Zeta Global Holdings Corp. · NYSE:ZETA
Zeta Global — Q3 2021 Earnings Presentation
16 slides from Zeta Global's earnings presentation, Nov 9, 2021
Slide 1: Supplemental 3Q'21 Earnings Presentation
Supplemental 3Q’21 Earnings Presentation November 9, 2021 2021 ZETA GLOBAL – PROPRIETARY & CONFIDENTIAL
Slide 2: Safe Harbor
Safe Harbor This presentation has been prepared by Zeta Global Holdings Corp. and its subsidiaries (together, the “Company”, “Zeta”, or “we”) and is made for informational purposes only. The information set forth herein does not purport to be complete or to contain all of the information you may des
Slide 3: 3Q'21 Performance Highlights
3Q’21 Performance Highlights Beating the Strong Execution: Delivering on our Largest Marketing Beat & Raise Growth Drivers Clouds ✓ Sales transformation ✓ Executing on our plan ✓ Continued positive mix ahead of pace, with to add more multi-year, shift towards higher revenue above high-end software s
Slide 4: Strong Revenue Growth in 3Q'21, Ahead of Guidance
Strong Revenue Growth in 3Q’21, Ahead of Guidance Growth As Reported Growth Ex-Presidential Cycle1 $115.1 $115.1 $95.3 $92.3 3Q’20 3Q’21 3Q’20 3Q’21 1. 3Q’21 year to year revenue growth percentage normalized for $3M of Presidential Cycle revenue generated in 3Q’20 that did not repeat in 3Q’21 2021 Z
Slide 5: Growth in Scaled Customer Count and ARPU
Growth in Scaled Customer Count and ARPU Scaled Customer Scaled Customer Scaled Customer Count ARPU Growth Drivers 347 $320k More Use Cases More Channels 2Q’21: 343 +23% YtY 1Q’21: 333 +7% QtQ We define scaled customers as customers from which we generate more than $100,000 of revenue on a trailing
Slide 6: Long-term Shift Towards Direct Platform Revenue Leads to Lower Cost of Revenue %
Long-term Shift Towards Direct Platform Revenue Leads to Lower Cost of Revenue % Direct Platform Revenue 1 Total Cost of Revenue % $83 $85 77% 74% $63 Rev Rev Mix Mix 42.7% 66% 39.2% 37.6% Rev Mix 3Q’20 2Q’21 3Q’21 3Q’20 2Q’21 3Q’21 1. Direct Platform Revenue: Revenue generated by the ZMP comprised
Slide 7: Adjusted EBITDA Growing Faster than Revenue YtY and QtQ
Adjusted EBITDA Growing Faster than Revenue YtY and QtQ Adjusted EBITDA Adjusted EBITDA Margin % $16.0 13.9% 12.9% $12.3 10.7% $11.4 3Q’20 2Q’21 3Q’21 3Q’20 2Q’21 3Q’21 1. Adjusted EBITDA, Adjusted EBITDA Margin are non-GAAP metrics, see reconciliation in Appendix. 2021 ZETA GLOBAL – PROPRIETARY & C
Slide 8: 2021 Guidance Reflects Increased Revenue Visibility and Momentum On Growth Driver Execution
2021 Guidance Reflects Increased Revenue Visibility and Momentum On Growth Driver Execution Prior 4Q’21 Implied Current 4Q’21 Guidance Midpoint1 Guidance Revenue $116.5M $121M - $124M Apptness Revenue2 N/A $2M % Growth YTY3 2% 6% - 9% Excl. Presidential Cycle 14% 19% - 21% % Growth YTY Adj. EBITDA4
Slide 9: 2021 Guidance Reflects Increased Revenue Visibility and Momentum On Growth Driver Execution
2021 Guidance Reflects Increased Revenue Visibility and Momentum On Growth Driver Execution Prior FY’21 Current FY’21 Long-Term Guidance Guidance Targets1 Revenue $432M - $436M $445M - $448M Apptness Revenue2 N/A $2M Greater than 25% % Growth YTY3 17% 19% 21% - 22% YTY Revenue Excl. Presidential Cyc
Slide 10: Insights from industry luminaries on the future of marketing technology
REGISTER NOW: https://zetalive.splas hthat.com/ WHAT YOU CAN EXPECT Insights from industry luminaries on the future of marketing technology Preview Zeta’s Future Innovations Hear How Zeta’s Customers Leverage the Zeta Marketing Platform 2021 ZETA GLOBAL – PROPRIETARY & CONFIDENTIAL 10
Slide 11: Appendix
Appendix
Slide 12: Bridge To Adjusted EBITDA And Adjusted EBITDA Margin
Bridge To Adjusted EBITDA And Adjusted EBITDA Margin Q3’21 Q3’20 YTD’21 YTD’20 Net loss (69,129) (13,003) (188,425) (44,437) Interest expense 1,342 3,823 5,705 12,548 Depreciation and amortization 11,783 10,133 33,135 30,171 Stock based compensation 69,343 26 188,613 79 IPO related expense - - 2,705
Slide 13: 3Q 2021 and 2020 P&L Bridge
3Q 2021 and 2020 P&L Bridge For the three months ended September 30, 2021 For the three months ended September 30, 2020 One-time One-time As Stock Based Depr. As As Stock Depr. As Other Other Reported Comp. & Amort. Adjusted Reported Based Comp. & Amort. Adjusted Items Items Revenues $115,133 $- $-
Slide 14: 3Q 2021 and 2020 Cash Flow
3Q 2021 and 2020 Cash Flow 3Q’21 3Q’20 Variance Net loss (69,129) (13,003) (56,126) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 11,783 10,133 1,650 Stock-based compensation 69,343 26 69,317 Change in fair value of warrants and derivat
Slide 15: 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 16: Estimated stock-based compensation expense
Estimated stock-based compensation expense FY21-26 1Q'21 2Q'21 3Q'21 4Q'21 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 Total Stock-based compensation expense (Pre-IPO Issuances) - $119.3 $69.3 $69.3 $257.9 $255.8 $152.3 $77.8 $33.0 $4.5 $781.3 Notes: 1) All amounts shown above are in millions. 2) 2Q ‘