Zeta Global (ZETA) Stock Surges on Massive AI Opportunity Discovery

TLDR

Table of Contents

ZETA stock surged 12.63% to $14.18 following study showing untapped AI opportunities in marketing
Company’s research revealed 62% of marketing organizations have only “limited” or “moderate” AI deployment
Q1 2025 revenue grew 6% to $264 million with adjusted EBITDA jumping 53% to $47 million
Free cash flow increased 87% to $28.2 million, while company repurchased $25 million in shares
Despite recent gains, stock remains down 8.22% over the past year

Zeta Global Holdings Corp. (ZETA) closed at $14.18 on Friday, marking a sharp 12.63% gain as investors embraced the company’s latest research highlighting untapped opportunities in AI marketing.

The stock reached as high as $14.89 during the trading session. The rally came after Zeta released its study titled “It’s Time to Get Serious About AI’s Business Value.”

The research surveyed 300 North American marketing technology decision-makers. Results showed that 62% of organizations described their current AI deployment as “limited” or “moderate.”

$ZETA ’s a hidden gem! FCF margin soar imo: 9% → 16% by ‘28, 20%+ by ‘35. Huge operating leverage via AI & 25% EBITDA margin. Strong insider ownership (~20%). Massive TAM, capturing just 1% of ad spend and room to grow! Thoroughly enjoyed diving deep into Zeta this weekend! pic.twitter.com/LMEiR9dN0d
— Holler to Tide Investment Guide (@hollertotide) June 22, 2025

Investors viewed the findings as validation of Zeta’s market position. The study reinforced demand for the company’s AI-driven marketing platform.

“Marketing should be at the front lines of the AI revolution, but many teams are held back by fragmented data, legacy systems, and skills gaps,” said Chairman and CEO David Steinberg. He emphasized that marketers need “practical, scalable ways to turn AI into better performance.”

Strong Financial Performance Continues

Zeta delivered its 15th consecutive quarter of beating guidance in Q1 2025. Revenue grew 6% year-over-year to $264 million.

Adjusted EBITDA surged 53% to $47 million, improving margins to 17.7%. The company narrowed its GAAP net loss to $22 million from $40 million in the prior year.

Free cash flow performance stood out with an 87% increase to $28.2 million. Free cash flow margin reached 10.7%, while operational cash flow grew 41% to $34.8 million.

The company completed a $25 million share repurchase program during the quarter. Management bought back 1.6 million shares, signaling confidence in the stock’s valuation.

Customer Growth Accelerates

Zeta’s customer metrics showed strong momentum across key segments. Scaled customer count reached 548, representing 19% growth.

Superscale customers increased 10% to 159. Average revenue per scaled customer rose 12% to $467,000.

Superscale ARPU jumped 23% to $1.4 million, demonstrating effective monetization. The company’s AI Agent Studios and Agentic Workflows are driving adoption across telecommunications, insurance, and finance sectors.

New partnerships continue expanding the agency business. Platform integrations are opening additional revenue streams.

Management provided upbeat guidance for Q2 2025. Revenue is expected between $295 million and $298 million, representing 30%-31% growth.

Adjusted EBITDA is forecasted at $54.6 million to $55.2 million, a 42%-43% increase. Full-year guidance calls for revenue of $1.242 billion and adjusted EBITDA of $258.5 million.

The company recently partnered with Forrester Consulting on additional research. The study reinforced gaps in enterprise AI adoption that Zeta’s platform can address.

Management remains cautious about macroeconomic headwinds. Slowing spend in automotive and retail sectors poses potential challenges.

Despite Friday’s rally, ZETA stock remains down 8.22% over the past year. Year-to-date performance shows a 21.18% decline.

The stock’s three-year return of 169.58% demonstrates longer-term strength. However, recent volatility has kept shares well below previous highs.

Zeta’s latest AI study revealed that marketing organizations are still in early stages of building necessary data infrastructure and skills for effective AI scaling.

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