existing bonds not repurchased in the tender offer at the prevailing call price of 102.325% plus accrued and unpaid interest [4].
Year end report 2024
Globenewswire· 2025-02-28 07:00
Core Insights - ZetaDisplay AB reported a strong performance in Q4 2024, with net sales increasing to SEK 172.8 million, a rise from SEK 150.0 million in the previous year, reflecting a growth of 15.2% [2][3] - Recurring revenue also saw significant growth, rising by 16.8% to SEK 65.8 million, which constitutes 38.1% of net sales [2][3] - The adjusted EBITDA for the quarter increased to SEK 26.9 million, showcasing effective scaling and cost control [2][3] Financial Performance - Adjusted recurring revenue increased by 16.8% to SEK 65.8 million from SEK 56.3 million [3] - Recurring revenue rose by 9.7% to SEK 65.8 million compared to SEK 60.0 million [3] - Adjusted net sales increased by 15.2% to SEK 172.8 million from SEK 150.0 million [3] - Gross margin improved to 53.4%, up from 50.8% in the previous year [3] - Adjusted gross margin increased to 55.4%, compared to 43.5% [3] - Adjusted EBITDA rose to SEK 26.9 million from SEK 15.0 million [3] Strategic Developments - In early 2025, ZetaDisplay signed an exclusive framework agreement with Ruter for a digital signage upgrade across Oslo's transit network [5] - A multi-year global framework agreement was renewed with a key retail customer, reinforcing long-term client trust [5] - A new framework agreement was established with Hyundai in Germany, expanding ZetaDisplay's presence in the DACH automotive sector [5] - The integration of Beyond Digital Solutions Ltd in the UK is progressing, with a focus on replacing third-party software with proprietary solutions [5][6] Market Position and Outlook - The company is focusing on high-quality recurring revenue and operational efficiencies to drive profitable growth [3][8] - The Liveqube audio solutions service has gained traction, achieving a record number of new licenses in December [6] - ZetaDisplay's proprietary software, The Engage suite, continues to receive investment, enhancing its competitive edge [7] - The company aims to streamline operations under a unified structure to support sustainable scaling and customer engagement [8]
ZETA(ZETA) - 2024 Q4 - Earnings Call Transcript
2025-02-27 03:36
Financial Data and Key Metrics Changes - In Q4 2024, the company achieved record revenue of $315 million, representing a 50% year-over-year increase, and record adjusted EBITDA of $70 million, up 57% year-over-year, both exceeding guidance [10][30] - For the full year 2024, revenue surpassed $1 billion, up 38% year-over-year, and adjusted EBITDA was $193 million, reflecting a 49% increase year-over-year [38][30] - The company reported a GAAP net income of $15.2 million in Q4, marking its first positive net income as a public company [38] Business Line Data and Key Metrics Changes - The scaled customer count grew to 527, a 17% increase year-over-year, with a quarterly ARPU of $577,000, up 27% year-over-year [31][33] - Super-scaled customers increased to 148, up 13% year-over-year, with the number of brands spending at least $1 million increasing by 28% year-over-year [32][33] - The direct revenue mix in Q4 rose to 74%, up from 70% in Q3, indicating a shift towards more direct sales [34] Market Data and Key Metrics Changes - Seven of the top ten industries served by the company grew faster than 20% year-over-year, with automotive, consumer and retail, insurance, political and advocacy, and technology and media leading the growth [34] - The dollar value of RFPs reached a record high, up nearly 40% year-over-year, with total pipeline growth of almost 60% [12] Company Strategy and Development Direction - The company aims to achieve over $2 billion in annual revenue by 2028, targeting a 20% organic revenue CAGR from 2024 to 2028 [10][41] - The Zeta 2028 plan includes adjusted EBITDA margin improvement of 580 basis points to at least 25% and free cash flow margin expansion of 700 basis points to at least 16% [11][51] - The company is focusing on an all-in-one marketing platform with AI and data at its core, enhancing customer experiences and driving efficiency [12][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's resilience against macroeconomic challenges, noting no significant client issues [63] - The company anticipates continued strong growth in 2025, guided by a robust pipeline and the successful integration of LiveIntent [54][64] - Management highlighted the foundational role of AI in their platform, with significant adoption and revenue growth driven by AI products [21][19] Other Important Information - The company completed the integration of LiveIntent ahead of schedule, launching the Zeta Direct product, which combines LiveIntent's network with Zeta's Data Cloud [24] - The company has been proactive in addressing allegations from a short seller report, with independent reviews confirming the integrity of its accounting practices [37][38] Q&A Session Summary Question: Can you discuss the macro environment and demand-centric spending for Q1 and 2025? - Management indicated good visibility into Q1 and noted that they have incorporated conservatism into their guidance to account for macroeconomic factors [61][62] Question: What are the initial use cases and adoption feedback for LiveIntent? - Management reported positive initial feedback and highlighted the potential for ARPU growth through new product offerings [66][67] Question: Can you elaborate on the agency business and its growth potential? - Management noted that agencies are increasingly moving brands to Zeta due to profitability and competitive pricing, providing confidence in future growth [72][74] Question: How does Zeta plan to increase wallet share among existing customers? - Management emphasized the importance of the One Zeta initiative and the goal to capture a larger share of customer marketing spend over time [80][81] Question: What is the competitive landscape like, especially with larger players like Meta? - Management stated that they have not seen significant competition from larger players and continue to grow their partnership with Meta [96][100] Question: How is the agency business expected to evolve in the 2028 model? - Management anticipates that the agency business will become a larger part of revenue as they continue to grow their brand strategies [115]
ZETA(ZETA) - 2024 Q4 - Earnings Call Presentation
2025-02-27 00:51
Supplemental 4Q'24 & FY'24 Earnings Presentation February 25, 2025 Forward-looking statements and non-GAAP measures This presentation, together with other statements and information publicly disseminated by the Company, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for for ...
ZETA(ZETA) - 2024 Q4 - Annual Report
2025-02-26 13:00
Data and Technology - Zeta's data set includes over 245 million individuals in the U.S. and more than 535 million globally, with an average of over 2,500 attributes per individual [26]. - The Zeta Marketing Platform (ZMP) processes over one trillion content consumption signals per month, synthesizing this data into hundreds of intent-based audiences [26]. - Zeta's Agile Intelligence suite synthesizes trillions of behavioral signals into intent-based scores, enhancing targeting precision across channels [35]. - The integration of LiveIntent's identity graph improves identity resolution technology, expanding the size and scope of the Data Cloud [30]. - The ZMP enables brands to personalize experiences at scale, optimizing marketing spend to increase return on investment [21]. - The company has a patent portfolio of over 130 U.S. and international patents, focusing on machine learning and AI, which enhances efficiency and user experience [69]. - The company aims to differentiate itself through AI-powered marketing solutions and better integration of products into enterprise ecosystems [52]. Financial Performance - For the year ended December 31, 2024, the company generated revenues of $X million from various industry verticals, with the largest contributions from consumer & retail (22%), insurance (10%), telecommunications (9%), financial services (8%), and business services (7%) [50]. - As of December 31, 2024, the company had 1,793 total customers, including 527 scaled customers and 148 super-scaled customers, compared to 1,242 total customers, 452 scaled customers, and 131 super-scaled customers as of December 31, 2023 [50]. - 98% of the company's revenue for the year ended December 31, 2024, was derived from scaled customers, defined as those generating at least $100,000 in trailing-12-month revenue [50]. - The company anticipates continued seasonal trends in marketing activity, with higher revenues typically occurring in the fourth quarter due to the holiday shopping season [57]. - The company expects to experience higher revenues in presidential election years due to cyclicality in political activity [58]. - The company’s top ten customers accounted for more than one-third of total revenue in 2024, with no single customer exceeding 10% of total revenue [77]. Market Strategy and Growth - Zeta aims to further penetrate its existing customer base by cross-selling solutions and capturing a larger share of marketing spend [38]. - The company plans to expand into international markets, particularly in select regions in Europe [42]. - Zeta continues to invest in product innovation with over 500 data scientists and engineers dedicated to developing new solutions [40]. - The company is expanding its international operations, which may require significant management attention and financial resources, with inherent risks involved [106]. Risks and Challenges - The company is subject to evolving data privacy laws, including the California Consumer Privacy Act and the General Data Protection Regulation, which may impact its operations [60][61]. - A significant portion of the company's revenue is derived from usage-based pricing, which is less stable than subscription-based pricing, posing risks to revenue growth if scaled customers reduce their usage [78]. - The company experiences long sales cycles, making it difficult to project when new customers will generate revenue, which can impact financial forecasting [79]. - Payment-related risks exist if customers dispute invoices or decrease spending due to financial downturns, potentially leading to material adverse effects on the company's financial condition [82]. - The company may incur write-offs for bad debt if it fails to collect customer fees on time, which could adversely impact operating results [83]. - Operating results may fluctuate due to seasonal marketing activity, particularly higher revenues during the fourth quarter and election years, complicating future performance predictions [84]. - The company's usage-based pricing model complicates revenue forecasting from current customers and future prospects, leading to potential revenue volatility [85]. - The competitive landscape requires continuous innovation and investment in product offerings to maintain market share and revenue growth [89]. - The company faces risks related to data collection and security, which could harm operating results if regulatory restrictions limit data collection capabilities [117]. - The effectiveness of the company's platform relies on the ability to collect and use online data, which is threatened by consumer technologies that limit data tracking [118]. - The company is dependent on third-party data suppliers, and any withdrawal of data could materially impact its ability to provide products and result in decreased revenues [119]. - The company acknowledges the risks associated with catastrophic events, which could adversely affect business operations and financial condition [110]. - The company is subject to increasing regulatory scrutiny in the technology industry, which could lead to legal actions and penalties affecting business operations [115]. - The company faces significant compliance challenges due to evolving data protection laws, which could adversely affect its operations and financial condition [121]. - The cost of compliance with data protection laws is high and expected to increase, potentially impacting the company's financial performance [121]. - The company is subject to the EU GDPR and UK GDPR, with penalties for noncompliance reaching up to €20 million or 4% of annual global revenues, whichever is greater [126]. - Increased scrutiny from data protection authorities may lead to additional costs and regulatory investigations, affecting the company's ability to provide services [127]. - The company collects extensive consumer data, which is critical for its advertising services, but evolving regulations may restrict data collection and usage [135]. - The company has faced negative publicity regarding its data collection practices, which has previously impacted the price of its Class A Common Stock [134]. - New opt-out mechanisms may lead to a higher number of consumers opting out of data usage for marketing, potentially reducing the company's access to consumer data [125]. - The company is subject to various consumer protection laws, including the TCPA, which impose significant restrictions on telemarketing practices [123]. - Future FTC enforcement actions could have material impacts on the company's business practices and financial results [122]. - The company must navigate complex international data transfer regulations, which could affect its operational capabilities and financial outcomes [127]. - Company faces significant cybersecurity risks, including potential data breaches that could harm its reputation and financial performance [137]. - Employee-related risks are heightened due to remote working arrangements, increasing the likelihood of cybersecurity incidents [138]. - Company relies on third-party data centers and technology vendors, making it vulnerable to disruptions that could adversely affect operations and financial condition [140]. Corporate Governance and Compliance - The company is classified as a "controlled company" under NYSE rules, allowing it to rely on exemptions from certain corporate governance requirements [194]. - The dual class structure allows Class B Common Stock to have ten votes per share, while Class A Common Stock has one vote per share, limiting influence of other stockholders [196]. - The company’s amended and restated certificate of incorporation includes anti-takeover provisions that could delay or prevent changes in control, potentially affecting stock price [197][199]. - The board of directors is permitted to issue up to 200,000,000 shares of preferred stock, with rights and privileges designated by the board [198]. - The company is involved in various legal proceedings but does not believe any current litigation will materially affect its business or financial condition [217]. - The company is cooperating with SEC investigations related to a previous business partner, Kubient, which is deemed quantitatively insignificant to its operations [218]. - A class action lawsuit has been filed against the company and its executives, alleging false and misleading statements about business operations and prospects [219]. Financial Obligations and Capital Structure - The company has $200.0 million outstanding under its Senior Secured Credit Facility, which restricts various business activities without lender consent, including asset sales and incurring additional indebtedness [171]. - Interest rate fluctuations could materially affect the company's financial condition, as a substantial portion of its debt is variable-rate [169]. - The company may need additional capital in the future to meet financial obligations and pursue business objectives, which may not be available on favorable terms [170]. - The company anticipates spending substantial funds to satisfy tax withholding obligations associated with the vesting of executive restricted stock awards, which may adversely affect financial condition [182]. - The company faces risks related to tax liabilities that may exceed expectations due to changing tax laws and potential audits by tax authorities [175]. - The company’s ability to comply with financial covenants in its Senior Secured Credit Facility may be affected by events beyond its control, potentially leading to defaults and immediate repayment of outstanding indebtedness [174]. Human Capital and Culture - The company has 2,191 employees as of December 31, 2024, with a significant portion located outside the U.S. [63]. - Retaining key management and hiring skilled personnel is critical for the company's success, with intense competition for talent in the industry [99]. - The company emphasizes the importance of corporate culture and plans to invest in human capital initiatives to drive inclusiveness and innovation [101]. - The company incurs substantial stock-based compensation expenses due to its equity compensation plan, impacting future financial performance [100]. Cybersecurity and Risk Management - The company has implemented a cybersecurity risk management program, assessed by third-party auditors annually [207][210]. - The management team responsible for cybersecurity includes experienced professionals with relevant certifications and educational backgrounds [213]. - Significant investments are being made in AI technologies to enhance business effectiveness, with expectations for future investment increases [148]. - The market for AI-integrated products is rapidly evolving, and assumptions about market characteristics may be inaccurate, posing risks to business growth [151]. - Company may face legal claims and regulatory investigations if it fails to detect or prevent fraud or malware on its platform, impacting business operations [142]. - Changes in email regulations and standards could limit the effectiveness of the company's marketing efforts, adversely affecting revenue [147]. - Company is at risk of having its IP addresses blacklisted due to customer messaging practices, which could undermine email delivery effectiveness [145]. - Dependence on third-party AI technologies may pose risks if access or pricing changes, potentially harming the company's solutions and reputation [152]. - Cybersecurity threats are expected to increase in frequency and sophistication, complicating the company's ability to protect its IT systems [137]. - The evolving regulatory landscape for artificial intelligence (AI) may adversely affect the company's business and financial condition, with potential compliance costs and operational changes [153]. - The EU AI Act, effective August 1, 2024, will impose requirements on AI use, including fines of up to 7% of worldwide annual turnover for breaches, impacting the company's operations in the EU [155].