Zeta Global (NYSE: ZETA), the AI-Driven Marketing Cloud, has disclosed its financial outcomes for the second quarter, culminating on June 30, 2024.
David A. Steinberg, Co-Founder, Chairman, and CEO of Zeta, remarked, “The strategic investments made over the past seven years to embed Artificial Intelligence and data into our platform are now catalyzing the marketing cloud evolution and amplifying our growth trajectory. The proliferation of generative AI tools underscores that marketing is at the forefront of AI-driven transformation. Our proficiency in converting AI into tangible results is compelling enterprises to turn to Zeta for enhanced productivity, scalable personalization, and superior marketing program ROI.”
Chris Greiner, Zeta’s CFO, added, “Enhanced visibility into our clientele and momentum from various growth catalysts propelled an acceleration in revenue growth, expanded Adjusted EBITDA margins, and bolstered cash conversion in the second quarter. This reinforces our confidence to elevate guidance once more.”
Second Quarter 2024 Highlights
- Total revenue reached $228 million, a 33% increase year-over-year.
- Scaled Customer count grew to 468 from 460 in 1Q’24 and 425 in 2Q’23.
- Super-Scaled Customer count remained at 144, compared to 144 in 1Q’24 and 118 in 2Q’23.
- Quarterly Scaled Customer ARPU hit $479,000, marking a 22% year-over-year increase.
- Quarterly Super-Scaled Customer ARPU achieved $1.3 million, an 18% increase year-over-year.
- Direct platform revenue constituted 67% of total revenue, unchanged from 1Q’24 but down from 75% in 2Q’23.
- GAAP cost of revenue was 40%, up 50 basis points quarter-over-quarter and 390 basis points year-over-year.
- GAAP net loss was $28 million, or 12% of revenue, primarily due to $52 million in stock-based compensation. This compares to a $52 million net loss, or 30% of revenue, in 2Q’23.
- GAAP loss per share was $0.16, improving from a loss per share of $0.34 in 2Q’23.
- Cash flow from operating activities was $31 million, compared to $21 million in 2Q’23.
- Free Cash Flow was $20 million, compared to $13 million in 2Q’23.
- Share repurchases amounted to $2.9 million under the share repurchase program.
- Adjusted EBITDA was $38.5 million, a 44% increase year-over-year from $26.8 million in 2Q’23.
- Adjusted EBITDA margin was 16.9%, up from 15.6% in 2Q’23.
Zeta Live
Zeta will convene its fourth annual conference, ZETA LIVE 2024, on Thursday, September 26, in New York City. Zeta Live offers an exclusive opportunity to garner profound insights, uncover pragmatic strategies, and capitalize on invaluable networking that will empower brands to leverage the transformative power of AI. Register Now!
Guidance*
Third Quarter 2024
- Revenue guidance is being raised to a range of $237.2 million to $241.2 million, up $9.2 million at the midpoint from prior guidance of $230 million. This represents a 26% to 28% year-over-year increase.
- Adjusted EBITDA guidance is being raised to a range of $46.8 million to $47.3 million, up $1.8 million at the midpoint from prior guidance of $45.3 million. This represents a 39% to 40% year-over-year increase, with an Adjusted EBITDA margin of 19.4% to 19.9%.
Full Year 2024
- Revenue guidance is being increased to a range of $920 million to $930 million, up $25 million at the midpoint from prior guidance of $900 million. This represents a 26% to 28% year-over-year increase.
- Adjusted EBITDA guidance is being increased to a range of $174.5 million to $176.5 million, up $4.5 million at the midpoint from prior guidance of $171 million. This represents a 35% to 36% year-over-year increase, with an Adjusted EBITDA margin of 18.8% to 19.2%.
- Free Cash Flow guidance is being increased to a range of $80 million to $90 million, up $5 million at the midpoint from prior guidance of $80 million.
*This press release does not include a reconciliation of forward-looking Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow to forward-looking GAAP net income (loss), net income (loss) margin, or cash flows from operating activities, respectively, as the Company cannot provide a meaningful or reasonably accurate calculation or estimation of certain reconciling items which could significantly impact the Company’s results without making unreasonable efforts.
Investor Conference Call and Webcast
Zeta will conduct a conference call today, Wednesday, July 31, 2024, at 4:30 p.m. Eastern Time to discuss the financial results for the second quarter of 2024. A supplemental earnings presentation and a live webcast of the conference call can be accessed from the Company’s investor relations website (https://investors.zetaglobal.com/), where they will remain available for one year.