Zeta Global Holdings Corp. · NYSE:ZETA

Zeta Global — Q2 2022 Earnings Presentation

34 slides from Zeta Global's earnings presentation, Aug 3, 2022

  1. Slide 1: Supplemental 2Q'22 Earnings Presentation

    Supplemental 2Q’22 Earnings Presentation July 15, 3, August 2022 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: 2Q'22 Earnings Summary

    2Q’22 Earnings Summary KEY THEMES RESULTS 2Q’22 Y/Y 11 ACCELERATING RESULTS RESULTS GROWTH % • Revenue growth accelerated to 28% Y/Y, and Adjusted EBITDA1 growth accelerated to 63% Y/Y • Added a record 14 new scaled customers Q/Q, grew ARPU by Revenue $137M 28% 19% Y/Y, and delivered 81% Direct Reve

  4. Slide 4: Strong Underlying Fundamentals

    Strong Underlying Fundamentals Increasing Scaled Growing Scaled Broad Industry Customer Count1 Customer ARPU Vertical Contribution 373 $355K 6 Of The Top 10 Verticals Grew 1Q’22: 359 2Q’21: 343 1Q’22: $341K 2Q’21: $299K Greater Than 25% Increasing Quota Driving Positive Direct Reducing Cost of Reven

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

    Accelerating Revenue and Adjusted EBITDA Growth While Driving Margin Expansion Revenue Growth Adjusted EBITDA1 Growth $18.6 $137.3 13.5% $106.9 of Revenue $11.4 10.7% of Revenue 2Q’21 2Q’22 2Q’21 2Q’22 1. Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP metrics, see reconciliation in Appendix

  6. Slide 6: Path to Zeta 2025 Targets

    Path to Zeta 2025 Targets TRAJECTORY TARGETS $1B+ 20%+ $1B $1,00 0 $200M+ REVENUE GROWTH ADJ. EBITDA MARGIN2 450+ ~80%+ $80 0 SCALED CUSTOMERS3 DIRECT PLATFORM REVENUE4 $563 35% or better $60 0 ~$2.1M Previously $458 $558 & $85 SCALED CUSTOMER ARPU COST OF REVENUE $368 $87 $306 $400 $63 $40 CATALYST

  7. 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

  8. Slide 8: 3Q'22 & FY'22 Guidance

    3Q’22 & FY’22 Guidance 2022 Zeta Global Corp. All Rights Reserved. ZetaGlobal.com 8

  9. Slide 9: Increased Guidance: Growth and Operating Leverage

    Increased Guidance: Growth and Operating Leverage Current 3Q’22 Current FY’22 Prior FY’22 New Versus Prior Guidance Guidance Guidance Guidance at the Aug 3, 2022 Aug 3, 2022 May 10, 2022 Midpoint Revenue Excl. ArcaMax $138M – $142M $556.5M – $562.5M $549.5M – $559.5M + $5M ArcaMax Contribution1 $1M

  10. Slide 10: Zeta's Value Proposition

    Zeta’s Value Proposition 2022 Zeta Global Corp. All Rights Reserved. ZetaGlobal.com 10

  11. 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

  12. Slide 12: 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 12

  13. Slide 13: 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

  14. Slide 14: 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) 13.8B+ 1T+ Content Consumption Signals per Month People in US (Monthly) 525M+ Globally 235M+ 890+ Inte

  15. Slide 15: 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 13.8B 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

  16. Slide 16: 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

  17. Slide 17: 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

  18. Slide 18: 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

  19. Slide 19: 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

  20. Slide 20: 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

  21. Slide 21: Continuing To Drive ARPU Expansion

    32% Growth In Super Scaled Customers1 Y/Y Is Continuing To Drive ARPU Expansion $100K to $1M Greater than $1M +32% Y/Y Increase 273 267 99 100 Scaled 260 Customer2 76 Count Total Scaled Customers2 2Q’21: 343 2Q‘21 1Q‘22 2Q’22 2Q‘21 1Q‘22 2Q’22 1Q’22: 359 2Q’22: 373 Quarterly ARPU $105 $99 $102 $981

  22. Slide 22: 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

  23. Slide 23: 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 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 Automoti

  24. Slide 24: 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

  25. Slide 25: 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 25

  26. Slide 26: 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

  27. Slide 27: 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

  28. Slide 28: Appendix

    Appendix 2022 Zeta Global Corp. All Rights Reserved. ZetaGlobal.com 28

  29. Slide 29: Share Repurchase Authorization and RSA Withholding Program Details

    Share Repurchase Authorization and RSA Withholding Program Details Stock Repurchase Program In August 2022, the Board of Directors authorized a stock repurchase program for up to $50 million of Zeta’s Class A common stock through December 31, 2024. Under the repurchase program, repurchases can be ma

  30. Slide 30: 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

  31. Slide 31: Bridge To Adjusted EBITDA And Adjusted EBITDA Margin

    Bridge To Adjusted EBITDA And Adjusted EBITDA Margin 2Q’22 2Q’21 Net loss (86,009) (94,922) Net loss margin 62.6% 88.8% Depreciation and amortization 13,315 11,235 Restructuring expenses - 150 Acquisition related expenses - 329 Stock-based compensation 82,335 119,270 Other expenses / (incomes) 5,696

  32. Slide 32: 2Q' 2022 and 2021 P&L Bridge

    2Q’ 2022 and 2021 P&L Bridge For the three months ended June 30, 2022 For the three months ended June 30, 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 $137,301 $- $- $- $137,301 $106,896 $- $-

  33. Slide 33: 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

  34. Slide 34: Estimated Stock-based Compensation Expense

    Estimated Stock-based Compensation Expense FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Stock-based compensation 302.3 180.9 95.0 40.1 8.2 Capitalized stock-based compensation 5.0 4.0 2.5 1.0 - Stock-based compensation in P&L 297.3 176.9 92.5 39.1 8.2 Notes: 1) All amounts shown above are in $millions. 2

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