Zeta Global Holdings Corp. Class A ( (ZETA) ) has released its Q3 earnings. Here is a breakdown of the information Zeta Global Holdings Corp. Class A presented to its investors.
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Zeta Global Holdings Corp. is an AI-powered marketing cloud company that leverages advanced artificial intelligence to help marketers efficiently acquire, grow, and retain customers. Founded in 2007, the company is headquartered in New York City and operates globally, offering personalized marketing experiences through its Zeta Marketing Platform.
In its latest earnings report for the third quarter of 2024, Zeta Global revealed a remarkable revenue growth of 42% year-over-year, reaching a record $268 million. The company also achieved the ‘Rule of 60’, a notable metric combining revenue growth and adjusted EBITDA margin. This growth is attributed to Zeta’s strategic investments in AI and its unique marketing platform, which have positioned it well in the rapidly evolving marketing technology landscape.
Key financial highlights include a 41% year-over-year increase in direct platform revenue, making up 70% of the total revenue mix. Zeta also reported a substantial rise in scaled customer ARPU, up 33% from the previous year, and a commendable 93% year-over-year increase in free cash flow, amounting to $26 million. Despite a GAAP net loss of $17.4 million, the company improved its loss per share to $0.09 compared to $0.27 in the same quarter last year. Moreover, Zeta raised its revenue growth guidance for the fourth quarter of 2024 to 40% year-over-year.
Looking ahead, Zeta Global is optimistic about its future, buoyed by strong performance metrics and strategic positioning within the AI-driven marketing sector. The company is set to release its Zeta 2025 plan in February 2025, aiming for continued growth and expansion, with an expected revenue target exceeding $1 billion and enhanced EBITDA margins. This forward-looking strategy underscores Zeta’s confidence in sustaining its momentum and capitalizing on the opportunities presented by the AI revolution in marketing.
