NYSE$ZETA

Zeta Global Holdings Corp · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Zeta reported record revenue and profit growth, driven by an increase in customer count and ARPU.

Zeta Global reported total revenue of $315 million for Q4 2024, a 50% increase year-over-year. The company achieved a GAAP net income of $15 million and an adjusted EBITDA of $70.4 million, representing a 57% increase year-over-year. Zeta continues to see growth in its scaled and super-scaled customer counts and strong performance in its direct platform revenue.

  • Revenue increased 50% year-over-year to $315 million.
  • GAAP net income reached $15 million, reversing a loss from Q4 2023.
  • Adjusted EBITDA increased 57% year-over-year to $70.4 million.
  • Free cash flow grew to $32 million, up from $18 million in Q4 2023.

Headline financials

Total Revenue

$315M

Previous: $210M+49.8%
EPS (adj)

$0.25

Previous: $0.16+56.3%
Operating Cash Flow

$43.7M

No prior period
Free Cash Flow

$31.7M

No prior period
Adjusted EBITDA

$70.4M

No prior period
Adjusted EBITDA Margin

22.4%

No prior period
Super-Scaled Customers

148

No prior period
Capital Expenditures

-$12.2M

Previous: -$8.74M-39.6%
Net Income

$15M

Previous: -$35.3M+142.5%
Operating Income

$6.92M

Previous: -$31.9M+121.7%
Gross Profit

$172M

Previous: $112M+53.2%
R&D Expense

$24.3M

Previous: $19.9M+21.7%

Revenue & EPS history

Zeta Global · Revenue · Quarterly

$315M

Q4 2024+49.8%vs Q4 2023
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Forward guidance

Zeta expects revenue growth of 23%-24% in FY 2025 with strong expansion in adjusted EBITDA and free cash flow.

Tailwinds

  • Anticipating revenue growth of 23%-24% for FY 2025.
  • Projected adjusted EBITDA growth of 32%-33%.
  • Strong focus on expanding direct platform revenue.
  • Improved free cash flow expectations of $127.5M-$131.5M.
  • Continued focus on AI-driven marketing solutions.

Headwinds

  • Potential impact from macroeconomic conditions.
  • Higher operating expenses driven by expansion plans.
  • Increased competition in the marketing technology space.
  • Ongoing reliance on stock-based compensation.
  • Dependence on large-scale customer acquisitions.

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 Q4 2024

Historical avgQ4 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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