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On Wednesday, BofA Securities analyst Koji Ikeda increased the price target for Zeta Global Holdings Corp (NYSE: ZETA) to $32.00, up from the previous $30.00, while maintaining a Buy rating on the shares. The adjustment follows Zeta Global’s announcement of robust fourth-quarter results for the fiscal year 2024, which surpassed Wall Street’s expectations. The company, currently valued at $4.9 billion, has demonstrated impressive momentum with a 99.42% stock return over the past year, according to InvestingPro data.
Zeta Global, a marketing and advertising software vendor, reported a quarterly revenue of $315 million, which was 7% higher than the consensus estimates. The company’s free cash flow (FCF) also exceeded expectations, coming in at $31.7 million, 2% above the Street’s forecast. InvestingPro analysis shows the company maintains strong financial health with a healthy current ratio of 3.32 and an impressive gross profit margin of 60.26%.
Looking ahead, Zeta Global has provided guidance for the fiscal year 2025, projecting revenues to reach approximately $1,240 million at the midpoint, a 23.3% year-over-year increase. This figure is notably higher than the consensus estimate of $1,211 million. The company’s guidance for FCF and non-GAAP operating income for 2025 also stands above analysts’ predictions. While the stock has recently experienced a 10.75% decline over the past week, InvestingPro reveals 11 analysts have revised their earnings estimates upward for the upcoming period, suggesting strong confidence in the company’s outlook. Get access to 10 more exclusive InvestingPro Tips and comprehensive analysis in the Pro Research Report.
The growth outlook for Zeta Global, excluding the revenues from its recent acquisition of LiveIntent, indicates an organic revenue growth of 13.7% for 2025. While this may seem modest, it is important to note that the company’s 2024 performance benefited significantly from $44 million in political candidate revenue, which is attributed to the presidential election cycle. When removing this political revenue, the company’s guidance suggests an expectation for the rest of the business to grow by 21% year-over-year in 2025. This projection aligns with the company’s strong historical growth trajectory, having achieved nearly 30% revenue growth over the last twelve months.
Ikeda commented on the financial results and outlook, stating that despite some variables, nothing detracts from the long-term view that Zeta Global is gaining market share in the promising marketing and ad-tech sector. The analyst’s decision to reiterate a Buy rating and raise the price objective is based on the company’s higher revenue forecast and solid execution.
In other recent news, Zeta Global Holdings Corp reported its Q4 2024 earnings, showcasing a substantial revenue increase but missing earnings per share (EPS) expectations. The company achieved a revenue of $315 million, surpassing the forecast of $294.78 million and marking a 50% year-over-year growth. However, the EPS of $0.06 fell short of the expected $0.224, which may have influenced investor sentiment. Despite the EPS miss, Zeta Global’s full-year revenue exceeded $1 billion, representing a 38% increase from the previous year. The company also announced its first positive GAAP net income as a public company, with a net income of $15.2 million. In other developments, Zeta Global has completed the integration of LiveIntent, ahead of schedule, enhancing its product offerings with the launch of Zeta Direct. Looking ahead, Zeta Global projects a 23% revenue growth for 2025, aiming for a revenue of $1.24 billion and an adjusted EBITDA of $256.5 million. The company has outlined a plan to reach over $2.1 billion in revenue by 2028, targeting a 20% organic revenue compound annual growth rate between 2024 and 2028.
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