Zeta Global Holdings Corp. · NYSE:ZETA
Zeta Global — Q2 2021 Earnings Presentation
25 slides from Zeta Global's earnings presentation, Aug 10, 2021
Slide 1: Supplemental 2Q21 Earnings Presentation
Supplemental 2Q21 Earnings Presentation AUGUST 10, 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: 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 2021 ZETA –2021 PROPRIETARY ZETA GLOBAL & CONFIDENTIAL – PROPRIETARY | ZETAGLOBAL.COM & CONFIDENTIA
Slide 4: Who Chooses Us
Who Chooses Us Zeta is a Leader in Marketing Technology That Powers the Transition to Data-Driven Marketing for the World’s Leading Brands Blue chip customer base With leading technology across multiple industries recognized by the experts 8 out of the 10 7 of the 10 largest 4 of the 6 largest large
Slide 5: 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 2021 ZETA GLOBAL – PROPRIETARY & CONFIDENTIAL 5
Slide 6: 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 5.4B+ 1T+ Unique Global Content Consumption Digital Identifiers Signals per Month (1.5B Emails) 225M+ People in US (Monthly) 850+ 515M+ Globally Inter
Slide 7: Why We Win
Why We Win Zeta’s Marketing Platform, Powered By Proprietary AI + Data, Creates Omnichannel Experiences And A Flywheel For Our Customers Resolve to Better Identity Outcomes More Data MARKETING PLATFORM Better Better Experiences Insights AI 7
Slide 8: Zeta Is Well-Positioned To Capitalize On A Large, Growing Market Opportunity
Zeta Is Well-Positioned To Capitalize On A Large, Growing, And Attractive Market Opportunity 9,558 X $3.8M = ~$36B COMPANIES ARPU US TAM Number of large U.S. enterprises1 in Average Revenue TOTAL ADDRESSABLE industry verticals where Zeta Per User MARKET maintains most relevance2 (within $1M+ cohort)
Slide 9: Multiple Drivers To Accelerate Growth
Multiple Drivers To Accelerate Growth GROWTH DRIVERS GROWTH CATALYSTS ARPU Expansion FLYWHEEL EFFECT A 10x opportunity to expand ARPU for 100K+ scaled customers Expand Sales Capacity and Partnership Ecosystem SCALE & REACH Capitalize on market opening with more resources selling Zeta solutions Incre
Slide 10: 2Q'21 Performance
2Q’21 Performance 10
Slide 11: 2Q21 Financial Results Overview
2Q21 Financial Results Overview 2Q21 FINANCIAL RESULTS We continued our strong momentum, increasing revenue growth rates from 25% in the first quarter to 39% in the second quarter. Revenue growth translated to powerful operating leverage, with Adj. David Steinberg EBITDA growing 106% YTY and 350 bps
Slide 12: Unique Data Assets And Scalable Business Model Drive Business Momentum
A Combination Of Unique Data Assets And A Scalable Business Model Has Resulted In Significant Business Momentum SCALABLE BUSINESS MODEL… WITH SIGNIFICANT MOMENTUM… POISED TO ACCELERATE Of the 39% YTY Growth in 2Q’21 BALANCED FY’21 Revenue growth guidance 39% $107M in 2Q’21 Revenue vs. $77M in 2Q’20
Slide 13: Scaled Customers With Greater Than $1M In Annual Revenue Have ARPU Of $3.8M
Scaled Customers With Greater Than $1M In Annual Revenue Have An ARPU Of $3.8M And Reflect The Opportunity To Rapidly Grow Revenue $100K to $1M Greater than $1M >10x OPPORTUNITY $3,806 TO EXPAND ARPU Revenue per Customer (Existing Clients + 2020 Cohorts) INCREASED UTILIZATION $356 MORE USE CASES CHA
Slide 14: The Longer Our Customers Stay With Us, The Bigger They Become
The Longer Our Customers Stay With Us, The Bigger They Become Scaled Customer Count and ARPU 41 Customers 93 Customers 59 Customers 143 Customers We can increase ARPU in several ways: $1,611,112 1. Our platform can personalize more experiences 2. Our customers can expand use cases $230M 3. Our custo
Slide 15: Increased Direct Platform Revenue Mix Leads to Improved Operating Leverage
Increased Direct Platform Revenue Mix Leads to Improved Operating Leverage Continued Increase in Direct Platform Revenue Mix Revenue Model1 DIRECT PLATFORM 2Q’21 77% Revenue generated by the ZMP comprised of subscription software and utilization fees generated by channels owned and operated by Zeta,
Slide 16: 2Q'21 Business Highlights
2Q’21 Business Highlights ANNOUNCED STRATEGIC ALLIANCE GREW SCALE OF ZETA’S WITH DUN & BRADSTREET IDENTITY GRAPH DNB contracts with Zeta for multi-year licensing Expanded from 500M to 515M+ individuals of the ZMP. This launch is the industry’s first globally and from 220M to 225M+ individuals in com
Slide 17: 2021 Guidance
2021 Guidance 17
Slide 18: Accelerating Toward Long-Term Target of 25%+ YTY Growth
Accelerating Toward Long-Term Target of 25%+ YTY Growth 3Q’21 Revenue Guidance FY’21 Revenue Guidance 22% to 24% 17% to 20% Growth $432M-$436M Growth $108M-$111M Work performed by Zeta specific to the 2020 US Presidential election that does not repeat in 2021 3Q20: $3M 4Q20: $12M 3Q’20 3Q’20 3Q’20 3
Slide 19: 2021 Guidance Reflects Increased Revenue Visibility and Momentum
2021 Guidance Reflects Increased Revenue Visibility and Momentum On Growth Driver Execution 3Q’21 FY’21 Long-Term Guidance Guidance Targets1 Revenue $108M - $111M $432M - $436M Greater than 25% % Growth YTY2 13% - 16% 17% - 19% YTY Revenue Growth Excl. Presidential Cycle 17% - 20% 22% - 24% % Growth
Slide 20: Investment Highlights
Investment Highlights Comprehensive fully-integrated, purpose- Large and growing addressable built, AI-driven platform supplants multiple market of $36Bn point solutions 360-degree customer insight powered by Multiple drivers of long-term organic industry’s largest opted in consumer growth database
Slide 21: Appendix
Appendix 21
Slide 22: Bridge To Adjusted EBITDA And Adjusted EBITDA Margin
Bridge To Adjusted EBITDA And Adjusted EBITDA Margin 2Q’2021 2Q’2020 Net loss ($94,922) ($15,054) Interest expense 1,402 4,382 Depreciation and amortization 11,235 10,497 Stock based compensation 119,270 27 IPO related expense 2,705 - Gain on extinguishment of debt (10,000) - Income tax provision /
Slide 23: Bridge To Adjusted EBITDA And Adjusted EBITDA Margin
Bridge To Adjusted EBITDA And Adjusted EBITDA Margin H1’2021 H1’2020 Net loss ($119,296) ($31,434) Interest expense 4,363 8,725 Depreciation and amortization 21,352 20,038 Stock based compensation 119,270 53 IPO related expense 2,705 - Gain on extinguishment of debt (10,000) - Income tax provision /
Slide 24: 2Q 2021 and 2020 P&L Bridge
2Q 2021 and 2020 P&L Bridge For the three months ended June 30, 2021 For the three months ended June 30, 2020 Stock One-time One-time Stock One-time One-time As Based IPO Other Depr. As As Based IPO Other Depr. As Reported Comp. Expenses Items & Amort. Adjusted Reported Comp. Expenses Items & Amort.
Slide 25: 2Q 2021 and 2020 Cash Flow
2Q 2021 and 2020 Cash Flow 2Q’2021 2Q’2020 Incr./(Decr.) Cash flows from operating activities: Net loss ($94,922) ($15,054) ($79,868) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 11,235 10,497 738 Stock-based compensation 119,270 27 11