Data Practices ControversyThe short report argues that Zeta engages in questionable business practices, such as forming 'two-way' contracts and utilizing 'third party consent farms', which could potentially lead to an FTC investigation.
Regulatory RisksThere is a risk of a potential FTC investigation, which could impact sentiment and business, despite management's confidence that the FTC would find nothing of concern.
Revenue ChallengesThere is concern over the non-recurring nature of political revenue and its impact on Zeta's ability to meet high revenue growth estimates for the following year.