NYSE$ZETA

Zeta Global Holdings Corp · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Zeta Global's profitability accelerated and guidance was raised.

Zeta Global reported a strong second quarter, exceeding consensus estimates for the eighth consecutive quarter. Revenue increased by 25% year-over-year to $172 million, driven by growth in scaled customer count and ARPU. The company also generated $21 million in cash flow from operating activities and $13 million in free cash flow.

  • Revenue reached $172 million, reflecting a 25% year-over-year increase.
  • Total Scaled Customer count grew to 425, up 14 sequentially, with Super Scaled Customer count increasing to 118, up 8 sequentially.
  • Scaled Customer ARPU expanded by 10% year-over-year, marking the 12th consecutive quarter of double-digit growth.
  • Cash flow from operating activities was $21 million, a 41% year-over-year increase, and Free Cash Flow was $13 million, a 110% year-over-year increase.

Headline financials

Total Revenue

$172M

Previous: $137M+25.1%
EPS (adj)

$0.05

Previous: -$0.63+107.9%
Capital Expenditures

-$8.95M

Previous: -$11.5M+22.2%
Free Cash Flow

-$61.1M

Previous: -$97.5M+37.3%
Net Income

-$52.2M

Previous: -$86M+39.4%
Operating Income

-$46.2M

Previous: -$77.1M+40.0%
Gross Profit

$110M

Previous: $87.1M+26.1%
Cash & Equivalents

$117M

Previous: $111M+5.7%
Total Assets

$491M

Previous: $436M+12.7%
Stock-Based Comp

$57.6M

Previous: $82.3M-30.0%

Revenue & EPS history

Zeta Global · Revenue · Quarterly

$172M

Q2 2023+25.1%vs Q2 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Forward guidance

Zeta anticipates revenue and Adjusted EBITDA as follows:

Tailwinds

  • Increasing revenue guidance to a range of $177 million to $181 million for Q3 2023.
  • The revised revenue guidance represents a year-over-year increase of 16% to 19%.
  • Increasing Adjusted EBITDA guidance to a range of $31.7 million to $32.2 million for Q3 2023.
  • The revised Adjusted EBITDA guidance represents a year-over-year increase of 41% to 44%.
  • Increasing revenue guidance to a range of $712 million to $718 million for full year 2023.

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 2023

Historical avgQ2 2023

+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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro