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Sep 30, 2023
Zeta Global Q3 2023 Earnings Report
Zeta Global's Q3 2023 performance was marked by record revenue and expanded customer base.
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