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Dec 31, 2023

Zeta Global Q4 2023 Earnings Report

Zeta Global reported revenue growth and increased customer counts.

Key Takeaways

Zeta Global announced its Q4 2023 financial results, reporting a 20% year-over-year increase in revenue to $210 million. The company also saw growth in scaled and super-scaled customer counts and generated $27 million in cash flow from operating activities.

Total revenue reached $210 million, a 20% increase year-over-year.

Scaled Customer count increased to 452, up from 403 in Q4 2022.

Super-Scaled Customer count increased to 131, up from 103 in Q4 2022.

Cash flow from operating activities was $27 million, compared to $23 million in Q4 2022.

Total Revenue
$210M
Previous year: $175M
+20.1%
EPS
$0.16
Previous year: -$0.36
-144.4%
Scaled Customer ARPU
$454K
Previous year: $424K
+7.1%
Gross Profit
$112M
Previous year: $109M
+2.8%
Cash and Equivalents
$132M
Previous year: $121M
+8.8%
Free Cash Flow
$18.2M
Previous year: $13.8M
+31.7%
Total Assets
$551M
Previous year: $467M
+18.1%

Zeta Global

Zeta Global

Zeta Global Revenue by Segment

Forward Guidance

Zeta Global anticipates continued revenue growth and margin expansion. First Quarter 2024 •Revenue of $185 million to $189 million, representing a year-over-year increase of 17% to 20%. •Adjusted EBITDA of $28.8 million to $29.3 million, representing a year-over-year increase of 20% to 22% and an Adjusted EBITDA margin of 15.2% to 15.8%. Full Year 2024 •Revenue of $870 million to $880 million, representing a year-over-year increase of 19% to 21%. •Adjusted EBITDA of $165 million to $167 million, representing a year-over-year increase of 28% to 29% and an Adjusted EBITDA margin of 18.8% to 19.2%. •Free Cash Flow of $75 million to $85 million.

Positive Outlook

  • Projected revenue increase of 17% to 20% for Q1 2024.
  • Anticipated Adjusted EBITDA growth of 20% to 22% for Q1 2024.
  • Expected revenue increase of 19% to 21% for full year 2024.
  • Forecasted Adjusted EBITDA growth of 28% to 29% for full year 2024.
  • Projected Free Cash Flow of $75 million to $85 million for full year 2024.

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