I am thinking about $ZETA (-3.24%) to get involved. What do you think?
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- My thoughts on Zeta
Due to the rare combination of rapid growth, improved margins and attractive valuation, I have $ZETA (-3.24%) in my portfolio.
ZETA's 36% year-over-year revenue growth, strong gross margins and recurring revenue-based model set it apart from the competition and offer significant upside potential in both acquisition and standalone business models.
Compared to industry peers, the company trades at a much lower multiple despite faster growth and I estimate it offers upside potential of 50-100% over the next 24 months.
- Highlights of the 1st quarter results
36% year-on-year sales growth
Gross margin of 60.9
548 customers spending over $100,000 per year
5-6 customers with a value of over USD 100 million
GAAP operating margin of -6.1 % (compared to -18.4 % in the previous year)
USD 364 million in cash and USD 195 million in debt
- Risks
While I remain optimistic about Zeta's long-term potential, there are some important risks to be aware of. A primary concern is the changing regulatory landscape around data privacy, which adds significant complexity to the marketing industry. Although proprietary data assets are a competitive advantage today, future restrictions on data collection, identity resolution or customer tracking could impact the company's ability to deliver personalized, high ROI marketing that ZETA is known for.
Another aspect is the general macroeconomic backdrop. If the current period of restrained marketing spend continues or worsens into a full-blown downturn, brands may be forced to cut their advertising budgets more. Although I believe this is a valid risk, it has been discussed with ZETA for years and so far there is no indication that it will actually materialize as the ROIs ZETA has achieved make it more than worthwhile for companies to continue investing. Of course, we could be heading for an even deeper recession.
- Fundamentals
Unlike many growth companies, ZETA is growing at these rates without sacrificing margins or profitability. With rising EBITDA margins, ZETA has now been EBITDA profitable for three consecutive quarters.
There are only a handful of companies in the market that are built from the ground up as technology companies and therefore naturally become more profitable as they grow in size. This basket of companies includes insurtech companies like ROOT and LMND , lending companies like SOFI and UPST and healthcare platforms like HIMS. I think ZETA can compete with these types of companies, but only in the marketing niche, an extremely lucrative industry to be competitive in. Grand View Research estimates that MarTech will grow by an average of 20% annually until 2030, and Zeta is undoubtedly one of the leading players in this sector. It therefore seems possible that the growth rate will remain very high (at least in the mid-teens) until 2030, while at the same time profitability will improve massively.
- Longer-term valuation
If we assume that ZETA is not bought out in the next 12-24 months, I think the long-term potential is even greater if the company gets a deserved re-rating in line with other software companies with similar fundamentals. ZETA's closest competitors are probably ADBE , CRM and HUBS , of which ZETA has by far the lowest valuation from an EV/EBITDA and EV/Sales perspective and at the same time has by far the highest sales growth rates.
With revenue estimates of $1.4bn for FY26 (assuming ZETA achieved management estimates of $1.2bn in FY25), a 5x revenue multiple (still lower than any of the peers listed above) gives a market capitalization of $7bn, offering 100% upside from current levels.
Companies with large upside potential like ZETA generally have a lot of risk and/or profitability issues in my opinion, but with ZETA I think the downside risk is much lower.
- What does Zeta do anyway?
Zeta Global is a global marketing technology company that provides a platform for data-driven omnichannel marketing. They use Artificial Intelligence (AI) to create, nurture and monetize customer relationships. The company offers solutions for various industries, including retail, healthcare and financial services.
Zeta Global's core expertise lies in analyzing billions of data points to predict customer intent and enable personalized marketing campaigns. They offer a range of products and services, such as a Customer Data Platform (CDP), a messaging platform and a DSP for paid media.
Zeta Global was founded in 2007 and is headquartered in New York.
In summary, Zeta Global is a technology company that specializes in data-driven marketing and customer relationship management. They use AI to help companies optimize their marketing strategies and achieve better results.
Source: https://zetaglobal.com/




Long term
do you see $ZETA (-3.24%) as a long-term investment?
thinking of going in and $ADSK (+1.73%) sell
William Blair reiterates Outperform rating for Zeta Global shares
Investing.com - William Blair reiterated his Outperform rating on Zeta Global Holdings Corp (NYSE: ZETA ) on Monday, citing strong fundamentals and growth opportunities. According to InvestingPro data, the company showed impressive momentum last week with a return of 12.54%.
The investment firm highlighted its recent investor meetings with Zeta's CFO Chris Greiner and Senior Vice President of Investor Relations Matt Pfau, noting that investors showed great interest in the company's consistent execution and growth potential. This interest appears to be well-founded, as sales have increased by 40.36% in the last twelve months.
William Blair noted that management is optimistic about the fundamentals and pointed to stable demand as brands look to modernize their marketing technology stacks, improve customer engagement and integrate AI into their marketing strategies.
The company believes that Zeta shares are currently undervalued, trading at around 11 times EBITDA and 21 times free cash flow, despite the company having organic revenue growth of over 20% and increasing EBITDA margins of over 20%.
William Blair pointed out that further execution and upside to estimates will be key factors in driving the P/E ratio higher, particularly given the significant growth opportunities open to Zeta Global going forward.
In other recent news, Zeta Global Holdings Corp. reported its first quarter 2025 results and showed mixed financial performance. The company achieved revenue of USD 264 million, exceeding the forecast of USD 254.43 million, an increase of 36% compared to the previous year. However, earnings per share (EPS) fell short of expectations, coming in at -0.1 versus the forecast 0.12. Meanwhile, Zeta Global co-founder John Sculley announced his resignation from his positions as vice chairman and board member, but will continue to serve as vice chairman emeritus. On the analyst side, Needham maintained a Buy rating on Zeta Global, but lowered the price target from $25 to $20, citing a broader recalibration of software valuations. KeyBanc analysts maintained their Sector Weight rating on the company, remaining Neutral despite strong fundamental performance and potential takeover interest. In addition, Zeta Global is actively buying back shares, underlining confidence in the company's financial health. These developments underline the company's ongoing efforts to improve its profitability and strategic position in the market.

🚀
My last two trades are flying! $OSCR +18% after a 50% three-day rally, and $LEU (+5.23%) +13%. The DOE extended $LEU (+5.23%)'s contract for HALEU production by another year (until June 30, 2026) with an option to extend it for EIGHT more years! $OSCR is on an incredible rally. $ZETA (-3.24%) is +12 right now, another one to watch closely. LET’S GO!
$ZETA
Does anyone here have $ZETA (-3.24%) in the portfolio? I think this is a very interesting share at the current prices and wanted to hear if anyone thinks the same.
Purchases for next week:
1 Meta Platforms (A)
Meta is investing heavily in AI and the metaverse - an exciting tech giant with solid cash flow after the correction.
2. paypal
Fintech giant with a strong market position in digital payments - currently valued more favorably due to the correction.
3. realty income
Stable dividend payer ("Monthly Dividend Company") from the real estate sector - down due to interest rate concerns, now an attractive entry point.
4. salesforce
Market leader in CRM software with good growth prospects - the correction is pushing the price down to a more interesting level.
5 Shopify (A)
E-commerce enabler with potential to profit from global online trade - more attractive again after setbacks.
6. target
Solid retail company with stable sales - fallen due to economic uncertainties and now valued more excitingly.
7 The Trade Desk (A)
Profiteer of growing digital advertising - currently cheaper due to tech sector correction.
8 Zeta Global Holdings
Growing in data-driven marketing - still a small cap with opportunities due to current valuation weakness.
9 Alphabet (A)
Google parent with strong AI and cloud position - correction offers long-term investors favorable entry opportunities.
10. amazon.com
Market leader in e-commerce and strong in the cloud sector (AWS) - currently more exciting again after declines.
11. ASML
Monopolist in EUV lithography machines for the chip industry - cheaper due to market downturn, but essential in the long term.
12. diageo
Strong consumer goods stock (e.g. spirits) - currently under pressure due to economic concerns, which creates good opportunities for additional buying.
13. HCA Healthcare
Largest private hospital operator in the USA - defensive business model, more interesting valuation after the correction.
14. Lam Research
Important supplier for the semiconductor industry - currently affected by the weak semiconductor market, but enormously important in the long term.
With these words, I wish you a pleasant Sunday evening and a successful week! $META (+0.05%)
$LRCX (-0.53%)
$HCA (-0.8%)
$DGE (+1.35%)
$ASML (-2.06%)
$AMZN (+0.54%)
$GOOGL (+0.48%)
$ZETA (-3.24%)
$TTD (-0.91%)
$TGT (-0.74%)
$SHOP (+0.05%)
$CRM (+0.76%)
$O (-0.12%)
$PYPL (-0.02%)
And Next...
Let's continue with the quarterly figures😬
among others
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$HIMS (-0.05%)
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$CRM (+0.76%)
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$O (-0.12%)
$STLAM (-2.8%)
$AXON (+0.99%)
$KDP (-0.68%)
$DOM (-1.39%)
$INTU (-0.61%)
$ZETA (-3.24%)

About Zeta. $ZETA (-3.24%)
Zeta Global (NYSE: ZETA) is the AI-powered marketing cloud that leverages advanced artificial intelligence (AI) and trillions of consumer signals to make it easier for marketers to acquire, grow and retain customers more efficiently. With the Zeta Marketing Platform (ZMP), our vision is to simplify sophisticated marketing by unifying identity, intelligence and omnichannel activation on a single platform - powered by one of the industry's largest proprietary databases and AI. Our enterprise customers across industries can personalize experiences with consumers at an individual level across all channels, driving better results for marketing programs. Founded in 2007 by David A. Steinberg and John Sculley, Zeta is headquartered in New York City with offices around the world. For more information, please visit www.zetaglobal.com
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