ZETA(US:ZETA) ZACKSยท2025-08-01 16:51Core Insights - Zeta Global (ZETA) is set to report its second-quarter 2025 results on August 5, with expected revenues of $296.4 million, indicating a 30.1% year-over-year growth [1] - The consensus estimate for earnings per share is 14 cents, reflecting a 7.7% increase from the previous year [1] - The company has a negative earnings surprise history, missing estimates in three of the last four quarters with an average negative surprise of 7.7% [2][3] Revenue and Earnings Estimates - The current earnings ESP for Zeta Global is -8.26%, and it holds a Zacks Rank of 5 (Strong Sell) [3] - The consensus estimates for earnings per share have seen downward revisions over the past 60 days, with a decline of 6.67% for the current quarter [2] Market Performance - Zeta Global's shares have declined by 34.8% over the past year, underperforming its industry, which has seen a 62.3% increase, and the Zacks S&P 500 composite, which rose by 17.2% [9] - The stock is currently trading at a trailing 12-month price-to-earnings ratio of 19.74, lower than the industry average of 23.24 [12] Growth Drivers - The company launched AI Agent Studio in Q1 2025, which is expected to capitalize on the rapidly growing generative AI market, projected to grow at a 43.4% CAGR from 2025 to 2032 [5] - Zeta Global's agentic workflows are designed to enhance marketing capabilities, particularly in sectors like BFSI, Retail, and Travel [6] Investment Considerations - Approximately 73% of Zeta's revenue is generated from direct platform advertising, making it vulnerable to economic downturns that may lead to reduced marketing budgets [15] - The company has not paid dividends and does not plan to, which may deter income-seeking investors [18] Final Outlook - Despite potential growth from AI technologies, Zeta Global faces challenges due to anticipated economic slowdowns that could impact revenue generation [19] - The unpredictability of free cash flow and lack of dividends are significant concerns for investors [20]