Zeta Announces Record Financial Results and Zeta 2025 Targets

Zeta Global (NYSE: ZETA), a cloud-based marketing technology company that empowers enterprises to acquire, grow, and retain customers more efficiently, today announced financial results for the quarter and full year ended December 31, 2021.

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“Disruption in the digital ecosystem is forcing brands to reevaluate their marketing technology investments and fueling the demand for data-driven, identity-based marketing. We are just beginning to scratch the surface of our rapidly growing, multi-billion-dollar addressable market and we believe in our ability to achieve our Zeta 2025 targets.”

“2021 was an incredible year for Zeta filled with many important milestones, culminating with our record results,” said David A. Steinberg, Co-founder, Chairman & CEO of Zeta. “Disruption in the digital ecosystem is forcing brands to reevaluate their marketing technology investments and fueling the demand for data-driven, identity-based marketing. We are just beginning to scratch the surface of our rapidly growing, multi-billion-dollar addressable market and we believe in our ability to achieve our Zeta 2025 targets.”

“Throughout 2021, we grew scaled customer count, increased scaled customer ARPU, improved Direct Platform mix, expanded margins, and generated record cash flow, which speaks to the culture of execution we are building at Zeta,” said Chris Greiner, Zeta’s CFO. “These factors are providing the visibility and confidence for us to set out our 2022 and Zeta 2025 targets, along with the KPIs by which we can be measured over the course of our journey.”

A supplemental earnings presentation is available on the Company’s Investor Relations website, https://investors.zetaglobal.com/, which includes additional details on Zeta’s 4Q and full year 2021 results, its 2022 guidance, and the underpinnings of its Zeta 2025 plan.

Fourth Quarter 2021 Financial Highlights

(Unless otherwise noted, all comparisons are to the fourth quarter of 2020)

• Total revenue of $135 million, an increase of 18% as reported or 32% excluding the 2020 Presidential cycle. Total revenue grew 17% quarter-to-quarter.
• Direct platform revenue made up 77% of total revenue compared to 60%.
• Scaled customer count of 355 compared to 347 in the third quarter of 2021.
• Scaled customer ARPU over $368,000 compared to $320,000 in the third quarter of 2021.
• Lowered the cost of revenue¹ percentage to 35.5%, excluding stock-based compensation, down 675 basis points.
• GAAP operating loss of $61.2 million, compared to an operating income of $6.6 million, driven primarily by $70.5 million of stock-based compensation compared to $0.03 million.
• GAAP net loss of $61.1 million, compared to a net loss of $8.8 million, driven primarily by $70.5 million of stock-based compensation compared to $0.03 million.
• GAAP diluted loss per share of $0.46 compared to a diluted loss per share of $0.53.
• Cash flow from operating activities of $20.9 million, compared to $18.9 million.
• Adjusted EBITDA¹ of $22.9 million, an increase of 29% compared to $17.8 million.
• Adjusted EBITDA margin¹ of 17%, compared to 15.5%.

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