Analysts Expect Breakeven For Zeta Global Holdings Corp. (NYSE:ZETA) Before Long
We feel now is a pretty good time to analyse Zeta Global Holdings Corp.'s (NYSE:ZETA) business as it appears the company may be on the cusp of a considerable accomplishment. Zeta Global Holdings Corp. operates an omnichannel data-driven cloud platform that provides enterprises with consumer intelligence and marketing automation software in the United States and internationally. The US$1.7b market-cap company’s loss lessened since it announced a US$279m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$204m, as it approaches breakeven. As path to profitability is the topic on Zeta Global Holdings' investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
Check out our latest analysis for Zeta Global Holdings
Consensus from 9 of the American Software analysts is that Zeta Global Holdings is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of US$80m in 2025. So, the company is predicted to breakeven approximately 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 92% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won’t go into details of Zeta Global Holdings' upcoming projects, however, keep in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before we wrap up, there’s one issue worth mentioning. Zeta Global Holdings currently has a debt-to-equity ratio of 123%. Typically, debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. Note that a higher debt obligation increases the risk in investing in the loss-making company.
Next Steps:
This article is not intended to be a comprehensive analysis on Zeta Global Holdings, so if you are interested in understanding the company at a deeper level, take a look at Zeta Global Holdings' company page on Simply Wall St. We've also compiled a list of key aspects you should further research:
Valuation: What is Zeta Global Holdings worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Zeta Global Holdings is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Zeta Global Holdings’s board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
