Key Metrics
20.77
Heat Index-
Impact LevelMedium
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Scope LevelNational
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Last Update2025-08-06
Key Impacts
Positive Impacts (7)
Negative Impacts (1)
Event Overview
The event highlights robust financial performance in a technology-driven marketing solutions firm, characterized by significant organic growth and improved profitability metrics. Expansion of adjusted EBITDA margins reflects operational efficiency gains, while revised fiscal year guidance signals increased market confidence. Key drivers include core business strength and strategic acquisition integration, demonstrating resilience in competitive digital advertising sectors.
Collect Records
Zeta Global Reports 35% Revenue Growth and Raises FY25 Guidance Following Strong Q2 2025 Earnings
Zeta Global Holdings Corp (NYSE: ZETA) announced financial results for the quarter ended June 30, 2025, reporting a 35% year-over-year increase in revenue for Q2 2025. Total revenue reached $308 million in the quarter. Excluding contributions from the LiveIntent acquisition and political revenue, the company achieved 27% organic growth. Adjusted EBITDA for the quarter rose 52% year-over-year to $58.8 million, compared to $38.5 million in Q2 2024. Adjusted EBITDA margins expanded by 210 basis points to 19.1%. Free cash flow grew by 69% to $33.6 million, with a conversion rate of 57%.
Zeta Global also raised its full-year 2025 revenue guidance to a range of $1.26 billion to $1.27 billion, up from the previously expected $1.24 billion. This guidance beat consensus estimates. The company maintains an EBITDA margin target of 25% by 2028 and reported a price-to-earnings ratio of 22x, which it noted is below its 5-year average.
Zeta attributed part of its growth to its AI-driven marketing platform, Zeta Answers, which delivers real-time, actionable insights. The platform was credited with helping a state government campaign targeting job seekers achieve a 30% higher engagement rate and enabling a Fortune 100 tech company to see a 10% increase in engagement using specific AI-driven modules. Customer retention remained high, with three-year clients averaging $2.6 million per year and 90% of revenue coming from one-year clients.
The company acknowledged some challenges with public sector pilot programs but emphasized scalability and profitability as it continues to compete in the marketing technology sector. The positive results led to a rise in Zeta Global's stock price following the earnings announcement.