Zeta Global Holdings (ZETA, Financial) is experiencing significant bullish sentiment in the options market as highlighted by a substantial increase in call trading activity. A total of 4,268 call options have been traded, surpassing the expected volume by 20%. This surge in activity has led to a near two-point rise in implied volatility, bringing it to 101.66%.
The most actively traded options are the weekly May 2nd 13 and 13.5 calls, which together account for approximately 2,100 contracts. This indicates heightened trader interest in these specific strike prices. Additionally, the Put/Call Ratio stands at a low 0.09, further underscoring the prevailing bullish outlook among investors.
These developments come as Zeta Global prepares to release its earnings on May 1st, a date likely contributing to the amplified trading dynamics. Investors seem optimistic about the upcoming earnings report, as reflected in the options market behavior.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 13 analysts, the average target price for Zeta Global Holdings Corp (ZETA, Financial) is $31.31 with a high estimate of $44.00 and a low estimate of $15.00. The average target implies an upside of 149.76% from the current price of $12.54. More detailed estimate data can be found on the Zeta Global Holdings Corp (ZETA) Forecast page.
Based on the consensus recommendation from 15 brokerage firms, Zeta Global Holdings Corp's (ZETA, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Zeta Global Holdings Corp (ZETA, Financial) in one year is $13.88, suggesting a upside of 10.73% from the current price of $12.535. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Zeta Global Holdings Corp (ZETA) Summary page.
ZETA Key Business Developments
Release Date: February 25, 2025
- Q4 2024 Revenue: $315 million, up 50% year over year.
- Q4 2024 Adjusted EBITDA: $70 million, up 57% year over year.
- Full Year 2024 Revenue: Just above $1 billion, up 38% year over year.
- Full Year 2024 Adjusted EBITDA: $193 million, representing a margin of 19.2% and a 49% increase year over year.
- Q4 2024 GAAP Net Income: $15.2 million, first positive GAAP net income as a public company.
- Q4 2024 Free Cash Flow: $32 million, up 74%, representing a margin of 10%.
- Full Year 2024 Free Cash Flow: $92 million, margin of 9.2%, up 69% year over year.
- Scaled Customer Count: 527 as of December 30, 2024, up 17% year over year.
- Super Scaled Customers: 148 as of year-end, up 13% year over year.
- Net Revenue Retention: 114% for the year, highest level as a public company.
- 2025 Revenue Guidance: Midpoint of $1.24 billion, growth of 23%.
- 2025 Adjusted EBITDA Guidance: Midpoint of $256.5 million, margin of 20.7%.
- 2025 Free Cash Flow Guidance: Midpoint of $129.5 million, margin of 10.4%, growth of 40%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Zeta Global Holdings Corp (ZETA, Financial) reported record revenue of $315 million in Q4 2024, up 50% year over year, and record adjusted EBITDA of $70 million, up 57% year over year.
- The company has consistently beaten and raised guidance for 14 consecutive quarters, demonstrating strong financial performance and reliability.
- Zeta's AI and data-driven marketing platform is gaining traction, with AI adoption across the platform surging and contributing to a 40% increase in consumption revenue in 2024.
- The company's strategic investments in AI and first-party data are expected to propel it to over $2 billion in annual revenue by 2028, with a targeted 20% organic revenue CAGR.
- Zeta's leadership in AI continues to attract top-tier talent, enhancing its team and platform capabilities, as evidenced by recent high-profile hires from Oracle and McKinsey.
Negative Points
- The company faces risks and uncertainties related to forward-looking statements, which could cause actual results to differ materially from projections.
- Zeta's GAAP cost of revenue increased by 210 basis points in 2024, driven by a higher mix of integrated revenue, which could impact profitability.
- The company incurred $2 million in additional expenses related to defending against a short-seller report, highlighting potential vulnerabilities to market perceptions.
- Despite strong growth, Zeta's free cash flow margin was impacted by a $22 million working capital headwind due to longer payment cycles in the agency business.
- The company's reliance on AI and data-driven strategies may face increased competition as other firms, including major players like Meta, explore AI-based advertising solutions.
