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ZETA Q3 Earnings Call Highlights AI Growth and Higher Outlook
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Key Takeaways
Zeta Global Q3 revenues jump 46% to $492.7 million, while adjusted EPS rises to 38 cents, beating estimates
Athena adopters contribute over 70% to ZETA's revenues, super-scaled customer ARPU grows 22% to $2 million
ZETA raises its 2026 revenue outlook to $1.853-$1.857 billion as AI demand and enterprise opportunities expand
Zeta Global Holdings Corp. (ZETA - Free Report) emphasized accelerating artificial intelligence adoption, expanding enterprise opportunities and improving profitability during its third-quarter 2026 earnings call. Management highlighted stronger customer engagement with Athena and growing demand for its AI-powered marketing platform.
Executives also outlined plans to expand beyond marketing through AthenaOS and strategic partnerships, while raising the company's annual financial outlook.
Zeta reported non-GAAP earnings of 38 cents per share, surpassing the Zacks Consensus Estimate of 28 cents and increasing from 24 cents a year earlier. Revenues jumped 46% year over year to $492.7 million, exceeding the Zacks Consensus Estimate of $470.5 million.
Zeta Global Holdings Corp. Price, Consensus and EPS Surprise
Chief Financial Officer Christopher Greiner raised full-year revenue guidance to $1.853-$1.857 billion, increasing the midpoint by $37 million. The revised outlook implies 42% annual growth.
Fourth-quarter revenues are projected at $521-$525 million. Management also raised full-year adjusted EBITDA guidance to $414.1-$415.2 million and free cash flow guidance to $270.6-$271.6 million.
Greiner emphasized that the revenue outlook incorporates minimal contributions from strategic partnerships and maintains a 2%-5% cushion. Management expects underlying annual revenue growth of 27%, excluding acquisitions and political candidate revenues.
Zeta Sees Athena Adoption Accelerating Customer Spending
Greiner attributed stronger underlying growth to increasing Athena adoption and consumption. Revenues excluding Marigold and political candidate contributions increased 30%, accelerating from 28% in the preceding quarter.
More than 50% of super-scaled customers became monthly active Athena users, while Athena adopters represented more than 70% of total revenues.
Super-scaled customer average revenue per user increased 22% to $2 million. During discussions with Goldman Sachs analysts, Chief Executive Officer David Steinberg linked higher customer spending to improved marketing returns and broader platform utilization.
ZETA Expands Enterprise Reach Through AthenaOS
Steinberg positioned AthenaOS as an extension of Zeta's existing marketing platform into broader enterprise intelligence applications.
The platform remains in alpha testing, with selected customers expected to enter beta testing during 2026 and general availability targeted for the first quarter of 2027.
Responding to Canaccord Genuity analysts, Steinberg emphasized that AthenaOS represents an evolution of the existing business rather than a strategic departure. Management highlighted inventory management, supply chain optimization, fraud detection and cybersecurity as emerging applications.
Zeta Deepens Partnerships and Acquisition Capabilities
Steinberg highlighted the Palantir partnership as an important opportunity to combine Zeta's external demand intelligence with enterprises' internal operational data.
Management reiterated its expectation that the partnership could eventually generate more than $100 million in incremental annual revenues. During discussions with KeyBanc analysts, Steinberg disclosed eight positive customer commitments.
The company also highlighted its expanding OpenAI relationship and recent Senso and Digital Audience acquisitions. These initiatives aim to extend Zeta's AI connectivity, customer intelligence and activation capabilities across additional workflows.
ZETA Highlights Pipeline Strength and Improving Margins
Greiner reported that requests for proposals increased more than 100% year over year, while pipeline creation per seller grew 32%.
During discussions with RBC Capital Markets analysts, management indicated that initial deal-closing periods remained consistent, although customer pilots were scaling faster.
Adjusted EBITDA increased 55% to $121 million, with margin expanding 140 basis points to 24.6%. Free cash flow climbed 73% to $82 million, reflecting improved operating leverage and disciplined spending.
Zeta Maintains Its Focus on Sustainable Expansion
Management's commentary centered on converting stronger customer engagement and pipeline activity into durable revenue growth while expanding profitability.
Steinberg emphasized continued investment in the core marketing business alongside AthenaOS development. Greiner indicated that the company would maintain its established guidance approach when outlining expectations for 2027.
ZETA Zacks Rank and Style Scores Signal Mixed Prospects
ZETA currently carries a Zacks Rank #3 (Hold), indicating a neutral near-term earnings estimate revision outlook. Its Growth Score of A highlights favorable growth characteristics, while the VGM Score of B reflects relatively attractive combined value, growth and momentum characteristics. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
However, Value and Momentum Scores of D indicate weaker characteristics in those categories. The combination presents a mixed assessment of the stock's near-term prospects. The Zacks Rank can change as analysts revise earnings estimates following the latest quarterly results.
View the Zacks #1 Rank List
Image: Bigstock
ZETA Q3 Earnings Call Highlights AI Growth and Higher Outlook
Key Takeaways
Zeta Global Holdings Corp. (ZETA - Free Report) emphasized accelerating artificial intelligence adoption, expanding enterprise opportunities and improving profitability during its third-quarter 2026 earnings call. Management highlighted stronger customer engagement with Athena and growing demand for its AI-powered marketing platform.
Executives also outlined plans to expand beyond marketing through AthenaOS and strategic partnerships, while raising the company's annual financial outlook.
Zeta reported non-GAAP earnings of 38 cents per share, surpassing the Zacks Consensus Estimate of 28 cents and increasing from 24 cents a year earlier. Revenues jumped 46% year over year to $492.7 million, exceeding the Zacks Consensus Estimate of $470.5 million.
Zeta Global Holdings Corp. Price, Consensus and EPS Surprise
Zeta Global Holdings Corp. price-consensus-eps-surprise-chart | Zeta Global Holdings Corp. Quote
ZETA Raises 2026 Outlook on Stronger Demand
Chief Financial Officer Christopher Greiner raised full-year revenue guidance to $1.853-$1.857 billion, increasing the midpoint by $37 million. The revised outlook implies 42% annual growth.
Fourth-quarter revenues are projected at $521-$525 million. Management also raised full-year adjusted EBITDA guidance to $414.1-$415.2 million and free cash flow guidance to $270.6-$271.6 million.
Greiner emphasized that the revenue outlook incorporates minimal contributions from strategic partnerships and maintains a 2%-5% cushion. Management expects underlying annual revenue growth of 27%, excluding acquisitions and political candidate revenues.
Zeta Sees Athena Adoption Accelerating Customer Spending
Greiner attributed stronger underlying growth to increasing Athena adoption and consumption. Revenues excluding Marigold and political candidate contributions increased 30%, accelerating from 28% in the preceding quarter.
More than 50% of super-scaled customers became monthly active Athena users, while Athena adopters represented more than 70% of total revenues.
Super-scaled customer average revenue per user increased 22% to $2 million. During discussions with Goldman Sachs analysts, Chief Executive Officer David Steinberg linked higher customer spending to improved marketing returns and broader platform utilization.
ZETA Expands Enterprise Reach Through AthenaOS
Steinberg positioned AthenaOS as an extension of Zeta's existing marketing platform into broader enterprise intelligence applications.
The platform remains in alpha testing, with selected customers expected to enter beta testing during 2026 and general availability targeted for the first quarter of 2027.
Responding to Canaccord Genuity analysts, Steinberg emphasized that AthenaOS represents an evolution of the existing business rather than a strategic departure. Management highlighted inventory management, supply chain optimization, fraud detection and cybersecurity as emerging applications.
Zeta Deepens Partnerships and Acquisition Capabilities
Steinberg highlighted the Palantir partnership as an important opportunity to combine Zeta's external demand intelligence with enterprises' internal operational data.
Management reiterated its expectation that the partnership could eventually generate more than $100 million in incremental annual revenues. During discussions with KeyBanc analysts, Steinberg disclosed eight positive customer commitments.
The company also highlighted its expanding OpenAI relationship and recent Senso and Digital Audience acquisitions. These initiatives aim to extend Zeta's AI connectivity, customer intelligence and activation capabilities across additional workflows.
ZETA Highlights Pipeline Strength and Improving Margins
Greiner reported that requests for proposals increased more than 100% year over year, while pipeline creation per seller grew 32%.
During discussions with RBC Capital Markets analysts, management indicated that initial deal-closing periods remained consistent, although customer pilots were scaling faster.
Adjusted EBITDA increased 55% to $121 million, with margin expanding 140 basis points to 24.6%. Free cash flow climbed 73% to $82 million, reflecting improved operating leverage and disciplined spending.
Zeta Maintains Its Focus on Sustainable Expansion
Management's commentary centered on converting stronger customer engagement and pipeline activity into durable revenue growth while expanding profitability.
Steinberg emphasized continued investment in the core marketing business alongside AthenaOS development. Greiner indicated that the company would maintain its established guidance approach when outlining expectations for 2027.
ZETA Zacks Rank and Style Scores Signal Mixed Prospects
ZETA currently carries a Zacks Rank #3 (Hold), indicating a neutral near-term earnings estimate revision outlook. Its Growth Score of A highlights favorable growth characteristics, while the VGM Score of B reflects relatively attractive combined value, growth and momentum characteristics. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
However, Value and Momentum Scores of D indicate weaker characteristics in those categories. The combination presents a mixed assessment of the stock's near-term prospects. The Zacks Rank can change as analysts revise earnings estimates following the latest quarterly results.