Zeta Global Holdings Corp (ZETA) AI Stock Analysis

• Market Cap: $3.22B
• Dividend Yield: N/A
• Average Volume (3M): 7.27M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.49
• Revenue Growth: 38.02%
• EPS Growth: 66.18%
• Country: US
• Employees: 2,191
• Sector: Technology
• Sector Strength: 42
• Industry: Software - Application
• EPS (TTM): -0.42
• Shares Outstanding: 213,627,380
• 10 Day Avg. Volume: 3,908,578
• 30 Day Avg. Volume: 7,268,573
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.41
• Price to Cash Flow (P/CF): 19.60
• P/FCF Ratio: 27.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $33.60
• Price Target Upside: 139.49% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

Zeta Global Holdings Corp has demonstrated strong revenue growth and a robust cash flow position, which are significant strengths. However, the company faces challenges with profitability, as highlighted by its negative net income and margins. Technical analysis paints a bearish picture with the stock trading below major moving averages and negative momentum indicators. The valuation is also concerning with a negative P/E ratio, reflecting current profitability issues. Despite these challenges, the positive outlook from the earnings call highlights potential for future growth, though it is not factored into the overall score due to its weight redistribution.

Positive Factors

Earnings

Zeta Global reported strong 4Q results, with revenue 7% above expectations and free cash flow 2% above estimates.

Long-term Strategy

The new 2028 target model projects significant revenue and margin growth, with no unrealistic assumptions, showcasing confidence in the company's long-term strategy.

Partnerships and Expansion

Zeta is expanding its partnership ecosystem and encouraging customers to adopt more products, which can drive contract value upside.

Negative Factors

Organic Revenue Growth

Excluding political revenue contributions, the organic revenue growth guidance for 2025 could be seen as disappointing, at 13.7%.

Zeta Global Holdings Corp Business Overview & Revenue Model

Company Description

Zeta Global Holdings Corp. operates an omnichannel data-driven cloud platform that provides enterprises with consumer intelligence and marketing automation software in the United States and internationally. Its Zeta Marketing Platform analyzes billions of structured and unstructured data points to predict consumer intent by leveraging sophisticated machine learning algorithms and the industry's opted-in data set for omnichannel marketing; and Consumer Data platform ingests, analyzes, and distills disparate data points to generate a single view of a consumer, encompassing identity, profile characteristics, behaviors, and purchase intent. It also offers various types of product suites, such as opportunity explorer, and CDP+, which helps in consolidating multiple databases and internal and external data feeds and organize data based on needs and performance metrics. The company was incorporated in 2007 and is headquartered in New York, New York.

How the Company Makes Money

Zeta Global Holdings Corp generates revenue through a combination of subscription-based services and performance-based marketing solutions. The company offers its clients access to a robust marketing platform on a subscription basis, allowing businesses to utilize its advanced data analytics and AI capabilities to drive customer engagement and improve marketing outcomes. Additionally, Zeta Global earns revenue from performance marketing services, where it charges fees based on the success of marketing campaigns, such as lead generation and customer acquisitions. Strategic partnerships with major data providers and technology companies also enhance Zeta's data ecosystem, further contributing to its revenue streams.

Zeta Global Holdings Corp Financial Statement Overview

Summary

Zeta Global Holdings Corp demonstrates strong revenue growth and a robust cash flow position, highlighting its capability to generate cash and reinvest in its business. Despite these strengths, the company faces challenges in achieving profitability, as evidenced by persistent negative net income and margins. The balance sheet has improved with no debt and increasing equity, reducing financial risk. Overall, while the company shows promising growth potential, it must address profitability issues to enhance its financial health.

Income Statement

Zeta Global Holdings Corp has shown a consistent increase in total revenue over the past years, with a notable growth rate of 38% from 2023 to 2024. The gross profit margin is strong at approximately 60%, indicating effective cost management. However, the company continues to report negative net income, leading to negative net profit margins, which is a significant area of concern. The EBIT and EBITDA margins are also negative, reflecting operational challenges. Overall, the income statement reveals strong revenue growth but persistent profitability issues.

Balance Sheet

The balance sheet of Zeta Global Holdings Corp is marked by a healthy equity position with a positive stockholders' equity that has grown considerably over the past year. The company has no total debt as of 2024, which significantly improves its debt-to-equity ratio, reducing financial risk. However, the company needs to improve its equity ratio, which stands at around 61%, indicating moderate reliance on liabilities. The balance sheet shows improvement in financial stability with potential risks if equity growth does not sustain.

Cash Flow

The cash flow statement reflects a strong free cash flow of $108 million in 2024, with a substantial growth rate of 98% from the previous year, indicating increasing operational efficiency. The operating cash flow to net income ratio is healthy, suggesting that the company is generating sufficient cash from its operations even when net income is negative. The free cash flow to net income ratio also supports this trend. The cash flow position is robust, highlighting the company's ability to maintain liquidity and invest in growth opportunities.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.01B	728.72M	590.96M	458.34M	368.12M
	Gross Profit
606.20M	454.24M	375.50M	283.62M	219.24M
	EBIT
-67.92M	-167.69M	-258.69M	-245.73M	-457.00K
	EBITDA
-11.70M	-124.36M	-221.55M	-197.21M	4.01M
	Net Income Common Stockholders
-69.77M	-187.48M	-279.24M	-249.56M	-53.23M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
366.16M	131.73M	121.11M	103.86M	50.73M
	Total Assets
1.11B	550.71M	466.50M	397.26M	286.29M
	Total Debt
196.29M	184.15M	183.95M	183.61M	189.69M
	Net Debt
-169.87M	52.41M	62.84M	79.75M	138.97M
	Total Liabilities
434.57M	370.19M	338.47M	306.78M	371.30M
	Stockholders Equity
676.80M	180.52M	128.03M	90.49M	-85.01M
Cash Flow		Free Cash Flow
92.09M	54.55M	39.25M	17.54M	10.33M
	Operating Cash Flow
133.86M	90.52M	78.49M	44.29M	35.54M
	Investing Cash Flow
-97.59M	-54.22M	-48.45M	-46.85M	-25.21M
	Financing Cash Flow
197.92M	-25.65M	-12.63M	55.73M	2.78M

Zeta Global Holdings Corp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZETA, the sentiment is Negative. The current price of 14.03 is below the 20-day moving average (MA) of 14.54, below the 50-day MA of 17.63, and below the 200-day MA of 21.93, indicating a neutral trend. The MACD of -1.06 indicates Negative momentum. The RSI at 39.24 is Neutral, neither overbought nor oversold. The STOCH value of 24.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZETA.

Zeta Global Holdings Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADBE	75 Outperform	$163.46B	25.24	47.28%	―	10.65%	44.84%
CRM	75 Outperform	$257.89B	42.18	10.26%	0.59%	8.72%	51.47%
HUBS	67 Neutral	$29.79B	6,783.45	0.29%	―	21.07%	―
TTD	66 Neutral	$28.33B	72.13	15.37%	―	25.63%	118.49%
MDB	60 Neutral	$14.24B	―	-6.70%	―	19.22%	28.46%
Sector *	57 Neutral	$20.89B	10.40	-13.99%	2.52%	4.47%	-23.34%
ZETA	55 Neutral	$3.22B	―	-16.28%	―	38.02%	66.18%

Zeta Global Holdings Corp Corporate Events

Zeta Global Reaffirms Financial Guidance for 2024

Zeta Global Holdings Corp. held an investor conference where it reaffirmed its revenue and Adjusted EBITDA guidance for the fourth quarter and full year 2024, along with its free cash flow projections. This update reinforces their prior announcements, providing investors with a stable outlook on the company’s financial health.