Zeta Global Holdings Corp (ZETA) Reports 24% Y/Y Revenue Increase in Q3 2023
ZETA reported a record revenue of $189M, marking a 24% increase year-over-year (Y/Y)
The company's Scaled Customer count grew to 440, a 15 quarter-over-quarter (Q/Q) increase
ZETA generated a cash flow from operating activities of $23M, a 17% Y/Y increase
The company's Free Cash Flow increased by 43% Y/Y to $13M
On November 1, 2023, Zeta Global Holdings Corp (NYSE:ZETA) released its financial results for the third quarter ended September 30, 2023. The company reported record revenue and strong customer growth, reflecting its commitment to leading the intelligence-powered marketing transformation.
Financial Highlights
ZETA's total revenue for Q3 2023 was $189 million, a 24% increase Y/Y. The company's Scaled Customer count increased to 440 from 425 in Q2 2023 and 389 in Q3 2022. The Super-Scaled Customer count also increased to 124 from 118 in Q2 2023 and 106 in Q3 2022. The company's GAAP Net Loss was $43 million, driven primarily by $58 million of stock-based compensation. The net loss in Q3 2022 was $69 million.
ZETA's cash flow from operating activities was $23 million, compared to $20 million in Q3 2022. The company's Free Cash Flow was $13 million, compared to $9 million in Q3 2022. ZETA's Adjusted EBITDA was $34 million, a 26% increase Q/Q from $27 million in Q2 2023, and a 51% increase Y/Y from $22 million in Q3 2022.
Company Outlook
For Q4 2023, ZETA anticipates a revenue range of $205 million to $209 million, representing a Y/Y increase of 17% to 19%. The company also expects an Adjusted EBITDA range of $41.7 million to $42.2 million, a Y/Y increase of 29% to 30%. For the full year 2023, ZETA is increasing its revenue guidance to a range of $723 million to $727 million, a Y/Y increase of 22% to 23%. The company's Adjusted EBITDA is expected to range from $126.3 million to $126.8 million, a Y/Y increase of 37% to 38%.
Management Commentary
David A. Steinberg, Co-Founder, Chairman, and CEO of Zeta, commented on the results,
Our third quarter of 2023 was one of our most eventful and productive quarters yet. Our record attendance at Zeta Live and our record revenue reflect our growing awareness in the marketplace. Zeta is committed to leading the intelligence-powered marketing transformation, delivering better experiences for consumers and better results for brands."
Chris Greiner, Zetas CFO, added,
The third quarter was a continuation of our strong execution. Our strong revenue growth, with over 90 percent of our portfolio growing in the mid-30s and rapid new customer additions, is evidence of the growing adoption and expansion of the Zeta Marketing Platform. The combination of robust demand, disciplined expense management and better productivity continues to drive strong Adjusted EBITDA and FCF expansion."
Explore the complete 8-K earnings release (here) from Zeta Global Holdings Corp for further details.
This article first appeared on GuruFocus.
