Zeta Global (ZETA) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 revenue of $268.3M, up 42% year-over-year, surpassing guidance and driven by both existing and new customers.

• Adjusted EBITDA rose to $54M (20% margin), up 59% year-over-year, with 15 consecutive quarters of margin expansion.

• Net loss narrowed to $17.4M (6% of revenue), including $47.2M in stock-based compensation.

• Closed and integrated LiveIntent acquisition, expanded partnerships with Yahoo and Snowflake, and launched new AI-powered products.

• Major multi-year deals closed with global retail, sports, and ecommerce brands; RFP pipeline up 60% quarter-over-quarter.

Financial highlights

• Q3 2024 revenue: $268.3M, up 42% year-over-year; Adjusted EBITDA: $53.6M, up 59% year-over-year; margin: 20.0%.

• Free cash flow: $25.7M, up 93% year-over-year; cash from operations: $34.4M, up 51% year-over-year.

• Cash and cash equivalents increased to $418.5M as of September 30, 2024.

• Scaled Customer ARPU grew 33% year-over-year to $557K; direct revenue up 41% year-over-year; net revenue retention at high end of 110%-115% model.

• Q3 GAAP net loss: $17.4M, including $47.2M stock-based compensation.

Outlook and guidance

• Raised full-year 2024 revenue guidance to $986M midpoint (35% year-over-year growth); Adjusted EBITDA guidance raised to $188.5M (46% year-over-year growth, 19.1% margin).

• Q4 2024 revenue guidance: $295M midpoint; Q4 Adjusted EBITDA: $65.9M (22.3% margin).

• FY24 free cash flow guidance raised to $90M (48% cash conversion).

• 2025 consensus revenue growth expected at 21%-22% pro forma, excluding political and LiveIntent contributions.

• Sufficient liquidity and capital resources to meet working capital needs for at least the next 12 months.