Total Revenue

Q4 2024 revenue reached USD 314.66 million (with US revenue at USD 303.11 million and International at USD 11.56 million)

Total Revenue increased sharply in Q4 2024, building on the incremental revenue momentum observed in prior quarters—such as the 24.1% rise in Q3 2023 and a 42% jump in Q3 2024 driven by strong contributions from both new and existing customers. " " " The remarkable U.S. performance, which accounted for the vast majority of revenue, reflects continued market penetration and channel expansion from previous periods.

Operating Income

Turned positive at USD 74.77 million in Q4 2024 compared to an operating loss of USD 31.86 million in Q4 2023

Operating Income experienced a dramatic turnaround of approximately USD 106.6 million. This improvement reflects sustained revenue growth and cost efficiencies established in prior periods—for example, decreased stock‐based compensation and reduced general and administrative expenses in Q3 2023 and Q3 2024 ( " " " ). These efficiencies, combined with a better cost structure, helped flip operating losses to earnings.

Net Income

Improved to USD 84.94 million in Q4 2024 from a loss of USD 35.28 million in Q4 2023

Net Income showed a significant rebound as profitability turned around. This change continues the trend seen in previous quarters where revenue growth, improved operating margins, and better expense management (including lower stock‐based compensation) contributed to reducing losses, as seen in Q3 2023 and Q3 2024 ( " " " ). The strong performance underscores the company’s momentum in addressing prior period operational inefficiencies.

EPS

Shifted from a loss per share of USD 2.19 in Q4 2023 to a profit per share of USD 0.09 in Q4 2024

EPS improved markedly due to the combined effects of higher total revenue coupled with cost control measures. The turnaround in EPS mirrors previous improvements in operating income and net income from Q3 2023 to Q3 2024, where revenue growth and operating leverage delivered better margins ( " " " ). This shift from negative to positive EPS highlights the benefits of the company’s strategic initiatives in reducing expense pressures.

Cash Flow

Q4 2024 witnessed a net cash decrease of USD 52.38 million

Cash Flow in Q4 2024 was impacted by significant outflows, including share repurchases of USD 66.24 million and capital expenditures of USD 61.56 million. This contrasts with the strong operational cash flow improvements noted in Q3, where operating cash flow and free cash flow increased substantially (with Q3 2024 operating cash flow at USD 34.4 million and free cash flow up 93% YoY). " Thus, while operations improved, financial uses in Q4 weighed on cash balances.

Revenue growth

FY 2025

17% "

23% (implied in “Full-year revenue guidance at the midpoint: $1.24 billion, representing 23% growth”) "

raised

Adjusted EBITDA

FY 2025

no prior guidance

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

no prior guidance

Free Cash Flow

FY 2025

no prior guidance

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

no prior guidance

Advocacy Revenue

FY 2025

no prior guidance

Between $20 million and $25 million "

no prior guidance

AI and Data Integration

Across Q1–Q3, AI was positioned as a core strategic driver. In Q1, emphasis was on integrating AI natively into the application layer and deploying generative intelligent agent composers. " " " Q2 discussed native AI integration, partnerships (e.g., Amazon Bedrock), and the buildup of a large proprietary data cloud. " " Q3 expanded on generative AI agents, intelligent mobile solutions, and key data integrations such as Yahoo! Connect ID and the LiveIntent acquisition. " " "

Q4 highlighted significant advances including a 200% sequential growth in AI agent usage, doubled behavioral taxonomies, and further maturation of AI’s role in enhancing productivity, personalization, and precision. The completed LiveIntent integration and continued revenue impact underscore its evolving role. " "

Continuous evolution and scaling: AI remains a consistent strategic focus but with accelerated performance metrics and deeper integration capabilities in Q4, suggesting strong long‐term impact.

Agency Business Growth and Dependency

Q1 through Q3 consistently discussed robust agency growth via scaling relationships with both large holdcos and independent agencies. Q1 emphasized rapid scaling with agency holdcos and increasing direct revenue mix. " " " Q2 described expansion driven by social channel capabilities and highlighted working capital challenges due to longer payment cycles. " " " " Q3 further detailed growing direct revenue contributions and renewing key agency contracts. " " " "

Q4 focused on growth and profitability with agencies by noting that Zeta is the “most profitable partner” (driving a bundled data and activation strategy) and provided strong pipeline visibility owing to minimum commitment contracts. The discussion reinforced a consistent emphasis on increasing ARPU and direct channel adoption. " " " " " " "

Sustained strength with improved profitability: Consistent positive emphasis across periods with Q4 reiterating profitability and pipeline clarity; challenges (such as payment cycles) remain but are managed.

Organic Revenue Growth Guidance Shifts

Q1 signaled a focus on organic growth with a broad free cash flow range and emphasis on being a high‐quality organic grower. " Q2 showcased revenue guidance improvements (27% growth midpoint for 2024) and strong organic momentum. " " Q3 projected a conservative 17% organic growth (pro forma 21–22% when adjusted) amid a disciplined outlook. " "

In Q4, guidance was shifted upward for 2025 from an initial 17% to a 21% organic growth rate (excluding LiveIntent and political candidate contributions), reflecting stronger underlying demand and execution confidence. "

More optimistic outlook: The upward shift in guidance in Q4 reflects improved sentiment and confidence in organic growth, despite prior cautious estimates.

Customer Wallet Share Expansion and Cross-Selling

Q1 through Q3 consistently noted successful cross-selling, increased ARPU, and expansion into multiple channels. Q1 mentioned an increase in scaled customers using multiple channels and growth in super scale customers. " " Q2 emphasized a "land, expand, extend" model and year-over-year cross-sell improvements. " " " Q3 touched on opportunities with agency holdcos and cross-selling prospects with LiveIntent's client base. " "

Q4 emphasized continued wallet share expansion with scaled customers already spending significantly, and cited examples like a Fortune 500 retailer expanding use cases that more than doubled investment. The focus on consolidating use cases under the One Zeta initiative further boosted larger and more comprehensive deals. " "

Continued expansion and deepening relationships: The focus remains on cross-selling and growing wallet share, now with larger deals and clearer roadmap for deepening customer investments.

Mobile Product Adoption and Traction

Q1 discussed initial mobile platform launches with a planned production by mid‑2024 and potential to be the next $100 million business. " Q2 highlighted beta testing and early debut plans, with optimism on fast scaling relative to CTV. " Q3 noted rapid scaling, integration of AI into the mobile product, and significant early adoption by enterprise and agency clients. "

Q4 reiterated that mobile is poised to be a significant growth driver by 2025/2026. Despite starting from a near-zero base, multiple client adoptions and strong performance signals foreshadow a transformative impact on the business. "

High-growth potential emerging: Although previously in early development, mobile is now viewed as a key strategic pillar with accelerated adoption expectations and significant future revenue potential.

Sales Force Scaling and Hiring Challenges

Q1 highlighted a quality-over-quantity approach with a modest increase in quota carriers and challenges sourcing experienced talent. " " Q3 described a 20% year-over-year sales force growth and the integration impact of LiveIntent hires, with an emphasis on quality (balanced “hunters” and “farmers”). " " " Q2 had no specific mention.

Q4 continued the narrative of cautious yet focused expansion, referencing a planned 10–15% growth in quota carriers and continued high-quality hiring priorities to drive performance. "

Consistent focus on quality: While growth rates remain measured, the emphasis on quality hiring persists, with Q4 reinforcing improved efficiency and enhanced sales productivity expectations.

Working Capital and Payment Cycle Headwinds

Q1 underscored longer payment cycles from newer agency customers as a gating factor for free cash flow. " Q2 noted a $5 million headwind while confirming solid payment reliability from established clients despite slower cycles. " Q3 detailed a $10 million headwind resulting in lower free cash flow conversion, with a full-year impact noted as well. " " "

Q4 reported a heightened $22 million working capital headwind driven by agency growth and longer industry payment cycles, which significantly reduced free cash flow conversion (45% vs. a potential 76%). " "

Consistent challenge with increased impact: Payment cycle issues persist across periods—with Q4 evidencing a stronger negative cash flow impact—necessitating continued management attention.

Capital Allocation Priorities (Free Cash Flow Usage)

Q1 discussed a free cash flow guidance range ($75–85 million) and an emphasis on disciplined capital allocation amid investments. " Q2 mentioned improved free cash flow guidance (up to $85 million) and general confidence in cash conversion, despite timing variability. " " Q3 focused on ongoing free cash flow generation and discipline in pursuing opportunistic acquisitions while managing LiveIntent impacts. "

Q4 emphasized accelerated share repurchases ($31 million in the quarter) and a strategic decision to use at least 50% of free cash flow for buybacks, while remaining opportunistic for M&A within defined pillars. " "

Heightened shareholder return focus: There is a clear trend toward leveraging free cash flow for accelerated share buybacks, reflecting confidence in the company's cash generation and undervaluation conviction.

Key Vertical Market Performance Variability

Q1 highlighted variability with around half of the top 10 verticals growing over 30% year-over-year and underscored rapid rebounds in automotive and insurance. " " " Q2 noted strong performance in automotive and insurance with overall balanced growth among top verticals. " " Q3 described rapid growth in five of the top ten industries with insurance, tech/media, and consumer retail leading. "

Q4 provided further nuance by identifying seven of the top ten industries growing faster than 20% year-over-year, and detailed both strong performers (automotive, consumer/retail, insurance, technology, etc.) as well as underrepresented verticals (CPG, healthcare, commerce, travel) with expansion plans. " " " "

Broad-based strength with expansion focus: Markets remain variable but overall robust; Q4 extends the narrative with plans to penetrate underrepresented sectors, suggestive of long-term growth opportunities.

Margin Pressure and EBITDA Expansion Challenges

Q1 described margin pressure due to a lower direct revenue mix from integrated channels and noted modest EBITDA margin expansion driven by disciplined expense management. " " " Q2 acknowledged initial gross margin pressure from the agency business and social channel adoption while still achieving EBITDA margin expansion. " " " Q3 reported positive EBITDA improvements (with expanded margins and operational leverage) but without detailed discussion on margin challenges.

Q4 discussed targeted initiatives to reduce the cost of revenue (by 100–300 basis points) and cited ongoing efforts—in areas such as shifting to direct channels and scaling AI—to improve margins. There was clear acknowledgment of margin pressures while reiterating the plan to achieve substantial EBITDA margin improvement by 2028. " "

Persistent pressure offset by strategic initiatives: While margin pressure remains a concern due to channel mix and cost structure, deliberate actions are in place to drive consistent EBITDA expansion over time.