Zeta Global Holdings Corp. Class A ((ZETA)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Zeta Global Holdings Corp. Class A recently held its earnings call, revealing a robust performance marked by significant revenue and EBITDA growth. The call highlighted the company’s successful AI-driven products and expansion in the agency business, which have been pivotal in driving increased revenue guidance. Despite these achievements, the company reported a GAAP net loss and expressed concerns about share dilution.
Record Revenue Growth
Zeta reported a record revenue of $308 million for Q2 2025, marking a 35% increase year-over-year and surpassing the company’s guidance. This impressive growth underscores the company’s strong market position and effective business strategies.
Strong Adjusted EBITDA Performance
The company’s adjusted EBITDA saw a remarkable 52% growth, reaching $59 million and exceeding expectations. This performance demonstrates Zeta’s strong operational efficiency and ability to convert revenue growth into profitability.
AI-Powered Product Launches
Zeta launched ‘Zeta Answers,’ a prescriptive AI framework designed to enhance client engagement and ROI. A notable success story includes a Fortune 100 tech company experiencing a 10% improvement in engagement using this platform, showcasing the potential of AI in driving business outcomes.
Expansion in Agency Business
The agency business experienced significant momentum with a 40% increase in scaled brands per agency holding company. This expansion highlights Zeta’s ability to grow its market presence and strengthen relationships with agency partners.
Increased Revenue Guidance
Reflecting confidence in sustained growth, Zeta raised its full-year revenue guidance by $21 million. This adjustment indicates the company’s positive outlook and strategic growth initiatives.
Growth in Customer Base
Zeta’s customer base expanded significantly, with the scaled customer count reaching 567, a 21% increase year-over-year. The number of super-scaled customers also grew by 17%, demonstrating the company’s success in attracting and retaining large clients.
GAAP Net Loss
Despite the positive revenue and EBITDA growth, Zeta reported a GAAP net loss of $12.8 million for the second quarter. However, this represents an improvement from the $28.1 million loss reported in the same quarter last year.
Dilution Concerns
The company addressed concerns about share dilution, noting efforts to reduce normal course equity dilution. The second-quarter share count remained flat, indicating a cautious approach to managing shareholder value.
Forward-Looking Guidance
Looking ahead, Zeta has increased its 2025 revenue guidance to $1.263 billion, with an anticipated adjusted EBITDA of $264.6 million, reflecting a 37% year-over-year increase. The company remains optimistic about its AI-powered marketing platform and its potential to drive future growth.
In conclusion, Zeta Global Holdings Corp. Class A’s earnings call reflected a strong performance with notable revenue and EBITDA growth driven by AI innovations and agency business expansion. While the company faces challenges such as a GAAP net loss and dilution concerns, its forward-looking guidance suggests continued confidence in its growth trajectory.