Zeta Global (NYSE:ZETA) Posts Quarterly Earnings Results, Misses Estimates By $0.17 EPS

Zeta Global (NYSE:ZETA) posted its quarterly earnings results on Tuesday. The company reported $0.03 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.20 by ($0.17), FiscalAI reports. Zeta Global had a negative net margin of 1.62% and a positive return on equity of 2.91%. The company had revenue of $395.00 million during the quarter, compared to analysts’ expectations of $420.61 million.

Here are the key takeaways from Zeta Global’s conference call:

• Record growth and raised guidance: Q2 revenue rose 44% year over year to $443 million, while adjusted EBITDA increased 56% to $92 million. Management raised 2026 revenue guidance by $33 million to $1.818 billion and free cash flow guidance by $20 million to $255 million.
• AI adoption is driving expansion: More than 40% of super-scaled customers were monthly Athena users within 130 days of launch, and comprehensive AI adopters are generating higher revenue growth and net revenue retention than customers earlier in adoption.
• Customer and sales momentum remained strong: Super-scaled customers grew 17% to 197, pipeline increased more than 60% year over year, and cross-sell and upsell wins rose 43%. Partnerships with OpenAI, Palantir, and Snowflake are generating additional enterprise opportunities that are largely not included in current guidance.
• Profitability and cash generation improved: Adjusted EBITDA margin expanded 170 basis points to 20.7%, free cash flow increased 73% to $58 million, and Zeta reported positive GAAP net income of $8.2 million versus a loss last year. The company also repurchased $29.9 million of stock during the quarter.
• Expansion beyond marketing is still developing: Zeta Business Intelligence is being used for real-time business decision-making across areas such as sports, retail, and energy drinks, but new enterprise sales cycles may be longer than existing-customer expansions as the company reaches CIOs and CTOs.

Zeta Global Trading Up 7.6%

NYSE:ZETA traded up $1.72 on Tuesday, reaching $24.28. The company’s stock had a trading volume of 19,215,099 shares, compared to its average volume of 8,777,391. Zeta Global has a 12-month low of $14.36 and a 12-month high of $25.95. The company has a quick ratio of 2.07, a current ratio of 2.07 and a debt-to-equity ratio of 0.22. The firm has a market cap of $6.05 billion, a price-to-earnings ratio of -220.71, a price-to-earnings-growth ratio of 3.19 and a beta of 1.39. The stock has a 50 day moving average price of $20.92 and a 200 day moving average price of $18.73.

Insider Activity at Zeta Global

In other news, Director Jeanine Silberblatt sold 7,500 shares of the stock in a transaction on Friday, June 12th. The stock was sold at an average price of $19.89, for a total transaction of $149,175.00. Following the completion of the transaction, the director directly owned 50,350 shares in the company, valued at approximately $1,001,461.50. This represents a 12.96% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 10.74% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of ZETA. Invesco Ltd. boosted its stake in Zeta Global by 9.4% during the fourth quarter. Invesco Ltd. now owns 153,202 shares of the company’s stock worth $3,118,000 after buying an additional 13,221 shares during the period. Fuller & Thaler Asset Management Inc. raised its stake in shares of Zeta Global by 8.6% in the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 4,027,355 shares of the company’s stock valued at $81,957,000 after acquiring an additional 318,709 shares during the period. Empowered Funds LLC purchased a new stake in shares of Zeta Global in the 4th quarter valued at approximately $120,000. VARCOV Co. acquired a new position in shares of Zeta Global in the 4th quarter worth approximately $428,000. Finally, Sphera Management Technology Funds Ltd lifted its holdings in shares of Zeta Global by 20.0% in the 4th quarter. Sphera Management Technology Funds Ltd now owns 60,000 shares of the company’s stock worth $1,221,000 after acquiring an additional 10,000 shares during the last quarter. Institutional investors and hedge funds own 87.75% of the company’s stock.

Analysts Set New Price Targets

A number of equities analysts have weighed in on the company. KeyCorp raised Zeta Global from a “sector weight” rating to an “overweight” rating and set a $22.00 price objective on the stock in a research note on Tuesday, April 28th. DA Davidson reaffirmed a “buy” rating and issued a $30.00 target price on shares of Zeta Global in a research note on Wednesday, June 24th. Freedom Capital upgraded Zeta Global to a “strong-buy” rating in a report on Monday, June 29th. Wall Street Zen cut shares of Zeta Global from a “buy” rating to a “hold” rating in a research report on Saturday. Finally, B. Riley Financial reissued a “buy” rating on shares of Zeta Global in a research report on Friday, May 1st. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $28.33.

About Zeta Global

Zeta Global, founded in 2007 and headquartered in New York City, is a leading data-driven marketing technology company. The firm’s mission centers on helping brands acquire, grow and retain customers through a unified customer lifecycle management platform. Over the years, Zeta Global has built a reputation for leveraging big data and predictive analytics to power digital marketing programs across multiple channels.

At the core of Zeta’s offering is the Zeta Marketing Platform, which combines identity resolution, audience insights and real-time engagement capabilities.