Zeta Global Q3 2023 Earnings Report
Key Takeaways
Zeta Global reported record revenue of $189 million, a 24% year-over-year increase. The company grew its total Scaled Customer count to 440 and Super Scaled Customer count to 124, while also expanding Scaled Customer ARPU by 10% year-over-year. Zeta generated $23 million in cash flow from operating activities and $13 million in free cash flow, representing increases of 17% and 43% year-over-year, respectively.
Delivered record revenue of $189M, an increase of 24% Y/Y
Grew total Scaled Customer count to 440, an increase of 15 Q/Q, and Super Scaled Customer count to 124, an increase of 6 Q/Q
Expanded Scaled Customer ARPU 10% Y/Y, marking the 13th consecutive quarter of double-digit growth
Generated cash flow from operating activities of $23M, an increase of 17% Y/Y, and Free Cash Flow of $13M, an increase of 43% Y/Y
Zeta Global
Zeta Global
Forward Guidance
Zeta anticipates increased revenue and Adjusted EBITDA for the fourth quarter and full year 2023.
Positive Outlook
- Increasing revenue guidance to a range of $205 million to $209 million (including $1.3 million of M&A contribution), an increase of $0.5 million at the midpoint from the prior guidance of $206.5 million. The revised guidance represents a year-over-year increase of 17% to 19%.
- Increasing Adjusted EBITDA guidance to a range of $41.7 million to $42.2 million, an increase of $0.3 million at the midpoint from the prior guidance of $41.7 million. The revised guidance represents a year-over-year increase of 29% to 30% and an Adjusted EBITDA margin of 20.0% to 20.6%.
- Increasing revenue guidance to a range of $723 million to $727 million (including $5.2 million of M&A contribution), an increase of $10 million from the midpoint of the prior guidance range of $712 million to $718 million. Revised guidance represents a year-over-year increase of 22% to 23%.
- Increasing Adjusted EBITDA to a range of $126.3 million to $126.8 million, an increase of $2.1 million from the midpoint of the prior guidance range of $124.2 million to $124.8 million. Revised guidance represents a year-over-year increase of 37% to 38% and an Adjusted EBITDA margin of 17.4% to 17.5%.
- Zeta is committed to leading the intelligence-powered marketing transformation, delivering better experiences for consumers and better results for brands.
Challenges Ahead
- global supply chain disruptions
- macroeconomic and industry trends and adverse developments in the debt, consumer credit and financial services markets and other macroeconomic factors beyond Zeta’s control
- increases in our borrowing costs as a result of changes in interest rates and other factors
- the impact of inflation on us and on our customers
- potential fluctuations in our operating results, which could make our future operating results difficult to predict