Zeta Global, a marketing cloud platform, reported a 30% YoY revenue growth to USD 175 million in Q4 2022, which was 9% above consensus estimates and 8% above the upper bound of the firm guidance. The growth was driven by new client acquisitions where the firm added 14 new customers during the quarter (3.6% QoQ growth) reaching 403 customers by Q4 2022 as well as an expansion in average revenue per unit (ARPU) to USD 424,000 (15% YoY growth). The US accounted for 96% of its quarterly revenue while the Zeta marketing platform (ZMP) accounted for 75% of quarterly revenue (Q4 2021: 77%). The company reported an FY2022 revenue of USD 591 million (29% YoY growth), with ZMP accounting for 77% of total revenue (FY2021: 76%).

During the quarter, the firm recorded an adjusted EBITDA of USD 32.4 million (42% YoY growth), which was 9% above the upper bound of the company guidance. This corresponded to an adjusted EBITDA margin of 18.5% (compared with 17% in Q4 2021) which was in line with the company guidance. The firm narrowed its GAAP net loss on a quarterly basis to USD 52 million (compared with a net loss of USD 61 million in Q4 2021). The loss was primarily due to a USD 68 million stock-based compensation.  For FY2022, the company reported an adjusted EBITDA of USD 92.2 million (46% YoY growth) and a GAAP net loss of USD 279 million.

For the full year 2023E, the company expects revenue to range from USD 686 million to USD 696 million, a YoY growth of 16% to 18%. The company also expects an adjusted EBITDA of USD 116.5 million to USD 118.3 million, a YoY growth of 26% to 28%, with an adjusted EBITDA margin of 16.7% to 17.3%.

Analyst QuickTake: Zeta Global has been exceeding analyst expectations with its revenue growth and continues to raise its projections for the future. The company attributes this success to its strong partnerships with major technology firms like Amazon, Dun & Bradstreet, and Snowflake. These partnerships have helped Zeta Global enhance its data and analytics capabilities and achieve an all-time high sales pipeline, providing valuable leverage to its sales model and contributing to its growth strategy for 2025.