Marketing technology company Zeta Global (NYSE: ZETA) reported Q3 CY2025 results topping the market’s revenue expectations, with sales up 25.7% year on year to $337.2 million. The company expects next quarter’s revenue to be around $364.5 million, close to analysts’ estimates. Its GAAP loss of $0.02 per share was $0.02 below analysts’ consensus estimates.

Is now the time to buy ZETA? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

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.

Looking ahead, Zeta Global’s guidance is shaped by the anticipated rollout of its Athena AI agent, ongoing integration of new customers from both organic channels and the pending Marigold acquisition, and a focus on cross-selling within its enterprise base. Management expects Athena to enhance client adoption by simplifying platform operations and promoting multi-use case expansion. CFO Chris Greiner noted that “large clients are giving us larger contracts than we’ve ever had before and far more visibility into our forward numbers,” underscoring growing confidence in Zeta’s outlook.

Key Insights from Management’s Remarks

Management emphasized the acceleration of AI-powered platform adoption, expansion within key verticals, and early results from new product launches as primary drivers of third quarter performance.

• AI-native product traction: The launch of Athena, Zeta’s voice-activated AI agent, was highlighted as a turning point for platform usability. Management expects Athena to lower barriers for cross-use case expansion, with beta testing underway and production readiness expected in early 2026.

• Enterprise use case growth: Zeta’s OneZeta initiative drove increased customer engagement, with clients adopting multiple use cases generating over three times the annual revenue of single-use case clients. This focus resulted in notable contract wins with major retailers and specialty brands.

• Telecom vertical momentum: Telecom emerged as a significant growth area, with Zeta displacing legacy marketing clouds at large telecom companies. Management attributed success to the platform’s lower cost and higher effectiveness compared to competitors.

• Agency and brand expansion: Growth was not limited to direct enterprise relationships; Zeta also reported strong gains with independent agencies, adding 23 new brands through agency partners in the quarter. This diversification supports a broader customer base.

• LiveIntent integration and cross-sell: While LiveIntent’s standalone results were mixed versus initial expectations, management reported substantial synergies through cross-selling, boosting broader platform adoption and revenue.

Drivers of Future Performance

Management’s outlook is driven by accelerated AI product rollout, cross-sell opportunities, and strategic acquisitions, while recognizing evolving risks from channel mix and competitive dynamics.

• Athena-enabled cross-sell: The full rollout of Athena is expected to make Zeta’s platform more accessible and intuitive, supporting multi-use case adoption and deeper client integration. Management believes this will drive higher average revenue per customer and improve retention.

• Marigold acquisition impact: While not yet included in formal guidance, the pending Marigold enterprise software acquisition is positioned to expand Zeta’s enterprise reach, particularly through cross-selling into Marigold’s base of over 100 large enterprises. Management expects meaningful revenue and data synergies post-close.

• Channel and margin dynamics: Management noted that shifts in channel mix, especially increased use of display and video, may pressure gross margins despite overall operating leverage. Continued investment in AI and sales capacity, paired with the integration of new agency partners, could influence near-term profitability.

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 $18.75, 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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