Financial Data and Key Metrics Changes - In Q4 2024, Zeta Global 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, with adjusted EBITDA of $193 million, 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, up 17% year-over-year, with super-scaled customers increasing by 13% to 148 [31][32] - Quarterly ARPU for scalable customers reached $577,000, a 27% increase year-over-year [33] - Net revenue retention for the year was 114%, up from 111% in 2023, indicating strong customer loyalty [33] Market Data and Key Metrics Changes - Seven of the top ten industries served by Zeta 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 direct revenue mix in Q4 climbed to 74%, up from 70% in Q3 2024 [35] Company Strategy and Development Direction - Zeta's strategy focuses on becoming an all-in-one marketing platform with AI and data at its core, aiming for over $2 billion in annual revenue by 2028 [10][11] - The Zeta 2028 plan targets a 20% organic revenue CAGR and adjusted EBITDA margin improvement to at least 25% [11][41] - The company emphasizes the importance of AI in driving both efficiency and revenue growth, with significant investments made over the past seven years [19][21] 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 performance in 2025, guided by a conservative approach to macro trends and a robust pipeline [61][62] Other Important Information - Zeta 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 seen a surge in AI adoption, with a nearly 200% sequential growth in AI agent usage in Q4 [20] 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 expects strong performance from verticals that contributed to growth in 2024, while being aware of inflation and tariffs [61][62] Question: What are the initial use cases and adoption feedback for LiveIntent? - Management noted that the integration has shown increased ROI for marketers and higher revenue for publishers, indicating strong initial adoption [66] Question: Can you elaborate on the agency business and its growth potential? - Management highlighted that Zeta is the most profitable partner for agencies, leading to increased brand volume and confidence in growth projections [72][74] Question: How does Zeta plan to increase wallet share from existing customers? - Management emphasized the One Zeta initiative, which consolidates use cases into one sale, aiming to increase penetration from 1% to 2% of customer marketing spend [80] Question: What is the outlook for competition in the market? - Management stated that they are not seeing significant competition from major players like Meta and Google, and have maintained strong partnerships with them [96][100] Question: How does Zeta view the role of agencies in the 2028 model? - Management expects agencies to play a larger role in revenue growth, with ongoing improvements in direct channel adoption [115]

Core Insights - Zeta Global Holdings reported quarterly earnings of $0.20 per share, missing the Zacks Consensus Estimate of $0.23 per share, but showing an increase from $0.17 per share a year ago, resulting in an earnings surprise of -13.04% [1] - The company achieved revenues of $314.67 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 6.66% and up from $210.32 million year-over-year [2] - Zeta has surpassed consensus revenue estimates four times over the last four quarters, indicating a strong revenue performance [2] Future Outlook - The sustainability of Zeta's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3] - The current consensus EPS estimate for the upcoming quarter is $0.12 on revenues of $261.85 million, and for the current fiscal year, it is $0.78 on revenues of $1.22 billion [7] - The estimate revisions trend for Zeta is mixed, currently resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Technology Services industry, to which Zeta belongs, is currently ranked in the top 31% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - In Q4 2024, the company generated record revenue of $315 million, up 50% year over year, with record adjusted EBITDA of $70 million, up 57% year over year, both exceeding guidance [7][21][28] - For the full year 2024, revenue was just above $1 billion, up 38% year over year, exceeding initial guidance by 15% [21][28] - Adjusted EBITDA for 2024 was $193 million, representing a margin of 19.2%, a 49% increase year over year [28] - The company achieved positive GAAP net income for the first time as a public company in Q4 2024, with net income of $15.2 million [28] Business Line Data and Key Metrics Changes - The dollar value of RRFPs reached a record high, up close to 40% year over year, with total pipeline growth of almost 60% [9] - Scaled customer count grew to 527 as of December 31, 2024, up 17% year over year [22] - Quarterly ARPU for scaled customers was $577,000, up 27% year over year [23] Market Data and Key Metrics Changes - In 2024, 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 growing the fastest [23] Company Strategy and Development Direction - The company aims to achieve over $2 billion in annual revenue by 2028, with a target of 20% organic revenue CAGR between 2024 and 2028 [7][30] - The Zeta 2028 plan includes creating new Gen AI capabilities, leveraging publisher cloud relationships, and extending vertical expertise [31][32] - The company emphasizes the importance of AI as foundational to its platform, with significant investments made over the past seven years [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's momentum and the opportunity ahead, stating that the business has never been stronger [8] - The company is aware of macroeconomic challenges but has not seen any negative impacts from clients, maintaining a positive outlook for 2025 [46][47] - Management highlighted that AI adoption surged in 2024, with a 200% sequential growth in AI agent usage in Q4 [13][64] Other Important Information - The company completed the LiveIntent integration ahead of schedule, which is already delivering incremental value to customers [16] - The audit committee conducted a review of allegations from a short seller report, confirming that accounting practices were consistent with U.S. GAAP and that the allegations were without merit [27][90] Q&A Session Summary Question: Thoughts on macro environment and demand-centric spending for Q1 and 2025 - Management indicated good visibility into Q1 and expects strong performance from verticals that contributed to growth in 2024, while accounting for macroeconomic factors [44][46] Question: Initial customer feedback on LiveIntent integration and long-term ARPU expansion - Management noted that ARPU growth is already being experienced and highlighted the success of the Zeta Direct product in increasing ROI for marketers [48][49] Question: Insights on agency business and visibility into new brand pipelines - Management stated that the agency business is experiencing significant momentum, with agencies moving more brands to Zeta due to profitability advantages [53][54] Question: Depth of Zeta's involvement in creative services and potential conflicts with agencies - Management clarified that Zeta does not intend to compete with agencies in creative services but aims to optimize existing creative assets [56] Question: Strategy for increasing wallet share among large customers - Management emphasized the goal of increasing wallet share from 1% to 2% of customer marketing spend, with existing enterprise clients already exceeding 5% [60][61] Question: Competitive landscape and impact of larger players like Meta - Management reported no significant competition from larger players and noted a strong partnership with Meta, which has benefited Zeta [71][72] Question: Timing for pipeline conversion into revenue - Management indicated that deal cycles remain consistent, with larger deals taking 7 to 12 months to convert, but overall confidence in business growth remains high [76][79] Question: Update on mobile product growth and revenue potential - Management expressed optimism about mobile becoming a significant revenue driver by 2026, with current growth rates above 100% for connected television [82] Question: Role of agencies in the 2028 growth model - Management expects agencies to play a larger role in revenue growth, with ongoing improvements in direct channel adoption [87]

Revenue Growth - Total revenue for Q4 2024 was $315 million, representing a 50% year-over-year increase[4] - Full year 2024 revenue reached $1,006 million, up 38% year-over-year[9] - Revenues for Q4 2024 reached $314,673,000, a 49.5% increase from $210,320,000 in Q4 2023[27] - Total revenues for the year ended December 31, 2024, were $1,005,754,000, up 37.9% from $728,723,000 in 2023[27] - The company is guiding for a sixth consecutive year of 20%+ revenue growth[4] - The Zeta 2028 plan targets over $2 billion in annual revenue by 2028[2] Customer Metrics - Scaled Customer count increased by 17% year-over-year to 527, while Super-Scaled Customer count rose by 13% to 148[5] - Scaled Customer ARPU grew 19% year-over-year to $1.87 million, and Super-Scaled Customer ARPU increased 26% to $5.71 million[9] - The number of super-scaled customers generating at least $1,000,000 in revenue is a key metric for revenue growth[20] Profitability - GAAP net income for Q4 2024 was $15 million, compared to a net loss of $35 million in Q4 2023[5] - The company reported a net income of $15,236,000 for Q4 2024, reversing a net loss of $35,281,000 in Q4 2023[27] - Net loss for the year ended December 31, 2024, was $69,771 thousand, an improvement from a net loss of $187,481 thousand in 2023[29] - Adjusted EBITDA for full year 2024 was $193 million, a 49% increase from $129 million in 2023[9] - Adjusted EBITDA for Q4 2024 was $6,922,000, compared to a loss of $31,859,000 in Q4 2023[27] - Adjusted EBITDA for the year ended December 31, 2024, was $193,022 thousand, compared to $129,393 thousand in 2023, reflecting a margin increase from 17.8% to 19.2%[32] Cash Flow and Financial Health - Cash flow from operating activities was $44 million in Q4 2024, up from $27 million in Q4 2023[5] - Free Cash Flow for full year 2024 was $92 million, compared to $55 million in 2023[9] - Net cash provided by operating activities for the year ended December 31, 2024, was $133,861 thousand, up from $90,523 thousand in 2023[32] - Free cash flow for the year ended December 31, 2024, was $92,321 thousand, significantly higher than $54,519 thousand in 2023[32] - Cash and cash equivalents increased to $366,157,000 as of December 31, 2024, from $131,732,000 in 2023[25] - The net increase in cash and cash equivalents for the year was $234,425 thousand, compared to an increase of $10,622 thousand in 2023[29] Assets and Equity - Total assets grew to $1,111,373,000 in 2024, up from $550,714,000 in 2023, reflecting a 101% increase[25] - The company’s total stockholders' equity increased to $676,801,000 in 2024, compared to $180,520,000 in 2023[25] Capital Expenditures and Investments - Capital expenditures for the year ended December 31, 2024, totaled $25,727 thousand, compared to $20,483 thousand in 2023[29] - The company reported a net cash used for investing activities of $97,586 thousand in 2024, compared to $54,215 thousand in 2023[29] - The company raised $228,956 thousand in equity capital during the year, with net proceeds after issuance costs[29] - Stock-based compensation for the year ended December 31, 2024, was $194,984 thousand, down from $242,881 thousand in 2023[29]

Core Viewpoint - Shareholders of Zeta Global Holdings Corp. (ZETA) who experienced financial losses are being encouraged to participate in a class action lawsuit to seek potential compensation [1] Group 1 - The class action is being organized by Levi & Korsinsky, a law firm specializing in shareholder rights [1] - The lawsuit aims to address the grievances of shareholders who lost money due to the company's performance [1] - Zeta Global Holdings Corp. is facing scrutiny from its investors following significant financial losses [1]

Core Viewpoint - A lawsuit has been filed against Zeta Global Holdings Corp. and its senior executives for potential violations of federal securities laws, following allegations regarding the legitimacy of its marketing data [1][2]. Group 1: Lawsuit Details - The lawsuit is pending in the U.S. District Court for the Southern District of New York, captioned Davoodi v. Zeta Global Holdings Corp., et al., No. 24-cv-08961 [2]. - Investors have until January 21, 2025, to request to be appointed to lead the case [2]. Group 2: Allegations Against Zeta - Zeta is accused of misrepresenting its marketing platform as being powered by the industry's largest opted-in data set [3]. - A report by Culper Research claims that Zeta's data set was generated from "consent farms," which are websites designed to collect consumer data under false pretenses [4]. - The report indicates that these consent farms contributed to 56% of Zeta's Adjusted EBITDA over the past two years, raising concerns about potential regulatory actions [4]. Group 3: Stock Market Impact - Following the allegations, Zeta's stock price experienced a significant decline, dropping 37% from $28.22 per share on November 12, 2024, to $17.76 per share on November 13, 2024 [5].

Core Viewpoint - Zeta Global Holdings Corp. investors are encouraged to secure legal counsel before the important January 21 deadline related to a securities class action lawsuit [1] Group 1 - The deadline for Zeta Global Holdings Corp. investors to act is January 21 [1] - The Rosen Law Firm, acting as national trial counsel, is urging investors to take action [1] - The class action lawsuit pertains to securities issues involving Zeta Global Holdings Corp. [1]

Group 1 - The article discusses the final deadline for a class action lawsuit against Zeta Global Holdings, indicating that affected investors have until tomorrow to take action [1] - The law firm BFA Law is mentioned as a contact for investors who believe they have lost money due to the company's actions [1]

Core Viewpoint - Rosen Law Firm is reminding investors who purchased securities of Zeta Global Holdings Corp. during the specified Class Period of the upcoming lead plaintiff deadline on January 21, 2025 [1]. Group 1: Class Action Details - Investors who purchased Zeta securities between February 27, 2024, and November 13, 2024, may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [2]. - A class action lawsuit has already been filed, and those wishing to serve as lead plaintiff must act by January 21, 2025 [3]. - Investors can join the class action by visiting the provided link or contacting the law firm directly for more information [6]. Group 2: Legal Representation - The Rosen Law Firm emphasizes the importance of selecting qualified legal counsel with a proven track record in securities class actions, highlighting their own success in recovering significant amounts for investors [4]. - The firm has been recognized for its achievements, including the largest securities class action settlement against a Chinese company at the time and being ranked highly for the number of settlements [4]. Group 3: Allegations Against Zeta Global - The lawsuit alleges that Zeta Global made false and misleading statements, including the use of two-way contracts and round trip transactions to inflate financial results [5]. - It is claimed that Zeta utilized predatory consent farms to collect user data, which significantly contributed to its growth [5]. - The misleading statements about Zeta's business operations and prospects led to investor damages when the true details were revealed [5].

Core Viewpoint - Zeta Global Holdings is facing a class action lawsuit following an 80% drop in its stock price, prompting investors with losses to contact BFA Law before the January 21 deadline for filing claims [1] Company Summary - Zeta Global Holdings' stock has experienced a significant decline of 80%, indicating severe financial distress and potential mismanagement or fraud [1] - The lawsuit suggests that investors may have been misled regarding the company's financial health, leading to substantial losses [1] Industry Context - The situation highlights the risks associated with investing in technology and data-driven companies, particularly those that may not have transparent financial practices [1] - The class action lawsuit reflects a growing trend of legal actions against companies in the tech sector, especially when stock performance drastically declines [1]