ZETA Stock Forecast & Price Target

Zeta Global Holdings Corp reported a robust total revenue growth of 49.6% year-over-year in the fourth quarter, showcasing a strong performance driven by a diversified revenue base, with a 31% increase when excluding certain contributions from LiveIntent and political revenue. The average revenue per user (ARPU) for scaled customers also experienced significant growth, rising 27% year-over-year to approximately $577,000, bolstered by a notable 31% increase in ARPU for super-scaled customers. Additionally, Zeta's focus on its higher-margin direct platform revenue, which constituted 74% of total revenue and grew 52% year-over-year, alongside a consistent expansion in adjusted EBITDA margins for 16 consecutive quarters, underscores the company's strong financial health and positive outlook.

Zeta Global Holdings Corp's outlook is negatively impacted by several key financial challenges, including a projected revenue headwind of $44 million in 2025 due to the non-recurrence of political revenues and a decline in advocacy revenues. The company's gross margin has dipped slightly to 60.0%, falling short of expectations, and its non-GAAP gross margin of 60.1% also did not meet forecasts, indicating issues with cost management and operational efficiency. Furthermore, identified material weaknesses in internal controls over financial reporting raise concerns about the reliability of its financial statements, potentially impacting investor confidence and share performance.