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Sep 30, 2022

Zeta Global Q3 2022 Earnings Report

Zeta Global's revenue growth accelerated to 32% in Q3 2022.

Key Takeaways

Zeta Global announced strong Q3 2022 results with revenue of $152 million, up 32% year-over-year, and increased profitability and cash generation. The company raised its Q4 and full year 2022 revenue and Adjusted EBITDA guidance.

Total revenue reached $152 million, a 32% increase year-over-year and 11% quarter-over-quarter.

The company added a record 16 new Scaled Customers, including 6 Super Scaled Customers quarter-over-quarter, and Scaled Customer ARPU grew 19% year-over-year.

Cash flow from operating activities was $19.5 million, compared to $10.2 million in Q3 2021.

Direct platform revenue accounted for 74% of total revenue, consistent with Q3 2021.

Total Revenue
$152M
Previous year: $115M
+32.2%
EPS
-$0.49
Previous year: -$0.53
-7.5%
Scaled Customer ARPU
$382K
Previous year: $321K
+19.0%
Gross Profit
$94.7M
Previous year: $70.6M
+34.2%
Cash and Equivalents
$115M
Previous year: $116M
-1.2%
Free Cash Flow
$13.9M
Previous year: $7.66M
+81.2%
Total Assets
$441M
Previous year: $354M
+24.4%

Zeta Global

Zeta Global

Zeta Global Revenue by Segment

Forward Guidance

Zeta anticipates increased revenue and Adjusted EBITDA for the fourth quarter and full year 2022.

Positive Outlook

  • Revenue guidance for Q4 2022 is increased to a range of $158 million to $162 million, representing a year-over-year increase of 17% to 20%.
  • Adjusted EBITDA guidance for Q4 2022 is increased to a range of $29.2 million to $29.7 million, representing a year-over-year increase of 28% to 30%.
  • Revenue expectations for full year 2022 are increased and narrowed to a range of $574 million to $578 million, representing a year-over-year increase of 25% to 26%.
  • Adjusted EBITDA for full year 2022 is increased to a range of $89.0 million to $89.5 million, representing a year-over-year increase of 41%.
  • Adjusted EBITDA margin for Q4 2022 is expected to be 18.0% to 18.8%.