Zeta Global Holdings Corp. Q3 FY2025 earnings call

• Delivered a beat and raise quarter with strong financial performance, including revenue, adjusted EBITDA, and free cash flow growth. • Hosted the fifth annual Zeta Live, the most successful yet with 35% more attendance, launched Athena AI conversational agent. • OneZeta initiative driving growth as customers using 2 or more use cases generate greater than 3x annual revenue. • On track to complete acquisition of Marigold's enterprise software business by end of the year, with strategic data and algorithm benefits.

In Q3, revenue was $337 million, up 28% year-over-year excluding political and LiveIntent. Adjusted EBITDA was $78 million, up 46% year-over-year. Free cash flow was $47 million, up 83% year-over-year with a margin of 14%. Total scaled customer count grew to 572, up 20% year-over-year, with 180 super-scaled customers up 25% year-over-year. Scaled customer quarterly ARPU was $579,000, up 4%, and super-scaled customer quarterly ARPU was $1.6 million, up 1%.

• Raised 2025 revenue guidance by $11 million at the midpoint. • Provided initial 2026 organic revenue guidance of $1.54 billion, 21% growth. • Increased fourth quarter and full-year 2025 revenue, adjusted EBITDA, and free cash flow guidance, with 2026 organic guidance being an initial view before Marigold integration.

• Market uncertainties and competition could impact financial results. • Integration challenges with acquisitions like Marigold may pose risks.

Q: How do Zeta's ROI/ROAS compare to walled gardens?

A: Zeta returns 6x revenue to clients, putting it on par with walled gardens, and marketers are seeking new methodologies which Zeta is at the forefront of.

Q: Context on $100 million incremental business target after Zeta Live?

A: Last year closed $57 million, aiming for $100 million this year, with the pipeline already full and momentum strong.

Q: Thoughts on sales and marketing investment?

A: Sales reps are productive, will add Marigold's sales team, and feel well-positioned organizationally while making large investments in AI and innovation.