Zeta Global shares tumble on weak Q1 revenue outlook

Published 25/02/2025, 22:43
Zeta Global shares tumble on weak Q1 revenue outlook

NEW YORK - Zeta Global Holdings Corp. (NYSE:ZETA) reported better-than-expected fourth-quarter results but saw its shares plunge 10% in after-hours trading due to disappointing first-quarter revenue guidance.

The AI Marketing Cloud company posted Q4 adjusted earnings per share of $0.06, compared to a loss of $0.22 in the same period last year. Revenue surged 50% YoY to $314.7 million, surpassing analyst estimates of $294.78 million.

Despite the strong Q4 performance, Zeta’s Q1 2025 revenue guidance of $253-255 million fell short of the $256.1 million consensus, triggering the sharp stock decline. However, the company’s full-year 2025 revenue outlook of $1.235-1.245 billion exceeded analyst expectations of $1.212 billion.

Zeta’s CEO David A. Steinberg commented, "Our early investments in AI and first-party data are resonating with customers and prospects, fueling our record fourth quarter results and contributing to our market share gains."

For the full year 2024, Zeta reported revenue of $1.006 billion, up 38% YoY. The company’s Scaled Customer count increased 17% YoY to 527, while Super-Scaled Customer count rose 13% YoY to 148.

Cash flow from operating activities reached $134 million in 2024, compared to $91 million in 2023. Zeta also repurchased $41 million worth of shares through its share repurchase program during the year.

Looking ahead, Zeta aims to achieve over $2 billion in annual revenue by 2028, as outlined in its newly announced Zeta 2028 plan.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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