Zeta Global (ZETA) Morgan Stanley Technology, Media & Telecom Conference summary

Business overview and platform strategy

• Focuses on helping large enterprises create, maintain, and monetize customers at lower costs using a unified platform integrating CRM, programmatic, social, mobile, and display channels.

• Platform re-architected around AI and data since 2017, enabling real-time, intent-driven marketing decisions.

• One Zeta strategy aims to increase wallet share by offering acquisition, retention, and monetization use cases together, driving a flywheel effect for customer growth.

• Less than 15% of scaled customers currently use more than one use case, presenting significant expansion potential.

• Agency and holdco partnerships have become a major growth driver, now representing 20% of revenue with high contribution margins.

Financial performance and guidance

• Achieved $1 billion in annual revenue a year ahead of plan, with 30% organic growth excluding political and M&A impacts.

• Long-term model targets at least 20% annual growth, with dilution expected to step down to 3%-4% by 2026.

• Aggressively using a $100 million share repurchase program, now drawing from the balance sheet for buybacks.

• 2028 plan levers include 4%-8% scaled customer growth, 12%-16% ARPU growth, and continued investment in AI and talent.

• Consistently beat and raised guidance for 14 consecutive quarters, with strong revenue visibility due to deep customer integration.

Customer and market expansion

• Pipeline and RFPs up 60% and 40% respectively, as legacy marketing clouds face replacement cycles.

• Goal to double wallet share from 1% to 2% over four years, with a long-term target of 5%-10%.

• Agency business offers bundled, deterministic first-party data, enabling agencies to increase margins and offer discounts to clients.

• Independent agencies seek Zeta as an AI and data backbone, often contracting for multi-year minimums.

• 90% of customer revenue comes from clients with over a year on the platform, with spend growing significantly over time.