Zeta Global Q1 revenue jumps 50%, beats estimates

Overview

• AI marketing cloud firm's Q1 revenue rose 50% yr/yr, beating analyst expectations

• Company raised full-year 2026 revenue guidance by $30 mln to $1.785 bln midpoint

• Athena platform launch drove over 60% of AI platform usage in first week

Outlook

• Zeta Global raises Q2 2026 revenue guidance to $419 mln-$422 mln, up $4 mln at midpoint

• Company lifts full-year 2026 revenue guidance to $1,779 mln-$1,792 mln, up $30 mln at midpoint

• Zeta Global now expects positive GAAP net income for full-year 2026

Result Drivers

• ATHENA PLATFORM ADOPTION - Co said Athena accounted for over 60% of AI platform usage in its first week and drove more than 7x agent interactions

• CUSTOMER EXPANSION - Super-Scaled Customer count rose 19% yr/yr and ARPU grew 21% yr/yr, contributing to revenue growth

Company press release: ID:nBw486l90a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Zeta Global Holdings Corp is $27.50, about 54.4% above its April 29 closing price of $17.81

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 21 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.