ZETA(US:ZETA)2023-02-24 13:01Customer Base and Market Penetration - The company has over 235 million opted-in individuals in the U.S. and more than 535 million globally, with an average of over 2,500 demographic and behavioral attributes per individual[26] - For the year ended December 31, 2022, 98% of the company's revenue was derived from scaled customers, defined as those generating at least $100,000 in trailing-12-month revenue[47] - The company had a total of 1,155 customers as of December 31, 2022, including 403 scaled customers and 103 super-scaled customers, which are those generating at least $1,000,000 in trailing-12-month revenue[47] - The company aims to further penetrate its existing customer base and capture increased share of scaled customers' marketing spend through new features and functionalities[36] - The company plans to acquire new scaled customers by investing in sales and customer service teams, focusing on converting scaled customers into super-scaled customers[37] Data and Technology - The Zeta Marketing Platform (ZMP) analyzes billions of structured and unstructured data points to predict consumer intent, leveraging a patented AI engine[21][27] - The company ingests over 1 trillion content consumption signals per month globally, synthesizing this data into hundreds of intent-based audiences for marketing programs[26] - The ZMP provides integrated access to a wide range of omnichannel inventory and data sources, enabling customers to engage consumers across multiple devices and platforms[27][42] - The company has a patent portfolio of over 120 U.S. and international patents, including 18 granted patents and 32 pending applications related to artificial intelligence and secure data encryption technology[68] - The company is committed to continuing innovation and developing new products, supported by over 500 data scientists and engineers[38] Market Opportunities and Competition - The Opportunity Explorer product suite detects new marketing opportunities, providing actionable insights to drive growth for customers[31] - The company is expanding into international markets, particularly in select regions in Europe, while strengthening relationships with existing U.S. customers[39] - The company operates in a highly competitive market characterized by intense competition and evolving technology, which may impact its future success[49] Financial Overview - The company reported $185 million in long-term debt as of December 31, 2022, with a potential annual interest expense fluctuation of $1.9 million for a hypothetical one percentage point change in interest rates[310] - The company has not entered into any derivative financial instruments to mitigate interest rate risk on its debt[310] - The company does not believe that a 10% change in the relative value of the U.S. dollar to other foreign currencies would materially affect its cash flows and operating results[311] - The company has not experienced significant inflationary pressures affecting its business, financial condition, or results of operations as of 2022[312] Workforce and Employment - The company employs 1,604 individuals as of December 31, 2022, with 848 employees located outside the U.S.[60] - The company anticipates that new data privacy laws in the U.S. will generally allow for the collection and use of non-sensitive personal data at scale for marketing purposes[57] - The company has been recognized as a leader in marketing automation, receiving high scores across multiple criteria in third-party research reports[44]