NYSE$ZETA

Zeta Global Holdings Corp · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Zeta Global's revenue growth accelerated and achieved the "Rule of 50" in Q2 2024.

Zeta Global reported a record quarterly revenue of $228 million, a 33% year-over-year increase, driven by investments in AI and data, as well as momentum across growth catalysts. The company raised its full-year revenue guidance by $25 million to a midpoint of $925 million, reflecting a 27% year-over-year growth.

  • Total revenue reached $228 million, a 33% increase year-over-year and $16 million above guidance.
  • The total number of Scaled Customers grew to 468, an increase of 8 sequentially and 43 year-over-year.
  • Quarterly Scaled Customer ARPU increased to $479,000, up 22% year-over-year.
  • Generated $31 million in cash flow from operating activities, a 51% year-over-year increase, and $20 million in Free Cash Flow, a 53% year-over-year increase.

Headline financials

Total Revenue

$228M

Previous: $172M+32.6%
EPS

-$0.16

Previous: $0.05-420.0%
Operating Cash Flow

$31.1M

No prior period
Free Cash Flow

$19.8M

No prior period
Adjusted EBITDA

$38.5M

No prior period
Adjusted EBITDA Margin

16.9%

No prior period
Capital Expenditures

-$12.6M

Previous: -$8.95M-40.4%
Net Income

-$28.1M

Previous: -$52.2M+46.2%
Operating Income

-$26.6M

Previous: -$46.2M+42.5%
Gross Profit

$137M

Previous: $110M+24.6%
Cash & Equivalents

$155M

Previous: $117M+32.2%
Total Assets

$584M

Previous: $491M+18.9%
R&D Expense

$23.6M

No prior period
Stock-Based Comp

$52.2M

Previous: $57.6M-9.5%

Revenue & EPS history

Zeta Global · Revenue · Quarterly

$228M

Q2 2024+32.6%vs Q2 2023
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Forward guidance

Zeta Global is increasing its revenue and Adjusted EBITDA guidance for the third quarter and full year 2024.

Tailwinds

  • Third quarter revenue is expected to be in the range of $237.2 million to $241.2 million, representing a year-over-year increase of 26% to 28%.
  • Third quarter Adjusted EBITDA is expected to be in the range of $46.8 million to $47.3 million, representing a year-over-year increase of 39% to 40%.
  • Full year revenue is expected to be in the range of $920 million to $930 million, representing a year-over-year increase of 26% to 28%.
  • Full year Adjusted EBITDA is expected to be in the range of $174.5 million to $176.5 million, representing a year-over-year increase of 35% to 36%.
  • Full year Free Cash Flow is expected to be in the range of $80 million to $90 million.

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 2024

Historical avgQ2 2024

+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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