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Zeta Global Holdings Corp (ZETA)
NYSE:ZETA
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Zeta Global Holdings Corp (ZETA) AI Stock Analysis

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ZETA

Zeta Global Holdings Corp

(NYSE:ZETA)

Rating:69Neutral
Price Target:
$16.50
▲(9.42%Upside)
Zeta Global Holdings Corp's overall stock score is driven primarily by strong financial performance and positive earnings call sentiment. The company shows impressive revenue and cash flow growth, with strategic advancements in AI and customer acquisition. However, persistent profitability challenges and a negative P/E ratio weigh on the valuation. Technical indicators present a mixed outlook, with moderate bullish potential. The score reflects optimism in growth potential tempered by profitability concerns.
Positive Factors
Customer Relationships
Large customers are, on average, only spending more with the firm, indicating they’re seeing results.
Earnings Performance
ZETA is expected to have a very solid quarter, continuing a trend of 15 straight beats.
Growth Opportunities
Management had a bullish tone on the fundamentals, highlighting consistent demand and plenty of growth opportunities as brands look to modernize their legacy marketing tech stacks.
Valuation
ZETA shares, at 2.5x EV/R and 11x EV/EBITDA, are considered cheap relative to operating metrics, making it an attractive value idea.
Negative Factors
Market Comparisons
Zeta trades at 11 times our 2026 EBITDA estimate and 21 times our 2026 free cash flow estimate, which is incredibly inexpensive as peers trade at a median of 55 times EBITDA and 48 times free cash flow.
Market Fluctuations
Zeta's stock is considered attractive due to strong fundamentals and potential upside, despite recent market fluctuations.

Zeta Global Holdings Corp (ZETA) vs. SPDR S&P 500 ETF (SPY)

Zeta Global Holdings Corp Business Overview & Revenue Model

Company DescriptionZeta Global Holdings Corp (ZETA) is a data-driven marketing technology company that provides enterprises with a suite of tools and services designed to enhance customer engagement and optimize marketing strategies. Operating primarily in the technology and advertising sectors, Zeta offers a comprehensive platform that leverages artificial intelligence, data analytics, and machine learning to help businesses personalize their marketing efforts and improve customer acquisition and retention.
How the Company Makes MoneyZeta 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 Earnings Call Summary

Earnings Call Date:May 01, 2025
(Q1-2025)
|
% Change Since: 11.79%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Positive
Zeta's earnings call reflected a strong performance with record revenue and profitability metrics, driven by successful product launches and customer acquisition strategies. However, the company adopted a conservative outlook for the second half of 2025 due to macroeconomic uncertainties, despite not seeing immediate impacts on their business. The sentiment is largely positive, buoyed by solid financial results and strategic advancements, but tempered by cautious future guidance.
Q1-2025 Updates
Positive Updates
Record-Breaking Revenue Growth
Zeta reported revenue of $264 million for Q1 2025, reflecting a 36% year-over-year increase, which exceeded guidance.
Strong Adjusted EBITDA Growth
Adjusted EBITDA for Q1 2025 was $47 million, up 53% year-over-year, surpassing expectations and showcasing operational efficiency.
Successful AI Product Launch
The launch of AI Agent Studio, a suite of generative AI tools, has led to significant customer adoption and revenue growth from users adopting these tools.
Customer Acquisition Cost Improvements
Zeta achieved lower customer acquisition costs for major clients, including a 53% improvement for a telecommunications customer and a 37% improvement for an insurance provider.
Robust Sales Pipeline and Customer Retention
The company reported strong sales pipeline growth, a 111% or higher net revenue retention rate since its IPO, and added 21 scaled customers sequentially.
Strong Free Cash Flow Growth
Q1 2025 saw free cash flow of $28.2 million, up 87% year-over-year, with a free cash flow conversion of 60%.
Negative Updates
Macro Uncertainty Caution
Despite a strong performance, Zeta expressed caution in its second-half guidance due to macroeconomic uncertainties, implying conservative forecasts.
Sequential Decline in Direct Revenue Mix
The direct revenue mix was 73% in Q1 2025, down from 74% in Q4 2024, although it was up from 67% a year ago.
GAAP Net Loss
The company reported a GAAP net loss of $22 million for Q1 2025, although this was an improvement from a $40 million loss in Q1 2024.
Company Guidance
During Zeta's first quarter 2025 earnings call, the company reported strong financial performance, with revenue reaching $264 million, a 36% increase year-over-year, and adjusted EBITDA of $47 million, a 53% increase from the previous year. Zeta's focus on delivering measurable ROI and performance-based outcomes was highlighted as a key driver of its success, as evidenced by its ability to consistently surpass guidance for 15 consecutive quarters. The company announced an increase in its second quarter and full-year 2025 guidance, despite adopting a conservative approach due to ongoing macroeconomic uncertainties. Zeta's innovation in artificial intelligence, including the launch of its AI Agent Studio, and its strategic focus on expanding partnerships with independent agencies were also emphasized as significant growth contributors. The company's strong cash flow generation, with free cash flow of $28.2 million, up 87% year-over-year, was noted, along with plans to reduce stock-based compensation and dilution.

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
70
Positive
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
65
Positive
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
75
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.01B728.72M590.96M458.34M368.12M
Gross Profit606.20M454.24M375.50M283.62M219.24M
EBITDA-11.70M-124.36M-221.55M-197.21M4.01M
Net Income-69.77M-187.48M-279.24M-249.56M-53.23M
Balance Sheet
Total Assets1.11B550.71M466.50M397.26M286.29M
Cash, Cash Equivalents and Short-Term Investments366.16M131.73M121.11M103.86M50.73M
Total Debt196.29M184.15M183.95M183.61M189.69M
Total Liabilities434.57M370.19M338.47M306.78M371.30M
Stockholders Equity676.80M180.52M128.03M90.49M-85.01M
Cash Flow
Free Cash Flow92.09M54.55M39.25M17.54M10.33M
Operating Cash Flow133.86M90.52M78.49M44.29M35.54M
Investing Cash Flow-97.59M-54.22M-48.45M-46.85M-25.21M
Financing Cash Flow197.92M-25.65M-12.63M55.73M2.78M

Zeta Global Holdings Corp Technical Analysis

Technical Analysis Sentiment
Negative
Last Price15.08
Price Trends
50DMA
14.44
Positive
100DMA
13.92
Positive
200DMA
17.93
Negative
Market Momentum
MACD
0.31
Positive
RSI
48.91
Neutral
STOCH
31.79
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 15.08 is below the 20-day moving average (MA) of 15.31, above the 50-day MA of 14.44, and below the 200-day MA of 17.93, indicating a neutral trend. The MACD of 0.31 indicates Positive momentum. The RSI at 48.91 is Neutral, neither overbought nor oversold. The STOCH value of 31.79 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 Risk Analysis

Zeta Global Holdings Corp disclosed 42 risk factors in its most recent earnings report. Zeta Global Holdings Corp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Zeta Global Holdings Corp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$2.22B20.9117.50%6.75%97.06%
74
Outperform
$3.36B83.212.23%-3.12%-37.59%
69
Neutral
$3.30B24.3844.83%8.93%102.77%
69
Neutral
$3.69B-11.93%40.36%73.68%
66
Neutral
$3.79B-5.23%19.78%47.51%
62
Neutral
$34.53B6.79-11.66%2.11%6.09%-7.36%
61
Neutral
$3.30B-83.36%9.84%13.74%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ZETA
Zeta Global Holdings Corp
15.08
-7.93
-34.46%
BL
BlackLine
52.93
7.36
16.15%
GTM
ZoomInfo Technologies
10.21
-0.20
-1.92%
ASAN
Asana
14.01
1.06
8.19%
CXM
Sprinklr
8.58
-0.60
-6.54%
FRSH
Freshworks
12.68
1.01
8.65%

Zeta Global Holdings Corp Corporate Events

Executive/Board ChangesShareholder Meetings
Zeta Global Announces Co-founder John Sculley’s Retirement
Neutral
Jun 9, 2025

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.

The most recent analyst rating on (ZETA) stock is a Buy with a $44.00 price target. To see the full list of analyst forecasts on Zeta Global Holdings Corp stock, see the ZETA Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 02, 2025