ZETA(ZETA) - 2025 Q3 - Quarterly Results

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]