Zeta Global, the AI-powered marketing cloud, announced robust financial results for the first quarter ended March 31, 2025. Demonstrating strong momentum and customer growth, Zeta reported its 15th consecutive quarter of exceeding expectations. The company attributes this success to disciplined execution, a focus on measurable ROI, and continued innovation through products like the newly launched AI Agent Studio.

Zeta Global Q1 2025 Financial Highlights:

• Revenue Performance:

  • Total revenue reached $264 million

  • Year-over-year growth of 36%

• Customer Metrics:

  • Scaled Customer count rose to 548, up from 527 in Q4’24 and 460 in Q1’24

  • Super-Scaled Customer count increased to 159, up from 148 in Q4’24 and 144 in Q1’24

• Average Revenue Per User (ARPU):

  • Scaled Customer ARPU: $467,000, up 12% year-over-year

  • Super-Scaled Customer ARPU: $1.38 million, up 23% year-over-year

• Platform Usage and Efficiency:

  • Direct platform revenue accounted for 73% of total revenue

  • GAAP cost of revenue was 39.1%, improving 90 basis points quarter-over-quarter

• Profitability Metrics:

  • GAAP net loss: $22 million, or 8% of revenue (primarily due to $42M in stock-based compensation)

  • Loss per share: $0.10, improved from $0.23 in Q1’24

  • Adjusted EBITDA: $46.7 million, up 53% year-over-year

  • Adjusted EBITDA margin: 17.7%, up from 15.6% in Q1’24

• Cash Flow and Shareholder Value:

  • Operating cash flow: $35 million, up from $25 million in Q1’24

  • Free cash flow: $28 million, up from $15 million in Q1’24

  • $25 million worth of shares repurchased through share buyback program

Leadership Commentary:

• David A. Steinberg, Co-Founder, Chairman & CEO:

  • Reinforced the value of Zeta’s focus on delivering ROI through AI innovation

  • Highlighted the launch of AI Agent Studio to meet marketers' demands for efficiency and accountability

• Chris Greiner, CFO:

  • Pointed to Q1 outperformance and a strong pipeline as the basis for raised guidance

  • Emphasized a conservative approach to forecasting amid macroeconomic uncertainty

Updated Financial Guidance:

• Q2 2025:

  • Revenue guidance increased to $295–$298 million (30–31% YoY growth)

  • Adjusted EBITDA guidance raised to $54.6–$55.2 million

  • EBITDA margin projected between 18.3% and 18.7%

• Full-Year 2025:

  • Revenue guidance raised to $1.237–$1.247 billion (23–24% YoY growth)

  • Adjusted EBITDA raised to $257.5–$259.5 million

  • EBITDA margin expected between 20.6% and 21.0%

  • Free cash flow guidance increased to $129.5–$133.5 million

  • Expected stock-based compensation: $190 million

Zeta Global’s Q1 2025 performance underscores its leadership in AI-driven marketing solutions. With strong revenue growth, rising customer value, and disciplined financial management, the company continues to build long-term shareholder value. The raised guidance for Q2 and the full year reflects growing demand and confidence in Zeta’s differentiated AI marketing platform.