Total Revenue

+35.6%

Q1 2025 revenue increased to $264,419K from $194,947K in Q1 2024. This strong growth reflects continued momentum with incremental revenues (from new customer acquisitions and enhanced platform utilization) building upon the robust performance seen in Q1 2024. " "

Net Loss Available to Common Stockholders

–45%

The net loss narrowed to $(21,600)K in Q1 2025 from $(39,566)K in Q1 2024. This improvement is driven by higher revenues coupled with more effective cost management and operating efficiencies, a trend that builds on previous period improvements. " "

Loss from Operations

–55%

Q1 2025 loss from operations improved to $(16,113)K versus $(35,874)K in Q1 2024. The higher revenue growth outpaced the increase in operating expenses, reflecting better cost control and operational leverage compared to prior periods. " "

Basic Loss per Share

Improved from $(0.23) to $(0.10)

Basic loss per share fell from $(0.23) in Q1 2024 to $(0.10) in Q1 2025. This improvement is due to the reduction in absolute net loss combined with a higher weighted average share count, which continues the operational improvements observed in the previous period. " "

Interest Expense, Net

–87%

Interest expense declined sharply to $331K in Q1 2025 from $2,625K in Q1 2024, primarily due to an increase in interest income from money market accounts and short-term deposits—a positivity that builds on the cost-management initiatives seen in the prior period. " "

Operating Cash Flow

Positive at $34,799K

Operating cash flow reached a positive $34,799K in Q1 2025, reflecting improved net loss performance, substantial non-cash adjustments (including lower stock-based compensation and increased depreciation), and beneficial working capital changes compared to previous periods. "

Revenue

FY 2025

$1.24 billion with 23% growth "

No guidance provided [Q1 2025]

no current guidance

Adjusted EBITDA

FY 2025

$256.5 million at a 20.7% margin with a 150 bp expansion "

No guidance provided [Q1 2025]

no current guidance

Free Cash Flow

FY 2025

$129.5 million at a 10.4% margin with 40% growth "

No guidance provided [Q1 2025]

no current guidance

Advocacy Revenue

FY 2025

Expected to be between $20 million and $25 million "

No guidance provided [Q1 2025]

no current guidance

Agency Relationships and Dependency

In Q4 2024, Q3 2024, and Q2 2024 calls, Zeta’s management discussed scaling relationships with large agency holdcos, noted revenue concentration and dependency risks, and outlined mitigation strategies through diversification (e.g. mid-market agencies and long-term agreements). " " " " "

In Q1 2025, the discussion focused on the company’s strong partnerships with multiple large agency holdcos and the benefits of data‐driven marketing; there was no explicit mention of dependency or concentration risks. "

Consistent emphasis on agency partnerships remains, but in Q1 2025 there is a noticeable de‐emphasis on discussing concentration risks compared to prior periods.

AI Adoption and Capabilities

Across Q2, Q3, and Q4 2024 earnings calls, Zeta highlighted extensive adoption of AI including generative AI and agentic AI, rapid uptake of AI agents, integration with data, and strong contributions to revenue growth with detailed product capabilities and customer engagement metrics. " " " " " "

Q1 2025’s call emphasized significant customer adoption of agentic AI with consumption revenue growing over 40% YoY and the performance improvements from agentic workflows, with no specific mention of generative AI trends. "

Sustained focus on AI remains, though Q1 2025 shows a shift to emphasizing the benefits and adoption of agentic AI while not reiterating generative AI trends discussed in earlier periods.

Cash Flow Conversion and Capital Efficiency

In Q2, Q3, and Q4 2024, management detailed improvements in free cash flow conversion, highlighted robust operating cash generation, and discussed working capital challenges due to delayed payments from agency customers with specific headwind figures and adjusted conversion ratios. " " " " " "

Q1 2025 highlighted significant capital efficiency improvements with reduced CapEx and recognized that timing of agency payments remains a headwind, although free cash flow appears healthier. "

Consistent messaging on improved efficiency persists with similar working capital challenges; the Q1 2025 discussion reflects continued operational improvements amid expected timing issues.

Organic Revenue Growth Guidance

Q4 2024 and Q3 2024 calls discussed organic revenue guidance with adjustments showing a deceleration from earlier high growth rates (from 30%+ to low 20% range for 2025) due to conservative guidance and adjustments for political candidate revenue, with specific guidance targets provided. " " " "

There was no mention of organic revenue growth guidance in Q1 2025.

Previously a prominent topic with notable adjustments, organic growth guidance was carefully discussed in past quarters but is not mentioned in Q1 2025, indicating a potential shift in communication focus or priorities.

Capital Allocation Priorities

In Q4 2024, Zeta detailed its capital allocation strategy by emphasizing accelerated share repurchase activity (repurchasing $31 million in shares) and earlier discussions in Q3 2024 mentioned a disciplined approach to acquisitions and free cash flow use; Q2 2024 did not discuss this topic. " "

No discussion was provided on capital allocation priorities in Q1 2025.

Capital allocation themes were highlighted in prior quarters with a focus on shareholder returns and acquisitions; Q1 2025 did not address these, suggesting a temporary de-prioritization or shift in topic focus.

Channel Migration and Mobile/Product Diversification

Q2, Q3, and Q4 2024 earnings calls detailed a strategic shift from integrated platforms to direct channels; they provided data on rising direct revenue mix (e.g., increases from 70% to 74%); emphasized growing mobile traction and the launch of AI-powered mobile products as key diversification initiatives. " " " " " "

Q1 2025 did not discuss channel migration or mobile/product diversification.

Previously a major growth driver, the narrative on shifting to direct channels and building mobile capabilities is well developed in earlier periods but is not mentioned in Q1 2025, indicating a gap or change in focus.

Customer Wallet Share Expansion

In Q2, Q3, and Q4 2024, the management discussed the significant opportunity to capture additional marketing spend from existing clients, outlining strategies like land-and-expand and providing specific examples (e.g., scaling revenue multiples with key accounts) to illustrate the potential for increased ARPU and wallet share. " " " "

There was no mention of customer wallet share expansion in Q1 2025.

Customer wallet share expansion was a consistent strategic theme in previous quarters but does not appear in Q1 2025 discussions, suggesting a possible shift in reporting priorities or that focus has moved to other operational areas.