NEW YORK - Zeta Global (NYSE:ZETA) Holdings Corp. (NYSE:ZETA) saw its stock jump 6.7% in after-hours trading on Monday after the AI-powered marketing technology company reported better-than-expected third quarter revenue and raised its full-year outlook.
The company posted revenue of $268.3 million for the quarter, up 42% year-over-year and surpassing analyst estimates of $252.45 million. Adjusted EBITDA came in at $53.6 million, representing a margin of 20%.
While Zeta reported a net loss of $0.09 per share, missing expectations by $0.03, investors focused on the strong top-line growth and improved profitability metrics.
"Our momentum can be directly linked to the acceleration of the AI revolution where Marketing is at the forefront," said David A. Steinberg, Co-Founder, Chairman, and CEO of Zeta. "This is creating unprecedented opportunity for disruptive technology like the Zeta Marketing Platform, which is winning in the marketplace and winning big."
Looking ahead, Zeta raised its fourth quarter revenue guidance to $293-297 million, well above the $268.8 million consensus. For the full year 2024, the company now expects revenue of $984.1-988.1 million, up from its previous outlook and ahead of Wall Street's $943 million estimate.
The strong results were driven by 41% growth in direct platform revenue, which accounted for 70% of total revenue in Q3. Zeta also reported a 33% year-over-year increase in average revenue per user (ARPU) for its scaled customers to $557,231.
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