Zeta Global (ZETA) 11 Nov 242024 Q3 Earnings call transcript

Greetings and welcome to the Zeta 3Q '24 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce you to your host, Madison Serras, Investor Relations. Thank you, Madison.

You may begin.

operator. you, Thank thank Quarter and joining for us Hello, Conference you Call. Third XXXX Zeta's everyone, for Today's earnings find website about at SEC presentation Investor along data. investors.zetaglobal.com, Zeta's and filings, where release are you'll other also with links our on to information available Relations

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

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the call will I now David. that, With to over turn

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Chris our detail. let turn results the to greater to Now call in discuss over Chris? me

Thank good you, David, everyone. afternoon, and

political up growth benefit year-to-year, The agency the year-to-year. set continued year-over-year adoption in third again quarter to the the XX% that quarter channels. excluding topped and direct of second once and be scaled another some candidate, record first notable XX% improvements. Revenue XX% up with momentum with growth. the reflecting accelerated from was revenue customer by can ARPU We accelerated XX% quarter Direct in summed began third quarter, even into best the

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our and model. quarter increased full next Finally, on guidance, duration I'll fourth long-term close year preview consensus and our XXXX estimates of the with comment

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XX industry X top our grew technology retail way. and the media consumer an leading From year-over-year faster perspective, than XX% of industries insurance, and with

year-over-year. lower back from year, last GAAP XQ cost agency first reflecting than the mix climbed quarter XQ our up recently in Strong of customers. XX in of in of straight a or expense million adjusted XX% year-to-year. margins our year-over-year at the improved $XX.X XX generated On at updated XXX quarter-to-quarter, months and basis than mix XX% par revenue of growth, basis positive higher XX%, in X XX.X% basis better from million guidance $X.X of expanding adjusted higher leverage with of coming margin points XX% points of EBITDA points on the mix We XXXX $XX.X to year-to-year direct EBITDA and The operating and resulted and our shift resulted XXth midpoint better million.

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to accelerated been million. have compensation the would expense $XX our related IPO, recognition Excluding stock-based

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almost straightforward. quarter, revenues to the increased direct direct we Xx mix which During XX%. a and are by punch added channel, increased The third lines

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share. higher land terms and scalable ROI third, of we're both brand we Second, very early with a very, expand in count and opportunity, wallet direct and have penetrating this brands repeatable in channels. to new And model

with up XXXX XQ XXXX, our wrap flow remainder Slide guidance. in be cash and revenue, Covering details Details with I'll EBITDA next free guidance. the year for model. and our XX in of while we're raising also found Starting can supplemental. on upon full long-term earnings XXXX, adjusted touching

candidate into year-over-year. with and on raise. revenue year full by guidance we're million, our the political XXXX, increased July given million X to steps, XX, $XX equity intent guidance increasing parts midpoint issued XX% the $XXX representing growth For associated of live moving outlined revenue the our We've our

supplemental to ease Step refer candidate LiveIntent. is stub million of is X the in of the revenue. tracking. and XX earnings X of higher raise $XX fourth of approximately to to months can related Slides political. $XX X period our is for Step XX revenue. million raise political million million quarter $XX related $XX is You

XQ $X in year and full of Our million XQ. prior $X $X.X in in included XQ, $XX million million guidance million

versus The of of million $XX million full million Zeta's to updated XQ million raise $XX million plus overachievement has year Step XQ. through raise quarter fourth is guidance. million Our remaining $XXX related X total third guidance $X data. million $XX in million, to now original our $XX $XX rest guidance our of quarter in of a the and $XX is million XQ, in the $X.X of with flowing

through You'll recall, flow to during able September. year increased guidance our we full to third raise our equity were through not in the quarter revenue

million spending, from million we of From of than a be revenue contribution quarter the year political our XX%. better $XX full quarter to is from growth, rate of XX%. expected midpoint XX% year-over-year and political is prior and to candidate LiveIntent full excluding year benefit the at the additional by million political driven revenue LiveIntent, the growth benefit candidate removing million from to guidance the revenue from removing and million $XX $XXX $X rest candidate in increase $XX Fourth perspective, fourth The from in LiveIntent, expect up guide revenue revenue be excluding data.

half cash a to In fourth by XXX We're We're $XX terms quarter XX.X% XXXX year-over-year or of representing midpoint also the midpoint guidance conversion to a third increasing EBITDA full in in revenue, our adjusted XX% by we're In our on is a through XXXX. EBITDA, year with basis quarter cash point. noting XX% while original percentage of year-to-year. XX% $XX.X quarter This an $XXX.X XXXX $XX stems prior worth vein increase $X.X guidance represents versus half in million connection of of year-over-year. million or up flowing free of points rates. increase XXX items of to raising year outlook. the XX.X% full million, million flow midpoint million of upside $XX basis from from this margin, versus raising of is the X fourth raise the our points margin, the XXXX similar adjusted million other guidance,

acquisition remains customers connection And in expenses, free payment assumptions with for bulk acquisition-related customers the in related capital longer agency the with adhere conservative working in net the second, risk low. to. Savings be flow $X.X of First, our paid million XXXX. LiveIntent, Selection extremely related in these quarter. to cycles cash being higher in onetime to realized we and continue fourth we equity will to is of which third quarter's which raise in charges, be incurred

thoughts full provide previewing We'll our conference quarter the on your next and model. Before during I'll long-term details in fourth questions, we close XXXX take on each our February. call by

here very and X- flow cash we revenue contribution growth adjusted with as sit includes margin what X-point LiveIntent political but we're likely is comfortable to estimates it growth, free As of from today, consensus a candidate the headwind this revenue. EBITDA excludes to from consensus XX%, revenue XXXX growth relates XXXX

So to effectively we're revenue year. XXXX again, XX% these pro is next consensus at basis, XX% levels. on forma very growth comfortable Once a

lines, to forward in we of details in verticals, geographies our new and new operating conveying outline looking of model, and to products, the our Along we're XXXX new addition Second, XXXX guidance to plan partnerships long-term new next Zeta opportunities growth those in leverage. sharing continued February. drivers

hand call Now for let to operator the me Operator? and to take back your David over the me questions.

[Operator the line of Genuity. Instructions] question Canaccord Our first Hynes comes DJ from with

the the guidance. you completely out breaking obviously, want on all agency David, appreciate right? to for topic, separate business. as Thanks color well, helpful. I that I the newer which or the to published about color stuff cloud, all ask is It's a and super

can for just talk the your sizing little vision effort Just material how that about opportunity? feel a potential you about that don't think to a there, have might for good bit how be? I

start our mobile, we've of growing very cloud publisher mobile, you, next the rapidly really very, very, And very the next which scale scale. obviously, added as DJ. sort to thank years. CTV, opportunity. Well, quickly over expect by see got, then very we're is saying few we about I'd meaningful we excited We've which at growth

has third-party portal third-party able not are do SSP to DSP the got As most of a that. of to publisher DSP not with to have a about visiting that's the publishers marketing a an DSPs set, connect because data has deterministic and the deterministic think third-party come to vast third-party today, up to cloud the the you've their individual you capabilities build majority

one into is vision everything Our set. to put

data off It us native we DSP Just we continue the ZMP, tech as to us massively clouds. believe the that will cloud, the will like take to up the yield layer. by the launched putting allowed publisher integrated into them allow against allow through publisher exhaust fully fully and rate drive us will application when and to eliminated grow fully which put into top. to latency sizable a the dollars flow disintermediate integrated We of the SSP into data and to our marketing legacy the AI cloud, integrated the to to publisher

gross will years platform think I a opportunity scale come. on it's that big high quickly to with margin in the So

a Yes. agency we growth? for Super we're if to political If follow-up Can agencies is customers customer the basis in Chris, a the were spend candidate help revenue, like about just a metric brand sense. us underlying at maybe on helpful the just problem looking But at if excluding kind exclude trying you. good scaled ARPU think obviously, cleaner a bit, you them think are color. maybe have. to of a level, to skew about trends I mean, that that makes which customer

make It Thanks question. DJ. does sense, the for

you take still the in second ARPU were ARPU the you the exclude would been candidate If rate to growth total. political the growth would higher saw have revenue XX% and contribution quarter, -- growth XX% rate growth than in was we which

down drivers. you the of saw So then attributable between adoption to the customer very those case use each actually mix, similar quarter to that it's and X/X rate about growth that's and what of where take adoption agency a in contribution growth second is we revenue mid-XXs channel in political if break one ex the you candidate

level. as are still consistent across we XX% now more skilled customers the retain Use So our channels. or using acquired $X was Three case and brand that over mentioned grown million-plus to agencies of total again over growth that superscale scale that that greater meet rapidly threshold, brands year-over-year. than even continue adoption XX% was highlighted, the at so within up level, And

comes of from Blair. Arjun Bhatia with the line William Our question next

talk the channels you here. certainly benefit. big talk little And mix is impact? more journey to more And strong which of about little start a and early for the of in like are more bit on is in Chris, it using terms agencies where agencies if a gross with a very digital direct, the can should that on towards kind Zeta are think move bit And Again, of can quarter their seeing about just then I spend channels you just margins Maybe the the that congrats from? starting bit side to sounded Can overall platform? you're agencies. adoption shift from a maybe a that of the where little we about on moving which we going

a would you, favorite of is, of are perfectly agency thank I it appreciate our I as What tagline say getting we encapsulated faster So Arjun. migration just the job our the congratulations. of expected. started, brands is in from But connected on, clients we some the platform adoption seeing say biggest I television it's wins are originally mobile. to right perhaps integrated What as direct. think have now video is and only we're customers online in would good I rate mobile of X happen continue. did We're seeing seeing the will trend we really been migrating Chris as direct. that over. not prepared have that's remarks, I existing exciting And a them bit we're than think start little been outlining because come But the new on his a

the XX-XX with for If growing you way, were was that I'll XX% worked our client, versus you, first they most still remind the is over and at nicely. look direct. approximately In their mature, third by direct year, integrated year indirect. us, they mature an agency who, most our But

talk to about. So up to drive the to XX% from move to continue platform to continues versus which continues integrated, we move don't let which on Chris mean need gross to which margins, move I'll XX%

Yes.

break and saw Arjun drove mix, we that were channels XX% which starting the why then down if with direct a revenue benefit you think I of So to mix.

And growing at growing CTV XX% almost XX%, XX growing display the e-mail way, ]. year-over-year. growing had over [ XX% that video still by XXX% north of You has social and

we mix the -- around implied type up So saw business the quarter-over-quarter, that XXX the margin gross moved like of positive gross of you have shift when we effectively bps.

enterprise think mentioned, but company a forward, we to able our to, be I to the points down very XXX like shift, about direct away. more continue mix XXX going what be now the should David is of quarter-to-quarter, revenues at obviously, up. which a margins to cost brands. to as happen moving going move basis moderated chip begin it consistently not to to beginning As It's the gross should look way in could across of time,

for Wonderful. political quarter? color Can follow little Chris, we And else that QX be you down a to should had conservatism? fourth And can saw just implied on maybe what out QX out. That's the up great you. for of election it guidance should one is give expect from that anything where contribution I aware the if that I revenue. in Or there shook hear. last for political cycles just kind on given in few -- in is playing that be is the of that we might

upside some trickling what to significant do still left as 'XX. to we've the and really the third quarter. month a do week advocacy quarter. that Arjun. room be there's political think we it's the months going you've the X spending updated in one think I Look, think Thanks, as the saw got don't nothing there's But we of Yes. I in I think in. full contribution candidate it's effectively than fourth as revenue across political more and some duration I when of third quarter

comes ROTH. next Richard from Our question Baldry of the with line

you open any LiveIntent. with early backdrop, about component talk a maybe you acquisition? of once feedback gotten you've Can pay as even significantly stepped the market sort cash your cash that an the And up post LiveIntent then of

basis? buybacks forward of play acquisitions ongoing on of So for how's appetite or how now an into your sort does back your history doing looking that

first start first, me question with Well, Rich. so let your

a the faster-than-expected are recognition We X between seeing organizations. synergy

flow on in frankly, organization. of we addition quick we them to of through. what seeing cost Now executed wins, that have the a been seeing, already team also of number we're was a between call really lot we're had Steve relationships Gerber and really and a number cross-selling And his quite savings, working

fully that. by excited the from very integrated end perspective. month into the we're about it should And So have this cloud of recognition signal we data a

second those that really all question? So was a the all adding on and of and the suspenders by and data data. of signals belt cloud suspenders puts What

a... has Acquisition

company. to believe going portion Zeta that I M&A. the to Yes, meaningful to look cash that. technology, we disciplined paying and to I of be we'll pillars to stay up teams, of acquisitions with tell we were will great very great we we flow for a main believe you, And surprised. environment, even our companies coming would implement even to continue as add can months after X what in great be great quarters. able the But free the live in intent. cash current generating We're opportunistic Yes, will We're continue data where we

next the line with comes MacDonald question of from Our Ryan Needham.

Congrats great revenue those so, on or anything sales independent Maybe what and on say, agency look when about you thus is, that you initially about, the of just on of to, any have X or like of of then these potentially the to expanded land direct won opportunity of about of far? relative start you And business cycles opportunities top agencies quarter. mix customers Can these X,XXX the just sort do of the comment And them? after independent types one opportunities these talk if size maybe could the sort holdcos? you channel talked you force. going sales obviously, agency -- a have

Ryan. you, thank So

they all, a It's for independent on agency generating majority beauty allows keyboard start space me on ZMP contracts saying a for the of customer the relationships more that have be revenue. is we hands say platformization platform. than are executed number them to Let independent their are these of the The in of part, have the the to would agency I one customers. by and most vast meaningful

margin. So they are very on They can are they gross quickly. and platform scale high very

sort And would I but I a very in Live, period up these more to these enterprise perspective, in of Zeta pipeline middle, on quarter. generally if in a coming multiples. sales agency are agencies of would faster of a one sort news time it's good we that large the client can tell expect for you, grow out particular, I of cycle say this the will have the we than is close middle an holdco. From of than These in very independent

question to the any that is go-to-market and second -- in business there on Live there. market difference of a sort Maybe go as integrated helpful. how start intent Super then you just the Is to then on seasonality get data? business should the as that we a of stream forward? relative ratable we And of Or operates the is differences move or any profile in? that expect margin to more core on that motion the revenue

Yes.

answer you're taking to where a transaction. part yes, So your business last both it's percentage of exhaust the an sides on rate first,

percentage a from you take then advertiser publisher. of So and take that the you the a percentage net

of very gross it's high business, platform. on So is a margin all which

we're as additive that be in should that to really that, think business to years able I scale come. the So

rate it a bunch things it one from it products. to at that growth But the relates As cycle, to number here tell because their contracts higher buy in ability have will the clients will The ecosystem. buy dollars expect cross-sell generating about to I is very our of are a we've I a QX is don't business frankly, that already in. fourth solid, years blue of cross-sell be have channel don't of we they to executed at to to and slightly very and a tend in revenue come us of continue in come. chip love just blue their a to the slightly bunch very for the unique. And higher only ad the customers I chip products, And across have a quarter, quite clients you, steady

exciting, -- for deal it's us. it's So an exciting

a does, like sales Zeta Ryan, they model farmer. also have a consistent Hunter go-to-market meaning

it kind very really nicely. in So of folds

question Securities. the from Truist Tillman next Our Terry of comes with line

Yes. well. congratulations I'll Chris David, echo Madison. as

questions and standout one from was that unpack follow-up of or kind for they little I an growth. the I love more a right, in had Live. But was Or got the about RFP plus could I Zeta pretty Maybe pipeline you hope discussed that on effect added is my have some to Chris had just is curious of accelerating? because was and like and timing was that's I a cycle sounds Chris. sales then it bit a is XX% that that you think, double-click David, dramatic. statistics been I that answered. you but this terms I'm of XX of of that RFP replacement that the just the productive. if ago, have Some days it becoming that reps talking seems

question. pipeline it, Well, we've very the biggest excited. but the take increase we're we're up probably Terry. I'll XX% pipeline is thank Yes, the Actually, is already Chris the that pipeline you, up and said seen, It's ever scale. at

that Zeta to grand tend reps senior I to the substantially joke Even from above, performance, the goal? books biggest growth I in a The this be think that we Zeta must-have before, and process. with as our And that Zeta. why we bring go pipeline. What a XXX% it And is bring help business us was massive Zeta ever I with was to more generally all was to was a I than of of had goal evolve Zeta critic. who our happy combination Live they of is sales right? to slam year. for

enterprises we represented part of at was a As publicly it. XXX were year. came over and disclosed Zeta That this Live big

executed already of the contracts perspective. we've in value multiple Live from fact, In of lifetime a a cost Zeta

across So really of drives rating leaders brand. evolve And others Forrester in the course, or incremental we're categories of excited board, continuing a one the us about IDC that. and the pipeline. that with and leader to

guess, it's guess sorry That's my great I to earnings... hear. And confusion long a for been I earlier.

it. [indiscernible] just was I

you're about I you're the Well, a XXX up I end long-winded hiring. XX that into I'm best. XX an question if with, on steady think reps or it, year in up include and thinking But of does seems like like folks I'll think curious pace from the going stepping on about best Chris questions gas you you're the the people XXX about maybe sales to point reps, at the one And lot, said What for had are of here. I or inflection more it the know of looking ask find the XX%. can growth. the as it growth, you just LiveIntent? kind new to go this you how potentially of And up XX% pick

not. Terry, quality over it XX blend LiveIntent measured continues Look, we probably no, We'll and you That's X as be, the when add reproduce to quantity. Zeta. to still we next does by together. businesses XX the really it results quarter around core said, reps

We continue be to nicely very diversified.

maintain that In with no is our grew at do versus that verticals of our top back the XX%. the quality but to we growth We And first we've it fact, sales in of had there's still try that farmers, XX rate. of hunters expertise. half much mean balance very try vertical that to a over type That's right hire in over on focus the I a hiring approvals ratio area leaders, holding full form. are quantity. on

salespeople data. to And core those Terry, selling going are be LiveIntent XX

hire this said, So there. be will going right it's is a to in And good hands get Chris our salesperson can we salespeople meaningful we step-up as -- every on.

the next line with Ader Our KeyBanc. Jackson question comes of from

you Can the to other longer we that actually sales follow as ramp them as really data? I expectation selling or when as on it come hires used competitors acquisition, up Would to reps. David, software? said it intent consistently get from they does quickly, take do or bit about areas an net what you quickly new core that has experience the your -- little other make live on a be just salespeople, or guess, some Or bring been of

In Jackson, products there on similarities on many answer are the tremendous line It depends we product it the they're used of they're business. data. the products case, the So is and depends the sell selling this to selling. at between

salespeople a what there's that to this between on up bullish hit very many gross because products but expect products might high ground to really and running. that on, I them very current are sell. their their then so products platform, the it similarities longer we we're And that take excited would them there'll scale margin little on So be and group of

right. the effect All Okay. agencies. And top quick a then understand those the And Got I have? agency holdcos. you're X,XXX target? benefit out dwindle does that kind is Great. and per of I of that like what like brands agencies effect X the there guess to of I you it. multiplier curious independent on the am But totally that the the that leverage multiplier in like follow-up trying does long tail can agency, from to to as go you terms -- attack

I of Yes. yes, of scale, I to This to from is we be number them are launch. on it represent out statistically. hundreds just agencies these you that expect what agencies at meaningful get and opportunity, customer you would But to one X,XXX each each. if scaled independent one and a independent spend dwindle scale #X in tell a in in would of will expect super there mean, each we billions is of platform, year be per dollars

line with next from Our comes question RBC. Matt the Swanson of

potential And to brands effect the from the spend kind on headwinds, CPMs quarter, got feels of I'll or any was I back have congratulations nonpolitical heard ramp-up political. my there political In X headwind. weird pulling be guess, Do think political? crowding any this of for you advertising your spend, higher the lot to of But on quarter. because kind nonpolitical just the the we've of a about of rule asking across a it about ecosystem, holdcos

Matt. there it, we is, If are not seeing

really customer talked that holistic of the kind compounding the plus of of sets value a All was differentiated XXX equals second then you and about Can dynamic? of talk with X kind specifically you kind brings right. Cloud X the about just And more and that LiveIntent. view just of Data bringing data on view, kind X how that that of

Yes.

So every e-mail things of one of is month. LiveIntent they the see the about e-mails number great hashed

to across large that publishers, X,XXX a XXX and seeing Internet. We're premium the publishers country. number talking in it see million entire of the across see they're most very deterministic able able to over top across You're they're that individuals the

data What the very, and to additive many around into of cloud. see as would signal are the added call So human might data million XXX I as to XXX million, increase I who be us you data we it, sound sets, when in cloud. signals but do is by number is jump, as very the individuals say additional the like people going also additional a a look cloud from, adding it's it not incremental at to the data to the those expect

in puts nice belt duplicative, opted addition to of importation some you cloud. and another also it's sets earlier suspenders I and have a we're the that. data the on ingesting. cases, it As suspenders other a data belt it's to suspenders said, but first-party and too, already data It's know in massive In on

Our comes with Craig-Hallum. Jason the Kreyer of next from question line

into you Great. verticals I'll or you this Congrats spend in over wondering translate time? other that again, broader can great saw success the think season, advocacy just you the quarter. -- political if like maybe

There's halo Jason. effect, always a

other campaigns thank First When and interact government individuals we packs we those join they these when and where join go all, lose, campaigns. into other of they And can those to with agencies and work enterprises go campaigns ecosystems. win, you. work they with you with them. other

comes is a out nice business. the that of there effect that halo of component So

penetrated conversion the probably in think And as you X to big Okay. do that like headwind a cash there? And for that agencies just free that less of we're reasonably maybe or -- then impacted through less agencies, mid-market flow Because that well. and gets think that's do or Appreciate you how color follow-up it kind primarily sounds you think the of flow that of on agencies EBITDA independent you conversion has free majority Chris. the trough there? conversion. that cash the Do trapped now by after go you've of we're like

a very year, point accounts, even the working top in large deficit on in add percentage expect the on the like new have have was see not annualized are headwind would and we you million The even count of when would early those in its as a It then it have taken a $XX so but having headwind last purely in between was XX-point very, of agencies, it days. still cycles. with paid an a XX%, these of in conversion to I script, it, based And out. agency the debt and again, cash the of million Jason, opportunity marketplace. EBITDA, us bigger XX% we is bad to working be rates to -- all capital, that headwind. still such right? translated any same cash independent not versus said about quarter, industry's we growth headwinds, if These for growth no explore capital third our from reported payment We with scenario. the $XX been fringe

So just when timing it's we pure get of paid.

Morgan of Stanley. Our next question comes with from Porter line Elizabeth the

I about a mobile first mobile believe also wanted where faster-than-expected ask product, the I has LiveIntent product. to And some you highlighted traction.

and understand the better year? the capability we scaling So mobile strategy love next adoption what the I'd to X just between could how is intent into products versus of Zeta's think go-to-market product live mobile about

we are No, Yes. Elizabeth. you, seeing mobile than Thank expected. faster scale

enterprise We are. are environment. who number a as have identifiers others of able from it. clients they inside that including see target The wherever mobile LiveIntent number us real allows millions heart which and individuals of on to clients put on mobile into multiple differentiator mobile and big at already millions deterministic a ID to environment, for agency product mobile the AI breakthrough that was people. the has the of level not That's of deterministic us well, to ability the

put their product AI our scaling to is with faster capabilities together expected. intelligent best-of-breed ability the So mobile than

think television. meaningful product I it connected next will be line our after

was it was follow-up, about I Great. referenced I And collective between than a and between the to it political believe ask advocacy. then advocacy. wanted $XX quarter and contribution just as political collectively million less last that

could in helpful. I for next looking year. So to then advocacy that know as there's the group cyclicality halo for is to any super just effect you was we And on color if QX? the provide And mind wanted ahead, keep the an think about update there

interesting. It's Yes.

in of like cycle. them the at And represents XXXX substantial. candidate over of the total parts, is back here we're looking the XXXX If you political to piece was is in compare seeing what kind it in we're -- XXX% revenue the It combined compare revenue. -- let's in in XXXX, back growth the take XXXX, XX% in political to of in advocacy. The about revenue XX% back up notes Canada

versus XXXX the fact, X%. advocacy third a quarter up only In is basis on cycle

this can I political substantially. it revenue across cycle, building overall year, working ecosystem. advocacy be Canada aisle. around will part sides So sustain contribution actually in well advocacy a advocacy this so candidate pretty it, that a as much building was we're contributor practice it mix, of to But think name a -- XXXX total political happened candidate overall, of itself was heavier this good in both down it so contribution building people political our that year. But addition a higher but as again, political capabilities into only in just was the not

of from Ikeda Our comes next America. Bank question line the Koji of with

to performance the Two be it's like first But And contributions excluding a Exit X XXXX the like on great looks organic commentary, the Chris. it's low for And when XXXX the the we this commentary over from understand more But growth about then totally look have inorganic rate, for one, think at year XX%. side me. perspective. it quarters, is XXs. political that going XX%. the of the past I and organic XX% you plus. standpoint, about when I

business there about XXXX we seeing in aware just similar in of be here? anything growth of performance the so a that business have we way wouldn't . is the or thinking you're And organic reach the been where type should

bring XXXX what products would obviously for conservative, sales the the setting next many We're that we would we're market, that about be year cadence continuing be understanding we but to imply commentary political continue but February to directly we great of the continue comfortable what grower. think you're we'll normalize is the February. to to have XX%-plus but model revenue, next is about I do wanting update organic of pipeline. from talk And a My sales have which again, a case model long-term detail believe a to a on which, candidate us Koji, plan updated building provide only significant when being conservative. see you the we included be again, where Zeta new in to for ourselves just to new a amount year, in what's not call, hearing and the as with, we force, we

going that's And the problematic. the remember, suggesting a point, "Oh, a we're seeing clear, time, to into we're people in to expectations. year At make XX%, to that here as same we starting and to year." So we going year raised not said, we're lot set business came continue want nothing next Koji, we do next hit below there's have But it they this right? a see So are trying beat in it and have quarters to row. we are, We're of level we just in and way.

to here from XX understand quarters year Our would XX sitting saying that be point. a I in you is now statistically, or, and my be guess, it's goal but

rates XXXX. you're seeing for it. update I growth follow-up at post accounting get revenue this one And sort into of here we thinking close? Totally $XX forma it about assumptions there pro look When Yes. And acquisition purchasing the with growth of LiveIntent. acquisition? be should mention that on did or just deck, around million the rates any this Any sort

on of of rate that. around out right the we're of terms as kind the and in growth presuming for what had, it growth we we're in it's so rate got integration guidance February acquired Just very call the still a synergies said specific we growth We'll phase. call gate. healthy a when Zeta has is bit historically rates, similar it back very XX% we're business, that it's but over about We're that give excited seeing. And what a --

comes Our line of next Securities. the with Riley Cummins B. from question Zach

on think been to you can mean of lineup quarter. give David of congrats that expanded David, rolled interest I as out and Gen clients? Chris, both seeing Zeta about trends Live. agents expanding AI the out that at us you I another wanted just about ask lineup? from you've your any sort enterprise update of And sense a agencies adoption you strong and

Yes.

the were stage star of the with out the rolled the the was standing AI the the So panel remotely, innovation stage because if but which Zach, we innovation about don't people get rolled smaller to main stage. we main it from It stage stage, And we rollout you -- studios, was to there, excited new like the innovation agent rock go on so the on AI out were stage. a when back couldn't know agent. opposite when did I we people

studio. are I would They rate seen what a us than available tell Clients They using as are is there. adoption yet. are AI bigger agents is are that own company anything the agents. in building So you the collective the their of I've our do agents

think it's of the the you I an unparalleled continue these at could we Chris reasons at and now agencies clients as retention net $XXX say million our heard million one seeing conceivably a and top that use to both to company go $XXX pace, We're are higher. of agents enterprises. rate

one my with know a new side. channel? the a follow-up see relationship on building But Understood. us I greater give relationships Snowflake of a out plans system update to expanded had channel. around you Great with in any really Yahoo! And practice partnership you on that also can is

forward. you're So I'm lever that of for how about growth just thinking a as moving curious

got already enough, running. X Yes. we've up and I mean, interestingly

So talking the But numbers not sure crack trying we're before start channel, we're in was make always time, again. about we've the meant a even be pretty growth It's and just it XXXX. really to clear. working. same really just the to been for at code we that it's it we

the a cycle sales that see get something It's to to interesting it's it's guys adoption very long rate. up. these So

happy we're to So have X.

when business. X is driver quarters, X I meaningful get to the Our will the to coming more that's in and think it a or become goal

Clark Our with D.A. line next question Davidson. from Wright the comes of

And Can and then customers additionally, you live in that adopted customer will some scaled offerings? XXx deal who believe do to the of to you KPIs, super customers LiveIntent talk be with the started to from about scaled like the skilled impact Zeta uplift this other account? intent ARPU the how applied and the

of the Clark, plus ARPU perspective, million the a as closer February ours, speaking, category. closer combined the ours But obviously, an to we'll intent figures, live to the compared what call. inclusion we're metrics year, the million still post their -- this their quarter, the acquired having end X customers from in broadly of at almost so it is of give $XXX,XXX third $X all we'll do like is million million. X company that's for X.X are to Their to ARPU end

the it we'll February. in obviously rest substantial incremental a But details early reads number it, into will of some got we've result in of give scale the customers. So but

Yes. this I in And QX. close Clark, I important deal to do want to point out, that did is note. think We

none So KPIs. None QX. for the in deal is that revenue we of just none numbers reported of the the of

Brian Our next from question Oppenheimer. comes of . the with Schwartz line

I one ask the new coming is of where just you know studio for executives. C-level I'll ask you the you for time. agent a spending talked product lot to your David, wanted I sake of released. to that

us products next So then building as a is customers of and to budget products these or these the we year, that of to are new it gain talk for for regards about is how continue our budgets to coming you IT conversation think can in process What you can spending in AI Asian products? make dynamic? terms and the type for in that that budgeting What of sure out one. second products you agent share these seeing these

you, Thank Brian.

coming like data IT So data out feed because I of is budget. product, only with It's budget. it, truthfully, some software enterprises are marketing It's we believe into and come out But you're up any buckets, of of multiple of good is, right? around what proprietary coming AI setting I coming it's out And year new going the budgets as say it. budget talking our the would because lot do believe of we're CEOs we've to the AI it to seeing the yes, next a multiple we you talk standalone times, said of as innovation. as into out

you when happens. So our you place, magic CDP put data, in their take where data, the all the of that's

all look this and at to I love smarter of algorithms and beauty about of component got savings the first-party you of first-party all cost data, thing is Brian, enterprise. proprietary and the begin the smarter. proprietary get The our most budget, data, their to You've enterprise it's how the

And be data $XXX,XXX exchange $XX,XXX, they $X.X eliminate million might So agent in able AI out $XXX,XXX to $XXX,XXX with or put for a savings, can that jobs science we're in year an perspective. it that to spending put us. in

are good really, find So clients a AI it's our stickier. use is agents faster. growth They use CDPs, from what who a really return then our perspective, on our investment. enterprise we scale And substantially

last Ryan with question comes of Our the line MacWilliams from Barclays.

any the how the thoughts And customers' post your changes to fourth quarter. from And marketing but plans unlocking the macro quarter? holiday Zeta into this for early, point messaging terms customers Love for in hear in election any spend? know at you impacted have noticed it's just the season I of

Ryan. Yes,

also we're -- -- of have a not positively, out we're advertisers seeing we markets that the unlock drawn led So react to winner the election a might long certainty process the expected. yes, but without dollars with has not just

anything holiday this point? And at the that. season Appreciate on

goal our year's guidance sitting announcing beating guidance. our We and long-term talking raised which put talking XXth obviously listen, you about new million, We of our consecutive our against with And $XX is We feel about about good quite guidance. to February is guidance, in plan the a XXXX be out quarter XXXX by budget. bit and our raising current it.

cylinders, on very XX now, the doing QX. firing We're and engine really business. feel bullish like very good very, well, we the right So XX on feeling is about we're we're of and

Appreciate year to next that. Have And their growth year? to talked be to stronger just a agency business year. contributor agency you holdco guidance your Zeta the compared your And this about customers next top next expect would X on year? for revenue for plans

last the about know don't part. I

direct, our agency what as our a nicely, new to we're think showed about have see very and integrated at that. to prepared remarks, I versus heard agencies we'll very I'm step-up in The have migrating are scaled which fast pleased, in platform sure of how you clients revenue. our some direct

year seeing I What we're continue agency bullish there out But and sixth X already plans. row. of having that's that of percent I for renewed plan years. our for very will another it's agreements X, I -- largest fifth most organic. you, them, year be, year Thank a I feeling move our forward. trend think as signs row in client very in a up sixth minimum a as our we're working just say forget is are that -- on if growth would the of We're Chris, said, or next we next And at XX-plus in year. solid

back for questions to like to are at time. call closing over There further you. David this pass comments. the Thank I no would

been to or end operator. be you, business. never have Thank on, I excited will more I running proud this more

We are growth for clients organic our lockstep and our And in executing We're evidenced many by in exceptionally has think strategic continue to been that expect this business come. well. partners. we the with I working years that to

you you to and with thank of So for again Bye. we the attending look forward soon. interacting call, many

today's concludes This teleconference.

participation. your disconnect for time. at Thank lines your may You this you