Zeta Global Holdings Corp (ZETA) AI Stock Analysis

• Market Cap: $4.53B
• Dividend Yield: N/A
• Average Volume (3M): 10.82M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.17
• Revenue Growth: 40.60%
• EPS Growth: 79.56%
• Country: US
• Employees: 2,191
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Application
• EPS (TTM): 0.14
• Shares Outstanding: 213,945,710
• 10 Day Avg. Volume: 9,504,974
• 30 Day Avg. Volume: 10,817,110
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.71
• Enterprise Value/Revenue: 2.77
• Enterprise Value/Gross Profit: 4.66
• Enterprise Value/Ebitda: 117.66
• 1Y Price Target: $26.64
• Price Target Upside: 36.27% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 66 Neutral
• Price Target: $20.00 ▲(2.30% Upside)

Zeta Global Holdings Corp's overall stock score is driven by strong earnings call performance and positive technical indicators, indicating growth potential. However, challenges in profitability and valuation concerns due to negative net income and lack of dividend yield weigh down the score.

Positive Factors

Financial Performance

Zeta Global reported strong results with revenue and adjusted EBITDA above estimates, demonstrating confidence in its pipeline and visibility.

Market Reaction

Shares are indicated up 9% after hours, showing positive market reaction to the company's performance.

Valuation

ZETA is trading at a lower multiple compared to the group, indicating a good buying opportunity.

Negative Factors

Macro Environment

The broader macro slowdown does drive some concern for slowing demand of the company's 'Engagement' revenue product.

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 generates revenue primarily through its software solutions and services that enable businesses to execute data-driven marketing campaigns. The company's revenue model is based on a combination of subscription fees for access to its marketing platform and performance-based fees tied to the success of marketing campaigns managed through its system. Additionally, Zeta Global forms strategic partnerships with companies across various industries to integrate its platform into broader digital transformation strategies, which can also contribute to its revenue. These partnerships, along with its robust data analytics capabilities, are significant factors in Zeta's ability to attract and retain clients, thereby driving its earnings.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.16B	1.01B	728.72M	590.96M	458.34M	368.12M
Gross Profit	686.35M	606.20M	454.24M	375.50M	283.62M	219.24M
EBITDA	27.17M	-11.70M	-124.36M	-221.55M	-197.21M	4.01M
Net Income	-36.55M	-69.77M	-187.48M	-279.24M	-249.56M	-53.23M
Balance Sheet
Total Assets	1.10B	1.11B	550.71M	466.50M	397.26M	286.29M
Cash, Cash Equivalents and Short-Term Investments	365.31M	366.16M	131.73M	121.11M	103.86M	50.73M
Total Debt	196.69M	196.29M	184.15M	183.95M	183.61M	189.69M
Total Liabilities	426.84M	434.57M	370.19M	338.47M	306.78M	371.30M
Stockholders Equity	673.26M	676.80M	180.52M	128.03M	90.49M	-85.01M
Cash Flow
Free Cash Flow	140.97M	92.09M	54.55M	39.25M	17.54M	10.33M
Operating Cash Flow	154.93M	133.86M	90.52M	78.49M	44.29M	35.54M
Investing Cash Flow	-93.05M	-97.59M	-54.22M	-48.45M	-46.85M	-25.21M
Financing Cash Flow	148.48M	197.92M	-25.65M	-12.63M	55.73M	2.78M

Zeta Global Holdings Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 19.55 is above the 20-day moving average (MA) of 17.73, above the 50-day MA of 15.99, and above the 200-day MA of 17.19, indicating a bullish trend. The MACD of 0.93 indicates Negative momentum. The RSI at 61.54 is Neutral, neither overbought nor oversold. The STOCH value of 49.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZETA.

Zeta Global Holdings Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CXM	76 Outperform	$2.16B	20.18	17.50%	―	6.75%	97.06%
GTM	71 Outperform	$3.29B	38.59	5.22%	―	-0.54%	626.94%
FRSH	69 Neutral	$3.85B	―	-5.23%	―	19.78%	47.51%
Sector *	68 Neutral	¥239.04B	15.13	6.64%	2.40%	9.16%	-0.15%
ZETA	66 Neutral	$4.53B	―	-8.21%	―	40.60%	79.56%
BL	66 Neutral	$3.21B	42.02	23.79%	―	7.99%	-28.47%
ASAN	63 Neutral	$3.25B	―	-83.36%	―	9.84%	13.74%

Zeta Global Holdings Corp Corporate Events

Zeta Global Announces Co-founder John Sculley’s Retirement

On June 9, 2025, Zeta Global Holdings Corp announced the immediate retirement of John Sculley, Co-founder and Vice Chairman, from its Board of Directors. Sculley, a former Apple CEO, played a crucial role in Zeta’s development over 17 years, and will continue to serve as Vice Chairman Emeritus, providing guidance to the leadership team. The same day, during the company’s annual meeting, stockholders voted on three proposals, including the election of directors and the ratification of Deloitte & Touche LLP as the independent accounting firm for 2025. These decisions are expected to influence the company’s governance and operational strategies moving forward.