Financial Data and Key Metrics Changes - In Q3 2025, revenue reached $337 million, representing a 28% year-over-year increase when excluding political and LiveIntent contributions, marking an acceleration from Q2's growth rate [5][15] - Adjusted EBITDA was $78 million, up 46% year-over-year, with a margin of 23.2%, reflecting a 320 basis point improvement [5][18] - Free cash flow was $47 million, up 83% year-over-year, achieving a margin of 14%, the highest in the company's history [5][19] Business Line Data and Key Metrics Changes - Total scaled customer count grew to 572, a 20% year-over-year increase, with 180 super scaled customers, up 25% year-over-year [15][16] - Quarterly revenue per user (RPU) for scaled customers was $579,000, a 4% increase year-over-year, while super scaled customer RPU was $1.6 million, up 1% year-over-year [16] Market Data and Key Metrics Changes - Seven of the top ten verticals grew faster than 20% year-over-year, with notable growth in telecom, consumer discretionary sectors like retail, travel, hospitality, and automotive [17] - The direct mix in Q3 was 75%, consistent with Q2 and up from 70% in the previous year, indicating successful agency direct channel adoption [17] Company Strategy and Development Direction - The company is focused on AI-powered marketing, with the launch of Athena, an AI conversational agent designed to enhance client interactions and operational efficiency [8][10] - The acquisition of Marigold's enterprise software business is expected to enhance data capabilities and accelerate growth, with a completion target by the end of the year [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a record pipeline and raised 2025 revenue guidance by $11 million, anticipating continued organic growth [7][22] - The company aims for durable, predictable, and profitable growth, with a target of over $100 million in incremental business from Zeta Live [8][41] Other Important Information - The company achieved the highest free cash flow margin in its history and is on track to meet long-term targets for Adjusted EBITDA margin and free cash flow conversion by 2030 [20][24] - The company repurchased 1.7 million shares for $28 million in Q3, continuing efforts to reduce dilution and stock-based compensation [20][21] Q&A Session Summary Question: How does Zeta's ROI compare to walled gardens? - Management stated that Zeta's platform provides a 6x return on investment, putting it on par with walled gardens, and clients are seeking new methodologies for customer acquisition [29][30] Question: What is the target for incremental business after Zeta Live? - Last year, the company closed $57 million in business post-Zeta Live and aims for $100 million this year, with a strong pipeline already in place [41][42] Question: How is the integration of LiveIntent performing? - Management expressed satisfaction with LiveIntent's performance, noting that they are accruing at 100% of their earnout and seeing new product synergies [44][45] Question: How will Athena impact cross-selling? - Athena is expected to drive significant cross-selling opportunities by simplifying client interactions and enabling easier access to multiple use cases [48][49] Question: What is the outlook for the replacement cycle opportunity? - The replacement cycle is at full scale, with an increase in RFP activity, and the company is well-positioned to capture this opportunity [80][81]

Financial Data and Key Metrics Changes - In Q3 2025, revenue reached $337 million, representing a 28% year-over-year increase when excluding political and LiveIntent contributions, marking an acceleration from Q2's growth rate of 27% [4][14] - Adjusted EBITDA was $78 million, up 46% year-over-year, with a margin of 23.2%, reflecting a 320 basis points improvement [4][18] - Free cash flow was $47 million, up 83% year-over-year, achieving a margin of 14%, the highest free cash flow margin in the company's history [4][19] - The company raised its 2025 revenue guidance by $11 million to a midpoint of $1.275 billion, indicating a 26% year-over-year growth when excluding political and LiveIntent [23] Business Line Data and Key Metrics Changes - The total scaled customer count grew to 572, a 20% increase year-over-year, with 180 super scaled customers, up 25% year-over-year [16] - Quarterly revenue per user (RPU) for scaled customers was $579,000, a 4% increase year-over-year, while super scaled customer RPU was $1.6 million, up 1% year-over-year [16] Market Data and Key Metrics Changes - Seven of the top ten verticals grew faster than 20% year-over-year, with telecom being a notable sector that achieved over 20% growth for the first time [17][62] - Consumer discretionary sectors such as retail, travel, hospitality, and automotive also showed strong growth, contributing to the overall positive market performance [17][63] Company Strategy and Development Direction - The company aims to close over $100 million in incremental business following the Zeta Live event, which was its most successful event to date, with a 35% increase in attendance [5][6] - The launch of Athena, an AI conversational agent, is expected to enhance customer engagement and streamline operations, positioning the company as a leader in AI-powered marketing [6][9] - The acquisition of Marigold's enterprise software business is anticipated to further strengthen the company's data capabilities and market position [12][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing a strong pipeline and positive customer feedback from Zeta Live [5][34] - The company is optimistic about achieving its long-term targets of a 30% plus Adjusted EBITDA margin and greater than 70% free cash flow conversion by 2030 [20] - Management highlighted the importance of AI integration in driving customer retention and acquisition strategies, particularly in a competitive landscape [9][62] Other Important Information - The company reported a GAAP net loss of $3.6 million for Q3, an improvement from a loss of $17.4 million in the same quarter last year, with acquisition-related expenses impacting profitability [18][19] - The company has maintained zero net dilution in stock compensation for the third quarter, with a year-to-date dilution of 1.6% [20] Q&A Session Summary Question: How does Zeta's ROI compare to walled gardens? - Management stated that Zeta's platform delivers a 6X return on investment, putting it on par with major competitors in the media space [28][29] Question: What is the target for incremental business after Zeta Live? - The target is $100 million, with a strong pipeline already in place to potentially exceed this figure [34] Question: How is the integration of LiveIntent performing? - Management expressed satisfaction with the integration, noting that it is accruing at 100% of its earnout and generating new product synergies [36] Question: How will Athena impact cross-selling opportunities? - Athena is expected to significantly enhance cross-selling capabilities by providing a seamless, voice-activated interface for clients [38] Question: What is the outlook for the telecom vertical? - The telecom sector is experiencing accelerated growth, with Zeta displacing major marketing clouds, indicating strong momentum in this market [62]

Q3 2025 Financial Performance - Revenue reached $337 million, a 26% year-over-year increase[7] - Adjusted EBITDA grew by 46% year-over-year to $78 million, with a margin of 232%, a 320 bps improvement[7] - Cash from Operations increased by 68% year-over-year to $58 million[7] - Free cash flow grew by 83%[8] Customer Growth and ARPU - Total scaled customers increased by 20% year-over-year to 572, while super-scaled customers grew by 25% to 180[10] - Scaled customer ARPU increased to $579,000, a 4% year-over-year growth[10] - Super-scaled customer ARPU remained at $16 million[10] Guidance and Future Targets - The company is raising FY25 revenue guidance to $1275 million and adjusted EBITDA guidance to $2737 million[8,38] - Initial FY26 revenue guidance is set at $1540 million, representing a 21% year-over-year growth[8,46] - The company targets $21 billion+ in revenue, $525 million+ in adjusted EBITDA, and $340 million+ in free cash flow by 2028[34] Data and Technology - US Individuals Providing Permission to Online Tracking by Agreeing to Publisher Terms of Service is 245M[108] - US Individuals Providing Permission to Email via Opt-in Action is 110M[108]

Financial Performance - Revenue for Q3 2025 reached $337 million, a 26% year-over-year increase, exceeding guidance by $9 million[6] - Net cash provided by operating activities was $58 million, up 68% year-over-year, with a margin of 17%[6] - Free cash flow for Q3 2025 was $47 million, representing an 83% year-over-year increase and a record margin of 14%[6] - Revenue for Q3 2025 was $337,169,000, representing a 25.7% increase from $268,295,000 in Q3 2024[32] - Total revenues for the nine months ended September 30, 2025, reached $910,030,000, up from $691,081,000 in the same period of 2024, marking a 31.7% growth[32] - Free cash flow for the nine months ended September 30, 2025, was $134,767,000, compared to $90,178,000 in 2024, indicating improved cash generation[34] - Net loss for Q3 2025 was $3,634 million, compared to a net loss of $17,375 million in Q3 2024, reflecting an improvement in net loss margin from (6.5)% to (1.1)%[38] - Adjusted EBITDA for Q3 2025 reached $78,057 million, up from $53,595 million in Q3 2024, resulting in an adjusted EBITDA margin increase from 20.0% to 23.2%[38] - Free Cash Flow for the nine months ended September 30, 2025, was $108,881 million, significantly higher than $60,653 million for the same period in 2024[38] Customer Growth - The number of Super Scaled Customers grew to 180, an increase of 12 customers quarter-over-quarter, and up 25% year-over-year[6] - The number of scaled customers generating at least $100,000 in revenue is a key metric for revenue growth, although specific numbers were not disclosed[24] Guidance and Future Outlook - Full year 2025 revenue guidance increased to a range of $1,273 million to $1,276 million, reflecting a year-over-year growth rate of 27%[13] - Adjusted EBITDA for full year 2025 is now guided to a range of $273.2 million to $274.1 million, representing a year-over-year growth rate of 42%[13] - Free cash flow guidance for full year 2025 increased to a range of $156.9 million to $157.9 million, indicating a year-over-year growth rate of 70% to 71%[13] - Initial guidance for 2026 anticipates a sixth consecutive year of revenue growth over 20%[6] Acquisitions and Investments - The company plans to close the acquisition of Marigold's enterprise software business in Q4 2025, with future guidance to include its contribution[4] - Capital expenditures for Q3 2025 were $5,473 million, compared to $4,893 million in Q3 2024, indicating increased investment in growth initiatives[38] - The company incurred acquisition-related expenses of $6,482 million in Q3 2025, up from $4,583 million in Q3 2024, reflecting ongoing strategic acquisitions[38] Stock and Cash Management - A new stock repurchase program of up to $200 million was authorized, with $199 million remaining available as of September 30, 2025[11] - The company’s cash and cash equivalents increased to $385,184,000 as of September 30, 2025, from $366,157,000 at the end of 2024[30] - The effect of exchange rate changes on cash and cash equivalents for the nine months ended September 30, 2025, was a negative $216 million, compared to a positive $43 million in 2024[38] - Stock-based compensation for the nine months ended September 30, 2025, totaled $134,090 million, down from $151,974 million in the same period of 2024[38] Assets and Liabilities - Total current assets increased to $689,061,000 as of September 30, 2025, up from $616,540,000 at the end of 2024[30] - Total assets as of September 30, 2025, were $1,150,767,000, compared to $1,111,373,000 at the end of 2024[30] - The company’s total liabilities were $461,561,000 as of September 30, 2025, compared to $434,572,000 at the end of 2024, reflecting an increase in financial obligations[30]

Group 1 - The core argument is that Zeta Global's identity-first, AI-native architecture is transforming the marketing automation industry by focusing on measurable, lower-funnel outcomes rather than hype [1] - The company is positioned in sectors that are often overlooked, such as technology, fintech, and industrials, which have scalable economics and strong reinvestment potential [1] - Zeta Global is seen as a misunderstood company with the potential to surprise the market over time, particularly when trading below intrinsic value [1] Group 2 - The analysis emphasizes the importance of a disciplined investment framework built through years of research and market observation [1] - The focus on inflection-point investing highlights the strategy of identifying stocks with high upside potential while managing downside risk [1]

Core Insights - AI stocks experienced a significant decline due to renewed fears of a U.S.-China trade war, triggered by President Trump's announcement of potential severe tariffs on China [1] Market Reaction - The market reaction occurred at 11 a.m. ET, indicating a swift response to geopolitical tensions [1] Implications for Investors - The announcement may lead to increased volatility in AI stocks and broader market conditions, as trade relations between the U.S. and China are critical for many sectors [1]

Core Insights - Zeta Global Holdings Corp. has been one of the top-performing mid-cap tech stocks over the past three years, driven by consistent revenue growth, expanding data assets, and increasing adoption of its AI-driven marketing cloud [1][2] - Canaccord Genuity has reiterated a Buy rating on Zeta and raised its price target from $28 to $30 following the announcement of Zeta's acquisition of Marigold, a marketing software provider [1][2] Financial Performance - The Marigold acquisition is expected to close by late Q4 2025 and is projected to contribute approximately $190 million in incremental annual revenue and $30–35 million in adjusted EBITDA once fully integrated [2] Competitive Advantage - Zeta Global possesses a competitive edge through its first-party data, an embedded customer data platform, and integrated omnichannel marketing tools, which help differentiate it in the competitive martech landscape [2][3]

Group 1 - The article discusses the investment strategy of a boutique family office fund led by Amrita, focusing on sustainable, growth-driven companies that aim to maximize shareholder equity [2] - Amrita has a background in high-growth supply-chain start-ups and has worked with venture capital firms, enhancing her expertise in user acquisition and investment portfolios [2] - The fund's objective is to democratize financial literacy and simplify complex macroeconomic concepts for better understanding among investors [2] Group 2 - Amrita's newsletter, The Pragmatic Optimist, has been recognized as a top finance newsletter and aims to provide insights on portfolio strategy, valuation, and macroeconomics [2] - The article emphasizes the importance of breaking down financial jargon to empower investors and improve their decision-making processes [2]

Core Insights - The company is focused on enhancing adjusted EBITDA margins and free cash flow margins while maintaining an organic revenue growth rate of at least 20% [2] - The theme of the Investor Day is driven by feedback from stakeholders, emphasizing the importance of durability in proprietary data and competitive advantages [2][3] Financial Performance - The company aims to demonstrate new financial metrics that support both past performance and future expectations [2] - There is a strong emphasis on the predictability of business returns on investment (ROI) generated for customers [3] Strategic Focus - The company highlights three main areas of focus: durability of proprietary data, competitive advantages, and revenue growth rates [3] - Consistency in delivering value to customers is a key aspect of the company's strategy [3]

AI Integration and Business Impact - Zeta Global integrated AI natively into its marketing platform, starting in 2017, giving them a head start compared to companies that began more recently [1][2] - Zeta Global uses AI to process trillions of signals about individuals to predict their next actions, such as buying a new credit card or churning off a wireless platform [3] - For every dollar an enterprise client spends using Zeta Global's AI and software, they see a return of $5 to $7 in revenue [4] - Zeta Global aims to increase the return on investment for clients to $10 for every dollar spent through their platform [5] Competitive Advantage and Technology - Zeta Global owns one of the world's largest data clouds, providing them with first-party data, unlike competitors who rely on third-party data [8] - Zeta Global re-architected its marketing platform in 2021, integrating AI and data at the core application layer, reducing latency and improving ROI [9][10][11] - Zeta Global's platform can make decisions in a millisecond, leading to substantially better return on investment for clients [11] Financial Performance and Future Outlook - Zeta Global has consistently beaten and raised its guidance for 16 consecutive quarters [6][7] - Zeta Global is among a small group of technology companies (8 out of 512) that have grown at an organic compounded growth rate of over 20% for four years while increasing operating margin each year [7] - Zeta Global acquired Marold's enterprise business, including a loyalty platform, for $325 million, enabling them to ingest skew level data [4][5]