Zeta Global (ZETA) 13 May 222022 Q1 Earnings call transcript

Thank you for standing by. This is the conference operator. Welcome to the Zeta First Quarter 2022 Earnings Conference Call.

As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. now Head turn of would to conference I Schmitz, Scott Investor Instructions] like the to over [Operator Relations. Please go ahead.

Thank you for quarter everyone. And for Hello, first call. XXXX you, Zeta’s conference joining Operator. us thank

about we our press are investors.zetaglobal.com SEC with and where filings, I today’s Relations also will information Zeta’s release like mention along available to Before that Zeta. begin, find presentation you Investor on website, would links other to

Chief Executive Steinberg, Joining and me Zeta’s today Chief Zeta’s David the and on Co-Founder, Officer; Financial call are Greiner, Chris Chairman Officer.

events on goals products revenues remind These other described to that forward-looking Before the about company’s and and the filings well call, uncertainties I’d and and our and financial presentation as are materially earnings speak of of and like SEC in potential we plans statements market future with in regarding statements those only of actual begin, differ everyone products, developments, to that subject date. our as including include today’s business potential contain statements competition made objectives, and strategies. outlook, release those risks this statements and and our to our uncertainties release press from cause and and may as the These the results risks other projected.

the in website release SEC. over filings well to where the GAAP provide should our our GAAP of and believe discussion for as business our in available considered turn be for I addition on measures useful which the We supplemental certain David. call non-GAAP our corresponding Reconciliations a as in information measures to our presentation appropriate non-GAAP with measures, substitute financial addition, In that, now not the financial today will found to can be use include they earnings to will non-GAAP managing the and With as earnings and these references investors. measures results.

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greater me results off Let discuss Chris? it to in hand to our Chris detail.

and good to start think we and than a XXXX Zeta the way XXXX to be hard-pressed better I results David, of everyone. you, Thank would delivered afternoon, in QX.

three, And and in sales growth we making two the robust scale. are in our are areas. of guidance. million, well, blueprint. to most in driving Our a we comes I XXXX One, plan internal we're want exceptionally On Starting financial to our again of QX, at the our delivered progress business. our once KPIs; profitable Zeta's of executed $XXX fuel exceeding the today's into and following factories brief the P&L, upwardly revenue win call, three investment right the our balance sales notably, ambidexterity and revenue which expectations. from year-to-year, with rates pipelines our expanding, we're delivering and revised margin long-term results; guidance review expansion details that dive This up XX% of growth

strong revenue Our we direct our US, do new contribution revenue expansion in continued not was in broad-based of strength was XX% go-to-market with customer the resource firsthand or or top additions, Russia derived line driven exposure ARPU usage, and our Ukraine. by and against platform investments. progress have industry

first high on at of XXXX of quarter our all-time and versus last David was the generated As mentioned, of quarter. the revenue proportion in XX% direct XX% platform XX% an

us higher platform cost When XX% This by and by profile expect excluding is was million of of well by our sales positions GAAP year-to-year. has the our contribution our translates annually. we're On points We opportunities compensation. to trajectory productivity a Our the $XX $XX.X This EBITDA reminder, revenue what year, our business year-to-year. loss platform XX.X%, we too points headed cost guidance. This reduce includes lowered direct stock-based basis than to was as which which generated of year-to-year basis adjusted of take year XXX our revenue our stock-based the adjusted up half improving of XXX our for XXX lower or the in points with up political second our of to of XX.X% of year. from to million, XX% our basis consideration mix, improvements, we basis see million, platform margin a ahead the EBITDA target to to margin guidance compensation. mid-term mix $XX.X net of ahead already of combined testament lower revenue XXX an a full which cost into start the points revenue we XXXX, of average, a basis the pipeline

balance our with quarter in upside plan. the in for This in our million our Cash conviction quarter investment high million rate, strength $X.X ended cash of important pipeline was most element platform. revenue evident go-to-market of executing pull plans. adjusted plus to converted $XXX.X flow mix expanding ahead of Zeta an EBITDA our free was improved our from known with also of million. investments at cemented to on generation We sales $XX.X is development activities the topline demand which sheet. Our cash The of and capabilities forward XXXX a marketing operating our sales the cash

me let and provide So, detail each. more on switch gears

is in pipeline XXXX me As three, discuss the capabilities in count, creation; Zeta Zeta's continues investing good seeing sales all span sales these factories sales two, framework; Internally, expansion, go-to-market expanding shift, and revenue our which capacity. you've sales three from and productivity. to and calls, a one, areas We pipeline retention. scaled marketing. net progress We're heard customer ARPU mix in prior and and refer of our power approach as fuel to this KPIs our has we and for three-piece sales growth progression; been

by generation. are accentuated sales nicely our and As awareness demand upfront, I in pipelines increased mentioned brand growing investment

For equivalent observations are is follows example cases, our XX%. half value and platform to ramping experienced the nearly the levels year most discussed our year-to-year number in in sales with of opportunities quota were our second of in carriers up their many XX% of pipeline last new at up the quickly pipeline sellers. newly-hired whereby pipelines This sales

creating line rep for development function, first of pipeline the new terms SDRs, newly the funnel. on qualification are progression progression, of or through our sales opportunities In faster and established

our rep responsible tenure opportunities win. deals during In value to from end the soon really double highlights and as than capabilities. began function build resulting metrics worth making of the experience. go to through months' by more of this the months' surpass this months By continued third to We're to of scaled from $X four team KPIs. us XX the in our better is through continuing sellers based to The customize at the build quota first like XX QX our and new generating the scaled to We multiyear, than you utilize seeing million the two sales future XX% recruiting SDRs programs of one with productivity months exceptional. customers over seven going of a sales to detailed contract L&D only and productivity than saw no to expand the of our our quarter, XX last recurring able QX, greater progress team SDR super-scaled driving hiring change new seven-figure fact, for where sales our the sales were over upon roughly cohorts to we revenue sales customers me is with customers we're in pace to and of revenue end enablement allows over the training quarter, four This are to carriers' truly We experience measure of with at a much ended sales XX late wins and time many in created XXXX. the XXXX rubber pipeline also strategies period. succession. continued The sellers to productivity more grow sourcing and multiyear ramping more tailor up they our customers, our latter and behind the It's models training customers internal We who XX average noting, newly to year path six. XX are all in progressing progress seller effort upon for Zeta. investment in opportunities cycles. added element brings and We the In meets less road. we Zeta evident XXXX XX also of And with productivity, a as close carrier lens career beginning as XXXX our with super-scaled average quarter XX-month factories, multichannel, days quota KPIs. better prescriptively. success This first hired based This scaled XXX trailing continued customers across than last newly-added year-to-year.

two which included; year Some exciting from wins in years a lengthening Zeta's average; ago deals of now characteristics seven-figure in wins demand the continued number on year-to-year; half increase closed quarter. of multiyear new these a for growing a the durations of of contract comprised approaching new product CDP+

a addition important finally, Explorer an Oracle, of Adobe Salesforce, vendors beat to new amongst In opener cloud key like XX% as to TCV attributable we was door well Opportunity tool. And this quarter, others. cross-selling continue which remains legacy as

Team to Company-wide, And shared alignment a services, was alignment is list product we represent of total platform. and for our with this XXXX. engineering, the how quarter intention stated continue we contracts what Zeta our and expand direct most our exciting each is of sales, in While marketing, existing which of on organizational organization just larger of the these bigger sign Zeta customers the XXXX. closed Zeta course with goals effectively across is sample of collaborating initial

customers than channel. For strong year-to-year our of the customer ARPU first more more scaled than use Zeta This led one time, $XXX,XXX. half to growth for increasing to XX% scaled

highest to up and new sales hiring grow in that in strong. of the remain retain solid to XXXX of and our Zeta was greatest quota we our we're important attract summary, In added thought ability deploy remain the connect investments our headcount We to a for year with well KPIs start consistent areas year. the guidance. We'll terms against in In ramping as of on goals to ROI capacity, our with quarter capital we're sales talent the off track seven Zeta opportunity are go-to-market model. this continue now to with Wrapping mid-XXs and it generating. the carriers

up year-to-year. outlined on $XXX to presentation XX% $XXX XQ supplemental of slide revenue to to million X expect our of generate million As we for XXXX XX%

adjusted to million of year-to-year million expect expansion range $XX.X XX%. XX% the We to representing $XX.X to generate in of EBITDA

of a $XXX range For This revenue from million increasing a million to $XX of adjusted approximately $XXX to recent represents of of of $XX.X an from we're a to year XX% million to EBITDA margin to guidance $XX.X also range to of $XX XX.X% XX.X%. This XXXX, million increase of $XXX $XXX revised EBITDA range includes a year-to-year from million. new million the our million. to range XX% range our new guidance of ArcaMax. acquisition adjusted a million range increasing to full and We're million $X.X

consistent QX and questions. XXXX me targets. we're to let track and strong Operator? We're before, our of operator of and that. and start stated evidence excited me I've with to building your a well-aligned that, a of and culture predictable Zeta call With our performance the for high we're continued record back hand XXXX execution about was take As to the David

Thank you.

We now question Please the ROTH Capital. Baldry is ahead. from begin from Instructions] first question-and-answer go Our Richard [Operator session. will

Thanks.

base. Sort superscaled curious of, about the customer

like those talk If given Because your winning? across you're intermediate XXXX any the a Any momentum there specific about can can you long-term? to term, material commonalities be base? could impact do exceeding that or think have? group Are Thanks. goals could where seems you meeting little it there be each it verticals? How one that of bit large

ARPU and that $XXX,XXX not the Hi, this Rich. that. also saw things Good addition that about Two exciting customers from total move obviously think I new but million are we is scaled million-plus. just the We of customer customers $X to evening. for $X broad-based expansion, scaled contribution to

customers marketing. matter to in which even more $XXX,XXX spending versus customers. be It's dollars $XXX,XXX time XXx more now that we for million almost million $X first impressively the base channel that millions Fortune customers. million or for scaled same average There's And customers. ARPU million to for that to $X out of just $XXXXX them of of you revenue pointed for the $X in of move think the These heard all billions about think of customer customer superscaled It's one until But XXXX I the $X half are I As hundreds using more to could of $XXX,XXX us the we've time is is a type in XXX-plus than differential superscaled got opportunity. as greater the Zeta. customers Fortune XXX, you a than are cohort over. of

Rich I seeing than we've the marketplace clients the The in seen other thing past. driving to clients macro is much rapidly would more point out are issues we're what from is to of in superscaled some proof-of-concept our the move

as as the clients And So seeing efficiency seeing they literally efficacy, investment on our are more potential inflation, we're XX returning they they're We're as at platform. X. our what a of return efficiency to of look clients is seeing focused everybody seeing for on downturn marketing. most look on far they're and is at our

think with every their into you at linear, in they're pace, an to take been expect subscription business in themselves we paying Zeta returning that And back can I they're to what us returns. trend the fees moving $X that to traditionally have they Platform, Marketing spend going $XX us a continue. For accelerated seeing to if that's and budgets we're

Thanks.

are happens Same and of their see way the the distortion things product, to their I uses a in positioning. probably world. superior competitors as investment So defend try fear one think with to you often

didn't table emerged, any our a now Thanks. So of normally thesis got carry I talk any but that you if around feedback? have of recent lot in that curious teeth, clear sort short to had sort but if a ask wouldn't view commentary you've you I'm this, which of curious

than – the Twain stranger listen it's Rich, fiction. think Well, as truth Mark said, I is

said build he care continue along. hire take will and products, build ultimately on. effectively believe that's world's and go before sorry We great we itself could up, focused writing best people, focused really emerged We're if it, to course, here. really make what acquire, company and a I'm the that great of that, on we're own retain, Of things to story bloggers they as our really everything

Thank you.

Rich. Thank appreciate you. you We so much,

is Schwartz question next The Please ahead. Oppenheimer. with from Brian go

you afternoon. big seems the RFPs was that, been Yeah. recently. people you their Thanks follow-up wondering, provided at after the trend be or opportunities and for can taking in look that looked hadn't Chris One you positive Chris – the the you're won the a towards seeing trend to in my something terms you you really the for I doing this business that wondering, Chris. in if questions under deals the sort that that David for at half I color covers then of pipeline was to to was CDP+ pilots the we mentioned you product mentioned same David looking looked if -- we quarter. of CDPs? that seeing or maybe run or are and of for a

Yeah, question. great

we're were to I really the pace as people starting CDP are something that a seeing think it's It's business from nice-to-have an grow quite, to marketers exponential today at have-to-have. a say, talking gone frankly. about

almost over but the RFPs data tell week is older at that call As data receiving of when no stories, than coming that few receiving into we're with lakes, that I data there one well, an with the CDP XX% come there's out the our The focus bunch deterministic that and that's not of target, superior own our bundled market, they we're from messed analysts the and win a come there's inside average industry. to what we're the if than is – guess we customers which elements at, with it, of start it a you to last just data including that a the use data which incredible why be want first-party than changes I sort of we up. CDP. they do normal data we into we above using the CDP+. on A go with But even sell it And the and being and it it the target cloud once number, the data is is CDP, cloud the top in new anybody seeing software, XX% greater really repositories, And of the talking of rate they they think believe have all than to look our are architecture are audiences rate. out I to is data, is you to it data weeks narrative would the synthesize the around Zeta how CDP next blended lot greater to what seeing they greater matching half stuff that What up exciting comes on scale RFPs winning to else's, data because we're way to ability what? the cloud those Well, move they're warehouses, to of we're that their cloud. activate. customer's a they better them in. really coming extrapolating and leveraging we school, do thing continue we're unless about CDPs ID first-party us the data, of coming a as of to They is cannot to that that to when all they're seeing audiences, data type is just

ZMP. bring life, using consumer to way it in horse you're activate as is accelerated because these no is there the that we are winning the we unless an pace, truly enterprise, into incredible only Trojan the to CDPs not they attributes the to So use

is just then the your results in accelerating. is, philosophy. looks on we Thank one I I follow-up is had Chris the all that, changes The sure, with good. there The you. certainly understand to make the I business wanted really any if really, QX – guidance reason just ask here the see for And at

You on guided for QX that margin improvement. in acceleration growth the to on and continue again the

and So out headlines what's there. see all we the

I the all a That's into, wanted confidence is what conservatism any in marketing incorporating are think Thanks. of that sort enterprise at to you, potential color lot you in consideration guidance, your seeing what in either us you I and or gave spend? guidance. ask for any of slowdown But it. you're

we visibility hard macro build, what you, we beating of we're good which into answer our and a the is, all raising. The Thank to Brian. have pipeline guidance, and as as feel current is short factored our really working into like track well record environment,

margins XX% us script, the from we followed. important growing two ago. was you longer have at the think point getting and an are goes business. That's in that, is the change to made of and are visibility Contract I margins also think, what was evidence the I getting look stood the a delivered deal the surprisingly mentioned the revenues. in now approaching significant quality that we're in revenue Contract of David which durations even areas bigger. durable our durations, were six not into years. Good most gross we sizes high in particular, the of mix quarter of into structurally, almost out our months as All-time if high-margin direct platform

to it now in over we we've all feel factored last as we quarters. wanting we like upon established track four continue build to make have So sure as record, that our the well

you. Thank

The Needham. MacDonald question from with go Please is next Ryan ahead.

on Snowflake work in quarter. the you. driving Hi. of in at-bats. of Thanks of to to excellent activity. Notably external question drive in for of partnership you lot maybe an and and strong But about try improvements a had fourth all wins terms done my It's direct partnerships taking sort that and lead more productivity quarter. flow David, first sales congrats the great hear for to are sort you've sources

quarter. You're reports in seeing inclusion some Forrester the first on

sales just you're sort Thanks. external sources see not great today? those starting to at what of all some returns if of curious which Just productivity the looks from obviously direct

Well, first, thank We appreciate you. it.

question. Second, great

to Third, having incredibly for I to we're there it's bear it's game-changing able been like Snowflake I the that into a mean, are fully few products partners nowadays other us think somebody And to that additive, or third-party really agreement. right? to that have we integrated bring big that involve really be conversations the don't of their ZMP. been as very sort

stuff Now is I We're RFPs. ever than, was to a flow seen the RFP we more an think, accelerator Forrester lot. have seeing really by

pleased hiring, we people So saw on we did the to can in that of is bring not our hiring. being able some expected lot to I arduous, some We're to seeing. the alone Filling pull you ZMP that so we're to would its of to the pull super XX% people that market lot winning think on forward we that a of much to only be in platform ways. of because in the forward position of we the handle seeing decision XX% were so versus come be make it What velocity out allowed RFPs RFP all own. some I a of stands us the tell these to needed be and incremental us we is margin a had that

foremost, First companies in partners and like Snowflake. great

a clients. deliver type Chris with people and is figure where they're consumers' energy to consumers not a understand costs, market happening that's that, mind on in it how market The for what quarter. going, as again, relates it's people of. of that's services I big our out our that Live of RFPs companies to who a the something Marketing that have the focus is that like opinions products comes most a says And being when and on of about being second fell to about cost, that Forrester to a in beat to to their are where today. large this income really to It's economy so entry really that's And most and being is of clients think Second, our forward. When to the higher quarter. basing deal. what number has and and cost, are have products think, of world's ability I continue complex are exceptional continue. to who enterprises, that love goal more is might first current deals for IPO, thing CMOs goal estimates report. to environment. from the backwards think why we the in that in frankly, our lot higher on competitors an why pitch of that now are out help have the been them propelled focus to us. want our goal hear the become their It that very named handedly housing to our And we a higher world. year around in saying Snowflake, for so even ourselves greatest was actively the you raise beat trying a than Forrester's are: report we've where Zeta at companies said knowing said, higher we the clients' top going, the named confident and quite thinking A we important, on most Zeta we exactly simplifying company Platform a highly always the the why about who's in and And doing in company where leader efficacy food never to with and are marketing Zeta back disposable we there important resonates use It's inflation. are that's is that leader our want and is in products or can want it the Forrester like we ago to happened our is efficiency today's is two it's environment of Forrester we to Forrester our entire been focus marketing have once it's validation very something and get feel of what's point And nervous And

for I there. appreciate Chris the Dave. quick maybe a follow-up just color great you. Thanks,

On to the does How XX% you impact how thinking the the in trajectory remainder terms your direct think of of we margins this platform through the heading quarter the in about should then strong. here XX% QX revenue think Can year? translate first of for in expectations, year? the very obviously, an how update into you for the expand I your of that? provide year. I the into sort guess were mid-XXs remainder that Thanks. just gross quarter ability does And

direct limb we of had that's it even fast that expect with I of were the the think what we kind knew internally. higher mix start end platform now. And I kind the mid-XXs it's confidence at the why of we was definitely expecting say would going is north be of But more a us script. not that. to to the on given included now in

decrease the to should basis year revenue us basis of say revenue our XXX from percentage or cost for heard cost points XXX points. of our full percentage of guidance also increase You I –

you to call, you expect predictor the what and as of is margins September, based as gross certainly platform item at spend But would has smaller of see traditionally and some north note not XX% it thinking follow. part the been in could peers [indiscernible] we're to has should our future about upon on phone one XX%, being political your Ryan increased. go keep So The least direct and mix a of at of the to it there see north October extent for XX% November, off-platform. history the

into there's being about some I of built when conservatism XX%. So north talk also that just

Although, we We mid-XXs. good feel do the we're place. higher we'll for in very year than a like feel be

on just stamping an the eight today. think handle I front nervous we're

to company. I faster that good talked platform-wise. also to to goal We're was deals We've it we've about continue we going think feel originally grow goal of new our said gross said signing, to think about always XX-XX we're than saying expected. margin. the And we're get grow to always new scale our a was the I where Chris the of duration are the we signing, we're we when deals as

But very I about I that. think do to able we'll better good feeling now in think the the than right out-years even much we're metric. be

Congrats the again. for Thanks color.

Thank you.

with next is Bank of Ikeda ahead. Koji question from go The America. Please

Hey, David, for hey, my taking Thanks Chris. questions.

Just for a couple me.

like the is kind And direction. looking heading I the in the the think capacity, and sales and all right I seven metrics sounds sounds all added definitely in you sure at the quarter. the of on mean sure sales mentioned you execution it good commentary like – in it So it was Chris,

trying a this to as target mid-XXs You're for grow year.

business be in maybe net to or scaled customers? think we the new you the potentially thinking ability first I accelerate the increase should how the So of added for number quarter. four about

sales So four or capacity to what standpoint or for quarter? does number it a go-to-market six even this this maybe eight take XX-plus become or from in any given

as as time we Koji, design building our transparent very and graduate productivity. productive. but function that $XXXXXX are we're make that how even continue investor that's the help should the much combination added more It's the so the an new exactly to One of headcount. should with to scaled married those design. quota ramping carriers to spend as is the to with superscaled us those not to being That's design to we've we're world-class engine, base scaled measuring why we why just adding $X in is demand generation to from new just million SDR add quota believe customers those carriers a that function what

$X be we're the we and in headcount get why at sales and David? why at not XXXX a the billion. adding of least sitting billion but ourselves, believe just want for designed to don't number we ahead So it's certainly $X Zeta should

it's that customer I and mean into expected QX. to scaled seasonally, we shrink note important to our Koji, think count I Yes

that that how it excited was the to And performing. an to grew but about the sign is continue the prospects of incredible scaled not So business shrink it fact only did very grow not customer number. we're

scaled is current the saw number concepts, You I I earlier, and go superscaled up that to metric that contract And proof number superscaled as that's that business we're fairly in this other year-over-year. seeing a right number, exciting superscaled think said the dramatically customer customer of is skip go customer, really or right? The environment.

is a for And announced. the acquisitions Thanks one follow-up press it. that. ArcaMax. that Got Got did see I release them you my on of actually it. for

guess new how Thanks, for you we drive Could Maybe lastly a missed second the And to do XP the does XXXX guide? guys missed any taking bring the little specifically, I of talk contribution the about press that So the think profiles? Zeta bit its enhanced on And acquisition just then that the maybe to one. I release. What in ability and one then one? or the questions. acquisitions, my more that other platform? from for embedded about acquisitions I sort

questions. Yes, so great

$XXX estimate million. to quarter. let's million with First, it was although to it $XXX one closed will the add say, we are that bringing did ArcaMax, in which we year, brief, which to the We is this start million this $X.X up

really So adding amount. it's tremendous not a

tuck-ins. is of opted-in consumers customers new double What was to were what that both exactly I Apptness. build around, a Apptness The And these that. very out ArcaMax. to to verticals additional deals in do we're we other to pick to platforms interesting would of data Koji really millions are, I which cloud. Those some categories and similar our data thinking able and do QX, consider you in trying continue you're cloud would tell one, think was I that, was what up size is of

those We companies. management also were about in of teams, excited both really the

really Just that great team. to people, we the were excited to on bring very

revenue, as we and to to additive feel people. And data. lot existing very offer they're note, data They're adding not they're of a to the that cloud, going and verticals adding like we to great they're to be it's just additional great I important customers. but great technology new So, into wanted they're data adding extend adding sets

taking Got it. for questions. guys. Thanks, Thanks my

Koji. you, Thank

The Please with ahead. next is question from William Blair. Arjun Bhatia go

opposed would advanced like strength would helpful. data. or cloud on and a said, QX sense certainly whether Zeta new in whole third-party there. getting you I'll decisions data of It that When two the congrats do to love great lot customers you there's are customers but scaled years?" of I'll it's on actually wanted anything seems attribute Thank that the there's wait like I'm as the I momentum curious, a that Maybe, Perfect. perspective. momentum, a lot Any you your year. if a superscaled touch market on saying be to these seems like customers. you more the would the a to maybe and to terms side buying of new decisions product headwinds from certainly upfront, for get the get color, as more making there there's And the guys. platform you wait "Hey, at look and customers, It

said to really tech is got Yes, people other seeing and we're we're of cycle hurting face, timing Because to faster. dramatically. battling third-party shrink IDFA they number not to of does sales which measure a the until we're the does decisions is it, make are day. or all identifiers And look of that. created it as ecosystem. a looking efficacy, that little continue as other crisis platforms I deliver sort just we they I you've out, large guys right? And losing a And all that they're on for platforms require causing -- marketplace, their of our you people, in think in right, platform, of these to have really efficacy at seeing joking, So, cookie the identify nailed of that's blue not companies bit require was I the need the think, of the in marketers as a it the sort removing as

down has that it very played ships tide gone other to has very, was. All have stayed ship the well. and seem where the gone right out, As our

raise of Then, and the known when focusing And you the they're able one, on tremendous So tremendous time a CMO, energy narrative. our are you're trades with that for got the and of that, number still get we've New becoming to now for talk purchasing. software frankly, feel allow seeing Zeta and Live efficacy, amount we're of work Zeta we're more faster Last quarter and when making quite that luminaries around and it had RFPs York those can Forrester really to seeing efficiency, we more growth you've Exchange, on enterprises that's just anywhere with And into, Stock a hosted is about the able on compound the to else. of reasons on guidance is amount confident a doing rate names the that things of faster. when count one RFPs, invited platform think, and we brand. the world's engagements part closing. Zeta And company we why over down marketing just the that And so ability data spent decisions investment of speak them, come half Our to return their sales of we us, the on and we're the make I to when it XX not we're we're right? the that and year. a being with some can to sit deliver not where one

update BXB then if And the one more in partnership can side you're Perfect. can was very on that and Bradstreet partnership. No, helpful. there's that's wondering, provide you just & seeing any that the if I on I on, Dun traction particular. with the

is company, sort say D&B, them which great because they've been can them. of I agreement seeing -- partner non-disclose there incredible deal talk what and just the velocity we're excited not is to specifics they've a partner. lot with But liberty through incredible an a really we're of actually an the of at been about we're there, partnership

of to earlier to to customers Snowflake our side. very been one talk right? has powerful. So on ability back So got questions, the one you've their And

great channel you and have got partners like D&B You've the other on then on Forrester side one. another

again. Thank congrats and perfect. Understood, you

you Thank so much.

The is question next from Morgan ahead. Stanley. with Elizabeth Please Porter go

you do the on a I verticals. extending guys into nice your follow-up so cloud to second is the with in you how And these for new something about approach then you're verticals? about Thank considering? uptick to to that Hi. solutions question. wanted drive much that as ARPU. comments the follow-up, And data cloud specific opportunity vertical a the And think

get much versus having larger in in channels existing landing broadening you. to usage that use you're increasing hoping some how level? logos Just cases now on superscaled is with the momentum or Thank color just

Elizabeth. Two amazing questions

data vertical Let me the cloud start with integration.

focused out really the for the about vertical really and big seen, attributes we what And But of data got the revenue. will and level in as and We're directly you we've we've data on verticalization vertical somebody Chris, ability allow in it. of we're here us the but And to focused just next what I that ARPU? interested up got thousands I stand publicly believe in integration those step that. clients. that vertically time coming a room that. honest And greater thinking of signals jump soon build think XX% makes on doing. very to cloud. the want on not I'm that no on in growth long are consumers ability accelerate who some sure we've keep we is believe do the to continue the to up cast what of me over around is found than our we game-changer will said it's focus to news a what we've something clouds we've periods think of is of verticals

Yeah.

quickly Elizabeth, by factors. driven two really ARPU, So really different on

First as about $XX,XXX to is noted in to million $XXX,XXX the upfront, versus ARPU we XXx, the $X the difference superscaled between $X million-plus so of $XXX,XXX.

that to So lifting naturally driving elements as other move ARPU. is we continue to those Two customers the the are also it. right

half or more initial this value your channels. customers that larger than question and to first But seen more And we've being using in three it quarters. about now at First, more channel. use more utilization it I particular a would talked around cases, than contracts the more channels highlight one is quarter we signing of more for also time the for straight

of one-third of mid-XXs cohort up almost If you customers. our That's all from look at last now that scaled it's quarter. two-channel

opportunity still channel really use more through cases. of in a us of what's the front flowing expansion happy existing on pipes So really adding more and growing with but just the big

you Thank so Great. much.

Thanks Elizabeth.

Ryan ahead. The go Please MacWilliams next Barclays. question is with from

Thanks question. taking the for

XXXX So in second changes. with cookie a for been of point of contention deprecation the from marketers Google half even conversations in coming beyond IDFA has our this

seeing as sales towards potentially With year? would RFP this. David get cycles I'm in see activity you this we the Zeta's stronger sure business, could RFP of But you deadline activity to the for expect closer as on today you're get longer the we Zeta end

elimination which our moving the accelerated dealing do RFP a the Yeah. going And we I the issues some quickly third-party perspective, game-changer IDFA of to closer with cookie, to the mean, truth matter we is I there from and of your the be efficacy larger point, see platforms I efficacy opportunities. the think I the will are of led higher this. has RFP think number But on are some to totally a get agree. clients the mean, the we elimination the an velocity go. is to of

always sure coming is there's big right and or to stay we a this two knowing be a in platform big a And it's difference our know and to very category make one going feel yet we you innovation knowing into months. between in around come. year a to in something well-positioned because something's major As the we making coming like is believe really few leader continue we investments

tailwinds first you talked to nothing makes just the a guidance, and year like beat. sense That deadline. Yeah, guide full larger about. your on Chris Perfect. drives had you a then to And raise of spend a revenue compared given lot your quarter

you've as customers quarter at last more any on from could conversations Zeta Just for with on commentary update revenues election point? like look had what mid-term your this

mostly fourth the of continue hold directed we quarter did again, what to -- we No quarter, to XX% latter XXXX of in the in beginning third to and half XX% third of quarter. the

So that third the million fourth. or the million right would $X-ish and imply quarter in around so $X change and in

to strong year. the going tailwind will of is to we believe back was continue that I political going All that the say be Yeah. half a into

in just should squeeze could seasonality Chris I second If watch that. more, Appreciate quarter? one any the for we out

maybe in to think of appears follow of a revenue or safe we much our slide supplementals I pretty that That's quarter. something history again. showed of years of No, distribution the XX how one the in last three probably earnings each call like bet like

the Appreciate guys. Thank you, color.

a Ryan. Thanks lot,

from The with Jason next is Craig-Hallum. question ahead. Kreyer Please go

Thank you, guys.

for me. one Just

the So, over the of look channel as as in. advertising. concern about programmatic We've a durability talked to some macro participate things obviously like there's seems out that we it increasing you

then, what see you curious could you the that? be exposure? there, And created offset could -- we opportunities would other or where channels So, what fundamental do a be pullback if

So, Jason. question great

me data programmatic. that we to say using generally run cloud just our target it. Let don't We're

to business. we've So an programmatic acceleration our seen

massive have seen also business. CTV We a to our acceleration

very XX% So, show, But show most demographics continue alongside that running of think linear they people the estimate a might about XX% people ads to somebody not or would are the in. they're the think of the their on OTT that some expense We those TV more, fact TV ad run of same percentage that that, deterministic linear the you're products. out that watching XX% show target a watching large basis can have actively or people for targeting. and interested is in a in CTV or of in CTV the exact on taking market a

as seeing out few think companies our at environment large truly worry So, deterministic customers of we're to is the accelerated and times, where focused we're they're includes want slowdown that seeing battling on the very looking which platform you current and to a of sort add efficacy I that driving feel did that programmatic our Chris, efficiency I've said targeting. is the an because the heavily greater platform to use at of that? pace, inflation, platform, we're we the it seeing tech

Yes. seven-figure continues that only not about four to more with to ago being as the our revenue even the deals the Jason, a as responsive cycles' the fact last around talked contract quarters signing two give. that's in the earlier we last And and change over into the cycles ago, sales longer look quarter duration. no multiyear make outcome and deep And of the we in questions an to on but nature. sure, preparing and one recurring sales commentary of our more quarters more we in we three again wanted solutions that quarters see numbers, also XX be in durations. we're quarter-to-quarter to days Not cases we change we're use do multiple ago And confidence guidance and from upfront,

about that visibility the really So good durability we now. of right and feel the revenue

you. Appreciate it. Thank right. All

go Canaccord The ahead. Genuity. with next DJ from question is Please, Hynes

Chris, Hey, XX%-plus in quickly XXXX sit like, to thanks, look at EBITDA think of kind it scaled. XX%, is jump transpired of hey, you kind Does targets? could guys. of be or there? revenue funneled here margins it now savings how feeds how it gross and And direct hey, into you to early make today quickly about like, go-to-market you do How efforts. maybe you going that's think margin be into these how are has kind long-term and

for to first optimistic. tempting under the more And the David time, probably kicking is Zeta XX XXXX, Yes, into it's table. be days me

Right since because, XX into going. announced it's two-and-a-half keep years XXXX, but we days it.

a Look, there's a But reason least. say of pace. without we why we're doubt, ahead at

Yes, yes.

Okay.

so business? us market? Is figured, it it take guys. give I like? any How lot, to color What metrics of lot on, the that you're asset do dynamics growing? story And, you on around get folks the it do like, data operating it give Disqus, for One obviously, Can work the you right? the a you that look retention first to I building. for get is from important I'd are questions doing part who a I of it's an time

question. is in great was front to million a States I our we're United last don't seeing which million. not infers it's say No, quarter at nicely, the X% get went from the in I XX% we're reason note, for share this continue cloud. because of that even really things just publishers the say not able And to exact million ah-ha operating global is moment, Disqus grow, driven story Zeta think our makes to opted-in who XXX of data X.X XXX Yes. it seeing of That it's in I I looking it tell market on to growing. can greater I DJ, that we publishing also platforms. of I have one you, traffic were the than me. of one that at when important is commenting data to the platform mean, one-tenth of the the metrics growing somebody, that up is the use Disqus

that Zeta than of cloud. tenant So way, the the it's data it's assets in greater is sit really distributed. anchor XX simply And the data what by well

at example. way ArcaMax by of look You

It Apptness. driving to in is that growing no we about And the those group we'll opted-in the sources is And US as from Disqus But million consumers additional We're pace. at opted-in million millions the evidenced of XXX Internet, million through look data. XXX to exponential look Disqus platforms. at XXX of concentration. nicely. continue that we on from at consumer million growing growing look is cloud, for data You has and to the the of content it continue. as grow to globally. trend XXX an continues And you a will really think expect by

up. We like check every just It's website every almost stands tool that. are itself literally you new into a button, embedded for publishing would that with commenting

it they literally, X,XXX they drives The basement. blog, global which whether top sign out or publisher, up the sites year. a Disqus Disqus, of for publisher, operating XX% are of a millions single somebody's reality of and is are use engagement for millions So, every

Thank quarter. Yes, helpful Congrats on yes. the color. you, guys. Super

lot, DJ. a Thanks

the it over joining to for we'll Operator, call you. turn back everyone, Thanks, today.

you. Thank

are this today's call. questions, further there concludes conference no As

your a may have day. and for disconnect lines. You participating you pleasant Thank