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• Revenue: $264 million, up 6% year over year.

• Adjusted EBITDA: $47 million, up 53% year over year.

• Net Cash Provided by Operating Activities: $34.8 million, up 41% year over year.

• Free Cash Flow: $28.2 million, up 87% year over year, with a margin of 10.7%.

• GAAP Net Loss: $22 million, improved from $40 million in the first quarter of 2024.

• Scaled Customer Count: 548, up 19% year over year.

• Superscale Customer Count: 159, up 10% year over year.

• Scaled Customer Quarterly ARPU: $467,000, increased 12% year over year.

• Superscale Customer Quarterly ARPU: $1.4 million, increased 23% year over year.

• Adjusted EBITDA Margin: 17.7%, 200 basis points higher year over year.

• Share Repurchase: 1.6 million shares for $25 million during the quarter.

• 2025 Revenue Guidance: $1.242 billion at the midpoint, representing 23% reported growth.

• 2025 Adjusted EBITDA Guidance: $258.5 million, representing a 34% year-over-year increase.

• 2025 Free Cash Flow Guidance: $131.5 million, representing 43% year-over-year growth.

• Stock-Based Compensation Expense: Expected to be $190 million for 2025.

• Warning! GuruFocus has detected 2 Warning Signs with ZETA.

Release Date: May 01, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Zeta Global Holdings Corp (NYSE:ZETA) reported its 15th consecutive quarter of beating and raising guidance, showcasing strong performance and market share gains.

• The company achieved a 6% year-over-year revenue growth to $264 million and a 53% increase in adjusted EBITDA to $47 million, both exceeding guidance.

• Zeta's AI-driven platform continues to deliver measurable ROI, with significant customer success stories in telecommunications, insurance, and finance sectors.

• The launch of AI Agent Studios and Agentic Workflows is expected to enhance marketer productivity and drive further adoption of Zeta's AI capabilities.

• Zeta's agency business is experiencing momentum, with new agreements and increased platform adoption among independent agencies and large holding companies.

Negative Points

• Despite strong performance, Zeta Global Holdings Corp (NYSE:ZETA) is adopting a conservative approach to guidance due to macroeconomic uncertainties.

• The company faces potential challenges from macroeconomic conditions, which could impact customer spending and growth projections.

• Zeta's ARPU growth is impacted by the integration of LiveIntent, which has smaller average customer sizes.

• The company is experiencing headwinds in working capital due to growth with agency clients, affecting free cash flow conversion.

• Zeta's exposure to macroeconomic risks, such as potential slowdowns in key verticals like automotive and retail, remains a concern despite current resilience.