Key Points
-
Interested in Zeta Global Holdings Corp.? Here are five stocks we like better.
-
AI adoption is accelerating: Zeta’s Athena conversational AI reached monthly usage among 40% of its approximately 200 largest customers within 150 days, with 83% of their platform interactions occurring conversationally.
-
Palantir partnership offers incremental growth: Zeta plans to jointly target Palantir’s U.S. commercial customers that spend more than $1 billion on marketing, initially focusing on analytics and Data Cloud applications.
-
Strong outlook and cash generation: Zeta raised its organic-growth outlook to about 23.5%, increased full-year revenue and free-cash-flow guidance, and plans to direct at least 50% of quarterly cash generation toward share repurchases.
Zeta Global (NYSE:ZETA) executives outlined the company‘s strategy to consolidate marketing technology tools, expand adoption of its artificial intelligence products and pursue joint-selling opportunities through partnerships during KeyBanc’s Technology Leadership Forum in Park City, Utah.
Chris Greiner, Zeta Global’s chief financial officer, said the company primarily serves large enterprises across all 15 industry verticals. Its top 10 verticals represent about 90% of revenue, with no concentration in one or two sectors, he said. Greiner added that eight of its top 10 verticals grew more than 20% in the prior quarter.
→ Quantum Earnings Week: Winners and Losers Are Finally Emerging
-
As Digital Ad Spend Hits a High, These Firms Could Reap Rewards
Zeta’s platform is designed to support marketers’ efforts to retain customers, increase wallet share among existing customers and acquire new customers across digital channels. Greiner said the company can typically replace eight to 12 vendors during an initial implementation, positioning Zeta as a consolidation point for brands managing numerous marketing point solutions.
Data Cloud and Athena Adoption
Will Margiloff, Zeta’s chief growth officer and vice chairman, said the company’s data asset is the largest open-web, non-walled-garden dataset. He said the data can help customers enrich their understanding of existing consumers and identify prospective customers with attributes similar to their best customers.
→ Take-Two’s Q1 Results Leave GTA 6 Bulls Stuck in the Fog of War
The company has also introduced Athena, a conversational AI interface intended to make Zeta’s platform easier for marketers to use. Greiner said customers had previously found the breadth of Zeta’s platform potentially intimidating, even as they recognized the value of its data and capabilities.
