Zeta Global Reports Strong Q2 2025 Results, Driven by AI-Powered Marketing Platform

Zeta Global Stock Is Rising After Q2 Earnings, Company Highlights 'AI-Driven Momentum' - Zeta Global Holdings (NYSE:ZETA)

Zeta Global Holdings Corp ZETA shares are moving higher in Tuesday's after-hours session after the company reported better-than-expected results and raised its full-year 2025 guidance. ZETA stock is on the move, climbing higher. See the chart here. What Happened: Zeta reported second-quarter revenue of $308.44 million, beating analyst estimates of $296.65 million, according to Benzinga Pro. The AI marketing cloud company said total revenue was up 35% on a year-over-year basis. Zeta generated $42 million of operating cash flow and $34 million of free cash flow during the quarter. Zeta's board approved a new stock repurchase program of up to $200 million over the next two years. The company now has $215 million in approved buybacks remaining. Zeta ended the quarter with $365.31 million in cash and cash equivalents. "We delivered another quarter of industry-leading growth, fueled by demand for our AI-powered marketing platform," said David Steinberg, co-founder, chairman and CEO of Zeta. Trending Investment OpportunitiesAdvertisementArrivedBuy shares of homes and vacation rentals for as little as $100. Get StartedWiserAdvisorGet matched with a trusted, local financial advisor for free.Get StartedPoint.comTap into your home's equity to consolidate debt or fund a renovation.Get StartedRobinhoodMove your 401k to Robinhood and get a 3% match on deposits.Get Started "As we head into the back half of 2025, our AI-driven momentum on the heels of the Zeta Answers release, new Zeta Marketing Platform deployments, agency expansions and OneZeta wins gives us conviction that Zeta is poised to capture even more market share." Guidance: Zeta expects third-quarter revenue of $327 million to $329 million versus estimates of $323.24 million. The company also raised its full-year 2025 revenue guidance from a range of $1.237 billion to $1.247 billion to a new range of $1.258 billion to $1.268 billion versus Benzinga Pro estimates of $1.241 billion. ZETA Price Action: Zeta Global shares were up 5.17% in Tuesday's after-hours session, trading at $16.69 at the time of publication, according to Benzinga Pro. Read Next: Astera Labs Stock Soars After Q2 Results: Here's Why Photo: Piotr Swat/Shutterstock.com ZETAZeta Global Holdings Corp$16.705.70%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum17.56Growth71.52QualityN/AValue39.11Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Zeta Global (ZETA) Q2 Revenue Jumps 35% | The Motley Fool

Zeta Global (ZETA 0.44%), a provider of artificial intelligence (AI)-driven marketing technology, announced its Q2 2025 earnings results on August 5, 2025. The quarter was headlined by GAAP revenue of $308.4 million, which beat analyst forecasts of $296.7 million (GAAP) and exceeded the company's own guidance. Free cash flow (non-GAAP) was $33.6 million, up 69% year-over-year, while management raised its full-year 2025 financial outlook. The period marked another "beat and raise" quarter, with strong growth across all key metrics, and continued momentum in AI-powered products and customer expansion. Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report. Zeta Global operates in the digital marketing sector, offering AI-based platforms to help businesses personalize and optimize their marketing across channels. Its main product, the Zeta Marketing Platform, uses machine learning and generative AI (a type of artificial intelligence that creates new content or predictions) to process billions of data signals and deliver targeted advertising and messaging. The company's recent strategic focus areas include expanding its AI-powered personalization tools, investing in data privacy and security, integrating the LiveIntent identity graph (a tool for matching consumer identity across digital properties), and growing its customer base. Success for Zeta hinges on winning more enterprise and agency customers, scaling up existing client relationships, and maintaining compliance with data privacy rules such as the California Consumer Privacy Act (CCPA) and Europe's General Data Protection Regulation (GDPR). During Q2 2025, Zeta booked GAAP revenue of $308.4 million, up 35% year-over-year, and topped the midpoint of its own revenue guidance by $11.0 million. Adjusted EBITDA, a non-GAAP metric that removes one-time or non-cash expenses to show operating profitability, rose 53% year-over-year in Q2 2025, reflecting both sales growth and margin expansion. Management attributed these gains to robust demand for its AI-driven products. The period saw strong adoption of Zeta's generative AI agents and tools, including the Zeta Answers product and an expanded Zeta Marketing Platform. Customers who have adopted new AI features are growing consumption revenue by more than 40% year-over-year. These AI and workflow launches are reported to accelerate customer spending, as businesses aim to use automation for more efficient, personalized marketing campaigns. The completion of LiveIntent's identity graph integration boosted Zeta's data capabilities. This enhancement improves identity resolution -- the ability to match digital users with real identities -- and supports more targeted, privacy-compliant marketing. While the LiveIntent acquisition drew in a wider mix of customers (including some with smaller average spend), it expanded Zeta's reach and improved the base of direct customer relationships. LiveIntent's business contributed about $19.5 million in Q1 2025, in line with internal targets. The company emphasized its commitment to data privacy and security as continued regulatory pressure grows. Though Zeta did not announce new privacy initiatives this period, it highlighted compliance as a selling point in global markets. Customer expansion continued on several fronts. The company reported 548 scaled customers and 159 'super-scaled' customers at the end of Q1 2025, with average revenue per scaled customer (ARPU) up 12% year-over-year in Q1 2025. Management said that scaled customer growth and increased multi-channel usage remain key drivers. Zeta also saw notable momentum in its agency channel, with activity among independent agencies doubling in Q1 2025 over Q4 2024. However, management noted that direct enterprise business also remains strong, and that the mix of revenue between agency and enterprise clients is unlikely to skew substantially further toward agencies in the near term. On capital allocation, Zeta completed its initial $100 million share repurchase program authorized in November 2024, with $15 million remaining as of July 25, 2025, buying back $85 million worth of stock as of July 25, 2025, and approved a new $200 million stock repurchase authorization on July 23, 2025. Stock-based compensation, which rewards employees and executives with company shares, dropped 11% compared to last year (GAAP basis), but remains a sizable expense at $46.5 million for Q2 2025. Management plans to further reduce this cost by foregoing annual equity grants in 2025 and tying leadership's compensation to longer-term goals. Dilution from stock-based compensation is an ongoing issue the company continues to address via these repurchase programs and stricter share grant limits. For the third quarter of fiscal 2025, management forecasts revenue of $327 million to $329 million for Q3 2025, representing an increase of 22-23%. Adjusted EBITDA is guided to $70.3 million to $71.0 million, which would represent year-over-year growth of 31-32%, and an expected Adjusted EBITDA margin of 21.4-21.7%. The company also raised its full-year 2025 outlook, increasing revenue, adjusted EBITDA, and free cash flow guidance. Leadership now projects revenue between $1,258 million and $1,268 million (up 25-26%) for full-year 2025, adjusted EBITDA (non-GAAP) between $263.6 million and $265.6 million (up 37-38%) for full-year 2025, and free cash flow (non-GAAP) for full-year 2025 is expected to be in the $140 million to $144 million range, an increase of 52% to 56% compared to the previous year. All forward projections (revenue, adjusted EBITDA, and free cash flow guidance) were increased by more than the amount by which Zeta beat its own Q2 2025 guidance. Leadership described this outlook as intentionally cautious but noted no evidence of slowdowns in customer demand or spending at this stage. Investors should keep an eye on several persistent issues in coming quarters. Zeta remains unprofitable on a generally accepted accounting principles (GAAP) basis as of Q2 2025, with a net loss (GAAP) of $12.8 million for Q2 2025, though this improved from the prior year. As stock-based compensation continues to make up a significant proportion of expenses, ongoing buybacks and compensation changes are meant to limit shareholder dilution. The company did not provide full quarterly figures for certain customer and vertical metrics this period. Lastly, while Zeta expressed confidence in its current pipeline and demand trends, management acknowledged continued macroeconomic volatility and has kept guidance conservative to account for possible shifts.

Zeta signals $1.263B 2025 revenue target as AI and OneZeta adoption accelerate (NYSE:ZETA)

David A. Steinberg, CEO, reported that Zeta delivered "another quarter of industry-leading growth, fueled by demand for our AI-powered marketing platform." Revenue reached $308 million, up 35% year-over-year, and adjusted EBITDA rose 52% to $59 million, both topping guidance. The company increased Seeking Alpha's Disclaimer: The earnings call insights are compilations of earnings call transcripts and other content available on the Seeking Alpha website. The insights are generated by an AI tool and have not been curated or reviewed by editors. Due to inherent limitations in using AI-based tools, the accuracy, completeness, or timeliness of the earnings call insights cannot be guaranteed. Please see full earnings call transcripts here. The earnings call insights are intended for informational purposes only. Seeking Alpha does not take account of your objectives or your financial situation and does not offer any personalized investment advice. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank.