Zeta Global Holdings Corp. · NYSE:ZETA

Zeta Global — Q3 2022 Earnings Presentation

35 slides from Zeta Global's earnings presentation, Nov 1, 2022

  1. Slide 1: Supplemental 3Q’22 Earnings Presentation

    Supplemental 3Q’22 Earnings Presentation July 15, 2022 November 1, 2022 2022 Zeta Global Corp. All Rights Reserved. ZetaGlobal.com

  2. 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

  3. Slide 3: 3Q’22 Earnings Summary

    3Q’22 Earnings Summary KEY THEMES RESULTS 11 GROWTH AND PROFITABILITY AT SCALE 3Q’22 Y/Y • Revenue growth accelerated to 32% Y/Y with US revenue +36%, RESULTS GROWTH % Scaled Customer revenue +34%, Direct Platform revenue +33% • Adjusted EBITDA1 up 40% Y/Y, expanded margins 80 bps Y/Y • Cash from Op

  4. Slide 4: Consistent Execution and Strong Underlying Fundamentals

    Consistent Execution and Strong Underlying Fundamentals Increasing Scaled Growing Scaled Broad Industry Customer Count1 Customer ARPU Vertical Contribution 389 $382K 6 of the Top 10 Verticals Grew 2Q’22: 373 2Q’22: $355K Greater Than 25% 3Q’21: 347 3Q’21: $320K Increasing Quota Driving Positive Dire

  5. Slide 5: Accelerating Revenue and Adjusted EBITDA Growth While Driving Continued Margin Expansion

    Accelerating Revenue and Adjusted EBITDA Growth While Driving Continued Margin Expansion Revenue Growth Adjusted EBITDA1 Growth $22.4 $152.3 $16.0 14.7% $115.1 of Revenue 13.9% of Revenue 3Q’21 3Q’22 3Q’21 3Q’22 1. Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP metrics, see reconciliation i

  6. Slide 6: Path to Zeta 2025 Targets

    Path to Zeta 2025 Targets PACING AHEAD OF ZETA 2025 TARGETS TRAJECTORY $1B+ 20%+ $1B+ $1,00 0 $200M+ REVENUE GROWTH ADJ. EBITDA MARGIN2 450+ ~80%+ $80 0 SCALED CUSTOMERS3 DIRECT PLATFORM REVENUE4 $576 35% or better $60 0 ~$2.1M Previously $458 $563 & $87 SCALED CUSTOMER ARPU COST OF REVENUE $368 $89

  7. Slide 7: We Are Consistently Executing On Our Zeta 2025 KPIs

    We Are Consistently Executing On Our Zeta 2025 KPIs ON TRACK 2019 2021 2025 57 100 ~250 ACTUALS ZETA 2025 Sales Headcount ’19 – ’21 ’21 – ’25 CAGR CAGR Scaled Customer Count 330 355 450+ REVENUE 22% 22% Scaled Customer ARPU $0.88M $1.24M ~$2.1M 110% to Net Revenue Retention NA 113% 115% ADJ. EBITDA1

  8. Slide 8: Scaled Customer Count is Tracking Ahead of the Zeta 2025 Target

    Scaled Customer Count is Tracking Ahead of the Zeta 2025 Target 6 Consecutive Quarters of Sequential 3Q’22 Y/Y Scaled Customer Expansion Growth: 389 12% 373 106 355 359 100 343 347 99 97 333 76 86 ZETA 2025 70 283 273 REQUIRED 258 260 CAGR: 267 261 263 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 6% $1

  9. Slide 9: Consistently Delivering Scaled Customer ARPU Growth Ahead of the Zeta 2025 Target

    Consistently Delivering Scaled Customer ARPU Growth Ahead of the Zeta 2025 Target Y/Y ARPU GROWTH % 36% 45% 23% 10% 18% 19% 19% 3Q’22 Y/Y Growth: $382 $368 $320 $341 $355 19% $299 $290 ARPU for $1M+ Cohort is ZETA 2025 >10X REQUIRED CAGR: 14% $100K - $1M Cohort Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3

  10. Slide 10: Continuing To Drive ARPU Expansion

    23% Growth In Super Scaled Customers1 Y/Y Is Continuing To Drive ARPU Expansion $100K to $1M Greater than $1M +23% Y/Y Increase 283 273 106 Scaled 261 100 Customer2 86 Count Total Scaled Customers2 3Q’21: 347 2Q’22: 373 3Q‘21 2Q‘22 3Q’22 3Q‘21 2Q‘22 3Q’22 3Q’22: 389 Quarterly ARPU $95 $102 $94 $1,00

  11. Slide 11: 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 Corp. All Rights Reserved. ZetaGloba

  12. Slide 12: Zeta Is Diversified Across A Wide Range Of Verticals

    Zeta Is Diversified Across A Wide Range Of Verticals FY 2021 Revenue by Vertical Well Diversified Customer Set Technology & Consumer & Retail, Media, 5% 13% • Broad coverage across Education, 7% verticals Insurance, 12% Services, 7% • 7 of top 10 verticals grew greater than 25% in 2021 Automotive, 8

  13. Slide 13: 4Q’22 & FY’22 Guidance

    4Q’22 & FY’22 Guidance 2022 Zeta Global Corp. All Rights Reserved. ZetaGlobal.com 13

  14. Slide 14: Increased Guidance: Growth and Operating Leverage

    Increased Guidance: Growth and Operating Leverage Current 4Q’22 Current FY’22 Prior FY’22 New Versus Prior Guidance Guidance Guidance Guidance at the Nov 1, 2022 Nov 1, 2022 Aug 3, 2022 Midpoint Revenue Excl. ArcaMax $157M – $161M $570.5M – $574.5M $556.5M – $562.5M + $13M ArcaMax Contribution1 $1M

  15. Slide 15: Guidance Midpoints: Balanced Growth & Operating Leverage

    Guidance Midpoints: Balanced Growth & Operating Leverage Current 4Q’22 Current FY’22 Prior FY’22 New Versus Prior Guidance Guidance Guidance Guidance at the Nov 1, 2022 Nov 1, 2022 Aug 3, 2022 Midpoint Revenue Excl. ArcaMax $159M $572.5M $559.5M + $13M ArcaMax Contribution1 $1M $3.5M $3.5M - Total Z

  16. Slide 16: Estimated Stock-based Compensation Expense

    Estimated Stock-based Compensation Expense Stock Compensation Expense ($M) 1Q’22 2Q’22 3Q’22 4Q’22 FY’22 FY’23 FY’24 FY’25 FY’26 Pre-IPO $64.8 $66.4 $58.7 $52.6 $242.6 $144.4 $76.2 $31.9 $4.6 Post-IPO Grants $8.9 $15.9 $16.5 $15.8 $57.1 $38.2 $19.1 $9.4 $4.1 New Grants to be Issued Expect to issue 6

  17. Slide 17: Zeta’s Value Proposition

    Zeta’s Value Proposition 2022 Zeta Global Corp. All Rights Reserved. ZetaGlobal.com 17

  18. Slide 18: 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

  19. Slide 19: What We Do

    What We Do: Zeta’s Marketing Platform Empowers Enterprises to Deliver Better Experiences for Consumers and Higher ROI for Marketers. Patented Software & AI Proprietary Data Cloud Omnichannel Marketing 2022 Zeta Global Corp. All Rights Reserved. ZetaGlobal.com 19

  20. Slide 20: 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 Digital Marketing Zeta Identity Graph Consumer Insights Zeta Signal Ecosystem Market Insights Retail Footprint Op

  21. Slide 21: Why We Are Different

    Why We Are Different Zeta’s Proprietary Database is Combined With A Customer’s 1st Party Data to Sharpen Targeting & Personalize Experiences at Scale Unique Global Digital Identifiers (1.7B Emails) 14.1B+ 1T+ Content Consumption Signals per Month People in US (Monthly) 525M+ Globally 235M+ 958+ Inte

  22. Slide 22: Our Data Is Durable

    Our Data Is Durable In an Evolving Data Privacy Environment, Zeta’s Proprietary Identity Data Set has Consistently Grown 400 Unique Global Digital 14.1B Identifiers 600 In US 350 500 300 People In US 400 250 235M (monthly) 300 200 200 150 100 100 0 2018 2019 2020 2021 Data Privacy TCF 2.0 Apple IDFA

  23. Slide 23: Our Data Is Differentiated

    Our Data Is Differentiated Three Pillars of Zeta’s 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 personal

  24. Slide 24: Why We Win

    Why We Win Zeta’s Marketing Platform, Powered By Proprietary AI + Data, Creates Omnichannel Experiences And A Flywheel For Our Customers Better Resolve to Outcomes More Data Identity MARKETING PLATFORM Better Better Experiences Insights AI Zeta continues to win over half of its engagements, replacin

  25. Slide 25: Who Chooses Us

    Who Chooses Us Approximately 1/3rd of the Fortune 100 Leverages Zeta’s Marketing Platform1 9 out of the 10 7 of the 12 largest 4 of the 7 largest largest automotive credit card issuers auto insurance manufacturers in in the US companies in the US the world 4 of the 5 largest 3 of the 10 largest 3 of

  26. Slide 26: ZMP Helps Customers Realize A Strong ROI

    ZMP Helps Customers Realize A Strong ROI Zeta’s Revenue Scales With Platform Expansion CASE STUDY: ACQUIRE Insurance Customer Zeta lowered the customer’s CAC 200% in Yr 1 LAND 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

  27. Slide 27: Revenue Mix Split Evenly Between Recurring and Reoccurring Business

    Revenue Mix Split Evenly Between Recurring and Reoccurring Business Revenue Model Pricing Model REOCCURRING Usage revenue generated from pilots ~50% and channels linked to shorter term UTILIZATION & contracts where customers have a OVERAGES multiyear history of replenishing budgets. RECURRING MINIMU

  28. Slide 28: Zeta Is Building Hyper Growth Sales Factories

    Zeta Is Building Hyper Growth Sales Factories PIPELINE CREATION PIPELINE PROGRESSION SALES PRODUCTIVITY Brand Awareness Sales Funnel Velocity Activity-based Measurement & & & Demand Generation Sales Development Sales Capacity Expansion Rep (SDR) Scaling 2022 Zeta Global Corp. All Rights Reserved. Ze

  29. Slide 29: 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 Corp. All Rights Reserved. ZetaGlobal.com 29

  30. Slide 30: A Leading Marketing Platform Provider

    A Leading Marketing Platform Provider THE FORRESTER WAVE™ Email Marketing Service Providers Q1 2022 2022 Strong Now Tech, Customer Data Platforms1: Zeta is one of 5 Challengers Contenders Performers Leaders CDPs in the large market presence segment and Stronger current recognized as an Automation CD

  31. Slide 31: Competitive Landscape

    Competitive Landscape Zeta Is The Only Competitor With Patented Software and AI, Proprietary Data, and Omnichannel Activation Capabilities All In A Single Platform Software, Data & Software Activation Proprietary Identity Data Marketing Automation Software and AI Omnichannel Activation Capabilities

  32. Slide 32: Appendix

    Appendix 2022 Zeta Global Corp. All Rights Reserved. ZetaGlobal.com 32

  33. Slide 33: 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

  34. Slide 34: Bridge To Adjusted EBITDA And Adjusted EBITDA Margin

    Bridge To Adjusted EBITDA And Adjusted EBITDA Margin 3Q’22 3Q’21 Net loss (69,440) (69,129) Net loss margin 45.6% 60.0% Depreciation and amortization 13,367 11,783 Restructuring expenses - 30 Acquisition related expenses - 480 Stock-based compensation 75,218 69,343 Other expenses / (incomes) 1,142 4

  35. Slide 35: 3Q’ 2022 and 2021 P&L Bridge

    3Q’ 2022 and 2021 P&L Bridge For the three months ended September 30, 2022 For the three months ended September 30, 2021 One-time Stock Based Depr. As As Depr. As As Reported Other Items Comp. & Amort. Adjusted Reported & Amort. Adjusted (incl. SBC) Revenues $152,252 $- $- $152,252 $115,133 $- $- $1

Zeta Global Holdings — Q3 2022 Earnings Presentation on 6ix