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 Q4 2024, the company generated record revenue of $315 million, up 50% year over year, with record adjusted EBITDA of $70 million, up 57% year over year, both exceeding guidance [7][21][28] - For the full year 2024, revenue was just above $1 billion, up 38% year over year, exceeding initial guidance by 15% [21][28] - Adjusted EBITDA for 2024 was $193 million, representing a margin of 19.2%, a 49% increase year over year [28] - The company achieved positive GAAP net income for the first time as a public company in Q4 2024, with net income of $15.2 million [28] Business Line Data and Key Metrics Changes - The dollar value of RRFPs reached a record high, up close to 40% year over year, with total pipeline growth of almost 60% [9] - Scaled customer count grew to 527 as of December 31, 2024, up 17% year over year [22] - Quarterly ARPU for scaled customers was $577,000, up 27% year over year [23] Market Data and Key Metrics Changes - In 2024, seven of the top ten industries served by the company grew faster than 20% year over year, with automotive, consumer and retail, insurance, political and advocacy, and technology and media growing the fastest [23] Company Strategy and Development Direction - The company aims to achieve over $2 billion in annual revenue by 2028, with a target of 20% organic revenue CAGR between 2024 and 2028 [7][30] - The Zeta 2028 plan includes creating new Gen AI capabilities, leveraging publisher cloud relationships, and extending vertical expertise [31][32] - The company emphasizes the importance of AI as foundational to its platform, with significant investments made over the past seven years [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's momentum and the opportunity ahead, stating that the business has never been stronger [8] - The company is aware of macroeconomic challenges but has not seen any negative impacts from clients, maintaining a positive outlook for 2025 [46][47] - Management highlighted that AI adoption surged in 2024, with a 200% sequential growth in AI agent usage in Q4 [13][64] Other Important Information - The company completed the LiveIntent integration ahead of schedule, which is already delivering incremental value to customers [16] - The audit committee conducted a review of allegations from a short seller report, confirming that accounting practices were consistent with U.S. GAAP and that the allegations were without merit [27][90] Q&A Session Summary Question: Thoughts on macro environment and demand-centric spending for Q1 and 2025 - Management indicated good visibility into Q1 and expects strong performance from verticals that contributed to growth in 2024, while accounting for macroeconomic factors [44][46] Question: Initial customer feedback on LiveIntent integration and long-term ARPU expansion - Management noted that ARPU growth is already being experienced and highlighted the success of the Zeta Direct product in increasing ROI for marketers [48][49] Question: Insights on agency business and visibility into new brand pipelines - Management stated that the agency business is experiencing significant momentum, with agencies moving more brands to Zeta due to profitability advantages [53][54] Question: Depth of Zeta's involvement in creative services and potential conflicts with agencies - Management clarified that Zeta does not intend to compete with agencies in creative services but aims to optimize existing creative assets [56] Question: Strategy for increasing wallet share among large customers - Management emphasized the goal of increasing wallet share from 1% to 2% of customer marketing spend, with existing enterprise clients already exceeding 5% [60][61] Question: Competitive landscape and impact of larger players like Meta - Management reported no significant competition from larger players and noted a strong partnership with Meta, which has benefited Zeta [71][72] Question: Timing for pipeline conversion into revenue - Management indicated that deal cycles remain consistent, with larger deals taking 7 to 12 months to convert, but overall confidence in business growth remains high [76][79] Question: Update on mobile product growth and revenue potential - Management expressed optimism about mobile becoming a significant revenue driver by 2026, with current growth rates above 100% for connected television [82] Question: Role of agencies in the 2028 growth model - Management expects agencies to play a larger role in revenue growth, with ongoing improvements in direct channel adoption [87]