Rimini Street (NasdaqGM:RMNI) FY Conference March 23, 2026 05:00 PM ET Company ParticipantsDavid Steinberg - CEOSeth Ravin - Chairman, President, and CEOModeratorIt never gets less. All right. I think we're good to go. Really glad to have my panelists here to talk about an issue that is near and dear to my heart today, 'cause I've been following the software industry for coming on three decades, I think now, and watching it get absolutely under attack by the fears that AI is gonna disrupt it and break all o ...

Zeta Global (NYSE:ZETA) FY Conference March 23, 2026 05:00 PM ET Company ParticipantsDavid Steinberg - Co-Founder, Chairman, and CEOSeth Ravin - CEO, President, and Chairman of the BoardConference Call ParticipantsRichard Baldry - Managing Director and Senior Research AnalystRichard BaldryAll right, I think we're good to go. Really glad to have my panelists here to talk about an issue that is near and dear to my heart today, 'cause I've been following the software industry for coming on three decades, I thi ...

Core Insights - Zeta Global is leveraging zero latency AI and extensive customer data to enhance customer acquisition, growth, and retention for large enterprises [1][4] - The company has a strong track record of M&A, having acquired 18 companies to date, which supports its growth strategy [2][60] - Zeta's marketing platform offers a comprehensive solution for marketers, demonstrating a significant return on investment of 600% for every dollar spent [5][20] Company Overview - Zeta Global aims to provide cost-efficient customer relationship management, acquisition, and monetization solutions for large enterprises [4] - The Zeta Marketing Platform (ZMP) integrates various marketing tools into a single interface, enhancing efficiency for marketers [5][6] - The company has pivoted to focus on AI and data as foundational elements of its applications since 2017, allowing for real-time decision-making [6][10] Financial Performance - Zeta has achieved 30% compounded growth for three consecutive years, with EBITDA growth of 44% and free cash flow growth of 78% last year [10][11] - The company is projecting significant revenue growth, aiming for $1.755 billion by 2026, representing a 75% increase from 2024 [24][49] - Zeta has increased its operating margin by 500 basis points over recent years and aims for further improvements [52][56] Product Innovation - The launch of Athena, a voice-enabled conversational marketing agent, is expected to enhance user interaction and efficiency within the Zeta platform [42][46] - Athena is designed to assist marketers in real-time decision-making, potentially increasing the return on ad spend to 1,000% [36][47] Market Position and Strategy - Zeta serves a significant portion of the Fortune 100 and 24% of the Fortune 500, indicating strong market penetration [18][50] - The company maintains a unique data cloud that is not shared with third parties, ensuring data privacy and security for clients [18][38] - Zeta is focused on balancing growth, profitability, and customer relationships, which influences its pricing strategy [53][54] M&A Strategy - Zeta has a structured M&A strategy based on five pillars, ensuring that acquisitions are accretive and integrate seamlessly into its tech stack [60][62] - The company is open to opportunistic acquisitions, especially in the current market environment, leveraging its strong cash position [64][65]

Summary of Zeta Global Conference Call Company Overview - **Company**: Zeta Global (NYSE: ZETA) - **Business Model**: Zeta has developed a software and proprietary data cloud platform that assists large enterprises in managing customer acquisition, retention, and monetization more cost-effectively. [10][14] - **Client Base**: 51% of the Fortune 100 and 24% of the Fortune 500 utilize the Zeta Marketing Platform. [10] Key Financial Metrics - **Return on Investment (ROI)**: Zeta claims a 600% ROI for clients using their platform, which is 100% to 200% better than the nearest competitor. [10][15] - **Growth Rates**: The company reported a 28% growth on a normalized organic basis for Q4 and is guiding for 26% growth moving forward. [20][22] - **Revenue Projections**: Zeta expects to increase revenue from $1.3 billion last year to $1.755 billion this year. [30] AI Integration and Competitive Positioning - **AI Strategy**: Zeta has been integrating AI into its platform since 2017 and has a partnership with OpenAI for its conversational agent, Athena. [18][40] - **Data Assets**: The company has 552 million opted-in individuals in its data cloud, which is a significant competitive advantage. [14][35] - **Market Position**: Zeta believes it has three major competitive moats: extensive first-party data, the ability to integrate client data, and a proven ROI that positions them as a revenue source for clients rather than an expense. [14][15][16] Customer Engagement and Use Cases - **Client Spending**: Zeta's 603 global enterprise clients spent $100 million on marketing last year, representing only 1.3% of their total marketing wallet. The long-term goal is to capture 10% of this wallet. [28][30] - **Use Case Expansion**: There has been an 80% increase in the number of clients using multiple use cases, which significantly boosts their spending. [50][55] Strategic Initiatives - **Athena Launch**: The upcoming launch of Athena is expected to enhance client engagement and ROI, allowing clients to manage their marketing efforts more effectively. [31][60] - **Data Acquisition**: Zeta is focused on acquiring additional datasets to enhance its models and improve client ROI, aiming for a 1,000% ROI in the future. [40][36] Industry Dynamics - **RFP Trends**: There has been a 100% increase in RFP volume, with many companies willing to separate marketing cloud services from core products of larger software companies. [64][70] - **Vertical Performance**: Zeta operates across 15 different verticals, with strong growth observed in consumer discretionary sectors and healthcare, which is a focus for future investment. [71][72] Profitability and Cash Flow - **Financial Health**: Zeta reported record free cash flow margins and is projecting positive GAAP EPS for 2026. [25][80] - **Growth vs. Profitability**: The company aims to balance growth and profitability, with a focus on maintaining high margins while investing in innovation. [76][79] Conclusion Zeta Global is positioned for continued growth with a strong focus on AI integration, extensive data assets, and a commitment to enhancing client ROI. The upcoming launch of Athena and strategic initiatives in various verticals are expected to drive further expansion and profitability.

Core Insights - The RealReal's latest earnings report emphasizes the role of artificial intelligence in enhancing operational efficiency and improving the listing process for luxury items [1][3] - CEO Rati Levesque highlighted a multi-year AI roadmap aimed at leveraging technology to identify potential consignors and streamline the listing process [3][11] AI and Operational Strategy - The company is focusing on two key AI initiatives: SmartSales for identifying high-potential clients and Athena for reducing the time from item intake to live listing while enhancing accuracy [3] - The AI strategy is designed to shape supply dynamics, targeting higher-value consignors and premium product categories that foster loyalty among both sellers and buyers [4][11] Supply Growth and Retail Strategy - A coordinated "growth playbook" integrates marketing, sales, and retail efforts, improving targeting of mid to high-value sellers [8] - Approximately 25% of new consignors are sourced through retail locations, with items sourced through these channels having an average selling price 5 to 7 times higher than those from other sources [8] Demand Resilience - Demand remains strong, particularly in premium categories, with buyers spending $5,000 or more increasing by 20% year over year [9] - The RealReal's positioning at the intersection of luxury and value, along with educational efforts regarding resale pricing, contributes to this demand resilience [9] Financial Performance - In Q4 2025, gross merchandise value (GMV) rose 22% year over year, while revenue increased by 18%, with adjusted EBITDA reaching $22 million [10] - For the full year 2025, GMV increased by 16% to $2.13 billion, and revenue rose by 15% to $693 million, marking positive adjusted EBITDA in every quarter for the first time [10] Future Outlook - The results are seen as indicators of a broader transformation, with plans to deepen AI integration and enhance supply chain efficiency as priorities for 2026 [11]

Financial Data and Key Metrics Changes - In Q4 2025, the company achieved $616 million in GMV, representing a 22% growth year-over-year, with an adjusted EBITDA margin of 11% [5][16] - For the full year 2025, GMV reached $2.13 billion, a 16% increase compared to the previous year, while revenue grew by 15% to $693 million [20][21] - The adjusted EBITDA for the full year was $42 million, reflecting a 450 basis points increase in margin year-over-year [21][24] Business Line Data and Key Metrics Changes - Q4 total revenue was $194 million, an 18% increase year-over-year, with consignment revenue up 16% and direct revenue up 39% [17][18] - Active buyer growth accelerated to 9% on a trailing 12-month basis, with orders up 10% and average order value increasing by 11% [17][19] - The take rate in Q4 was 36.5%, a decline of 120 basis points year-over-year, attributed to a favorable mix shift towards higher value items [18] Market Data and Key Metrics Changes - The company noted that 47% of consumers consider resale value when making purchases in the primary market, indicating a shift in consumer behavior towards luxury resale [6] - The luxury resale market is experiencing a fundamental shift, with younger consumers increasingly preferring resale options [6][81] Company Strategy and Development Direction - The company is focused on three strategic pillars: growth playbook, operational excellence, and obsessing over service [7][10] - The growth playbook includes leveraging AI tools like Smart Sales to enhance sales team productivity and improve customer engagement [8][10] - The company aims to expand its capabilities in AI-driven recommendations and enhance customer experience through features like My Closet [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of buyers and sellers, with expectations of continued double-digit growth in both segments [39][41] - The company projects full-year GMV growth of 12%-15% and revenue growth of 10%-13% for 2026, with adjusted EBITDA expected to reach $57 million-$65 million [23][24] Other Important Information - The company ended Q4 with $166 million in cash equivalents and restricted cash, demonstrating strong cash flow dynamics [20] - The company has reduced total indebtedness by over $80 million in the past two years, reinforcing its commitment to a strong balance sheet [22] Q&A Session Summary Question: Can you provide an update on Athena's impact on operational efficiency? - Management confirmed that 35% of units are processed through Athena, contributing to operating leverage and efficiency improvements [30][31] Question: What factors contribute to the Q1 guidance of 19%-22% GMV growth? - Management highlighted the effectiveness of their sales and marketing strategies, with strong buyer engagement and supply growth [38][39] Question: How is the testing of dropshipping progressing? - Management reported healthy growth in dropshipping, particularly in watches and handbags, while continuing to expand into international markets [47] Question: What initiatives are in place to drive incremental supply? - Management mentioned several initiatives, including Smart Sales and referral programs, aimed at unlocking more supply [49] Question: What is the outlook for Athena's contribution in 2026? - Management expects Athena's processing percentage to continue increasing, enhancing operational efficiency [56] Question: How does the company plan to control expenses while growing revenue? - Management emphasized leveraging AI and automation to drive operational efficiencies and control costs [89][90]

Financial Data and Key Metrics Changes - In Q4 2025, the company achieved $616 million in GMV, representing a 22% growth year-over-year, with an Adjusted EBITDA margin of 11% [4][13] - Full year GMV reached $2.13 billion, a 16% increase compared to the previous year, with revenue of $693 million, up 15% [17][18] - Adjusted EBITDA for the full year was $42 million, or 6.1% of total revenue, reflecting a 450 basis points increase year-over-year [18][21] Business Line Data and Key Metrics Changes - Q4 total revenue was $194 million, an 18% increase, with consignment revenue up 16% and direct revenue up 39% year-over-year [14][16] - Active buyer growth accelerated to 9% on a trailing 12-month basis, with orders up 10% and average order value increasing by 11% [15][16] - The take rate in Q4 was 36.5%, a decline of 120 basis points year-over-year, attributed to a favorable mix shift towards higher value items [15][16] Market Data and Key Metrics Changes - The company noted that 47% of consumers consider resale value when making primary market purchases, indicating a shift in consumer behavior towards luxury resale [5] - The luxury resale market is experiencing a fundamental shift, with younger consumers increasingly preferring resale options [5][11] Company Strategy and Development Direction - The company is focused on three strategic pillars: growth playbook, operational excellence, and obsessing over service [6][10] - The growth playbook aims to unlock supply by meeting customers where they are, while operational excellence focuses on profitability through technology and automation [6][10] - The company is enhancing customer experience through initiatives like My Closet, which aims to provide tools for tracking and capitalizing on closet value [11][68] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, projecting full year GMV growth of 12%-15% and revenue growth of 10%-13% for 2026 [19][20] - The company anticipates Adjusted EBITDA to be in the range of $57 million-$65 million for 2026, representing an expansion of nearly 200 basis points [19][20] - Management highlighted the resilience of buyers and sellers, with no slowdown observed since Q4 [35][36] Other Important Information - The company ended Q4 with $166 million in cash equivalents and restricted cash, with free cash flow of $43 million, up $23 million year-over-year [17][21] - The company has reduced total indebtedness by over $80 million over the past two years, strengthening its balance sheet [18] Q&A Session Summary Question: Update on Athena's impact on operational model - Management confirmed that 35% of units are processed through Athena, contributing to operating leverage and plans to extend its use to mid-value items [25][26] Question: Q1 guidance and confidence in growth - Management noted strong buyer and seller resilience, with double-digit growth expected in Q1, driven by effective sales and marketing strategies [32][34] Question: Dropshipping testing and future plans - Management indicated that dropshipping is being tested in categories like watches and handbags, with plans to expand further [40] Question: Supply pipeline visibility and ASP trends - Management reported a healthy balance between volume and price growth, with a strong supply pipeline for higher value items like fine jewelry [56] Question: AI's role in supply procurement - Management emphasized AI's potential to enhance supply procurement and improve seller experiences through targeted approaches [83][85]

Core Insights - Palantir Technologies Inc. (PLTR) and Zeta Global Holdings Corp. (ZETA) are AI-centric software companies focused on transforming large datasets into actionable intelligence for organizations [1][2] - Both companies benefit from high switching costs and long-term contracts, positioning them well as enterprises increasingly invest in AI-driven data platforms [2] Palantir Technologies Inc. (PLTR) - Palantir's strategy centers on its Artificial Intelligence Platform, which helps organizations structure and govern complex datasets, enabling effective AI operations [3] - The company's design allows AI to integrate directly with business workflows, enhancing execution and outcomes rather than relying solely on computing power [4] - PLTR reported Q4 2025 revenues of $1.41 billion, a 70% year-over-year increase, with full-year revenues reaching $4.48 billion, up 56% from the previous year [5] - The company ended Q4 with 954 customers, a 34% year-over-year increase, and a net dollar retention rate of 138%, indicating significant growth within existing accounts [6] - Total contract value reached a record $4.26 billion, supported by 61 deals exceeding $10 million [6] Zeta Global Holdings Corp. (ZETA) - Zeta Global's partnership with OpenAI enhances its marketing platform, Athena, making it more intelligent and predictive, which is expected to improve financial outlook and growth trajectory [7][8] - The company raised its 2026 revenue guidance to $1.75-$1.76 billion, reflecting a $25 million increase from prior guidance, driven by enhanced AI offerings [9][10] - Adjusted EBITDA is now expected to be $389.9-$392.1 million, indicating improved operational efficiency alongside revenue growth [10] Financial Estimates and Valuation - The Zacks Consensus Estimate for PLTR's 2025 sales indicates a year-over-year growth of 61% and EPS growth of 79% [11] - ZETA's 2026 EPS is expected to grow by 36%, although estimates have trended downward over the past 60 days [14] - ZETA appears attractively valued with a forward 12-month P/E of 17.49X, while PLTR is trading at a forward P/E of 94.21X [17] Comparative Analysis - Both companies are well-positioned to benefit from the expanding enterprise AI opportunity, but Palantir is seen as the stronger choice due to its deep integration in mission-critical operations [18] - Palantir's structural positioning enhances long-term revenue visibility and customer dependence, while Zeta's growth is more execution-dependent [18] - Currently, PLTR holds a Zacks Rank 2 (Buy), while ZETA has a Zacks Rank 3 (Hold) [19]

Core Viewpoint - Zeta Global Holdings Corp. reported strong fourth-quarter earnings, exceeding revenue expectations and projecting significant growth for fiscal 2026, driven by its data and AI strategy [1][2]. Financial Performance - The company reported quarterly revenue of $394.64 million, surpassing the Street estimate of $379.23 million, marking a 25.41% increase from $314.67 million in the same period last year [1]. - Zeta expects fiscal 2026 revenue to be between $1.75 billion and $1.76 billion, compared to the analyst estimate of $1.72 billion [1]. Strategic Initiatives - Co-founder and CEO David Steinberg highlighted the company's long-term data and AI strategy, noting that Zeta has achieved its eighteenth consecutive beat and raise quarter [2]. - The proprietary data assets and the Athena AI interface are identified as key drivers for enterprise adoption [2]. Customer Perception - Customers increasingly view Zeta as a revenue generator rather than a marketing expense, recognizing the strong return on investment [3]. Product Development - The Athena platform is designed to reduce friction in marketing workflows, facilitating automation in segmentation and analysis, which enhances productivity and campaign performance [4]. - Zeta announced a collaboration with OpenAI, integrating large language models with its proprietary data systems [5]. Future Projections - The company anticipates full-year 2026 adjusted EBITDA to be near $391 million and forecasts positive GAAP profitability [5]. - Zeta Global Holdings shares increased by 3.42% to $17.56 at the time of publication [5].

Financial Data and Key Metrics Changes - Fourth quarter revenue was $395 million, up 28% year-over-year, with adjusted EBITDA of $95.1 million, up 35% year-over-year, and positive GAAP earnings [6][25] - For the full year 2025, revenue was $1,305 million, up 30% year-over-year, exceeding initial guidance by $65 million [17][27] - Adjusted EBITDA margin for 2025 was 21.4%, representing a 44% year-over-year increase [25] Business Line Data and Key Metrics Changes - The number of scaled customers grew to 602, up 14% year-over-year, with super-scaled customers increasing to 184, up 24% year-over-year [18][19] - Quarterly ARPU for scaled customers was $625,000, up 8% year-over-year, while super-scaled customer ARPU was $1.8 million, up 5% year-over-year [19][20] Market Data and Key Metrics Changes - Nine out of the top ten verticals grew over 20% year-over-year, with notable growth in travel and hospitality (up 105%), advertising and marketing (up 70%), and automotive (up 60%) [18] - Net Revenue Retention hit a record high of 120% in 2025, up from 114% in 2024 [8] Company Strategy and Development Direction - The company is focused on AI-driven marketing solutions, with Athena being a key product aimed at enhancing customer engagement and operational efficiency [9][10] - The acquisition of Marigold is expected to expand data use cases and enhance the value delivered to customers, reinforcing the One Zeta strategy [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, raising the midpoint of 2026 revenue guidance by $25 million to $1.755 billion, reflecting a 35% growth rate [7][29] - The company anticipates continued strong performance driven by AI investments and the successful rollout of Athena [10][34] Other Important Information - The company repurchased 1.9 million shares for $35 million in Q4 2025, with a total of 7.9 million shares repurchased for $120 million throughout the year [27] - The company expects to generate positive GAAP net income for the full year of 2026, marking a significant milestone [33][70] Q&A Session Summary Question: About Athena and its monetization structure - Management confirmed that Athena will have two primary agents initially, with plans for additional functionalities to enhance customer experience and ROI [36][39] Question: Guidance on top spending verticals - Management indicated that guidance is conservative, with expectations for continued strong performance in consumer discretionary sectors [40][42] Question: Trends from deals closed after Zeta Live - Management noted diverse verticals contributing to the $39 million in closed deals, with significant interest in telecom and a strong pipeline for future growth [45][46] Question: Impact of Marigold on gross margins - Management expects Marigold to contribute positively to gross margins, with ongoing improvements anticipated through 2026 [51] Question: International expansion plans post-Marigold acquisition - Management indicated that international growth is occurring naturally through existing multinational clients, though the majority of revenue remains in the U.S. [60][61] Question: OpenAI partnership significance - Management emphasized the foundational role of the OpenAI partnership in enhancing Athena's capabilities and driving efficiency [76][78]