NYSE$ZETA

Zeta Global Holdings Corp · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Zeta Global's revenue and profit growth accelerated in Q2 2022, marked by a record number of new scaled customer additions.

Zeta Global reported strong second-quarter results with accelerating revenue and profit growth. The company added a record 14 new scaled customers and saw a 19% year-over-year increase in scaled customer ARPU. Total revenue reached $137 million, up 28% year-over-year.

  • Total revenue reached $137 million, reflecting a 28% increase year-over-year.
  • A record 14 new scaled customers were added in the quarter, contributing to a total of 373 scaled customers.
  • Scaled customer ARPU increased by 19% year-over-year to $355 thousand.
  • Direct platform revenue accounted for 81% of total revenue, compared to 77% in Q2 2021.

Headline financials

Total Revenue

$137M

Previous: $107M+28.4%
EPS (adj)

-$0.63

Previous: -$1.92+67.2%
Capital Expenditures

-$11.5M

Previous: -$4.38M-162.7%
Free Cash Flow

-$97.5M

Previous: -$99.3M+1.8%
Net Income

-$86M

Previous: -$94.9M+9.4%
Operating Income

-$77.1M

Previous: -$122M+37.0%
Gross Profit

$87.1M

Previous: $64.7M+34.6%
Cash & Equivalents

$111M

Previous: $114M-2.5%
Total Assets

$436M

Previous: $355M+22.9%
Stock-Based Comp

$82.3M

Previous: $119M-31.0%

Revenue & EPS history

Zeta Global · Revenue · Quarterly

$137M

Q2 2022+28.4%vs Q2 2021
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Forward guidance

Zeta anticipates revenue and Adjusted EBITDA to be in the following ranges:

Tailwinds

  • Third Quarter 2022 Revenue of $139 million to $143 million, representing a year-over-year increase of 21% to 24%.
  • Third Quarter 2022 Adjusted EBITDA of $19.8 million to $20.3 million, representing a year-over-year increase of 24% to 27% and an Adjusted EBITDA margin of 13.9% to 14.6%.
  • Full Year 2022 Increasing and narrowing our revenue expectations to a range of $560 million to $566 million, up from prior guidance of $553 million to $563 million. Revised guidance represents a year-over-year increase of 22% to 24%.
  • Full Year 2022 Increasing Adjusted EBITDA to a range of $85.8 million to $87.3 million, up from prior guidance of $83.4 million to $86.4 million. Revised guidance represents a year-over-year increase of 36% to 38% and an Adjusted EBITDA margin of 15.2% to 15.6%.
  • The Company intends to use approximately $50 million in aggregate Free Cash Flow to fund repurchases and withholdings under the two programs through December 31, 2024. if economic and market conditions are favorable.

Headwinds

  • The third quarter and full year 2022 guidance provided herein and Zeta 2025 targets are based on Zeta’s current estimates and assumptions and are not a guarantee of future performance.
  • The guidance provided and Zeta 2025 targets are subject to significant risks and uncertainties, including the risk factors discussed in the Company's reports on file with the Securities and Exchange Commission, that could cause actual results to differ materially.
  • There can be no assurance that the Company will achieve the results expressed by this guidance or the targets.
  • Macroeconomic and industry trends and adverse developments in the debt, consumer credit and financial services markets and other macroeconomic factors beyond Zeta’s control.
  • Potential fluctuations in our operating results, which could make our future operating results difficult to predict.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+2.3%

Avg return

Earnings day

-0.7%

Avg return

5 days after

+0.2%

Avg return

30 days after

63%

15 / 24 earnings

Positive

+21.6%

Q2 2022

Best reaction

-20.7%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.0%-6.5%+24.4%
Q4 2025+5.1%+2.4%-14.3%
Q3 2025+19.4%+19.1%+14.1%
Q1 2025+1.3%-2.1%-2.6%
Q4 2024-13.7%-19.6%-33.2%
Q3 2024-20.7%-50.6%-39.5%
Q2 2024+14.3%+4.6%+25.9%
Q1 2024+20.0%+23.2%+29.0%
Q4 2023+2.6%+0.0%+5.8%
Q3 2023+3.8%+4.2%+8.2%
Q2 2023+6.1%-5.9%-14.9%
Q1 2023-9.6%-10.6%-2.9%
Q4 2022+16.3%+15.3%+11.4%
Q3 2022-3.4%-0.5%+5.3%
Q2 2022+21.6%+27.2%+16.0%
Q1 2021-9.7%-2.2%-21.5%
Q1 2022-0.7%+11.0%-7.6%
Q4 2019+8.9%-7.6%-8.6%
Q4 2021+5.7%+15.0%-3.4%
Q3 2020-0.2%-6.3%-14.6%
Q3 2021-3.5%-7.6%-17.5%
Q4 2020+1.0%-7.0%+17.5%
Q2 2020+1.0%-7.0%+17.5%
Q2 2021-10.5%-4.8%+11.0%
Q1 2020

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