Zeta Global Holdings Corp (ZETA) just gave investors a lot to smile about. The AI marketing cloud company reported first-quarter results Thursday after the bell that blew past expectations, and the stock is already reacting.
Revenue came in at $396.30 million, handily beating the $370.40 million analysts were looking for. That's a 50% jump from the same quarter last year — not too shabby for a company that helps brands figure out who to market to and how.
Zeta also grew its base of so-called "super-scaled" customers — its biggest, most valuable clients — to 189, up 19% from a year ago. Those customers are spending an average of $1.70 million per year with Zeta.
CEO David Steinberg was clearly pumped. "Accelerating revenue growth to 50% and achieving the Rule of 67 in the first quarter is further evidence we are winning in this environment," he said in a statement. He credited the company's proprietary data, AI-powered platform, and ability to help customers consolidate vendors. The payoff for clients? An average 600% return on marketing spend, according to Zeta.
Looking ahead, Zeta expects second-quarter revenue between $419 million and $422 million, above the $415.51 million consensus. The company also raised its full-year guidance from a range of $1.75-$1.76 billion to $1.78-$1.79 billion, topping analyst estimates of $1.76 billion.
Shares of Zeta were up 5.27% in after-hours trading, changing hands at $19.39 at the time of writing. The market clearly likes what it sees.
