Zeta Global Holdings Corp. · NYSE:ZETA
Zeta Global — Q4 2024 Earnings Presentation
50 slides from Zeta Global's earnings presentation, Feb 25, 2025
Slide 1: Supplemental 4Q'24 & FY'24 Earnings Presentation
Supplemental 4Q’24 & FY’24 Earnings Presentation February 25, 2025
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: Zeta delivered another strong quarter and year
Zeta delivered another strong quarter and year KEY THEMES RESULTS • Achieved Zeta 2025 $1 billion revenue target a year early 4Q’24 FY’24 RESULTS RESULTS Record close • 14th straight “beat and raise” quarter to 2024 • Record 4Q revenue growth of 50%, 31% excluding LiveIntent and Political • Record 4
Slide 4: Full year 2024 KPIs demonstrate consistent execution with strong underlying fundamentals
Full year 2024 KPIs demonstrate consistent execution with strong underlying fundamentals Scaled Customer Count Scaled Customer ARPU Net Revenue Retention12 TOTAL SCALED4 SUPER-SCALED5 TOTAL SCALED6 SUPER-SCALED7 527 +17% Y/Y 148 +13% Y/Y $1.9M $5.7M 114% FY’23: 452 FY’23: 131 FY’23: $1.6M FY’23: $4.
Slide 5: 12 straight quarters of >20% revenue growth and 16 quarters of expanding Adj. EBITDA margins
12 straight quarters of >20% revenue growth and 16 consecutive quarters of expanding Adj. EBITDA margins Y/Y Revenue Growth Adjusted EBITDA2 Growth $70M $315M 22.4% $210M of Revenue $45M 21.3% of Revenue 4Q’23 4Q’24 4Q’23 4Q’24 See slide 47 for footnote definitions See appendix for definitions of no
Slide 6: 5 straight years of >20% revenue growth with Adj. EBITDA margin expansion
5 straight years of >20% revenue growth with Adj. EBITDA margin expansion Revenue Growth Adjusted EBITDA2 Growth $1,006M $193M $729M $129M 19.2% $591M of Revenue $458M $92M 17.8% $63M of Revenue 15.6% of Revenue 13.8% of Revenue FY’21 FY’22 $1.00 FY’23 FY’24 FY’21 FY’22 $1 FY’23 FY’24 See slide 47 f
Slide 7: Ending the year with $44M of political candidate revenue and $17M of LiveIntent revenue
Ending the year with $44M of political candidate revenue and $17M of acquired LiveIntent revenue 1Q’24 2Q’24 3Q’24 4Q’24 4Q FY’24 FY Actuals Actuals Actuals Actuals Y/Y % Actuals Y/Y % Zeta excluding Political Candidate & LiveIntent $195M $226M $247M $276M 31% $944M 30% Revenue Political Candidate R
Slide 8: Accelerating Y/Y scaled customer count expansion
Accelerating Y/Y scaled customer count expansion 15 Consecutive Quarters of Sequential Scaled Customer Expansion 527 468 475 148 452 460 440 425 144 144 403 411 131 144 118 124 103 110 379 316 321 316 324 331 300 301 307 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 $100K – $1M $1M+ See slid
Slide 9: Significant Y/Y scaled customer ARPU expansion
Significant Y/Y scaled customer ARPU expansion Y/Y ARPU Growth % 15% 10% 10% 10% 7% 11% 22% 33% 27% $577 $557 $479 $454 $424 $418 $416 $392 4Q’24 ARPU for $1M+ is $374 13X the $100K - $1M Cohort Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 1Q'24 2Q'24 3Q'24 4Q'24 See slide 47 for footnote definitions | The data on
Slide 10: Powerful revenue leverage as customers ramp to >$1M spend
Powerful revenue leverage as customers ramp to >$1M spend $100K to $1M Greater than $1M 379 144 148 Scaled 331 321 131 Customer Count Total Scaled Customers 4Q’24: 527 3Q’24: 475 4Q‘23 3Q‘24 4Q’24 4Q‘23 3Q‘24 4Q’24 4Q’23: 452 Quarterly ARPU $104 $95 $129 $1,313 $1,619 $1,725 1 3 X OPP. Avg. Channels
Slide 11: The longer our customers stay with us, the bigger they become
The longer our customers stay with us, the bigger they become FY’24 Scaled Customer ARPU $2.6M $1.2M $0.9M $0.6M $1.3M $2.1M FY’23 FY’23 FY’23 Scaled Customer <1 Year 1-3 Years 3+ Years Count 106 138 283 Revenue $91M $169M $725M ~90% Revenue driven by scaled customers who have been with Zeta >1 year
Slide 12: Zeta is well-diversified across a wide range of verticals
Zeta is well-diversified across a wide range of verticals FY 2024 Revenue by Vertical Well-Diversified Customer Set Automotive, 4% Consumer & Retail, 22% • Broad coverage across 15 Healthcare, 6% different industry verticals Technology & Media, 6% • 7 of the Top 10 verticals grew Travel & greater th
Slide 13: Serving 44% of the Fortune 100
Serving 44% of the Fortune 10014 11 of the 17 largest 2 of the 3 largest 5 of the 10 largest Insurance Consumer & Retail Airline companies companies in the world companies 6 of the 13 largest 5 of the largest Agency 4 of the 5 largest Technology & Media Hold Cos Telecommunications companies companie
Slide 14: Zeta 2028
Zeta 2028
Slide 15: Introducing Zeta 2028
Introducing Zeta 2028 2028 Targets 2028 REVENUE TARGET $2,500 $2,100+ $1,240 $2,000 $2.1B+ $1,500 $1,006 $591 $729 $368 $458 $1,000 $500 Implied 20% CAGR $- '20 '21 '22 '23 '24 '25 ’25E* '28 2028 ADJ. EBITDA2 TARGET $600 19% 21% $525+ 25% 18% 23% 16% $500 14% 21% 25% $525M+ $257 19% $400 11% $193 17
Slide 16: Zeta guiding to materially outperform its first long-term model, Zeta 2025
Zeta guiding to materially outperform its first long-term model, Zeta 2025, across 3 key targets Revenue Adj. EBITDA2 Free Cash Flow2 Growth Margin Expansion Generation Original 4-year CAGR target: Original 4-year expansion target: Original 2025 target: 22% 620 bps $110M FY’21 to guided FY’25* 4-yea
Slide 17: Compound annual growth rates for Zeta 2028 key metrics
Compound annual growth rates for Zeta 2028 key metrics 2021 – 2024 2024 – 2028 Revenue CAGR 30% 20% METRICS KEY Adj. EBITDA2 CAGR 45% 28% Free Cash Flow2 CAGR 74% 39% Scaled Count CAGR 14% 4% – 8% Scaled ARPU CAGR 15% 12% – 16% KPIs Quota Carrier CAGR 22% 10% – 15% NRR Range 111% – 114% 110% – 115%*
Slide 18: Zeta 2028 calls for 4 more years of 20% growth and FCF margin expansion
Zeta 2028 calls for 4 more years of 20% growth and FCF margin expansion, which puts us in rarefied air There are only 8 U.S. publicly listed >500 technology companies that are… U.S. listed public technology companies Expected to grow revenue 20%+ 23 annually from 2021-2025 Companies expected to grow
Slide 19: Multiple drivers to achieve Zeta 2028 revenue target
Multiple drivers to achieve Zeta 2028 revenue target $2,100+ $2,100 $1,900 Create Accelerate Expand verticalized pipeline $1,700 Create a mobile clouds to opportunities closed loop capabilities, unlock through System $1,500 Broaden ecosystem add to incremental portfolio of that will rival existing a
Slide 20: Revenue growing significantly faster than headcount creating operating leverage
Revenue has been growing significantly faster than headcount creating substantial operating leverage and FCF expansion 3-yr CAGR 2021-2024 Capitalizing on global resource distribution & AI automation 30% 40% 35% 30% Revenue 15 pt. Growth Difference 25% Operating Leverage Operating 20% Leverage 15% T
Slide 21: Marketing & Advertising anticipating a massive shift to digital over next 4 years
Marketing & Advertising are anticipating a massive shift to digital over next 4 years, supporting our 2028 plan18 10% 86% 40% Digital advertising is By 2028, Digital Projected expected to capture video is expected to compounded annual 86% of $90B in account for 40% of growth rate additional ad total
Slide 22: 1Q'25 & FY'25 Guidance
1Q’25 & FY’25 Guidance
Slide 23: Guidance that is balanced between growth & operating leverage
Guidance that is balanced between growth & operating leverage 1Q’25 FY’25 1Q’25 FY’25 Guidance Guidance Guidance Guidance Range Range Midpoint Midpoint Total Zeta Revenue $253M – $255M $1,235M – $1,245M $254M $1,240M % Growth Y/Y 30% – 31% 23% – 24% 30% 23% Adj. EBITDA2 $44.2M – $44.8M $255.5M – $25
Slide 24: …and aligns with historical quarterly linearity
…and aligns with historical quarterly linearity 1Q’25 FY’25 2Q’25 3Q’25 4Q’25 Midpoint Midpoint Zeta Revenue excl. LiveIntent $234M $273M $303M $335M $1,144M % Growth excl. LiveIntent & Political Y/Y 20% 20% 22% 21% 21% LiveIntent Revenue $20M $22M $26M $28M $96M Total Zeta Revenue $254M $295M $329M
Slide 25: FY'25 Revenue Guidance Bridge
FY’25 Revenue Guidance Bridge $1,400 +23% Y/Y $1,300 $96 $1,240 $1,200 $1,144 $1,006 $1,100 $1,000 $944 $900 ($17) ($44) $800 $700 $600 +21% $500 Y/Y $400 $300 Actuals Category 2 Category 3 Category 4 9/30/2024 FY’24 LiveIntent Political Revenue Revenue Guidance for FY’25 Revenue (4Q contribution on
Slide 26: Guiding to Free Cash Flow of $130M in 2025, with a target of $340M+ by 2028
Guiding to Free Cash Flow of $130M in 2025, with a target of $340M+ by 2028 FCF conversion adjusted for Working Capital headwinds primarily from the agency business growth ADJ. EBITDA FCF $ 62% 68% $525+ 65% $600 70% FCF / EBITDA % 3 50% 60% 48% $500 $400 42% 42% $340+ 50% $257 40% $300 26% 28% $193
Slide 27: Targeting to reduce dilution and SBC
Targeting to reduce dilution10 and SBC Dilution May Be Impacted By Share Price Appreciation Pre-IPO Post-IPO 4Q’24 Fully Diluted Share Count: 252M DOES NOT ACCOUNT FOR FUTURE GRANTS $242 $141 $70 $31 $125 $5 $102 $89 $57 $52 $31 $12 2022 2023 2024 2025e 2026e 2027e 2028e Long-term Target: 3% - 4% No
Slide 28: Zeta makes sophisticated marketing SIMPLE
Zeta makes sophisticated marketing SIMPLE 28
Slide 29: Being a Sophisticated Marketer Is Harder Than Ever
Being a What message will resonate? Sophisticated Who should Marketer Is How can I make Gen AI I target? How do I Harder Than Ever know who’s actionable? in market Which channels With fragmented tools, are more processes, and poorly integrated data, profitable? 55% of marketers cannot identify What
Slide 30: Zeta helps marketers Acquire, Grow & Retain customers
Zeta helps marketers Acquire, Grow & Retain customers more efficiently and effectively by… …enriching customer data …synthesizing data …and delivering real-time with Zeta data… into Intelligence… omnichannel engagement CRM EMAIL Zeta MOBILE AI Marketing Platform SOCIAL WEBSITE PERSONALIZATION DSP Ze
Slide 31: Zeta consolidates the fragmented marketing landscape
Zeta consolidates the fragmented marketing landscape The Zeta Marketing Platform (ZMP) consolidates all 3 Data Marketing Management Automation Engagement (Marketing Clouds (Programmatic) (CDPs) & ESPs) How brands create a unified customer How brands effectively reach and manage How brands acquire ne
Slide 32: The Zeta Advantage
The Zeta Advantage Integrated Identity & Intelligence The ZMP is Makes Generative AI Actionable Built For Results Real Time Only Zeta’s Purpose-Built Platform Can Replace Legacy Technology or Optimize Existing Flexibility to Wrap Around Tech Stack Tech Lower Total Cost of Ownership Generates Higher
Slide 33: The intelligence powered era is breaking boundaries
The intelligence powered era is breaking boundaries U.S. TAM 11 CAGR 11 OMNICHANNEL ENGAGEMENT 2023 ’23 – ‘25 Data Media MarTech SIGNALS Intelligence Powered $19B 14% Marketing IPM Technology Intelligence IDENTITY Powered Media 12% $64B See slide 47 for footnote definitions 33
Slide 34: Zeta was named a Leader in the Latest Forrester Wave
Zeta was named a Leader in the Latest Forrester Wave9 Zeta was named as the leader, by a wide 3Q 2024 margin, scoring highest possible rating in 13 of 22 categories. Highlights 1Q 2022 “Zeta Global stands out with a solution that suits the most type of marketers.” “Zeta’s current offering leads our
Slide 35: Comprehensive Look Into Zeta's Data Cloud, Governance & Vision
Comprehensive Look Into Zeta’s Data Cloud, Governance & Vision Selection from Zeta Data Summit on December 9, 2024
Slide 36: Finding Signal Through the Noise
Finding Signal Through the Noise Zeta’s POV on How Outsiders Should Value Data Assets, Capabilities, Compliance Size, Scale, Is Coverage Comprehensive and Resilient? Durability Data Active Activation Compliance Model Is Usability Easy, and Does Are Standards of Today and it Create “Unfair the Likely
Slide 37: Zeta's Types of Data
Zeta’s Types of Data Zeta’s People-Based Data Includes Identities, Identifiers, & Signals Identities Identifiers Signals Identities are unique Identifiers are indices that Signals are data-in-motion and individuals, represented by determine the best way to data-at-rest processed by Zeta offline PII
Slide 38: Defining Zeta's Sources of Data
Defining Zeta’s Sources of Data Zeta Data Sources Description Zeta Demand Side Platform (DSP) Technology enabling advertisers to participate in online, programmatic auctions Zeta Supply Side Platform (SSP) Technology enabling publishers to participate in online, programmatic auctions Zeta Message Tr
Slide 39: Contribution Value of Zeta's Technology and Networks
Contribution Value of Zeta’s Technology and Networks Est. Contribution Zeta Data Sources Identities Identifiers Signals to Total Graph Zeta Demand Side Platform (DSP) 15-20% Zeta Supply Side Platform (SSP) 3-5% Zeta Message Transfer Agent (MTA) 10-15% Disqus 15-20% LiveIntent 20-25% O&O Properties 0
Slide 40: MTA, LiveIntent, Disqus Contribute > 75%+ of Identities
MTA, LiveIntent, Disqus Contribute > 75%+ of Identities O&O Third Party MTA Disqus LiveIntent 40
Slide 41: DSP, LiveIntent, Disqus Contribute > 95% of Identifiers
DSP, LiveIntent, Disqus Contribute > 95% of Identifiers SSP Third Party LiveIntent Disqus DSP 41
Slide 42: Disqus, DSP, LiveIntent Contribute > 75%+ of Signals
Disqus, DSP, LiveIntent Contribute > 75%+ of Signals Third Party O&O DSP LiveIntent Disqus 42
Slide 43: Digital and Email Permission Have Different Requirements
Digital and Email Permission Have Different Requirements Zeta Collects Permissioned Data for Web Monitoring and Email Using Methodologies Compliant with Federal Laws, State Laws, and Self-Regulatory Programs Zeta Data Cloud Counts as of November 2024 Digital Permission: Identities, Signals and Ident
Slide 44: Data Durability
Data Durability Zeta’s People-Based Assets Have Demonstrated Stability and Antifragility Amidst a More Stringent Regulatory Environment December 2021 January 2024 November 2024 231M* 241M* 245M* LiveIntent Acquisition Completed Data Privacy Regulation & Browser Updates GDPR Apple ITP TCF 2.0 Google
Slide 45: How Hard it is to Replicate
How Hard it is to Replicate In Short, It Would Be Challenging to Recreate Zeta’s Model Data AI Convergence Own identity-based Leading AI-capabilities to Platform capable of assets that provide real synthesize data into operating across the value to Publishers, and actionable intelligence entire cons
Slide 46: Appendix
aa Appendix
Slide 47: Footnotes
Footnotes 1 | 4Q’24 GAAP net income of $15.2M, or 4.8% of revenue, includes $43.0M of stock-based compensation. See the graded vesting schedule on slide 27. 2 | Adjusted EBITDA, Adjusted EBITDA Margin, and Free Cash Flow are non-GAAP measures, see reconciliations in the Appendix. 3 | Free Cash Flow
Slide 48: 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 49: Reconciliation for Adj. EBITDA and Adj. EBITDA margin
Reconciliation for Adj. EBITDA and Adj. EBITDA margin $ in ’000s, unless otherwise noted ` 3Q’24 4Q’24 FY’19 FY’20 FY’21 FY’22 FY’23 FY’24 Net (loss) / income $ (17,375) $ 15,236 $ (38,465) $ (53,225) $ (249,563) $ (279,239) $ (187,481) $ (69,771) Net (loss) / income margin (6.5)% 4.8% (12.6)% (14.5
Slide 50: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation $ in ’000s, unless otherwise noted 3Q’24 4Q’24 FY’19 FY’20 FY’21 FY’22 FY’23 FY’24 Cash Flows from Operating Activities $ 34,402 $ 43,683 $ 30,599 $ 35,539 $ 44,292 $ 78,486 $ 90,523 $ 133,861 Capital expenditures (4,893) (8,269) (3,300) (2,249) (9,482) (22,232) (20,483