Forensic Review Finds Zeta Global Practices Sound and Financial Statements Accurate
Zeta Global (NYSE: ZETA) announced that a forensic review completed in 2022-2023 found its practices sound and financial statements accurate, countering recent allegations in a misleading report. The review, conducted by Latham & Watkins LLP and external forensic accountants, was initiated after learning of a federal investigation into Kubient, Inc., a former business partner before Zeta's 2021 IPO. The review confirmed the accuracy of Zeta's financial statements and the effectiveness of internal controls. The company addressed the recent Critical Audit Matters (CAM) disclosure, noting it's a common practice among public companies and doesn't indicate control deficiencies.
Zeta Global (NYSE: ZETA) ha annunciato che una revisione forense completata nel 2022-2023 ha trovato le sue pratiche solide e i bilanci finanziari accurati, respingendo le recenti accuse contenute in un rapporto fuorviante. La revisione, condotta da Latham & Watkins LLP e da contabili forensi esterni, è stata avviata dopo aver appreso di un'indagine federale su Kubient, Inc., un precedente partner commerciale prima dell'IPO di Zeta nel 2021. La revisione ha confermato l'accuratezza dei bilanci finanziari di Zeta e l'efficacia dei controlli interni. L'azienda ha affrontato la recente divulgazione delle Questioni Critiche di Audit (CAM), sottolineando che è una prassi comune tra le aziende quotate in borsa e non indica carenze nei controlli.
Zeta Global (NYSE: ZETA) anunció que una revisión forense completada entre 2022 y 2023 encontró que sus prácticas eran sólidas y que sus estados financieros eran precisos, contrarrestando las recientes alegaciones en un informe engañoso. La revisión, llevada a cabo por Latham & Watkins LLP y contadores forenses externos, fue iniciada tras conocer una investigación federal sobre Kubient, Inc., un antiguo socio comercial antes de la OPI de Zeta en 2021. La revisión confirmó la precisión de los estados financieros de Zeta y la efectividad de los controles internos. La empresa abordó la reciente divulgación de Asuntos Críticos de Auditoría (CAM), señalando que es una práctica común entre las empresas públicas y no indica deficiencias en el control.
Zeta Global (NYSE: ZETA)는 2022-2023년에 완료된 포렌식 검토 결과, 자사의 관행이 견고하고 재무제표가 정확하다는 것을 발표하며, 최근의 오해를 불러일으키는 보고서에 대한 주장을 반박했습니다. 이 검토는 Latham & Watkins LLP와 외부 포렌식 회계사들에 의해 수행되었으며, Zeta의 2021년 IPO 이전의 비즈니스 파트너인 Kubient, Inc.에 대한 연방 조사를 알게 된 후 시작되었습니다. 이 검토는 Zeta의 재무제표의 정확성과 내부 통제의 효과를 확인했습니다. 회사는 최근의 중대한 감사 사안(CAM) 공개에 대해 언급하며, 이는 공개 회사들 사이에서 일반적인 관행이며 통제 결함을 나타내지 않는다고 설명했습니다.
Zeta Global (NYSE: ZETA) a annoncé qu'un examen forensic achevé en 2022-2023 avait révélé que ses pratiques étaient solides et que ses états financiers étaient exacts, en réponse aux récentes allégations contenues dans un rapport trompeur. L'examen, réalisé par Latham & Watkins LLP et des experts-comptables forensic externes, a été initié après avoir appris une enquête fédérale sur Kubient, Inc., un ancien partenaire commercial avant l'introduction en bourse de Zeta en 2021. L'examen a confirmé l'exactitude des états financiers de Zeta et l'efficacité des contrôles internes. L'entreprise a abordé la récente divulgation des Questions Critiques d'Audit (CAM), notant que c'est une pratique courante parmi les entreprises publiques et ne signifie pas qu'il y ait des déficiences dans le contrôle.
Zeta Global (NYSE: ZETA) gab bekannt, dass eine forensische Prüfung, die zwischen 2022 und 2023 abgeschlossen wurde, ihre Praktiken als solide und die Finanzberichte als genau erachtet hat, und damit die jüngsten Anschuldigungen in einem irreführenden Bericht zurückweist. Die Prüfung, die von Latham & Watkins LLP und externen forensischen Buchhaltern durchgeführt wurde, wurde eingeleitet, nachdem man von einer bundesstaatlichen Untersuchung gegen Kubient, Inc., einen ehemaligen Geschäftspartner vor dem Börsengang von Zeta im Jahr 2021, erfahren hatte. Die Prüfung bestätigte die Genauigkeit der Finanzberichte von Zeta und die Wirksamkeit der internen Kontrollen. Das Unternehmen ging auf die kürzliche Offenlegung kritischer Prüfungsfragen (CAM) ein und stellte fest, dass dies eine gängige Praxis unter börsennotierten Unternehmen ist und keine Kontrollmängel anzeigt.
- Forensic review confirms accuracy of financial statements
- Internal controls over financial reporting confirmed effective
- Company maintains transparency by disclosing forensic review results
- Company involved in federal investigation regarding former business partner Kubient
- Recent negative report impacts share price and market perception
Insights
The forensic review conducted by Latham & Watkins LLP and external accountants represents a significant defensive measure against recent allegations. The key findings validate Zeta's financial statements and internal controls, particularly important given the company's
The company's proactive disclosure of the 2022-2023 forensic review and the Critical Audit Matters (CAMs) demonstrates strong corporate governance. The mention of potential legal action against the report's publisher indicates a robust defense strategy. For investors, this comprehensive third-party validation of financial practices provides important assurance about the company's operational integrity and financial reporting accuracy.
This forensic review confirmation is particularly meaningful for market confidence, addressing key areas of financial reporting integrity. The review's scope covered both vendor and customer contractual arrangements, important elements of Zeta's business model. The company's transparent handling of the Kubient matter and proactive disclosure about CAMs aligns with best practices in corporate governance.
The clarification about revenue recognition CAMs being common among public companies (the most common CAM topic) helps contextualize what could otherwise be misinterpreted as a red flag. For investors, this thorough validation of financial controls and reporting accuracy should help mitigate concerns about financial statement reliability.
Internal and External Reviews Show Company Does Not Engage in Misleading Practices
Confirms “Report” Claims are False
In response to the false and misleading allegations in that “report,” Zeta is now disclosing the forensic review conducted in 2022 and 2023.
The Audit Committee of Zeta’s Board of Directors oversaw the review after learning of a federal investigation into a company, Kubient, Inc., with which Zeta did business before Zeta went public in 2021. Zeta retained Latham & Watkins LLP and external forensic accountants to review contractual arrangements in which Zeta acts as a vendor and a customer.
The review supported Zeta’s conclusion that its financial statements are accurate and fairly presented Zeta’s financial condition and operating results in all material respects. The review also supported Zeta’s conclusion that its internal controls over financial reporting are effective.
“We are releasing this news today because of the recently released false claims masquerading as ‘facts’ about our Company,” said David Steinberg, Co-Founder, Chairman, and CEO of Zeta. “Publishing false claims hurts reputable companies like ours and only benefits manipulative traders who seek to exploit the impact their false claims have on share price.”
“We asked
PCAOB rules required disclosure of critical audit matters (CAM) for the first time in Zeta’s annual report on Form 10-K for the fiscal year ended December 31, 2023. CAM disclosure is intended to provide information arising from the financial statement audit process. CAM disclosures are common for publicly traded companies.
As the PCAOB has stated, and contrary to insinuations in the “report,” CAM disclosure does not reflect negatively on the company, does not indicate control deficiencies, and does not alter the auditor’s opinion on the financial statements. Moreover, “revenue from customer contracts is the number one most common CAM topic among all public companies,” according to a January 2024 survey by Audit Analytics.
“More than a year ago, Zeta disclosed its cooperation with an investigation by federal authorities into Kubient,” Steinberg added. “We never did a material amount of business with that company, and we ended that relationship before our IPO three years ago. Zeta Global will continue to create long-term shareholder value and demonstrate its strength and the resilience our business model. I have asked our counsel to review all appropriate legal remedies we may take against the publisher of this bogus ‘report.’”
About Zeta
Zeta Global (NYSE: ZETA) is the AI-Powered Marketing Cloud that leverages advanced artificial intelligence (AI) and trillions of consumer signals to make it easier for marketers to acquire, grow, and retain customers more efficiently. Through the Zeta Marketing Platform (ZMP), our vision is to make sophisticated marketing simple by unifying identity, intelligence, and omnichannel activation into a single platform – powered by one of the industry’s largest proprietary databases and AI. Our enterprise customers across multiple verticals are empowered to personalize experiences with consumers at an individual level across every channel, delivering better results for marketing programs. Zeta was founded in 2007 by David A. Steinberg and John Sculley and is headquartered in
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Any statements made in this press release that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements and should be evaluated as such. These statements often include words such as “anticipate,” “expect,” “suggests,” “plan,” “believe,” “intend,” “estimates,” “targets,” “projects,” “should,” “could,” “would,” “may,” “will,” “forecast” and other similar expressions. We base these forward-looking statements on our current expectations, plans and assumptions that we have made in light of our experience in the industry, as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances at such time. Although we believe that these forward-looking statements are based on reasonable assumptions at the time they are made, you should be aware that many factors could affect our business, results of operations and financial condition and could cause actual results to differ materially from those expressed in the forward-looking statements. These statements are not guarantees of future performance or results. The forward-looking statements are subject to and involve risks, uncertainties and assumptions, and you should not place undue reliance on these forward-looking statements. These cautionary statements should not be construed by you to be exhaustive and are made only as of the date of this press release. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
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Investor Relations
Madison Serras
ir@zetaglobal.com
Press
Candace Dean
press@zetaglobal.com
Source: Zeta Global
FAQ
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