ZETA(US:ZETA)2025-11-05 13:01Financial Performance - Total revenues for Q3 2025 reached $337,169,000, a 25.7% increase from $268,295,000 in Q3 2024[21] - Operating expenses for Q3 2025 totaled $328,417,000, compared to $280,674,000 in Q3 2024, reflecting an increase of 17.0%[21] - The net loss for Q3 2025 was $3,634,000, significantly improved from a net loss of $17,375,000 in Q3 2024[21] - The company reported a basic loss per share of $0.02 for Q3 2025, an improvement from a loss of $0.09 per share in Q3 2024[21] - For the nine months ended September 30, 2025, the net loss was $38,048, compared to a net loss of $85,007 for the same period in 2024, representing a 55.3% improvement[30] - The net loss for the three months ended September 30, 2025, was $3.6 million, compared to a net loss of $17.4 million for the same period in 2024[154] Cash and Assets - Cash and cash equivalents increased to $385,184,000 as of September 30, 2025, up from $366,157,000 at the end of 2024[20] - Total current assets rose to $689,061,000, a 11.7% increase from $616,540,000 as of December 31, 2024[20] - The company’s total assets reached $1,150,767,000 as of September 30, 2025, compared to $1,111,373,000 at the end of 2024, reflecting a growth of 3.5%[20] - Stockholders' equity increased to $689,206,000 as of September 30, 2025, up from $676,801,000 at the end of 2024, representing a growth of 1.9%[20] - Cash and cash equivalents at the end of the period were $385,184, a decrease from $418,538 at the end of 2024[30] Liabilities and Equity - Total liabilities increased to $461,561,000, compared to $434,572,000 at the end of 2024, marking a rise of 6.2%[20] - The total accumulated deficit increased to $1,066,350,000, reflecting ongoing financial challenges[22] - As of September 30, 2025, the Company had long-term borrowings of $196,884, slightly up from $196,288 as of December 31, 2024[75] Revenue Sources - Total revenues for the nine months ended September 30, 2025, were $910,030, a 31.7% increase from $691,081 in 2024[51] - Direct platform revenue accounted for 75% of total revenue for the nine months ended September 30, 2025, compared to 68% in 2024, indicating a shift towards more direct revenue generation[45] - The increase in revenue was driven by $63.0 million from new customers, including approximately $20.6 million from the acquisition of LiveIntent, and $5.9 million from existing customers[155] Expenses - Research and development expenses for the nine months ended September 30, 2025, were $87,203,000, up from $66,407,000 in the same period of 2024, indicating a 31.2% increase[21] - General and administrative expenses increased by $5.9 million, or 11.7%, for the three months ended September 30, 2025, compared to the same period in 2024[157] - Selling and marketing expenses rose by $0.8 million, or 0.9%, for the three months ended September 30, 2025, driven by higher employee-related costs[158] - Research and development expenses increased by $7.0 million, or 30.7%, for the three months ended September 30, 2025, primarily due to higher employee-related costs[159] Acquisitions and Investments - The Company finalized the acquisition of LiveIntent for a total consideration of $276,976, which included $176,456 recognized as goodwill[69] - The proposed acquisition of Marigold enterprise software business is valued at up to $325,000, consisting of $100,000 in cash and $100,000 in Class A Common Stock[73] - The company incurred capital expenditures of $10,558 for the nine months ended September 30, 2025, down from $17,458 in 2024, reflecting a 39.5% reduction[30] Stock and Shareholder Actions - The company repurchased shares totaling 2,673,451, reflecting a strategy to manage equity and enhance shareholder value[22] - The Company authorized a stock repurchase plan (2025 SRP) of up to $200,000 for Class A Common Stock through December 31, 2027, supplementing the previous plan (2024 SRP) of $100,000[105] - During the nine months ended September 30, 2025, the Company repurchased 5,958,584 shares of Class A Common Stock for a total value of $85,092, with $198,944 remaining available for future purchases[106] Tax and Compliance - The company recorded an income tax provision of $3,676 for the nine months ended September 30, 2025, with an effective tax rate of negative 10.7% on a pre-tax loss of $34,372[117] - The income tax provision increased by $2.6 million, or 239.7%, for the nine months ended September 30, 2025, yielding an effective tax rate of negative 10.7%[176] Operational Insights - The company experienced a foreign currency translation adjustment loss of $112,000 during the quarter[22] - The company recognized $20,930 in revenues from deferred revenues during the nine months ended September 30, 2025, compared to $18,819 in 2024, a 11.2% increase[40] - The company is not currently involved in any litigation that would materially adversely affect its business, operating results, cash flows, or financial condition[214] Risk Factors - There have been no material changes to the risk factors previously disclosed in the 2024 Annual Report, except for new risks related to technology operations in India[215] - The reliance on technology and development resources in India may expose the company to unanticipated costs and liabilities, potentially affecting cost savings[216] - Enforcement of intellectual property rights in India may be less effective than in the U.S., leading to potential litigation and significant cash expenditures[217]