Zeta Global Holdings (ZETA) came out with quarterly earnings of $0.14 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.13 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this cloud-based marketing technology company would post earnings of $0.12 per share when it actually produced earnings of $0.07, delivering a surprise of -41.67%. Over the last four quarters, the company has not been able to surpass consensu ...

Financial Data and Key Metrics Changes - In Q2 2025, revenue reached $308 million, representing a 35% year-over-year increase, while adjusted EBITDA grew by 52% to $59 million, both exceeding guidance [6][14][20] - Free cash flow was $33.6 million, up 69% year-over-year, translating to a margin of 11% [20][26] - The company reported a GAAP net loss of $12.8 million, an improvement from a loss of $28.1 million in the previous year [20] Business Line Data and Key Metrics Changes - The total scaled customer count grew to 567, up 21% year-over-year, with 168 super scaled customers, an increase of 17% [17] - Quarterly ARPU for scaled customers was $532,000, an 11% increase year-over-year, while super scaled customer ARPU was $1.6 million, up 19% [17] - The agency business saw a 40% year-over-year increase in the average number of scaled brands per large agency holding company [18] Market Data and Key Metrics Changes - Six of the top ten verticals grew faster than 20% year-over-year, with technology and media, consumer and retail, and advertising and marketing being the largest contributors [18] - Direct revenue mix increased to 75%, up from 67% a year ago, resulting in direct revenue growth of 51% year-over-year [19] Company Strategy and Development Direction - The company is focused on AI innovation, launching Zeta Answers, a prescriptive AI framework that automates outcome-driven actions in real-time [7][9] - The One Zeta initiative aims to accelerate multi-use case adoption across acquisition, growth, and retention, leading to better ROI and customer stickiness [10][11] - The company is expanding its presence in the public sector, leveraging relationships built through its political business [92] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in capturing more market share due to strong sales pipeline and AI-driven momentum [12][24] - The company raised its full-year revenue guidance by $21 million, reflecting strong first-half performance and customer behavior consistency [24][25] - Management remains committed to reducing equity dilution and achieving long-term targets, including over $2.1 billion in annual revenue by 2028 [27] Other Important Information - The company plans to host its fifth annual Zeta Live conference on October 9, featuring prominent speakers and a dedicated stage for product showcases [12][13] - A second Investor Day will be held on October 8 to share long-term roadmap and R&D pipeline [14] Q&A Session Summary Question: Interest level from customers regarding the new AI module - Management noted good awareness and meaningful uptake of the AI suite, with plans to showcase new products at Zeta Live [30][33] Question: Linearity in the quarter and growth consistency - Management confirmed consistent growth throughout the quarter, with strong performance across key verticals [34][35] Question: KPIs and sales productivity - Management highlighted strong sales productivity and pipeline conversion, with a focus on cost of revenue and expense management [42][44] Question: Trends in marketing operations and AI - Management indicated that most enterprises still rely on agencies for marketing, but many are testing AI tools internally [72] Question: Goals for the Zeta Data and AI Lab - The lab aims to drive innovation and stay ahead of competitors in AI tools and workflows [76] Question: Success with independent agencies - Management emphasized the importance of partnerships with independent agencies, providing them access to advanced AI tools [81][83] Question: Changes in customer behavior and pipeline filling - Management noted a shift in brand recognition, leading to a stronger pipeline and higher conversion rates [87]

Financial Data and Key Metrics Changes - In Q2 2025, revenue reached $308 million, representing a 35% year-over-year increase, while adjusted EBITDA grew by 52% to $59 million, both exceeding guidance [5][13][20] - First half revenue growth was 27% when excluding LiveIntent and political contributions, with free cash flow conversion at 59%, significantly ahead of previous targets [14][25] - GAAP net loss improved to $12.8 million from $28.1 million in the previous year, with free cash flow of $33.6 million, up 69% year-over-year [20][21] Business Line Data and Key Metrics Changes - The total scaled customer count grew to 567, up 21% year-over-year, with 168 super scaled customers, an increase of 17% [17][18] - Quarterly ARPU for scaled customers increased by 11% to $532,000, while super scaled customer ARPU rose by 19% to $1.6 million [17][18] - The agency business saw a 40% year-over-year increase in the average number of scaled brands per large agency holding company [18] Market Data and Key Metrics Changes - Six of the top ten verticals grew faster than 20% year-over-year, with technology, media, consumer retail, and advertising being the largest contributors [18] - Direct revenue mix increased to 75%, up from 67% a year ago, resulting in a 51% year-over-year growth in direct revenue [19][20] Company Strategy and Development Direction - The company is focused on AI innovation, launching Zeta Answers, a prescriptive AI framework that enhances marketing efficiency [6][8] - The One Zeta initiative aims to accelerate multi-use case adoption, leading to better ROI and customer retention [9][10] - The company is expanding its presence in the public sector, leveraging relationships built through political business [90] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in capturing more market share due to strong AI-driven momentum and a robust sales pipeline [11][23] - The company anticipates revenue of $1.263 billion for 2025, a $21 million increase from previous guidance, with adjusted EBITDA expected to grow by 32% [24][25] - Management highlighted the importance of disciplined capital expenditure and reducing equity dilution as key drivers of financial health [21][25] Other Important Information - Zeta Live, the company's annual conference, will feature prominent speakers and is expected to showcase new product launches [12][13] - The company has repurchased $69 million of its shares year-to-date, with an additional $200 million share repurchase authorization approved [21][22] Q&A Session Summary Question: Interest level from customers regarding new AI module - Management noted good awareness and meaningful uptake of the new AI products, with plans to showcase them at Zeta Live [30] Question: Linearity in the quarter - Management confirmed consistent growth throughout the quarter, with strong performance across key verticals [32][33] Question: KPIs and dials being controlled - Focus is on cost of revenue and expense lines, with strong sales productivity driving margin improvements [41][44] Question: Trends in marketing operations moving in-house - Management indicated that most enterprises still rely on agencies, although testing of AI tools is common [70] Question: Success with independent agencies - Independent agencies are under pressure to partner with Zeta for AI tools, as they cannot afford the investments needed to build AI capabilities [77][79] Question: Growth in customer count - The increase in customer count is attributed to a higher sales force and improved brand recognition [95][96]

Q2 2025 Performance Highlights - Revenue reached $308 million, representing a year-over-year growth of 35%[7] - Adjusted EBITDA grew by 52% year-over-year to $59 million, with an Adjusted EBITDA Margin of 19.1%, a 210 bps improvement[7] - Cash from Operations also increased by 35% year-over-year to $42 million[7] - Free cash flow growth of 69% and 57% conversion, up from 51% in 2Q'24[8] Customer Growth and ARPU - Scaled customer count increased by 21% year-over-year to 567, with a sequential increase of 19 customers from the previous quarter[10] - Scaled customer ARPU (Average Revenue Per User) grew by 11% year-over-year to $532K[10] - Super-scaled customer count increased by 17% year-over-year to 168[10] - Super-scaled customer ARPU reached $1.6 million[10] FY2025 Guidance - Increased full-year revenue guidance by $21 million to $1,263 million at the midpoint, reflecting a 26% year-over-year growth[8] - Increased full-year free cash flow guidance by $10.5 million to $142 million at the midpoint, a 54% year-over-year increase[8] Zeta 2028 Targets - The company is tracking towards Zeta 2028 targets, aiming for $2.1 billion+ in revenue, $525 million+ in Adjusted EBITDA, and $340 million+ in Free Cash Flow[35] - The implied Compound Annual Growth Rate (CAGR) for revenue is 20%, with an implied 25% Adjusted EBITDA margin and 65% Free Cash Flow conversion margin[35]

[Executive Summary & Q2 2025 Highlights](index=1&type=section&id=1.%20Executive%20Summary%20%26%20Q2%202025%20Highlights) Zeta Global achieved its 16th consecutive quarter of exceeding expectations, driven by strong AI platform demand and raised 2025 guidance [Q2 2025 Financial Performance & Strategic Commentary](index=1&type=section&id=1.1%20Q2%202025%20Financial%20Performance%20%26%20Strategic%20Commentary) Zeta Global achieved its 16th consecutive quarter of exceeding expectations, driven by strong AI platform demand and raised 2025 guidance - Achieved its **16th consecutive quarter** of outperforming expectations and raising guidance[1](index=1&type=chunk) - Growth driven by demand for its **AI-powered marketing platform**[3](index=3&type=chunk) - On track to achieve ambitious **2028 revenue and free cash flow targets**[3](index=3&type=chunk) - Significantly raised **full-year revenue, Adjusted EBITDA, and free cash flow guidance**[3](index=3&type=chunk) [Key Q2 2025 Achievements](index=1&type=section&id=1.2%20Key%20Q2%202025%20Achievements) Zeta Global achieved significant Q2 2025 year-over-year growth in revenue, operating cash flow, and free cash flow, exceeding guidance, and approved a new $200 million share repurchase program Key Q2 2025 Financial Achievements | Metric | Q2 2025 Amount ($M) | Year-over-Year Growth | Exceeded Guidance Midpoint ($M) | | :----- | :------------------ | :-------------------- | :------------------------------ | | Revenue | $308 | 35% | $11 | | Net Cash from Operating Activities | $42 | 35% | N/A | | Free Cash Flow | $34 | 69% | N/A | - Achieved **zero net dilution** by the end of Q2 2025, on track to meet 2025 dilution and SBC expense targets[6](index=6&type=chunk) - Board approved a new **$200 million two-year share repurchase program** to supplement the existing plan[6](index=6&type=chunk) [Corporate Events & Investor Information](index=1&type=section&id=2.%20Corporate%20Events%20%26%20Investor%20Information) Zeta Global is hosting upcoming investor and company events, including an Investor Day and its Zeta Live conference, and provides details on investor communications [Upcoming Investor & Company Events](index=1&type=section&id=2.1%20Upcoming%20Investor%20%26%20Company%20Events) Zeta Global will host its second Investor Day on October 8, 2025, to share its long-term roadmap, followed by the fifth Zeta Live conference on October 9, focusing on thought leadership and product launches - Second Investor Day on **October 8, 2025**, to share the long-term roadmap, R&D pipeline, and expanded leadership team[4](index=4&type=chunk) - Fifth Zeta Live conference on **October 9, 2025**, themed 'Achieving the Impossible,' featuring thought leadership sessions and a dedicated product launch stage[4](index=4&type=chunk) [Investor Conference Call and Webcast](index=2&type=section&id=2.2%20Investor%20Conference%20Call%20and%20Webcast) Zeta Global will host a conference call on August 5, 2025, to discuss Q2 2025 financial results, with a supplemental presentation and webcast available - Conference call to discuss Q2 2025 financial results on **Tuesday, August 5, 2025, at 4:30 PM ET**[11](index=11&type=chunk) - Supplemental earnings presentation and webcast available on the company's investor relations website[11](index=11&type=chunk) [Availability of Information on Zeta's Website and Social Media Profiles](index=4&type=section&id=2.3%20Availability%20of%20Information%20on%20Zeta's%20Website%20and%20Social%20Media%20Profiles) Zeta Global regularly discloses important information via SEC filings, press releases, webcasts, and its investor relations website, also leveraging social media for public updates - Company regularly publishes important information through **SEC filings, press releases, public conference calls, webcasts, and its investor relations website**[19](index=19&type=chunk) - Company also uses **social media profiles (e.g., X, Facebook, LinkedIn, Instagram)** to disclose information to customers, investors, and the public[19](index=19&type=chunk)[20](index=20&type=chunk) [Financial Guidance](index=1&type=section&id=3.%20Financial%20Guidance) Zeta Global has significantly raised its financial guidance for both Q3 and the full year 2025, reflecting strong confidence in continued growth and performance [Third Quarter 2025 Guidance](index=1&type=section&id=3.1%20Third%20Quarter%202025%20Guidance) Zeta Global raised its Q3 2025 revenue and Adjusted EBITDA guidance, reflecting strong expectations for future growth Third Quarter 2025 Financial Guidance | Metric | Previous Guidance Midpoint ($M) | Revised Guidance Midpoint ($M) | Change ($M) | Year-over-Year Growth Rate | | :----- | :------------------------------ | :----------------------------- | :---------- | :------------------------- | | Revenue | $323 | $328 | +$5 | 22% to 23% | | Adjusted EBITDA | $69.7 | $70.65 | +$1 | 31% to 32% | | Adjusted EBITDA Margin | N/A | 21.4% to 21.7% | N/A | N/A | [Full Year 2025 Guidance](index=2&type=section&id=3.2%20Full%20Year%202025%20Guidance) The company significantly raised its full-year 2025 revenue, Adjusted EBITDA, and free cash flow guidance, indicating strong confidence in sustained performance and growth Full Year 2025 Financial Guidance | Metric | Previous Guidance Midpoint ($M) | Revised Guidance Midpoint ($M) | Change ($M) | Year-over-Year Growth Rate | | :----- | :------------------------------ | :----------------------------- | :---------- | :------------------------- | | Revenue | $1,242 | $1,263 | +$21 | 25% to 26% | | Adjusted EBITDA | $258.5 | $264.6 | +$6 | 37% to 38% | | Adjusted EBITDA Margin | N/A | 20.8% to 21.1% | N/A | N/A | | Free Cash Flow | $131.5 | $142 | +$10.5 | 52% to 56% | | Free Cash Flow Margin | N/A | 11.0% to 11.4% | N/A | N/A | - Equity stock compensation is projected to be **$190 million**[13](index=13&type=chunk) [Share Repurchase Program](index=1&type=section&id=4.%20Share%20Repurchase%20Program) Zeta Global has authorized a new $200 million share repurchase program and has utilized a significant portion of its existing program [New Stock Repurchase Authorization](index=2&type=section&id=4.1%20New%20Stock%20Repurchase%20Authorization) Zeta's Board approved a new stock repurchase and withholding program of up to $200 million, valid until December 31, 2027, for Class A common stock and tax-related withholding - Board authorized a new stock repurchase and withholding program of up to **$200 million**[9](index=9&type=chunk) - Program valid until **December 31, 2027**, for repurchasing Class A common stock and withholding shares for tax requirements upon restricted stock award vesting[9](index=9&type=chunk) - Repurchases may occur through **open market purchases, privately negotiated transactions, or other means**[10](index=10&type=chunk) [Existing Program Utilization](index=1&type=section&id=4.2%20Existing%20Program%20Utilization) As of July 25, 2025, Zeta utilized $85 million of its $100 million stock repurchase authorization approved in November 2024, with $15 million remaining - As of **July 25, 2025**, **$85 million** of the **$100 million** stock repurchase authorization approved in November 2024 has been utilized[6](index=6&type=chunk) - **$15 million** remains available under the existing stock repurchase program before its expiration on **December 31, 2026**[9](index=9&type=chunk) [Company Overview](index=2&type=section&id=5.%20Company%20Overview) This section provides a concise overview of Zeta Global, highlighting its core business as an AI marketing cloud and its foundational principles [About Zeta Global](index=2&type=section&id=5.1%20About%20Zeta%20Global) Zeta Global is an AI marketing cloud company leveraging advanced AI and vast consumer signals via its Zeta Marketing Platform (ZMP) to help marketers acquire, grow, and retain customers efficiently - Zeta Global (NYSE: ZETA) is an **AI marketing cloud**[12](index=12&type=chunk) - Leverages **advanced AI and trillions of consumer signals** to help marketers more efficiently acquire, grow, and retain customers[12](index=12&type=chunk) - The Zeta Marketing Platform (ZMP) simplifies complex marketing through **unified identity, intelligence, and omnichannel activation**, powered by the industry's largest proprietary database and AI[12](index=12&type=chunk) - Founded in **2007** by **David A. Steinberg and John Sculley**, headquartered in New York City[12](index=12&type=chunk)[14](index=14&type=chunk) [Legal & Financial Disclosures](index=3&type=section&id=6.%20Legal%20%26%20Financial%20Disclosures) This section outlines the company's forward-looking statements, defines key operational and financial terms, and explains the use and limitations of non-GAAP financial measures [Forward-Looking Statements](index=3&type=section&id=6.1%20Forward-Looking%20Statements) This section contains standard forward-looking statements about future financial performance, market opportunities, and business strategies, subject to risks and uncertainties that may cause actual results to differ - Forward-looking statements include information on **2025 guidance, 2028 targets, market share growth, product capabilities, competitive position, customer expansion, AI platform capabilities, and future share repurchases**[15](index=15&type=chunk) - Subject to risks, uncertainties, and assumptions including **macroeconomic trends, interest rate changes, inflation, geopolitical conditions, innovation capabilities, AI impact, customer retention, data collection, and security breaches**[16](index=16&type=chunk) - Company undertakes no obligation to update or revise any forward-looking statements, except as required by applicable law[16](index=16&type=chunk) [Definitions of Key Terms](index=4&type=section&id=6.2%20Definitions%20of%20Key%20Terms) Zeta Global defines key operational and financial terms, including direct and integrated platform revenue, cost of revenue components, and classifications of scaled and hyperscaled customers with their ARPU - **Direct Platform Revenue**: Revenue generated entirely through the company's platform[20](index=20&type=chunk) - **Integrated Platform Revenue**: Revenue generated through the company's platform in conjunction with third-party integrations[20](index=20&type=chunk) - **Cost of Revenue (excluding depreciation and amortization)**: Primarily includes media and marketing costs (fees paid to third-party publishers/partners) and employee-related costs[20](index=20&type=chunk) - **Scaled Customer**: A customer generating at least **$100,000** in revenue over the preceding twelve months[20](index=20&type=chunk) - **Hyperscaled Customer**: A subset of Scaled Customers, generating at least **$1 million** in revenue over the preceding twelve months[21](index=21&type=chunk) - **Scaled Customer ARPU / Hyperscaled Customer ARPU**: Revenue for the respective period divided by the number of corresponding Scaled Customers at the end of that period[23](index=23&type=chunk) [Non-GAAP Measures](index=5&type=section&id=6.3%20Non-GAAP%20Measures) Zeta Global uses non-GAAP measures like Adjusted EBITDA and Free Cash Flow to provide insights into core operating performance and facilitate comparisons, while acknowledging their analytical limitations - Non-GAAP measures (**Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, and Free Cash Flow Margin**) are used for business evaluation, financial planning, and investor comparisons[22](index=22&type=chunk)[23](index=23&type=chunk) - **Adjusted EBITDA**: Net income/(loss) adjusted for net interest expense, depreciation and amortization, stock-based compensation, income tax (benefit)/provision, acquisition-related expenses, restructuring expenses, change in fair value of warrant and derivative liabilities, certain dispute settlement expenses, gain on extinguishment of debt, certain non-recurring financing-related expenses, and other expenses/(income)[23](index=23&type=chunk) - **Free Cash Flow**: Cash flow from operating activities less capital expenditures and website and software development costs, adjusted for the effect of exchange rates on cash and cash equivalents[23](index=23&type=chunk) - Limitations: Should not be considered in isolation or as a substitute for GAAP financial results analysis; other companies may calculate similarly titled non-GAAP financial measures differently[24](index=24&type=chunk) - Due to inherent uncertainties and unreasonable efforts, the company does not provide a reconciliation of forward-looking Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, and Free Cash Flow Margin guidance to forward-looking GAAP net income/(loss)[25](index=25&type=chunk) [Financial Statements](index=7&type=section&id=7.%20Financial%20Statements) This section presents Zeta Global's condensed unaudited consolidated balance sheets, statements of operations, and cash flows, providing a snapshot of the company's financial position and performance [Condensed Unaudited Consolidated Balance Sheets](index=7&type=section&id=7.1%20Condensed%20Unaudited%20Consolidated%20Balance%20Sheets) As of June 30, 2025, Zeta Global's total assets were $1,100,093 thousand, with total liabilities at $426,837 thousand and total stockholders' equity at $673,256 thousand Condensed Unaudited Consolidated Balance Sheets (in thousands of dollars) | Metric | June 30, 2025 ($K) | December 31, 2024 ($K) | Change ($K) | | :-------------------- | :----------------- | :--------------------- | :---------- | | Total Assets | $1,100,093 | $1,111,373 | -$11,280 | | Total Liabilities | $426,837 | $434,572 | -$7,735 | | Total Stockholders' Equity | $673,256 | $676,801 | -$3,545 | - Cash and cash equivalents slightly decreased from **$366,157 thousand** to **$365,314 thousand**[28](index=28&type=chunk) - Accounts receivable increased from **$235,227 thousand** to **$251,007 thousand**[28](index=28&type=chunk) [Condensed Unaudited Consolidated Statements of Operations](index=8&type=section&id=7.2%20Condensed%20Unaudited%20Consolidated%20Statements%20of%20Operations) For Q2 2025, Zeta Global's revenue was $308,442 thousand, a significant year-over-year increase, with net loss improving to $(12,814) thousand Condensed Unaudited Consolidated Statements of Operations (in thousands of dollars) | Metric | Three Months Ended June 30, 2025 ($K) | Three Months Ended June 30, 2024 ($K) | Six Months Ended June 30, 2025 ($K) | Six Months Ended June 30, 2024 ($K) | | :-------------------- | :------------------------------------ | :------------------------------------ | :-------------------------------- | :-------------------------------- | | Revenue | $308,442 | $227,839 | $572,861 | $422,786 | | Operating Loss | $(5,105) | $(26,584) | $(21,218) | $(62,458) | | Net Loss | $(12,814) | $(28,066) | $(34,414) | $(67,632) | - Total operating expenses for Q2 2025 were **$313,547 thousand**, up from **$254,423 thousand** in Q2 2024[30](index=30&type=chunk) - Stock-based compensation expense for Q2 2025 was **$46,471 thousand**, lower than **$52,159 thousand** in Q2 2024[30](index=30&type=chunk) [Condensed Unaudited Consolidated Statements of Cash Flows](index=9&type=section&id=7.3%20Condensed%20Unaudited%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, operating cash flow increased to $76,848 thousand, investing cash flow decreased, and financing cash flow significantly increased due to share repurchases Condensed Unaudited Consolidated Statements of Cash Flows (in thousands of dollars) | Metric | Six Months Ended June 30, 2025 ($K) | Six Months Ended June 30, 2024 ($K) | | :-------------------- | :-------------------------------- | :-------------------------------- | | Net Cash from Operating Activities | $76,848 | $55,776 | | Net Cash Used in Investing Activities | $(16,240) | $(20,777) | | Net Cash Used in Financing Activities | $(61,396) | $(11,949) | | Net (Decrease)/Increase in Cash and Cash Equivalents | $(843) | $22,972 | - Share repurchases significantly increased from **$(8,363) thousand** in 2024 to **$(57,931) thousand** in 2025[32](index=32&type=chunk) [Reconciliation of GAAP to Non-GAAP Financial Measures](index=10&type=section&id=8.%20Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) This section provides detailed reconciliations of GAAP net loss to Adjusted EBITDA and cash flow from operating activities to Free Cash Flow [Adjusted EBITDA Reconciliation](index=10&type=section&id=8.1%20Adjusted%20EBITDA%20Reconciliation) Q2 2025 Adjusted EBITDA was $58,769 thousand (19.1% margin), a significant increase from Q2 2024, driven by improved net loss and adjustments Adjusted EBITDA Reconciliation (in thousands of dollars) | Metric | Three Months Ended June 30, 2025 ($K) | Three Months Ended June 30, 2024 ($K) | Six Months Ended June 30, 2025 ($K) | Six Months Ended June 30, 2024 ($K) | | :-------------------- | :------------------------------------ | :------------------------------------ | :-------------------------------- | :-------------------------------- | | Net Loss | $(12,814) | $(28,066) | $(34,414) | $(67,632) | | Net Loss Margin | (4.2)% | (12.3)% | (6.0)% | (16.0)% | | Adjusted EBITDA | $58,769 | $38,539 | $105,482 | $69,044 | | Adjusted EBITDA Margin | 19.1% | 16.9% | 18.4% | 16.3% | - Key adjustments include adding back **depreciation and amortization ($17,403 thousand in Q2 2025)** and **stock-based compensation ($46,471 thousand in Q2 2025)**[35](index=35&type=chunk) [Free Cash Flow Reconciliation](index=10&type=section&id=8.2%20Free%20Cash%20Flow%20Reconciliation) Q2 2025 Free Cash Flow significantly increased to $33,558 thousand from Q2 2024, derived from operating cash flow minus capital and software development costs Free Cash Flow Reconciliation (in thousands of dollars) | Metric | Three Months Ended June 30, 2025 ($K) | Three Months Ended June 30, 2024 ($K) | Six Months Ended June 30, 2025 ($K) | Six Months Ended June 30, 2024 ($K) | | :-------------------- | :------------------------------------ | :------------------------------------ | :-------------------------------- | :-------------------------------- | | Net Cash from Operating Activities | $42,049 | $31,110 | $76,848 | $55,776 | | Capital Expenditures | $(2,349) | $(6,754) | $(5,085) | $(12,565) | | Website and Software Development Costs | $(5,798) | $(4,569) | $(9,953) | $(8,212) | | Free Cash Flow | $33,558 | $19,822 | $61,755 | $34,921 | [Contacts](index=6&type=section&id=9.%20Contacts) This section provides essential contact information for investor relations and media inquiries [Investor Relations and Press Contacts](index=6&type=section&id=9.1%20Investor%20Relations%20and%20Press%20Contacts) Contact information for Zeta Global's investor relations and media departments is provided for inquiries - Investor Relations Contact: **Matt Pfau**, ir@zetaglobal.com[26](index=26&type=chunk) - Press Contact: **Candace Dean**, press@zetaglobal.com[26](index=26&type=chunk)

Core 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]

Group 1 - Zeta Global (ZETA) is positioned as a unique AI marketing stock focused on building a sustainable business model centered around durable growth rather than hype [1] - Unlike competitors that rely on third-party data and chase impressions, Zeta's AI-native platform utilizes verified first-party data [1] - The company is recognized for its scalable economics and strong reinvestment potential, appealing to investors looking for opportunities in misunderstood or disruptive sectors [1] Group 2 - The article emphasizes the importance of identifying stocks with high upside potential while managing downside risk, particularly in technology, fintech, and platform-driven models [1] - Zeta Global is highlighted as a company that could surprise the market over time due to its innovative approach and solid business fundamentals [1]

Company Overview - Zeta Global Holdings (ZETA) shares increased by 6.2% to $15.9 in the last trading session, with a notable trading volume and an 18.9% gain over the past four weeks, driven by renewed investor interest in AI marketing technology [1] - The company is expected to report quarterly earnings of $0.15 per share, reflecting a year-over-year increase of 15.4%, with revenues projected at $296.38 million, a 30.1% rise from the previous year [2] Earnings and Stock Performance - The consensus EPS estimate for Zeta has remained stable over the last 30 days, indicating that stock price movements typically do not sustain without trends in earnings estimate revisions [3] - Zeta currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook compared to other stocks in the technology services industry [4] Industry Comparison - Zeta belongs to the Zacks Technology Services industry, where TTEC Holdings (TTEC) has seen a decline of 0.6% to $4.97, with a negative return of 4.6% over the past month [4] - TTEC's consensus EPS estimate has decreased by 6.6% over the past month to $0.24, which still represents a significant year-over-year increase of 71.4% [5]

Group 1 - The article emphasizes a disciplined, research-driven approach to investing, focusing on long-term value and strategic growth [1] - The investment strategy is characterized by a fundamental, bottom-up approach, with attention to market psychology, business durability, and valuation discipline [1] - The analyst specializes in the technology sector, particularly in underappreciated or contrarian plays within software, semiconductors, and emerging innovations [1] Group 2 - The focus is on identifying companies with scalable models, durable competitive advantages, and misunderstood narratives [1] - The investment philosophy prioritizes finding value that the market has not fully recognized, rather than following current trends [1] - The research highlights that investment success is a nonlinear process influenced by cycles, feedback loops, and ongoing recalibration [1]

Core Insights - Zeta Global Holdings Corp. (NYSE: ZETA) has seen a stock increase of 10.5%, slightly underperforming the S&P 500's 11.3% return [1] - The previous focus on Zeta included a strong revenue growth of 38%, an expanding client base, and increasing investments in AI [1] Company Analysis - Leadership and Management: Zeta has a proven track record in scaling businesses, smart capital allocation, and insider ownership [1] - Market Disruption and Competitive Positioning: The company benefits from a strong technology moat, first-mover advantage, and network effects that drive exponential growth [1] - Financial Health and Risk Management: Zeta demonstrates sustainable revenue growth with efficient cash flow, a strong balance sheet, and a long-term survival runway [1] Investment Methodology - Valuation and Asymmetric Risk/Reward: The analysis includes revenue multiples compared to peers and DCF modeling, ensuring downside protection with significant upside potential [1] - Portfolio Construction and Risk Control: The investment strategy includes core positions (50-70%), growth bets (20-40%), and speculative investments (5-10%) [1]