Summary
Zeta Global closed fiscal 2024 with fourth quarter revenue of $314.67 million, up 49.6% from the prior-year quarter. Operating income was $6.92 million, a swing to a profit from an operating loss in the prior-year quarter, and operating margin was 2.2%, up 17.3 percentage points. Net income was $15.24 million, also a swing from a loss a year earlier. Cash flow from operating activities was $43.68 million, up 62.0%. Capital expenditures were $8.27 million, up 47.7%. Deferred revenue, current portion, was $10.35 million, up 213.5%. Management called the period a record fourth quarter and said the company exited the year at its highest ever growth rate.
For the full year, revenue reached $1.01 billion, up 38.0%. Zeta reported an operating loss of $67.92 million, a loss that narrowed from the prior year, and a net loss of $69.77 million, also narrower. Diluted loss per share was $0.38. Operating cash flow for the year was $133.86 million, up 47.9%, and capital expenditures were $25.73 million, up 25.6%. Full-year operating margin was -6.8%, up 16.3 percentage points.
Operationally, scaled customers, those billed at least $100,000 on a trailing twelve-month basis, rose to 527 from 475 at the end of the third quarter and 452 a year earlier. Super-scaled customers, billed at least $1.0 million, rose to 148 from 144 and 131. Quarterly scaled customer ARPU was $577,000, up 27% year over year, and quarterly super-scaled customer ARPU was $1.73 million, up 31%. Direct platform revenue mix was 74% of total revenue, compared with 70% in the third quarter and 73% in the prior-year quarter. Full-year scaled customer ARPU was $1.87 million, up 19%, and super-scaled customer ARPU was $5.71 million, up 26%. Net revenue retention was 114%, compared with 111%. The MD&A puts annual net revenue retention at 113.6%, compared with 110.9%. Political and advocacy customers were 8.0% of revenue in 2024 and 1.8% in 2023. Of the 527 scaled customers, 283 had tenure of three or more years, 138 had one to three years, and 106 had under one year. The sales team grew by 16 employees during 2024.
Non-GAAP results were strong on the same trajectory. Adjusted EBITDA was $70.4 million in the quarter, up 57% from $44.8 million, with an adjusted EBITDA margin of 22.4%, compared with 21.3%. Free cash flow was $32 million, compared with $18 million. For the full year, adjusted EBITDA was $193.0 million, up 49% from $129.4 million, and the margin was 19.2%, compared with 17.8%. Full-year free cash flow was $92 million, compared with $55 million. Share repurchases totaled $31 million in the quarter and $41 million for the year.
Guidance for the first quarter of 2025 implies revenue growth of 30% to 31% year over year, with adjusted EBITDA of $44.2 million to $44.8 million, up 45% to 47%, and an adjusted EBITDA margin of 17.3% to 17.7%. For the full year 2025, Zeta guides to revenue growth of 23% to 24%, adjusted EBITDA of $255.5 million to $257.5 million, up 32% to 33%, an adjusted EBITDA margin of 20.5% to 20.8%, and free cash flow of $127.5 million to $131.5 million. The Zeta 2028 plan targets an implied 20% organic compound annual growth rate, adjusted EBITDA of at least $525 million, an implied margin of 25%, and free cash flow of at least $340 million, an implied margin of 16% and an implied free cash flow to adjusted EBITDA ratio of 65%.
The risks that come with that plan are familiar ones. They include macroeconomic and industry trends, changes in interest rates, inflation, fluctuating operating results, integration of acquisitions such as LiveIntent, the standards that inbox service providers adopt, data privacy and security breaches, and disruption to third-party data centers. Seasonality also cuts both ways, since marketing activity peaks in the fourth quarter and tends to fall in the first, while political and advocacy revenue swings with the election calendar.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2024 | Q3 FY2024 | QoQ | Q4 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $314.7M | $268.3M | +17.3% | $210.3M | +49.6% |
| Gross profit | $188.7M | $162.6M | +16.0% | $125.7M | +50.1% |
| Gross margin | 60.0% | 60.6% | -0.6 pp | 59.8% | +0.2 pp |
| Research & development | $24.3M | $22.8M | +6.4% | $19.9M | +21.7% |
| Sales & marketing | $82.9M | $84.5M | -1.9% | $72.7M | +14.1% |
| General & administrative | $54.1M | $50.5M | +7.2% | $51.4M | +5.3% |
| Operating income (loss) | $6.9M | -$12.4M | +155.9% | -$31.9M | +121.7% |
| Operating margin | 2.2% | -4.6% | +6.8 pp | -15.2% | +17.4 pp |
| Net income (loss) | $15.2M | -$17.4M | +187.7% | -$35.3M | +143.2% |
| Net margin | 4.8% | -6.5% | +11.3 pp | -16.8% | +21.6 pp |
| Diluted EPS | $0.08 | -$0.09 | +$0.17 | -$0.23 | +$0.31 |
Risks
A short seller report published in November 2024 included claims about Zeta's data collection practices and resulted in a decrease in the price of Class A Common Stock; numerous lawsuits were filed thereafter. Defending these claims could cost time and money and further harm the stock price or reputation.
Zeta's platform depends on collecting and using online data, but evolving GDPR, CCPA, browser and mobile operating system restrictions, and new opt-out mechanisms such as Global Privacy Control could reduce access to consumer data and impair platform effectiveness. The filing also notes a Norwegian DPA final order in October 2024 citing a GDPR breach, though the fine was reduced to zero.
Zeta closed the LiveIntent acquisition on October 21, 2024, and FY2024 acquisition-related expenses rose to $8.2 million from $0.2 million in FY2023. Integration difficulties, loss of key employees, failure to realize expected financial results, or data privacy compliance issues at LiveIntent could harm results.
In 2024, Zeta's top ten customers accounted for more than one-third of total revenue, and 527 scaled customers represented 98% of total revenue. If a holding company controlling multiple marketing agency customers terminates relationships, it could cause disproportionate revenue loss.
A substantial portion of revenue is usage-based rather than subscription-based, which is less stable; customers can decrease spend or terminate services with limited notice. If scaled customers reduce or cease platform usage, revenue could decline and may not be replaced.
Zeta's AI and machine learning use may face new laws and regulations, including EU rules requiring transparency and human oversight and restricting certain AI practices. Existing and future laws could restrict collection or use of data needed to train its algorithms.
Zeta often has long sales cycles, with significant time between initial contact and a customer agreement, making it difficult to project when or if revenue will be generated. Enterprise customers may base decisions on factors unrelated to platform features, such as economic uncertainty or internal budgets.
Zeta generally generates higher revenues in presidential election years, and political and advocacy customers represented 8.0% of revenue for 2024 versus 1.8% for 2023. This cyclicality, combined with Q4 holiday seasonality and lower Q1 activity, makes period comparisons and forecasts difficult.
As of December 31, 2024, Zeta had $200.0 million outstanding under its Senior Secured Credit Facility, secured by substantially all assets, with restrictive and minimum quarterly financial maintenance covenants. A future covenant breach could accelerate repayment and limit access to further credit.
Zeta depends on CEO David Steinberg and other key employees; it has no key person insurance and employees are at-will. Competition for engineering and sales talent is intense in New York, the San Francisco Bay Area, the EU, and India.
As of December 31, 2024, Co-Founder and CEO David Steinberg and affiliates held 53.7% of voting power, making Zeta a controlled company and concentrating control over director elections and major transactions. The dual-class structure may limit other stockholders' influence.
Zeta conducts significant technology and product development in India and other non-U.S. locations, exposing it to wage inflation, currency fluctuations, weaker IP protection, and geopolitical instability. If costs rise or labor conditions worsen, expected cost savings may be diminished.
Customers may dispute invoices, delay payment, or file for bankruptcy; some agency contracts use sequential liability, so Zeta may have to seek payment solely from the agency's customer. Bad debt write-offs could exceed reserves and Zeta may still owe for purchased inventory.
The marketing technology industry is intensely competitive and consolidating; larger competitors can acquire emerging technologies and point solutions may compete with parts of the Zeta Marketing Platform. Failure to innovate or compete could reduce market share and require price reductions.
SaaS KPIs
All quarters →Adjusted EBITDA
Adjusted EBITDA margin
Free Cash Flow
Scaled Customer ARPU
Scaled Customers
Super-Scaled Customers
Super-Scaled Customer ARPU
Direct Platform Revenue Mix
Summary, forecast, risks and KPIs are extracted from Zeta Global Holdings Corp.'s SEC filings for Q4 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.