ZETA(US:ZETA)2026-02-24 22:32Financial 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]