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Investing.com -- Zeta Global Holdings Corp. (NYSE:ZETA) reported mixed first quarter results, with revenue surpassing expectations but earnings falling short of analyst estimates. The AI Marketing Cloud company’s shares dropped 4.7% following the announcement.
Zeta Global posted a loss per share of -$0.10 for the first quarter, missing the analyst consensus of $0.12 earnings per share. However, the company’s revenue of $264 million exceeded the consensus estimate of $254.43 million and represented a 36% increase YoY.
The company’s CEO, David A. Steinberg, highlighted Zeta’s "15th consecutive ’beat and raise’ quarter" and emphasized their focus on AI innovation, including the recent launch of AI Agent Studio. Despite the earnings miss, Zeta raised its guidance for both the second quarter and full year 2025.
For the second quarter, Zeta now expects revenue between $295 million and $298 million, up from its previous guidance and above the consensus of $292.3 million. The company also increased its full-year 2025 revenue forecast to a range of $1,237 million to $1,247 million, surpassing the consensus of $1,232 million.
Zeta reported growth in its customer base, with Scaled Customer count increasing 19% YoY to 548 and Super Scaled Customer count rising 10% YoY to 159. Quarterly Scaled Customer ARPU grew 12% YoY to $467,000.
"While our momentum supports a larger raise, we’re taking a disciplined and conservative approach in light of the ongoing macro uncertainty," said Chris Greiner, Zeta’s CFO, regarding the company’s guidance update.
The company generated $35 million in net cash from operating activities, a 41% increase YoY, and Free Cash Flow of $28 million, up 87% YoY. Zeta also repurchased $25 million worth of shares during the quarter.
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