Zeta Global’s third quarter was marked by strong revenue growth and a positive market reaction, reflecting momentum in its AI-driven marketing platform and customer base expansion. Management pointed to broad-based industry gains, particularly in telecom, and highlighted the impact of deeper multi-use case adoption among enterprise clients. CEO David Steinberg emphasized that Zeta’s platform “delivers a 6:1 return on investment” for clients, crediting AI integration and data-driven personalization as key differentiators. The company’s successful Zeta Live event further contributed to pipeline growth and customer engagement.
Is now the time to buy ZETA? Find out in our full research report (it’s free for active Edge members).
Zeta Global (ZETA) Q3 CY2025 Highlights:
- Revenue: $337.2 million vs analyst estimates of $328.2 million (25.7% year-on-year growth, 2.7% beat)
- Adjusted EPS: $0.27 vs analyst estimates of $0.18 (47.2% beat)
- Adjusted Operating Income: $60.87 million vs analyst estimates of $52.78 million (18.1% margin, 15.3% beat)
- Revenue Guidance for Q4 CY2025 is $364.5 million at the midpoint, roughly in line with what analysts were expecting
- EBITDA guidance for the full year is $273.7 million at the midpoint, above analyst estimates of $264.3 million
- Operating Margin: 2.6%, up from -4.6% in the same quarter last year
- Billings: $337.3 million at quarter end, up 25.8% year on year
- Market Capitalization: $4.79 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Zeta Global’s Q3 Earnings Call
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Arjun Bhatia (William Blair & Company) asked about Zeta's return on investment compared to walled gardens. CEO David Steinberg responded that Zeta’s platform delivers a comparable 6x ROI and is seeing increased interest as marketers seek alternatives post-OpenAI and Google changes.
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Elizabeth Porter (Morgan Stanley) inquired about the $100 million incremental business target after Zeta Live and its conversion timeline. Steinberg said the pipeline from Zeta Live is already robust, and this target is a buffer in next year’s outlook, reflecting strong momentum.
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Matthew Swanson (RBC) questioned how Athena could accelerate cross-sell and platform adoption. Steinberg explained Athena’s conversational capabilities will streamline secondary use case expansion, while Greiner highlighted that customers with multiple use cases have doubled year-over-year.
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David Hynes (Canaccord Genuity) asked about sales and marketing investment and sequential declines. Steinberg noted productivity gains from existing reps and plans to expand sales capacity, especially post-Marigold, while Greiner added that Zeta Live timing affected quarterly spend.
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Jackson Ader (KeyBanc) sought clarity on the visibility behind 2026 guidance. Steinberg confirmed larger, longer-term contracts with major clients are providing more forward visibility than in previous years.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be monitoring (1) the client adoption curve and impact of the Athena AI rollout, (2) the successful integration and cross-sell execution following the Marigold acquisition, and (3) continued expansion in high-growth verticals like telecom and retail. The evolution of channel mix and its effect on gross margin will also be important to track as Zeta balances growth and profitability.
Zeta Global currently trades at $19.89, up from $16.70 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).
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