Zeta Increases 3Q’24 Guidance
Zeta Global (NYSE: ZETA) has announced increased guidance for Q3 2024, reflecting strong growth in its AI-Powered Marketing Cloud. The company has raised its revenue forecast to at least $255 million, up $15.8 million from the previous guidance, representing a year-over-year growth of at least 35%. Political candidate revenue is expected to reach at least $10 million, up from the prior $5 million estimate.
Excluding political revenue, the core business is projected to grow by at least 30% year-over-year. Adjusted EBITDA guidance has been increased to at least $50.2 million, implying a 49% year-over-year growth and an Adjusted EBITDA margin of 19.7%. Zeta attributes this growth to accelerating adoption of its platform, driven by the marketing cloud replacement cycle and increasing use of generative AI.
Zeta Global (NYSE: ZETA) ha annunciato un aumento delle previsioni per il Q3 2024, riflettendo una forte crescita nella sua Marketing Cloud alimentata dall'IA. L'azienda ha alzato le sue stime di fatturato a almeno 255 milioni di dollari, con un incremento di 15,8 milioni di dollari rispetto alle previsioni precedenti, il che rappresenta una crescita anno su anno di almeno 35%. I ricavi dai candidati politici si prevede raggiungano almeno 10 milioni di dollari, rispetto alla stima precedente di 5 milioni di dollari.
Escludendo i ricavi politici, si prevede che il business core cresca di almeno il 30% anno su anno. Le previsioni per l'EBITDA rettificato sono state aumentate a almeno 50,2 milioni di dollari, implicando una crescita del 49% anno su anno e un margine di EBITDA rettificato del 19,7%. Zeta attribuisce questa crescita all'adozione accelerata della sua piattaforma, guidata dal ciclo di sostituzione della cloud marketing e dall'uso crescente dell'IA generativa.
Zeta Global (NYSE: ZETA) ha anunciado una actualización de sus previsiones para el Q3 2024, reflejando un fuerte crecimiento en su Marketing Cloud impulsado por IA. La compañía ha elevado su pronóstico de ingresos a al menos 255 millones de dólares, un aumento de 15,8 millones respecto a las previsiones anteriores, lo que representa un crecimiento interanual de al menos el 35%. Se espera que los ingresos de candidatos políticos alcancen al menos 10 millones de dólares, en comparación con la estimación anterior de 5 millones de dólares.
Excluyendo los ingresos políticos, se proyecta que el negocio central crezca al menos un 30% interanual. La guía de EBITDA ajustado se ha aumentado a al menos 50,2 millones de dólares, implicando un crecimiento del 49% interanual y un margen de EBITDA ajustado del 19,7%. Zeta atribuye este crecimiento a la adopción acelerada de su plataforma, impulsada por el ciclo de reemplazo del cloud de marketing y un uso creciente de la IA generativa.
제타 글로벌(Zeta Global) (NYSE: ZETA)이 AI 기반 마케팅 클라우드에서 강력한 성장을 반영하여 2024년 3분기 가이던스를 상향 조정했다고 발표했습니다. 회사는 매출 전망을 최소 2억 5,500만 달러로 늘렸으며, 이는 이전 가이던스보다 1,580만 달러 증가한 수치로, 전년 대비 최소 35% 성장을 나타냅니다. 정치 후보자 수익은 이전 500만 달러 추정에서 최소 1,000만 달러에 이를 것으로 예상됩니다.
정치 수익을 제외한 핵심 비즈니스는 전년 대비 최소 30% 성장할 것으로 예상됩니다. 조정된 EBITDA 가이던스는 최소 5,020만 달러로 증가했으며, 이는 전년 대비 49% 성장을 의미하고 조정된 EBITDA 마진은 19.7%입니다. 제타는 이러한 성장을 마케팅 클라우드 교체 주기와 생성적 AI 사용 증가에 의해 주도되는 플랫폼의 채택이 가속화됨에 기인한다고 설명했습니다.
Zeta Global (NYSE: ZETA) a annoncé une augmentation de ses prévisions pour le T3 2024, reflétant une forte croissance de son Marketing Cloud alimenté par l'IA. L'entreprise a relevé son objectif de chiffre d'affaires à au moins 255 millions de dollars, soit une augmentation de 15,8 millions de dollars par rapport aux prévisions précédentes, représentant une croissance d'au moins 35% par rapport à l'année précédente. Les revenus des candidats politiques devraient atteindre au moins 10 millions de dollars, contre les 5 millions de dollars précédemment estimés.
En excluant les revenus politiques, l'activité principale devrait croître de 30% au moins d'une année sur l'autre. Les prévisions d'EBITDA ajusté ont été augmentées à au moins 50,2 millions de dollars, ce qui implique une croissance de 49% par rapport à l'année précédente et une marge d'EBITDA ajusté de 19,7%. Zeta attribue cette croissance à l'adoption accélérée de sa plateforme, menée par le cycle de remplacement de la cloud marketing et l'utilisation croissante de l'IA générative.
Zeta Global (NYSE: ZETA) hat eine Erhöhung der Prognose für das 3. Quartal 2024 bekannt gegeben, die ein starkes Wachstum seines KI-gestützten Marketing-Cloud widerspiegelt. Das Unternehmen hat seine Umsatzprognose auf mindestens 255 Millionen Dollar angehoben, was einem Anstieg von 15,8 Millionen Dollar im Vergleich zur vorherigen Prognose entspricht und einem Wachstum von mindestens 35% im Jahresvergleich repräsentiert. Die Einnahmen aus politischen Kandidaten werden voraussichtlich mindestens 10 Millionen Dollar erreichen, im Vergleich zu den vorherigen 5 Millionen Dollar.
Ohne die politischen Einnahmen wird für das Kerngeschäft ein Wachstum von mindestens 30% im Jahresvergleich prognostiziert. Die angepasste EBITDA-Prognose wurde auf mindestens 50,2 Millionen Dollar angehoben, was ein Wachstum von 49% im Jahresvergleich impliziert und eine angepasste EBITDA-Marge von 19,7% bedeutet. Zeta führt dieses Wachstum auf die beschleunigte Einführung seiner Plattform zurück, die durch den Austauschzyklus der Marketing-Cloud und die zunehmende Nutzung von generativer KI vorangetrieben wird.
- Revenue guidance increased to at least $255 million, up $15.8 million from previous estimate
- Projected year-over-year revenue growth of at least 35%
- Political candidate revenue expected to reach at least $10 million, doubling previous guidance
- Core business (excluding political revenue) projected to grow by at least 30% year-over-year
- Adjusted EBITDA guidance raised to at least $50.2 million, representing 49% year-over-year growth
- Adjusted EBITDA margin maintained at 19.7% despite revenue increase
- None.
Insights
Zeta's upward revision of Q3 2024 guidance is a strong positive signal for investors. The company now projects revenue of at least
The increased Adjusted EBITDA guidance to
The company's confidence in maintaining Q4 projections suggests sustainable momentum rather than a temporary shift in revenue timing. Investors should monitor Zeta's ability to capitalize on the "marketing cloud replacement cycle" and AI adoption, as these could be key drivers for long-term growth.
Zeta's increased guidance underscores the growing demand for AI-powered marketing solutions. The company's emphasis on data and AI as core components of its platform aligns with current industry trends. The mention of an "acceleration in the marketing cloud replacement cycle" suggests that Zeta is successfully positioning itself as a next-generation alternative to established players.
The integration of generative AI into marketing platforms is a significant technological advancement. If Zeta can effectively leverage this technology, it could provide a substantial competitive edge. However, investors should be aware that the AI landscape is rapidly evolving and maintaining a technological lead will require continuous innovation and investment.
The increased political candidate revenue projection (
“The Zeta Marketing Platform with data and Artificial Intelligence at our core is fueling our growth,” said David A. Steinberg, Co-Founder, Chairman, and CEO of Zeta. “Through our strong competitive positioning, we see an acceleration in the marketing cloud replacement cycle. Coupled with increasing adoption of generative AI, we believe this gives us continued momentum.”
"The combination of accelerating growth through the first two months of the quarter along with high visibility across our customer base gives us confidence to increase our guidance,” said Chris Greiner, Zeta’s CFO. “We believe the uplift we are seeing reflects new growth that is not the result of pull forward activity from the fourth quarter and we are pleased with the momentum we are experiencing."
Guidance*
Third Quarter 2024
-
Increasing revenue guidance to at least
$255 million $15.8 million $239.2 million 35% . -
Increasing revenue guidance from political candidates to at least
$10 million $5 million $5 million 30% . -
Increasing Adjusted EBITDA guidance to at least
$50.2 million $3.1 million $47.1 million 49% and at these values implies an Adjusted EBITDA margin of19.7% .
| Prior 3Q’24 Guidance | Updated 3Q’24 Guidance | |
| (midpoint) | As of 9/4/24 | |
| As of 7/31/24 | ||
| Revenue |
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at least |
| % Growth Y/Y |
|
|
| Political Candidate Revenue |
|
|
| Revenue ex-Political Candidate Revenue |
|
at least |
| % Growth Y/Y ex-Political Candidate Rev. |
|
|
| Adjusted EBITDA |
|
at least |
| % Growth Y/Y |
|
|
| Adjusted EBITDA Margin |
|
|
**Based on values in the table |
We are not updating our full year 2024 guidance at this time. We do not believe that the uplift we are experiencing in our business in the third quarter was driven by projected revenues from the fourth quarter being pulled forward. We expect to discuss our fourth quarter and full year guidance with our third quarter earnings release, once our actual results for the third quarter are finalized.
* This press release does not include a reconciliation of forward-looking Adjusted EBITDA and Adjusted EBITDA margin to forward-looking GAAP net income (loss) and net income (loss) margin, respectively, because the Company is unable, without making unreasonable efforts, to provide a meaningful or reasonably accurate calculation or estimation of certain reconciling items which could be significant to the Company’s results.
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, 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 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 third quarter 2024 guidance, our expected growth, the acceleration of the marketing cloud replacement cycle, rebound in automotive and insurance verticals, and generative AI adoption, and our strong competitive position are forward-looking statements and should be evaluated as such. Forward-looking statements include information concerning our anticipated future financial performance, our market opportunities and our expectations regarding our business plan and strategies. These statements often include words such as “anticipate,” “believe,” “could,” “estimates,” “expect,” “forecast,” “guidance,” “intend,” “may,” “outlook,” “plan,” “projects,” “should,” “suggests,” “targets,” “will,” “would” 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. Factors that may materially affect such forward-looking statements include, but are not limited to: global supply chain disruptions; macroeconomic and industry trends and adverse developments in the debt, consumer credit and financial services markets and other macroeconomic factors beyond Zeta’s control; increases in our borrowing costs as a result of changes in interest rates and other factors; the impact of inflation on us and on our customers; potential fluctuations in our operating results, which could make our future operating results difficult to predict; underlying circumstances, including cash flows, cash position, financial performance, market conditions and potential acquisitions; prevailing stock prices, general economic and market condition; the impact of future pandemics, epidemics and other health crises on the global economy, our customers, employees and business; the war in
The third quarter 2024 guidance provided herein is based on Zeta’s current estimates and assumptions and is not a guarantee of future performance. The guidance provided is subject to significant risks and uncertainties, including the risk factors discussed in the Company's reports on file with the Securities and Exchange Commission (“SEC”), that could cause actual results to differ materially. There can be no assurance that the Company will achieve the results expressed by this guidance or the targets.
Non-GAAP Measures
In order to assist readers of our consolidated financial statements in understanding the core operating results that our management uses to evaluate the business and for financial planning purposes, we describe our non-GAAP measures below. We believe these non-GAAP measures are useful to investors in evaluating our performance by providing an additional tool for investors to use in comparing our financial performance over multiple periods.
- Adjusted EBITDA is a non-GAAP financial measure defined as net loss adjusted for interest expense, depreciation and amortization, stock-based compensation, income tax (benefit) / provision, acquisition related expenses, restructuring expenses, change in fair value of warrants and derivative liabilities, certain dispute settlement expenses, gain on extinguishment of debt, certain non-recurring IPO related expenses, including the payroll taxes related to vesting of restricted stock and restricted stock units upon the completion of the IPO, and other expenses. Acquisition related expenses and restructuring expenses primarily consist of severance and other employee-related costs which we do not expect to incur in the future as acquisitions of businesses may distort the comparability of the results of operations. Change in fair value of warrants and derivative liabilities is a non-cash expense related to periodically recording “mark-to-market” changes in the valuation of derivatives and warrants. Other expenses consist of non-cash expenses such as changes in fair value of acquisition related liabilities, gains and losses on extinguishment of acquisition related liabilities, gains and losses on sales of assets and foreign exchange gains and losses. In particular, we believe that the exclusion of stock-based compensation, certain dispute settlement expenses and non-recurring IPO related expenses that are not related to our core operations provides measures for period-to-period comparisons of our business and provides additional insight into our core controllable costs. We exclude these charges because these expenses are not reflective of ongoing business and operating results.
- Adjusted EBITDA margin is a non-GAAP financial measure defined as Adjusted EBITDA divided by the total revenues for the same period.
Adjusted EBITDA and Adjusted EBITDA margin provide us with useful measures for period-to-period comparisons of our business as well as comparison to our peers. We believe that these non-GAAP financial measures are useful to investors in analyzing our financial and operational performance. Nevertheless our use of Adjusted EBITDA and Adjusted EBITDA margin has limitations as an analytical tool, and you should not consider these measures in isolation or as a substitute for analysis of our financial results as reported under GAAP. Other companies may calculate similarly-titled non-GAAP financial measures differently than us, thereby limiting the usefulness of these non-GAAP financial measures as a comparative tool. Because of these and other limitations, you should consider our non-GAAP measures only as supplemental to other GAAP-based financial performance measures, including revenues and net loss.
We calculate forward-looking Adjusted EBITDA and Adjusted EBITDA margin based on internal forecasts that omit certain amounts that would be included in forward-looking GAAP net income (loss). We do not attempt to provide a reconciliation of forward-looking Adjusted EBITDA and Adjusted EBITDA margin guidance to forward looking GAAP net income (loss) and GAAP net income (loss) margin, respectively, because forecasting the timing or amount of items that have not yet occurred and are out of our control is inherently uncertain and unavailable without unreasonable efforts. Further, we believe that such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of financial performance.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240904622808/en/
Investor Relations
Scott Schmitz
ir@zetaglobal.com
Press
James A. Pearson
press@zetaglobal.com
Source: Zeta Global
FAQ
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