Summary
Zeta Global closed its fiscal 2024 third quarter with record revenue of $268.3 million, up 42.0% from the prior-year quarter. Year-to-date revenue reached $691.1 million, up 33.3%. The company said revenue rose 31% year over year excluding political candidate revenue. Direct platform revenue grew 41% year over year and represented 70% of total revenue, compared with 67% in the second quarter and 70% in the prior-year quarter. Scaled customers increased to 475 from 468 in the second quarter and 440 in the prior-year quarter. Super-scaled customers were 144, flat with the second quarter and up from 124 in the prior-year quarter. Scaled customer ARPU was $557,231, up 33% year over year. Super-scaled customer ARPU was $1.6 million, up 30%. Zeta said it achieved the Rule of 60 in the quarter. These metrics show the platform is expanding within large customers and that direct revenue is carrying a larger share of the mix.
Profitability improved even as the company reported a net loss. Operating loss narrowed to $12.38 million, an improvement of 66.7% from the prior-year quarter. Net loss was $17.38 million, narrowed by 59.7%. Diluted loss per share was $0.09, an improvement of 66.7% from the prior-year quarter. Operating margin was -4.6%, up 15.1 percentage points from the prior-year quarter. On a year-to-date basis, operating loss narrowed to $74.84 million, an improvement of 44.9%. Net loss narrowed to $85.01 million, an improvement of 44.1%. Year-to-date operating margin was -10.8%, up 15.4 percentage points. The company generated operating cash flow of $34.40 million in the quarter, up 50.7% from the prior-year quarter. Free cash flow was $25.7 million, up 93%. Adjusted EBITDA was $53.6 million, up 59%, and adjusted EBITDA margin was 20.0%, compared with 17.9% in the prior-year quarter. Year-to-date operating cash flow was $90.18 million, up 41.9%. Capital expenditures were $4.89 million in the quarter, down 17.6% from the prior-year quarter, while year-to-date capital expenditures were $17.46 million, up 17.3%. Deferred revenue was $3.59 million, up 53.8% from the prior-year quarter. The results show a company still unprofitable on a GAAP basis, but with narrowing losses and stronger cash generation.
Guidance points to continued momentum. For the fourth quarter of 2024, Zeta raised revenue guidance to a range of $293.0 million to $297.0 million, which represents year-over-year growth of 39% to 41%. Fourth-quarter adjusted EBITDA guidance is $64.9 million to $66.9 million, up 45% to 49% year over year, with an adjusted EBITDA margin of 21.9% to 22.8%. For the full year 2024, revenue guidance is $984.1 million to $988.1 million, up 35% to 36% year over year. Full-year adjusted EBITDA guidance is $187.5 million to $189.5 million, up 45% to 46% year over year, with a margin of 19.0% to 19.3%. Full-year free cash flow guidance is $88 million to $92 million. The company completed the LiveIntent acquisition on October 21, 2024, and said it is comfortable with where 2025 revenue growth estimates stand, inclusive of 2024 political comps. Management plans to share 2025 guidance and details of its Zeta 2028 long-term model in February next year.
The quarter carries several risks. Zeta still reported a GAAP net loss and an accumulated deficit, and its profitability depends on continued revenue growth and cost discipline. The company faces macroeconomic and industry uncertainty, inflation, higher borrowing costs, and geopolitical tensions. It also cites risks around data privacy and security, reliance on third-party data centers, email delivery standards, and its ability to attract and retain customers. The LiveIntent acquisition adds integration risk, and the company incurred acquisition-related expenses in the quarter. Zeta refinanced its credit facility in August 2024, which increased its debt capacity, and it must comply with financial maintenance covenants. Political candidate revenue contributed to the third quarter, and the fourth-quarter guidance includes political candidate revenue. Investors will watch whether the company can sustain its Rule of 60 performance and convert revenue growth into GAAP profitability.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2024 | Q2 FY2024 | QoQ | Q3 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $268.3M | $227.8M | +17.8% | $189.0M | +42.0% |
| Gross profit | $162.6M | $136.8M | +18.9% | $115.5M | +40.8% |
| Gross margin | 60.6% | 60.0% | +0.6 pp | 61.1% | -0.5 pp |
| Research & development | $22.8M | $23.6M | -3.4% | $18.1M | +26.3% |
| Sales & marketing | $84.5M | $75.6M | +11.8% | $70.7M | +19.6% |
| General & administrative | $50.5M | $51.2M | -1.3% | $50.7M | -0.4% |
| Operating income (loss) | -$12.4M | -$26.6M | +53.4% | -$37.2M | +66.7% |
| Operating margin | -4.6% | -11.7% | +7.1 pp | -19.7% | +15.1 pp |
| Net income (loss) | -$17.4M | -$28.1M | +38.1% | -$43.1M | +59.7% |
| Net margin | -6.5% | -12.3% | +5.8 pp | -22.8% | +16.3 pp |
| Diluted EPS | -$0.09 | -$0.16 | +$0.07 | -$0.27 | +$0.18 |
| Customers | 144 | 144 | ±0.0% | 124 | +16.1% |
Risks
Cost of revenues excluding depreciation and amortization increased 43.8% for FY2024 Q3 and 44.1% year to date, outpacing revenue growth of 42.0% and 33.3%, respectively, driven by incremental media costs. The revenue mix also shifted toward integrated platform revenue, which rose to 32% of revenues for the nine months ended September 30, 2024 from 28% in the prior-year period, potentially pressuring gross margins.
The LiveIntent acquisition was completed on October 21, 2024, after the FY2024 Q3 period end, and the company recorded $4.6 million of acquisition-related expenses in FY2024 Q3 and $4.6 million year to date, primarily legal and professional fees. Other expenses increased 17.0% in FY2024 Q3 versus FY2023 Q3, driven by an increase in the fair value of acquisition-related liabilities, indicating integration and valuation risks.
The company refinanced into a five-year $550 million senior secured credit facility consisting of a $200 million term loan and a $350 million revolving facility, subject to restrictive covenants that limit additional debt, liens, investments, dividends and other actions. A covenant breach or inability to comply could restrict operations or liquidity.
As of September 30, 2024, the company had an accumulated deficit of $1,043.5 million, and management stated that if operating performance during the next 12 months is below expectations, liquidity and ability to operate the business could be adversely affected. Future capital requirements may require additional equity or debt financing on unfavorable terms or not at all.
Stock-based compensation was $47.2 million in FY2024 Q3 and $152.0 million year to date, with $228.4 million of total unrecognized compensation remaining, which may continue to pressure GAAP operating results and dilute stockholders. The FY2024 Q3 decrease in general and administrative expenses was partly driven by lower stock-based compensation of $6.5 million, a benefit that may not recur.
SaaS KPIs
All quarters →Adjusted EBITDA
Adjusted EBITDA margin
Free Cash Flow
Direct Platform Revenue Mix
Summary, forecast, risks and KPIs are extracted from Zeta Global Holdings Corp.'s SEC filings for Q3 FY2024 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 6, 2026.