Zeta Global Holdings Corp. Class A ((ZETA)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Zeta Global Holdings Corp. Class A’s recent earnings call painted a picture of strong performance and optimism. The company reported significant revenue growth and successful product launches, with a robust expansion of its customer base. Despite minor setbacks like a GAAP net loss and some revenue fluctuations, the overall sentiment was positive, indicating a promising future trajectory.
Record Revenue Growth
Zeta reported a remarkable Q3 revenue of $337 million, marking a 28% year-over-year increase when excluding political and LiveIntent contributions. This growth represents an acceleration from Q2, highlighting the company’s strong market position and effective business strategies.
Adjusted EBITDA and Free Cash Flow
The company’s financial health was further underscored by an adjusted EBITDA of $78 million, a 46% increase year-over-year, and a free cash flow of $47 million, up 83% year-over-year, achieving a margin of 14%. These figures demonstrate Zeta’s efficient operational management and its ability to generate cash.
Zeta Live Success
The Zeta Live event was a success, with a 35% increase in attendance. The company aims to convert this momentum into over $100 million in incremental business, showcasing its effective engagement strategies and the potential for future growth.
Athena Launch
Zeta introduced Athena, an AI conversational agent designed to enhance the Zeta Marketing Platform. This launch aims to improve client ROI and channel adoption, reinforcing Zeta’s commitment to innovation and leadership in AI-powered marketing.
Strong Customer Metrics
The company added 12 super-scaled customers sequentially and saw a 25% year-over-year increase in super-scaled customer count. This growth in customer metrics highlights Zeta’s ability to attract and retain large-scale clients, contributing to its sustained revenue growth.
Raised 2025 Guidance
Zeta raised its 2025 revenue guidance by $11 million at the midpoint, reflecting the company’s strong year-to-date momentum and pipeline strength. This adjustment underscores Zeta’s confidence in its future performance and strategic direction.
Initial 2026 Outlook
The company provided an initial 2026 revenue outlook of $1.54 billion, representing a 21% growth on the 2025 guidance. This forward-looking statement indicates Zeta’s ambitious growth plans and its commitment to maintaining its market leadership.
GAAP Net Loss
Zeta reported a GAAP net loss of $3.6 million for Q3, which was an improvement from the previous year’s loss. This reduction in net loss demonstrates the company’s progress in managing its financial challenges.
LiveIntent and Political Revenue Fluctuations
Revenue from LiveIntent and political candidates was noted as weaker, though these segments were not significant portions of the overall business. This fluctuation had a minimal impact on Zeta’s overall financial performance.
Longer Agency Payment Cycles
The company faced an 18-point working capital headwind due to longer agency payment cycles, affecting free cash flow. Despite this challenge, Zeta’s overall financial health remains strong.
Forward-Looking Guidance
During the earnings call, Zeta announced robust financial performance with a revenue of $337 million for the third quarter, reflecting a 28% year-over-year growth. The company raised its 2025 revenue guidance by $11 million and initiated a 2026 outlook exceeding consensus. Zeta highlighted its leadership in AI-powered marketing and its plans to acquire Marigold’s enterprise software business to accelerate growth.
In summary, Zeta Global Holdings Corp. Class A’s earnings call conveyed a strong performance and a positive outlook. With significant revenue growth, successful product launches, and a robust customer base expansion, the company is well-positioned for future success. Despite minor setbacks, Zeta’s achievements and forward-looking guidance indicate a promising trajectory.