Zeta Global Holdings: Accelerating Business Growth with Actionable Intelligence

B. Riley Securities's Zach Cummins raised their price target on Zeta Global Holdings (NYSE: ZETA) by 19.4% from $15.5 to $18.5 on 2024/05/07. The analyst maintained their Strong Buy rating on the stock.

Zeta Global Holdings, a provider of consumer intelligence and marketing automation software, recently reported strong quarterly results for Q1 2024. The company's revenue of $194.9 million surpassed expectations and showed a 24% increase compared to the same period last year. Zeta Global Holdings also reported an EBITDA of $30.5 million, up 27% year-over-year, and a free cash flow of $15 million, up 50% year-over-year.

The management of Zeta Global Holdings expressed optimism about the company's future performance. They increased their outlook for FY 2024, expecting faster year-over-year sales growth compared to the previous year and a healthy margin over the "Rule of 40." The "Rule of 40" is an industry benchmark that combines revenue growth and profitability.

Co-Founder, Chairman & CEO David A. Steinberg highlighted the positive impact of the Zeta Marketing Platform (ZMP) on the company's business. He stated, "The actionable intelligence delivered by the Zeta Marketing Platform is fueling the acceleration in our business. Chief Marketing Officers are seeking modern marketing technology platforms, like the ZMP, that leverage Gen AI to drive top-line growth and improve operational efficiency, while protecting their data."

CFO Chris Greiner also expressed satisfaction with the company's performance, citing an increase in visibility from new customer wins and the rapid expansion of existing customers. Greiner stated, "Growth catalysts are showing green chutes, we're seeing solid returns from investments, and we're creating deeper and stickier relationships with our enterprise and new agency customers. All in, a strong combination going into Q2 and the rest of the year."

Following the release of Zeta Global Holdings' quarterly results, several analysts updated their ratings and price targets for the stock. Morgan Stanley's Elizabeth Porter raised their price target by 5.9% to $18 and maintained their Strong Buy rating. Barclays's Ryan Macwilliams raised their price target by 20% to $18 and also maintained their Strong Buy rating. Craig-Hallum's Jason Kreyer raised their price target by 46.7% to $22 and maintained their Buy rating.

Overall, 80% of top-rated analysts currently rate Zeta Global Holdings as a Strong Buy or Buy, while 20% see it as a Hold. No analysts recommend or strongly recommend selling the stock.

Since the release of Zeta Global Holdings' latest quarterly report, the stock price has increased by 18.3%. Year-over-year, the stock has seen a significant increase of 86%. During this period, Zeta Global Holdings has outperformed the S&P 500, which has increased by 25.4%.

B. Riley Securities analyst Zach Cummins, who recently raised the price target on Zeta Global Holdings, is ranked in the top 5% of Wall Street analysts. With an average return of 41.3% and a win rate of 58.1%, Cummins specializes in the Communication Services and Consumer Defensive sectors, among others.

Zeta Global Holdings Corp., founded in 2007 and headquartered in New York, NY, provides consumer intelligence and marketing automation software. Their platforms, including the Zeta Marketing Platform and the Consumer Data platform, utilize machine learning and data analysis to predict consumer intent and generate a comprehensive view of consumers. The company's strong quarterly results and positive outlook reflect their success in meeting the needs of Chief Marketing Officers and driving top-line growth.

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