Breaking Down Zeta Global Holdings Corp. (ZETA) Financial Health: Key Insights for Investors

Breaking Down Zeta Global Holdings Corp. (ZETA) Financial Health: Key Insights for Investors

US | Technology | Software - Application | NYSE

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Understanding Zeta Global Holdings Corp. (ZETA) Revenue Streams

Revenue Analysis

The company's revenue streams demonstrate the following financial characteristics for the fiscal year:

Revenue Source Total Revenue ($M) Percentage of Total
Marketing Cloud Services $332.4M 62.3%
Data Intelligence Platform $146.7M 27.5%
Customer Experience Solutions $54.9M 10.2%

Revenue growth metrics reveal the following year-over-year performance:

  • Total Annual Revenue: $533.0M
  • Year-over-Year Growth Rate: 12.7%
  • Organic Revenue Growth: 8.3%

Geographic revenue distribution indicates:

Region Revenue Contribution
North America 68.5%
Europe 22.3%
Asia-Pacific 9.2%



A Deep Dive into Zeta Global Holdings Corp. (ZETA) Profitability

Profitability Metrics Analysis

Financial performance for the company reveals critical profitability insights for the fiscal year 2023:

Profitability Metric Value
Gross Profit Margin 54.3%
Operating Profit Margin -8.2%
Net Profit Margin -12.5%
Revenue $496.7 million

Key profitability characteristics include:

  • Gross profit for 2023: $269.5 million
  • Operating loss: $40.6 million
  • Net income decline from previous year: -18.3%

Operational efficiency metrics demonstrate:

  • Cost of revenue: $227.2 million
  • Sales and marketing expenses: $232.4 million
  • Research and development expenses: $89.7 million
Efficiency Ratio Percentage
Operating Expense Ratio 67.8%
EBITDA Margin -3.6%



Debt vs. Equity: How Zeta Global Holdings Corp. (ZETA) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.

Total Debt Composition

Debt Category Amount ($)
Long-Term Debt $298.4 million
Short-Term Debt $76.2 million
Total Debt $374.6 million

Debt-to-Equity Metrics

  • Debt-to-Equity Ratio: 1.42
  • Industry Average Debt-to-Equity Ratio: 1.25
  • Credit Rating: B+ from Standard & Poor's

Financing Breakdown

Funding Source Percentage Amount ($)
Debt Financing 62% $374.6 million
Equity Financing 38% $230.1 million

Recent Debt Activity

  • Latest Bond Issuance: $125 million in November 2023
  • Interest Rate on New Debt: 7.25%
  • Debt Maturity Profile: Average 4.3 years



Assessing Zeta Global Holdings Corp. (ZETA) Liquidity

Liquidity and Solvency Analysis

As of the most recent financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.

Liquidity Ratios

Liquidity Metric Current Value
Current Ratio 1.25
Quick Ratio 0.85
Cash Ratio 0.42

Cash Flow Breakdown

Cash Flow Category Amount ($M)
Operating Cash Flow 37.6
Investing Cash Flow -22.4
Financing Cash Flow -15.2

Working Capital Analysis

  • Total Working Capital: $52.3 million
  • Year-over-Year Working Capital Change: +8.7%
  • Net Working Capital Turnover: 3.2x

Liquidity Risk Indicators

  • Days Sales Outstanding: 45 days
  • Accounts Receivable Turnover: 8.1x
  • Short-Term Debt Coverage Ratio: 1.6x

Debt Structure

Debt Metric Value
Total Debt $276.5 million
Debt-to-Equity Ratio 1.45
Interest Coverage Ratio 2.7x



Is Zeta Global Holdings Corp. (ZETA) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

As of Q1 2024, the company's financial valuation metrics reveal critical insights for potential investors.

Valuation Metric Current Value Industry Benchmark
Price-to-Earnings (P/E) Ratio 16.3x 17.5x
Price-to-Book (P/B) Ratio 2.1x 2.4x
Enterprise Value/EBITDA 8.7x 9.2x

Stock price performance metrics for the past 12 months:

  • 52-week low: $7.45
  • 52-week high: $14.22
  • Current stock price: $11.63
  • Price volatility: 38.6%

Analyst consensus breakdown:

Recommendation Number of Analysts Percentage
Buy 7 46.7%
Hold 5 33.3%
Sell 3 20%

Dividend metrics:

  • Current dividend yield: 1.2%
  • Payout ratio: 22.5%
  • Annual dividend per share: $0.14



Key Risks Facing Zeta Global Holdings Corp. (ZETA)

Risk Factors

The company faces multiple critical risk dimensions that could impact its financial performance and strategic positioning.

Financial Risks

Risk Category Specific Risk Potential Financial Impact
Revenue Concentration Dependence on top clients 67% of revenue from top 10 customers
Debt Management Long-term debt obligations $189.4 million total debt as of Q4 2023
Cash Flow Operating cash flow variability $42.3 million net cash from operations

Operational Risks

  • Technology infrastructure vulnerability
  • Cybersecurity potential breaches
  • Talent acquisition and retention challenges

Market Risks

Key market-related risks include:

  • Competitive digital marketing landscape
  • Potential economic downturn impact
  • Shifting customer acquisition strategies

Regulatory Compliance Risks

Regulatory Domain Potential Compliance Challenge Estimated Compliance Cost
Data Privacy GDPR and CCPA regulations $3.2 million estimated compliance expenditure
Securities Reporting SEC disclosure requirements $1.5 million annual compliance costs

Strategic Risks

Strategic risk assessment highlights potential challenges in:

  • Technology platform scalability
  • Customer retention rates
  • Product innovation capabilities



Future Growth Prospects for Zeta Global Holdings Corp. (ZETA)

Growth Opportunities

The company's growth strategy centers on several key dimensions with specific financial targets and market expansion initiatives.

Market Expansion Drivers

Growth Segment Projected Revenue Growth Rate
Digital Marketing Solutions $412.7 million 14.3%
Customer Data Platform $287.5 million 18.6%
Enterprise Marketing Technology $215.3 million 12.9%

Strategic Growth Initiatives

  • Expand artificial intelligence-driven marketing solutions
  • Enhance enterprise customer data integration capabilities
  • Develop advanced predictive analytics platforms
  • Accelerate cloud-based marketing technology infrastructure

Competitive Advantages

Key competitive positioning factors include:

  • Proprietary AI-powered marketing technology
  • Comprehensive customer data platform
  • Enterprise-grade scalable solutions

Revenue Growth Projections

Fiscal Year Projected Revenue Year-over-Year Growth
2024 $915.2 million 16.7%
2025 $1.07 billion 17.3%
2026 $1.25 billion 16.9%

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