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A Quick Take On Zeta Global
Zeta Global (NYSE:ZETA) reported its Q3 2022 financial results on November 1, 2022, beating expected revenue and missing EPS estimates.
The company operates a programmatic marketing automation and consumer intelligence platform for advertisers worldwide.
Given the firm’s growth trajectory, steadily increasing forward guidance and discounted valuation, my outlook on ZETA remains a BUY at around $7.90 per share.
Zeta Global Overview
New York, NY-based Zeta was founded to develop advanced online advertising capabilities for companies to generate greater returns from their online marketing efforts.
Management is headed by co-founder, Chairman and CEO David Steinberg, who has been with the firm since and was previously founder and CEO of InPhonic, a wireless phone and communications products company.
The company’s primary offerings include:
Opportunity Explorer
Identity Graph
Intent Graph
Agile Intelligence
APIs
The firm pursues primarily large-sized clients across all major industry verticals via a direct sales model.
Zeta’s Market & Competition
According to a market research note by eMarketer, the market for digital ad spending was an estimated $153 billion in 2020 and is forecast to reach $315 billion by 2025.
In 2020, despite the global pandemic, digital ad spending grew by 12.7%.
The note asserts that 2021 saw significantly increased digital advertising growth after a slower-than-expected 2020, but that future growth rates will decline through 2025.
The chart below shows the report’s forecasted growth trajectory and digital ad spend percentage of total, from 2020 to 2025:
U.S. Digital Ad Spending (eMarketer)
Potential competitors include:
Adobe
Yahoo
Meta
Oracle
Skai
Amazon
Criteo
Zeta’s Recent Financial Performance
Total revenue by quarter has grown according to the following chart:
Total Revenue History (Seeking Alpha)
Gross profit by quarter has also risen in a similar trajectory:
Gross Profit History (Seeking…
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