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Jun 30, 2023

Zeta Global Q2 2023 Earnings Report

Zeta Global's profitability accelerated and guidance was raised.

Key Takeaways

Zeta Global reported a strong second quarter, exceeding consensus estimates for the eighth consecutive quarter. Revenue increased by 25% year-over-year to $172 million, driven by growth in scaled customer count and ARPU. The company also generated $21 million in cash flow from operating activities and $13 million in free cash flow.

Revenue reached $172 million, reflecting a 25% year-over-year increase.

Total Scaled Customer count grew to 425, up 14 sequentially, with Super Scaled Customer count increasing to 118, up 8 sequentially.

Scaled Customer ARPU expanded by 10% year-over-year, marking the 12th consecutive quarter of double-digit growth.

Cash flow from operating activities was $21 million, a 41% year-over-year increase, and Free Cash Flow was $13 million, a 110% year-over-year increase.

Total Revenue
$172M
Previous year: $137M
+25.1%
EPS
$0.05
Previous year: -$0.63
-107.9%
Scaled Customer ARPU
$392K
Previous year: $355K
+10.4%
Gross Profit
$110M
Previous year: $88.8M
+23.6%
Cash and Equivalents
$117M
Previous year: $111M
+5.7%
Free Cash Flow
$13M
Previous year: $6.2M
+109.7%
Total Assets
$491M
Previous year: $436M
+12.7%

Zeta Global

Zeta Global

Zeta Global Revenue by Segment

Forward Guidance

Zeta anticipates revenue and Adjusted EBITDA as follows:

Positive Outlook

  • Increasing revenue guidance to a range of $177 million to $181 million for Q3 2023.
  • The revised revenue guidance represents a year-over-year increase of 16% to 19%.
  • Increasing Adjusted EBITDA guidance to a range of $31.7 million to $32.2 million for Q3 2023.
  • The revised Adjusted EBITDA guidance represents a year-over-year increase of 41% to 44%.
  • Increasing revenue guidance to a range of $712 million to $718 million for full year 2023.

Revenue & Expenses

Visualization of income flow from segment revenue to net income