Zeta Global Holdings Corp. recently released its 10-Q report, revealing key insights into its financial performance and operations. The company operates an omnichannel data-driven cloud platform that provides enterprises with consumer intelligence and marketing automation software. Zeta's Marketing Platform analyzes billions of data points to predict consumer intent and offers various product suites, including agile intelligence and Consumer Data platform.
In the 10-Q report, Zeta Global discussed the factors affecting its results of operations, including key performance metrics. The company reported an 8% increase in scaled customers to 475 as of September 30, 2024, compared to 440 in the same period in 2023. Additionally, the average revenue per user (ARPU) for scaled customers increased by 33% to $557,231 for the three months ended September 30, 2024, compared to $418,373 for the same period in 2023. Moreover, the ARPU for super-scaled customers increased by 30% to $1.6 million for the three months ended September 30, 2024, compared to $1.2 million for the same period in 2023.
The report also provided a detailed breakdown of the company's financial components. Zeta's revenue primarily arises from subscription fees, volume-based utilization fees, and professional services. For the nine months ended September 30, 2024, the company derived 68% of its revenues from direct platforms and 32% from integrated platforms. Additionally, the report outlined various expenses, including cost of revenues, general and administrative expenses, selling and marketing expenses, research and development expenses, depreciation and amortization, acquisition-related expenses, and restructuring expenses.
In terms of financial results, Zeta Global reported a 42% increase in revenues for the three months ended September 30, 2024, compared to the same period in 2023. The cost of revenues (excluding depreciation and amortization) increased by 43.8% for the same period. General and administrative expenses decreased by 0.4%, while selling and marketing expenses increased, primarily due to higher employee-related costs and marketing activities.
The market has reacted to these announcements by moving the company's shares -16.4% to a price of $30.71. For more information, read the company's full 10-Q submission here.
