Zeta Global's 10-K Report Reveals Revenue Sources and Customer Growth

By Tamara Parker • Wednesday, February 26 11:18 • Permanent Link

Zeta Global Holdings Corp. has recently released its 10-K report, offering an in-depth look at the company's financial condition and operations. Zeta Global is an omnichannel data-driven cloud platform that provides consumer intelligence and marketing automation software to enterprises globally. The company's Zeta Marketing Platform, powered by AI and machine learning, analyzes data to predict consumer intent and optimize messaging across various channels. Zeta's revenue primarily comes from subscription fees, volume-based utilization fees, and professional services.

In the 10-K report, Zeta Global discusses the factors affecting its results of operations. The company is focused on increasing the number of scaled customers who adopt the Zeta Marketing Platform, defining "scaled customers" as those from whom it generated at least $100,000 in revenues in the past twelve months. Zeta has seen an increase in its scaled customer Average Revenue Per User (ARPU), driven by transitioning its sales team model to focus on new business development and educating existing users on platform capabilities. The company also aims to expand sales to existing customers and drive adoption of marketing automation products.

Zeta Global's financial report highlights key performance metrics, including the number of scaled customers and scaled customer ARPU. As of December 31, 2024, the company had 527 scaled customers, representing 98% of total revenue in 2024, compared to 452 scaled customers in 2023. The scaled customer ARPU increased by 19% to $1,868 thousand for the year ended December 31, 2024, compared to $1,572 thousand for the year ended December 31, 2023.

The report also delves into Zeta Global's revenue recognition policies, cost of revenues, and its investment in innovation to drive long-term growth. The company acknowledges the seasonal trends and cyclicality in the marketing industry, with higher activity levels in the fourth quarter of the calendar year, coinciding with the holiday shopping season.

As a result of these announcements, the company's shares have moved -8.9% on the market, and are now trading at a price of $18.76. Check out the company's full 10-K submission here.

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