According to a recent research, the global digital advertising market is expected to grow at14% CAGR to reach $786.2 billion by 2026. The pandemic lockdowns had driven significant increase in online traffic, and in turn accelerated the opportunities for companies to keep their target audience engaged through digital marketing initiatives. Zeta Global (NYSE:ZETA) is a leading player in the advertising market that is benefiting from this growth.
Zeta Global’s Financials
Recently, Zeta announced its first quarter results. Revenues grew 24% to $126 million. Net loss was $0.54 per share.
Among key metrics, it reported a customer base of 359 with an average revenue per user (ARPU) of $341,000. ARPU increased 18% over the year. Direct platform revenues made up 81% of its total revenue compared to 74% in a year ago and 77% a quarter ago.
For the second quarter, Zeta forecast revenues of $128-$132 million. For the fiscal year, it forecast revenues of $553-$563 million. The market forecast revenues of $130.07 million for the quarter and $558.18 million for the fiscal year.
Zeta Global’s Growth Offerings
Zeta recently announced the expansion of its partnership with AWS. The expansion will make the Zeta Marketing Platform (ZMP) the first marketing cloud in AWS Marketplace, a digital catalog that provides thousands of software listings from independent software vendors (ISV) that make it easy to find, test, buy, and deploy software that runs on AWS. The expansion with AWS will provide Zeta’s customers the opportunity to discover, procure, and deploy the ZMP as part of their existing Enterprise Discount Program. Furthermore, Zeta will participate in the AWS ISV Accelerate Program for additional co-sell support and benefits with AWS sellers.
Last quarter, Zeta had released its Zeta 2025 plan where it highlighted plans to become the largest marketing cloud by 2025. The financial targets of this plan are to generate revenues in excess of $1 billion with at least 20% adjusted EBITDA margins by 2025. The expanded partnership with AWS will help it achieve this goal. Zeta believes that it will be able to achieve these results because of the changes in the digital marketing ecosystem, the evolution of its platform and the expansion of its go-to-market capabilities. Its single platform that leverages its proprietary first-party data set is making it easier and faster for marketers to deliver better consumer experiences and achieve higher return on investment.
Its stock is currently trading at a share price of $6.89 and a market capitalization of $1.39 billion. Zeta Global had climbed to a 52-week high of $13.46 in April and a 52-week low of $4.09 in June. The company had listed in June last year at a valuation of $1.9 billion.