European Investor
26 Feb 2025, 10:34
Zeta Global reported record financial results for the fourth quarter and full year 2024, showcasing significant growth in revenue, customer base, and profitability. The company achieved a 50% year-over-year revenue increase in Q4 2024, reaching $315 million, and a 38% year-over-year increase for the full year, surpassing $1 billion in annual revenue for the first time.
The company expanded its customer base, increasing the number of Scaled Customers by 17% year-over-year and Super-Scaled Customers by 13%. Average revenue per user (ARPU) also rose, with Scaled Customer ARPU growing 19% to $1.87 million and Super-Scaled Customer ARPU increasing 26% to $5.71 million. Zeta's direct platform revenue mix reached 74% in Q4 2024, up from 70% in the previous quarter.
Profitability improved significantly, with GAAP net income of $15 million for the fourth quarter compared to a $35 million loss in Q4 2023. Adjusted EBITDA increased by 57% year-over-year in Q4, reaching $70.4 million, with an adjusted EBITDA margin of 22.4%. Free cash flow for the quarter more than doubled to $32 million, and the company repurchased $31 million worth of shares.
Looking ahead, Zeta forecasts continued strong performance, guiding for a sixth consecutive year of 20%+ revenue growth. The company expects Q1 2025 revenue between $253 million and $255 million, representing a 30-31% year-over-year increase. For the full year 2025, revenue is projected between $1.235 billion and $1.245 billion, with an adjusted EBITDA margin of over 20%.
Under its newly announced Zeta 2028 plan, the company aims to exceed $2.1 billion in annual revenue, with at least $525 million in adjusted EBITDA and $340 million in free cash flow by 2028. Management credits early investments in AI and first-party data for driving its competitive advantage and long-term growth trajectory.
Zeta will discuss these results further in an investor conference call, which will be available on its investor relations website.
The company expanded its customer base, increasing the number of Scaled Customers by 17% year-over-year and Super-Scaled Customers by 13%. Average revenue per user (ARPU) also rose, with Scaled Customer ARPU growing 19% to $1.87 million and Super-Scaled Customer ARPU increasing 26% to $5.71 million. Zeta's direct platform revenue mix reached 74% in Q4 2024, up from 70% in the previous quarter.
Profitability improved significantly, with GAAP net income of $15 million for the fourth quarter compared to a $35 million loss in Q4 2023. Adjusted EBITDA increased by 57% year-over-year in Q4, reaching $70.4 million, with an adjusted EBITDA margin of 22.4%. Free cash flow for the quarter more than doubled to $32 million, and the company repurchased $31 million worth of shares.
Looking ahead, Zeta forecasts continued strong performance, guiding for a sixth consecutive year of 20%+ revenue growth. The company expects Q1 2025 revenue between $253 million and $255 million, representing a 30-31% year-over-year increase. For the full year 2025, revenue is projected between $1.235 billion and $1.245 billion, with an adjusted EBITDA margin of over 20%.
Under its newly announced Zeta 2028 plan, the company aims to exceed $2.1 billion in annual revenue, with at least $525 million in adjusted EBITDA and $340 million in free cash flow by 2028. Management credits early investments in AI and first-party data for driving its competitive advantage and long-term growth trajectory.
Zeta will discuss these results further in an investor conference call, which will be available on its investor relations website.
