Financial Data and Key Metrics Changes - In Q4 2024, the company achieved record revenue of $315 million, representing a 50% year-over-year increase, and record adjusted EBITDA of $70 million, up 57% year-over-year, both exceeding guidance [10][30] - For the full year 2024, revenue surpassed $1 billion, up 38% year-over-year, and adjusted EBITDA was $193 million, reflecting a 49% increase year-over-year [38][30] - The company reported a GAAP net income of $15.2 million in Q4, marking its first positive net income as a public company [38] Business Line Data and Key Metrics Changes - The scaled customer count grew to 527, a 17% increase year-over-year, with a quarterly ARPU of $577,000, up 27% year-over-year [31][33] - Super-scaled customers increased to 148, up 13% year-over-year, with the number of brands spending at least $1 million increasing by 28% year-over-year [32][33] - The direct revenue mix in Q4 rose to 74%, up from 70% in Q3, indicating a shift towards more direct sales [34] Market Data and Key Metrics Changes - 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 leading the growth [34] - The dollar value of RFPs reached a record high, up nearly 40% year-over-year, with total pipeline growth of almost 60% [12] Company Strategy and Development Direction - The company aims to achieve over $2 billion in annual revenue by 2028, targeting a 20% organic revenue CAGR from 2024 to 2028 [10][41] - The Zeta 2028 plan includes adjusted EBITDA margin improvement of 580 basis points to at least 25% and free cash flow margin expansion of 700 basis points to at least 16% [11][51] - The company is focusing on an all-in-one marketing platform with AI and data at its core, enhancing customer experiences and driving efficiency [12][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's resilience against macroeconomic challenges, noting no significant client issues [63] - The company anticipates continued strong growth in 2025, guided by a robust pipeline and the successful integration of LiveIntent [54][64] - Management highlighted the foundational role of AI in their platform, with significant adoption and revenue growth driven by AI products [21][19] Other Important Information - The company completed the integration of LiveIntent ahead of schedule, launching the Zeta Direct product, which combines LiveIntent's network with Zeta's Data Cloud [24] - The company has been proactive in addressing allegations from a short seller report, with independent reviews confirming the integrity of its accounting practices [37][38] Q&A Session Summary Question: Can you discuss the macro environment and demand-centric spending for Q1 and 2025? - Management indicated good visibility into Q1 and noted that they have incorporated conservatism into their guidance to account for macroeconomic factors [61][62] Question: What are the initial use cases and adoption feedback for LiveIntent? - Management reported positive initial feedback and highlighted the potential for ARPU growth through new product offerings [66][67] Question: Can you elaborate on the agency business and its growth potential? - Management noted that agencies are increasingly moving brands to Zeta due to profitability and competitive pricing, providing confidence in future growth [72][74] Question: How does Zeta plan to increase wallet share among existing customers? - Management emphasized the importance of the One Zeta initiative and the goal to capture a larger share of customer marketing spend over time [80][81] Question: What is the competitive landscape like, especially with larger players like Meta? - Management stated that they have not seen significant competition from larger players and continue to grow their partnership with Meta [96][100] Question: How is the agency business expected to evolve in the 2028 model? - Management anticipates that the agency business will become a larger part of revenue as they continue to grow their brand strategies [115]

Financial Data and Key Metrics Changes - In Q4 2024, Zeta Global achieved record revenue of $315 million, representing a 50% year-over-year increase, and record adjusted EBITDA of $70 million, up 57% year-over-year, both exceeding guidance [10][30] - For the full year 2024, revenue surpassed $1 billion, up 38% year-over-year, with adjusted EBITDA of $193 million, a 49% increase year-over-year [38][30] - The company reported a GAAP net income of $15.2 million in Q4, marking its first positive net income as a public company [38] Business Line Data and Key Metrics Changes - The scaled customer count grew to 527, up 17% year-over-year, with super-scaled customers increasing by 13% to 148 [31][32] - Quarterly ARPU for scalable customers reached $577,000, a 27% increase year-over-year [33] - Net revenue retention for the year was 114%, up from 111% in 2023, indicating strong customer loyalty [33] Market Data and Key Metrics Changes - Seven of the top ten industries served by Zeta grew faster than 20% year-over-year, with automotive, consumer and retail, insurance, political and advocacy, and technology and media leading the growth [34] - The direct revenue mix in Q4 climbed to 74%, up from 70% in Q3 2024 [35] Company Strategy and Development Direction - Zeta's strategy focuses on becoming an all-in-one marketing platform with AI and data at its core, aiming for over $2 billion in annual revenue by 2028 [10][11] - The Zeta 2028 plan targets a 20% organic revenue CAGR and adjusted EBITDA margin improvement to at least 25% [11][41] - The company emphasizes the importance of AI in driving both efficiency and revenue growth, with significant investments made over the past seven years [19][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's resilience against macroeconomic challenges, noting no significant client issues [63] - The company anticipates continued strong performance in 2025, guided by a conservative approach to macro trends and a robust pipeline [61][62] Other Important Information - Zeta completed the integration of LiveIntent ahead of schedule, launching the Zeta Direct product, which combines LiveIntent's network with Zeta's Data Cloud [24] - The company has seen a surge in AI adoption, with a nearly 200% sequential growth in AI agent usage in Q4 [20] Q&A Session Summary Question: Can you discuss the 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 being aware of inflation and tariffs [61][62] Question: What are the initial use cases and adoption feedback for LiveIntent? - Management noted that the integration has shown increased ROI for marketers and higher revenue for publishers, indicating strong initial adoption [66] Question: Can you elaborate on the agency business and its growth potential? - Management highlighted that Zeta is the most profitable partner for agencies, leading to increased brand volume and confidence in growth projections [72][74] Question: How does Zeta plan to increase wallet share from existing customers? - Management emphasized the One Zeta initiative, which consolidates use cases into one sale, aiming to increase penetration from 1% to 2% of customer marketing spend [80] Question: What is the outlook for competition in the market? - Management stated that they are not seeing significant competition from major players like Meta and Google, and have maintained strong partnerships with them [96][100] Question: How does Zeta view the role of agencies in the 2028 model? - Management expects agencies to play a larger role in revenue growth, with ongoing improvements in direct channel adoption [115]

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]