Zeta Global (ZETA) Q1 2025 earnings summary

Executive summary

• Achieved 15th consecutive quarter of exceeding and raising guidance, with Q1 2025 revenue of $264 million, up 36% year-over-year, and strong execution, innovation, and AI adoption driving market share gains.

• Adjusted EBITDA reached $46.7 million (17.7% margin), up 53% year-over-year, and net loss narrowed to $21.6 million from $39.6 million in Q1 2024.

• Scaled customer count grew 19% year-over-year to 548, super-scaled customers up 10% to 159, and ARPU for scaled customers rose 12% year-over-year.

• Launched AI Agent Studio and Agentic Workflows, driving higher customer productivity and adoption, with AI-related revenue growing over 40% year-over-year among adopters.

• Agency and independent agency business showed strong momentum, with independent agency business doubling quarter-over-quarter.

Financial highlights

• Q1 2025 revenue: $264.4 million, up 36% year-over-year (26% organic, excluding LiveIntent).

• Adjusted EBITDA: $46.7 million (17.7% margin), up 53% year-over-year; GAAP net loss improved to $21.6 million from $39.6 million a year ago.

• Free cash flow: $28.2 million, up 87% year-over-year, with 60% conversion from adjusted EBITDA.

• Cash and cash equivalents: $364.4 million as of March 31, 2025.

• Scaled customer ARPU up 12% year-over-year to $467,000; super-scaled ARPU up 23% to $1.4 million.

Outlook and guidance

• Raised full-year 2025 revenue guidance to $1,242 million (midpoint), up 23% year-over-year; Q2 2025 revenue guidance raised to $297 million (up 30% year-over-year).

• Adjusted EBITDA guidance increased to $258.5 million (21% margin), up 34% year-over-year.

• Free cash flow guidance raised to $132 million, up 43% year-over-year.

• Guidance reflects strong Q1 momentum and pipeline, but incorporates conservatism for potential macroeconomic softness in the second half.

• Long-term targets reaffirmed: $2B+ revenue, 25%+ adjusted EBITDA margin, and 16%+ free cash flow margin by 2028.