Zeta Global Holdings Corp. · NYSE:ZETA
Zeta Global — Q1 2022 Earnings Presentation
28 slides from Zeta Global's earnings presentation, May 10, 2022
Slide 1: Supplemental 1Q'22 Earnings Presentation
Supplemental 1Q’22 Earnings Presentation May 10, 2022 2022 ZETA GLOBAL – PROPRIETARY & CONFIDENTIAL
Slide 2: Forward-Looking Statements and Non-GAAP Measures
Forward-Looking Statements and Non-GAAP Measures This presentation, together with other statements and information publicly disseminated by the Company, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Sec
Slide 3: 1Q'22 Earnings Summary
1Q’22 Earnings Summary KEY THEMES RESULTS 1Q’22 YtY 11 CONSISTENT EXECUTION RESULTS GROWTH % • Zeta’s value proposition is durable, driving outperformance against expectations Revenue $126M 24% • Increasing 2022 guidance 2 1 PROFITABLE GROWTH Adjusted EBITDA1 $18.8M 44% • Lowered cost of revenue 540
Slide 4: Strong Underlying Fundamentals
Strong Underlying Fundamentals Increasing Scaled Growing Scaled Broad Industry Customer Count1 Customer ARPU Vertical Contribution 359 $341K 6 Of The Top 10 Verticals Grew 4Q’21: 355 4Q’21: $386K Greater Than 25% 1Q’21: 333 1Q’21: $289K Increasing Quota Driving Positive Direct Reducing Cost of Reven
Slide 5: Revenue Growing Ahead of Guidance; Adjusted EBITDA Growing Faster Than Revenue
Revenue Growing Ahead of Guidance Adjusted EBITDA Growing Faster Than Revenue Revenue Growth Adjusted EBITDA1 Growth $126.3 $18.8 $101.5 14.9% $13.0 of Revenue 12.8% of Revenue 1Q’21 1Q’22 1Q’21 1Q’22 1. Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP metrics, see reconciliation in Appendix.
Slide 6: Pacing Towards Zeta 2025 Targets
Pacing Towards Zeta 2025 Targets TRAJECTORY TARGETS $1B $1,00 0 $1B+ 20%+ $200M+ REVENUE GROWTH ADJ. EBITDA MARGIN2 450+ ~80%+ $80 0 SCALED CUSTOMERS3 DIRECT PLATFORM REVENUE4 $60 0 $545 $458 ~$2.1M 35% or better $368 $82 SCALED CUSTOMER ARPU COST OF REVENUE $306 $400 $63 $40 CATALYSTS 1Q’22 $200 $2
Slide 7: We Are Consistently Executing On Our Zeta 2025 KPIs
We Are Consistently Executing On Our Zeta 2025 KPIs ON TRACK ACTUALS ZETA 2025 Sales Headcount ’19 – ’21 ’21 – ’25 CAGR CAGR Scaled Customer Count REVENUE 22% 22% Scaled Customer ARPU Net Revenue Retention ADJ. EBITDA1 61% 33% Direct Platform Revenue Mix The Company's targets are based on a number o
Slide 8: 2Q'22 & FY'22 Guidance
2Q’22 & FY’22 Guidance 8
Slide 9: Guidance: Balanced Growth and Operating Leverage
Guidance: Balanced Growth and Operating Leverage Current 2Q’22 Current FY’22 Prior FY’22 Versus Prior Guidance Guidance Guidance Guidance at the May 10, 2022 May 10, 2022 February 23, 2022 Midpoint Revenue Excl. ArcaMax $127M – $131M $549.5M – $559.5M $540M – $550M + $9.5M ArcaMax Contribution2 $1M
Slide 10: Zeta's Value Proposition
Zeta’s Value Proposition 10
Slide 11: The Zeta Value Proposition
The Zeta Value Proposition Enabling Enterprises to Identify, Reach, and Engage Consumers Across Channels WHAT MARKETERS NEED WHAT ZETA DELIVERS EASIER All-in One Platform FASTER Rapid Time-to-Value BETTER 50% Greater ROI 1 Proprietary Patented Omnichannel Data Cloud Software & AI Activation Solving
Slide 12: How We Do It
How We Do It Zeta’s Marketing Platform (ZMP) Enables Enterprises to Identify, Reach and Engage Consumers Individually Across All Channels Large Identity-based Data Omnichannel Engagement Patented AI Engine & CDP+ 2022 ZETA 2022 GLOBAL ZETA – PROPRIETARY GLOBAL & CONFIDENTIAL – PROPRIETARY & CONFIDEN
Slide 13: Recurring and Reoccurring Business
Revenue Mix Split Evenly Between Recurring and Reoccurring Business Revenue Model Pricing Model REOCCURRING ~50% Usage revenue generated from pilots and channels linked to shorter term UTILIZATION & contracts where customers have a OVERAGES multiyear history of replenishing budgets. MINIMUM RECURRIN
Slide 14: 41% Growth In Super Scaled Customers YtY Is Continuing To Drive ARPU Expansion
41% Growth In Super Scaled Customers YtY Is Continuing To Drive ARPU Expansion $100K to $1M Greater than $1M 41% YtY Increase 263 97 99 Scaled 260 Customer 258 70 Count Total Scaled Customers 1Q’21: 333 4Q’21: 355 1Q‘21 4Q‘21 1Q’22 1Q‘21 4Q‘21 1Q’22 1Q’22: 359 10X OPPORTUNITY Quarterly ARPU $101 $10
Slide 15: The Longer Our Customers Stay With Us, The Bigger They Become
The Longer Our Customers Stay With Us, The Bigger They Become1 Scaled Customer ARPU $1.9M $0.9M $0.7M <1 Year 1-3 Years 3+ Years Scaled Customer Count 61 150 144 Scaled Customer Revenue $41M $133M $267M 1. The data on this slide is as of 12/31/21 2022 ZETA GLOBAL – PROPRIETARY & CONFIDENTIAL 15 2. $
Slide 16: ZMP Helps Customers Realize A Strong ROI
ZMP Helps Customers Realize A Strong ROI CASE STUDY: Zeta’s Revenue Scales With Platform Expansion ACQUIRE Insurance Customer LAND Zeta lowered the customer’s CAC 200% in Yr 1 Zeta lowered the customer’s CAC 300% from Yr 1 to Yr 3 • Started as $50k pilot • Started with 1 channel & 1 use case • Start
Slide 17: Zeta Is Well-diversified Across A Wide Range Of Verticals
Zeta Is Well-diversified Across A Wide Range Of Verticals FY 2021 Revenue by Vertical Well Diversified Customer Set Consumer & Retail, 13% Technology & Media, 5% • Broad coverage across Education, 7% verticals Insurance, 12% • 7 of top 10 verticals grew Services, 7% greater than 25% in 2021 Automoti
Slide 18: Zeta Is Building Hyper Growth Sales Factories
Zeta Is Building Hyper Growth Sales Factories PIPELINE PIPELINE SALES CREATION PROGRESSION PRODUCTIVITY Brand Awareness Sales Funnel Velocity Activity-based Measurement & & & Demand Generation Sales Development Sales Capacity Expansion Rep (SDR) Scaling 2022 ZETA GLOBAL – PROPRIETARY & CONFIDENTIAL
Slide 19: We've Evolved Our Salesforce Into Hunters/Farmers
We’ve Evolved Our Salesforce Into Hunters/Farmers And Built A Sophisticated Pipeline Measurement Engine Evolution From …To Industry Aligned, …To Detailed Sales Generalist Sales Model Hunter-Farmer Model Productivity Tracking Sellers 2022 ZETA GLOBAL – PROPRIETARY & CONFIDENTIAL 19
Slide 20: Our Data Is Durable
Our Data Is Durable In an Evolving Data Privacy Environment, Zeta’s Proprietary Identity Data Set has Consistently Grown Unique Global Digital 400 12.6B Identifiers 600 In US 350 500 300 400 235M People In US 250 (monthly) 300 200 200 150 100 100 0 2018 2019 2020 2021 Data Privacy TCF 2.0 Apple IDFA
Slide 21: Our Data Is Differentiated
Our Data Is Differentiated Three Pillars of Zeta Data IDENTITY SIGNALS CONNECTIVITY Create a real-time 360- Capture interest and intent Attach identity to an degree view of an individual through Artificial individual and activate to using durable identifiers Intelligence to enrich deliver personaliz
Slide 22: A Leading Marketing Platform Provider
A Leading Marketing Platform Provider THE FORRESTER WAVE™ 2022 Email Marketing Service Providers Q1 2022 Strong Now Tech, Customer Data Platforms: Zeta is one of 5 Challengers Contenders Performers Leaders CDPs in the large market presence segment and Stronger current recognized as an Automation CDP
Slide 23: Appendix
Appendix 23
Slide 24: Non-GAAP Measures
Non-GAAP Measures In order to assist readers in understanding the core operating results that our management uses to evaluate the business, we describe our non-GAAP measures referenced in this presentation below. We believe these non-GAAP measures are useful to investors in evaluating our performanc
Slide 25: Bridge To Adjusted EBITDA And Adjusted EBITDA Margin
Bridge To Adjusted EBITDA And Adjusted EBITDA Margin ``` 1Q’22 1Q’21 Net loss (72,037) (24,374) Net loss margin 57.1% 24.0% Depreciation and amortization 12,766 10,117 Restructuring expenses - 287 Acquisition related expenses 344 707 Stock-based compensation 73,736 - Other expenses 5,273 1,284 Chang
Slide 26: 1Q' 2022 and 2021 P&L Bridge
1Q’ 2022 and 2021 P&L Bridge For the three months ended March 31, 2022 For the three months ended March 31, 2021 Stock Based One-time Depr. As As One-time Depr. As As Reported Comp. Other Items & Amort. Adjusted Reported Other Items & Amort. Adjusted Revenues $126,268 $- $- $- $126,268 $101,463 $- $
Slide 27: Overview Of Stock-based Compensation Expense
Overview Of Stock-based Compensation Expense • Historically, Zeta did not recognize any stock compensation expense for grants of restricted stock awards or restricted stock units (collectively, “the RSA’s/RSU's"). Pursuant to the Company’s stock compensation plan, the RSA’s/RSU’s did not vest until
Slide 28: Estimated Stock-based Compensation Expense
Estimated Stock-based Compensation Expense FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Stock-based compensation 286.3 168.7 90.9 39.3 8.2 Capitalized stock-based 5.0 4.0 2.5 1.0 - compensation Stock-based compensation in P&L 281.3 164.7 88.4 38.3 8.2 Notes: 1) All amounts shown above are in millions. 2)